MQ Market Updates - 08 February 2023

MQ Trader

Publish date: Wed, 08 Feb 2023, 05:30 PM

Sarawak Consolidated Industries Bhd (SCIB) has signed a memorandum of understanding (MoU) with Bintai Kinden Corp Bhd to explore business opportunities and share profits. SCIB group managing director Rosland Othman said the joint venture (JV) allowed both parties to leverage each other's strengths and expertise. Rosland said SCIB's manufacturing arm, the leading precast concrete and Industrialised Building System products manufacturer in East Malaysia, was already supporting Bintai Kinden's construction arm nationwide. (NST)

Capital A Bhd, the parent company of AirAsia, has expressed interest to operate in Sultan Abdul Aziz Shah Airport (LTSAAS) in Subang soon with a new type of passengers targeted at the airport, in line with the recent proposed Subang Airport Regeneration Plan (SARP) announcement. Chief executive officer (CEO) Tony Fernandes said AirAsia Aviation Group has applied for certain numbers of flights to be in LTSAAS and the target passengers would be different, considering the growth of the group. (TheStar)

UEM Sunrise Bhd’s plan to buy a freehold land situated near the Kuala Lumpur Convention Centre (KLCC) has fallen through after conditions precedent under the sale and purchase agreement (SPA) were not fulfilled within the conditional period, which expired on Tuesday (Feb 7). Shares and structured warrants of the property developer were then halted from 9am to 10am on Wednesday’s trading session, Bursa Malaysia announced. (TheEdge)

Aemulus Holdings Bhd recorded a net loss of RM4.77 million in its first quarter (Q1) ended Dec 31, 2022 (FY23) from a net profit of RM4.53 million a year ago. Revenue for the quarter was down 47 per cent year-on-year (YoY) to RM9.85 million from RM18.58 million in Q1 FY2022. This was due to cautious capital expenditure spending from customers which saw a slowdown in semiconductor industry and deferment of delivery due to slowdown in customers' expansion pace. (NST)

MyEG Services Bhd is the most traded counter for the second day in a row, with its share price recovering on Wednesday (Feb 8), after falling to a 26-month low on Tuesday. About 80.32 million shares changed hands in morning trade, while its price rose 4.3% or three sen to 73 sen. On Tuesday, MyEG fell 26.7% to 70 sen, its lowest share price since November 2020, following news reports that all immigration services and processes will revert to the Immigration Department by 2025, including those being managed by third parties such as MyEG. (TheEdge)

Cypark Resources Bhd was among the top gainers on Bursa Malaysia in the morning trading session on Wednesday (Feb 8), rising by as much as 15 sen or 14.6% to RM1.18 a share, after the Social Security Organisation (Perkeso) emerged as a substantial shareholder. Just before the noon break, the counter pared some of its gains to settle at RM1.16, still up 13 sen or 12.6% higher. About 34.62 million shares changed hands. (TheEdge)

The prospects for Solarvest Holdings Bhd are bright, as the company is in a sweet spot to take advantage of various business projects. Analysts expect the company to generate stronger revenue and earnings going forward despite downside risks. Most are upbeat that not only the company’s maiden large-scale solar four (LSS4) project would be a growth driver to earnings, but also the potential of its electric vehicle (EV) infrastructure business would further fuel growth, among others. (TheStar)

Mercury Securities Sdn Bhd estimates Sunview Group Bhd to record a stronger second half (2H) for the financial year 2023 (FY23) on the back of higher revenue recognition from its existing order book and improved margins due to declining raw material costs. The company recently accepted the RM122 million letter of award (LoA) to undertake the engineering, procurement, construction and commissioning (EPCC) of a solar energy facility to develop Nextenaga's Badong large-scale solar photovoltaic in Selangor which will improve its earnings visibility going forward. (NST)

RHB Research views that the job pipeline related to the Seri Tanjung Pinang Phases 2B and 2C (STP2) development at Tanjung Tokong, Penang, clinched by Kerjaya Prospek Group Bhd on Tuesday is robust. It said the jobs have RM2 billion worth of projects to be executed in the next five to seven years. (NST)

Hong Leong Investment Bank (HLIB) Research has lowered its earnings forecasts for Hartalega Holdings Bhd for financial year 2023 (FY23), FY24 and FY25 to RM108.2 million, -RM74.3 million and RM124.2 million to take into account the higher costs that are expected to come in coming months. The firm noted Hartalega's third quarter (Q3) FY23 core lossesI of RM25.1 million which pushed its nine-month earnings to RM133.3m was below its estimated 62 per cent. It however was above consensus' estimates at 84 per cent. (NST)

Source: New Straits Times, The Edge Markets, The Star 08 Feb 2023