MQ Market Updates - 01 March 2023

MQ Trader

Publish date: Wed, 01 Mar 2023, 05:16 PM

Public Bank Bhd, which posted a whopping net profit of RM1.71bil in the fourth quarter ended Dec 31, 2022 (4Q22), is expected to see positive earnings growth for financial year 2023 (FY23) amid downside risks. CGS-CIMB Research is projecting the bank’s net profit to rise 21.7% in FY23, driven by the absence of the prosperity tax and a healthy top-line expansion. (TheStar)

Sime Darby Property Bhd (SDP) has set a lower sales target of RM2.3 billion for FY2023 due to absence of normalisation in the labour situation, rising raw material prices, looming state elections and higher interest rates. SDP group managing director Datuk Azmir Merican said the property developer will closely monitor the market and be ready to take advantage as soon as there is recovery in headwinds. (TheEdge)

AirAsia parent Capital A Bhd posted a net profit of RM256 million for the fourth quarter through December 2022, its first quarter in the black since 2019. Revenue swelled 188 per cent to RM2.37 billion as Capital A's passenger volume nearly tripled, returning to 75 per cent of pre-Covid-19 volume on domestic routes and 49 pe rcent on international flights. (NST)

GDEX Bhd reported a net loss of RM6.01 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), compared to a net profit of RM5.91 million a year earlier, due to weaker earnings contributions from both its courier and logistic services segments. The group has been in the red since 1QFY2022. (TheEdge)

Berjaya Corp Bhd (BCorp) posted a net loss of RM41.2 million on revenue of RM4.6 billion in the first six months ended Dec 31 2022. For the second quarter, BCorp recorded a net loss of RM24.8 million against a net profit of RM101 million arising from the disposal of an associated company recorded in the previous year's corresponding quarter. (NST)

Magnum Bhd saw its net profit grow 82.9% to RM37.54 million in the fourth quarter ended Dec 31, 2022 (4QFY22), up from RM20.52 million a year ago, thanks to higher gaming sales. As a result, Magnum’s full-year earnings in FY22 shot up by 547 times to RM100.67 million compared with RM184,000 a year earlier. (TheEdge)

QL Resources Bhd's nine-month financial year 2022 (9MFY22) core net profit of RM273.5 million has exceeded expectations, said Affin Hwang Capital. The firm said this was on the back of stronger- than-expected pre-tax profit margins, particularly in the Integrated Livestock Farming (ILF), better selling prices and higher volume, together with higher-than-expected share of associates. (NST)

The inclusion of Pharmaniaga Bhd into Bursa Malaysia's Practice Note 17 of financially-distressed companies represents a wake up call for the pharmaceutical sector. It highlighted the need for urgent reforms particularly on the public sector's procurement of medicines, said the Galen Centre for Health and Social Policy. (NST)

Oriental Holdings Bhd sank into the red with a net loss of RM6.16 million for the fourth quarter ended Dec 31, 2022 (4QFY2022), against a net profit of RM95.32 million a year earlier, due to higher finance costs and tax expenses. It was also due to lower earnings from operating activities and lower share of profit of equity accounted associates, as well as foreign currency losses and fair value losses on equity instruments, the group said in a Bursa Malaysia filing. (TheEdge)

Despite high expectation of an earnings recovery as the country entered the endemic phase, 7-Eleven Malaysia Holdings Bhd saw its net profit shrink 91% in the fourth quarter ended Dec 31, 2022 (4QFY2022). Its net profit declined to RM2.65 million from RM29.4 million in 4QFY2021. Earnings per share fell to 0.24 sen from 2.61 sen. (TheEdge)

MAG Holdings Bhd (MHB) has maintained its growth momentum as net profit jumped by 28.1 per cent to RM8.6 million in its second quarter (Q2) ended December 31, 2022 (FY23), as compared to RM6.7 million in the same quarter last year. Revenue doubled to RM43.3 million in Q2 from RM14.6 million in Q2 FY22. The higher net profit recorded was mainly due to the higher revenue during the quarter. (NST)

MIDF Research has maintained its ‘buy’ call on Deleum Bhd and increased its target price (TP) after the group’s net profit improved 30.52% to RM13.77 million in the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM10.55 million in the same period a year ago. Deleum's TP was revised to RM1.22 per share from 98 sen previously, pegging it at a price-earnings ratio (PER) of 8.5 times to the revised earnings per share of 14.4 sen. (TheEdge)

Icon Offshore Bhd dropped 25% during active trade on Wednesday morning (March 1) despite posting record quarterly and full-year net profits for the financial year ended Dec 31, 2022 (FY2022), boosted by a RM196.35 million net gain from the disposal of a sole jack-up rig. At 10.10am, the counter was Bursa Malaysia's most actively traded stock, with 166.67 million shares traded thus far, while its share price had fallen by three sen or 25% to nine sen. (TheEdge)

WCT Holdings Bhd's construction order book of RM3.5 billion is near a decade low of RM3.1 billion recorded in 2014, said Hong Leong Investment Bank Bhd (HLIB). HLIB said with 42 per cent to be executed this year, WCT had set a target of RM3 billion contract wins in financial year 2023 against a tenderbook of RM9.0 billion, having finished FY22 empty handed from its initial target of RM1.0 billion. (NST)

Cahya Mata Sarawak Bhd is the prime beneficiary of the expected projects that will be rolled out in Sarawak as part of the government’s commitment to develop Sabah and Sarawak. With that, its prospects appear positive as there is a RM12bil allocation for developmental projects for the state under the recently announced Budget2023. (TheStar)

EP Manufacturing Bhd (EPMB) remains cautious and expects the automotive sector to continue to be challenging in 2023. The group, in a filing with Bursa Malaysia, said it would focus on new market opportunities which is expected to contribute positively to the results of the group in 2023. (TheStar)

Malaysia Airports Holdings Bhd (MAHB) saw investor buying interest after it reported a return to profitability after 11 consecutive quarters of losses. At 9.20am, the airport operator was up 11 sen or 1.62% at RM6.90 a share on the back of 300,400 shares exchanging hands. (TheStar)

T7 Global Bhd has appointed Datuk Seri Rahim Ismail as independent non-executive director, effective March 1, 2023. In a statement, the energy solutions provider said Rahim has nearly four decades of experience in the oil and gas industry. (TheStar)

Trading of Top Builders Capital Bhd’s shares will continue to be suspended on Bursa Malaysia, as the group failed to file its quarterly report for its second quarter ended Dec 31, 2022 (2QFY2023) by Feb 28 as required under the Main Market Listing Requirements. Earlier on Feb 23, the Practice Note 17 (PN17) company had stated that the delay in releasing its 2QFY2023 report was because its audited financial statements for financial year ended June 30, 2022 (FY2022) and the unaudited quarterly report for first quarter ended Sept 30, 2022 (1QFY2023) were pending finalisation. (TheEdge)

Trading of Reach Energy Bhd's securities was halted from 9am to 10am on Wednesday (March 1), after the oil and gas exploration and production company's net loss ballooned to RM238.92 million for the fourth quarter ended Dec 31, 2022 (4QFY2022). On Tuesday, the group reported a wider net loss compared with RM63.68 million posted for 4QFY2021, due to higher operating expenses of RM220.53 million arising from an increase in the impairment of non-financial assets to RM130.20 million. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 01 Mar 2023