MQ Market Updates - 03 March 2023

MQ Trader

Publish date: Fri, 03 Mar 2023, 05:00 PM

Property developer Yong Tai Bhd (YTB) posted a net profit of RM1.5 million for the second quarter (Q2) ended 31 December 2022 (FY23) as compared to a net loss of RM84.2 million in the same quarter a year ago. For the current quarter, the company's property development segment saw a strong improvement due to the contributions from improved sales of completed units and ongoing development projects. (NST)

Hong Leong Investment Bank Bhd (HLIB Research) remains positive on DRB Hicom Bhd's outlook on the sustainable automotive segment, leveraging on Proton Holdings Bhd, Honda, and Mitsubishi. For Proton, HLIB Research noted that the company had been achieving yearly sales growth since the restructuring exercise in 2017, driven by increasing demand for its models, especially for its new X-series SUVs. (NST)

Lembaga Tabung Angkatan Tentera's (LTAT) conditional voluntary takeover offer for the remaining shares or 40.58 per cent in Boustead Holdings Bhd (BHB) has fuelled interest in the stocks after it resumed trading today. At 9.45 am, Boustead stocks lead most active lists with a more than 30 per cent or a 20 sen jump to 85.5 sen compared to yesterday's 65.5 sen. About 71.31 million shares were transacted. (NST)

Hong Leong Investment Bank (HLIB) Research has maintained its “buy” rating on Sime Darby Bhd at RM2.28 with an unchanged target price (TP) of RM2.70 (based on 10% discount to SOP: RM2.99). In a note on Friday (March 3), the research house said it was positive with Sime Darby’s acquisition of Onsite Rental Group (Onsite), as Onsite will further complement and strengthen Sime Darby market position in Australia. (TheEdge)

PPB Group Bhd (PPB), a diversified conglomerate, expects the positive momentum to continue for all of its segments in 2023, supported by normalisation in economic activities, an increase in investments, higher tourism activities and an increase in labour supply which will drive domestic consumption. Managing director Lim Soon Huat said the consumer products segment performed well last year and is expected to improve amid the recovery of consumer spending post-pandemic. (TheStar)

Research firms expect Telekom Malaysia Bhd (TM)’s capital expenditure (capex) to remain elevated to drive its next stage of growth and fulfil the commitment under the government’s digitalisation agenda. MIDF Research said the company planned to continue investing in its capex, not only in its core business but also beyond the organic growth to ensure continuous improvement across all lines of business in the group. (TheEdge)

Proton Holdings Bhd’s vehicle sales rose 52% year-on-year to 14,033 units delivered in February. In a statement on Friday (March 3), the national carmaker said the sales volume was 20.1% higher than in January, while for the first two months of the year, the year-to-date volume swelled by 88% to 25,714 units. (TheEdge)

Air Asia X Bhd (AAX) has recommenced its flight services to Shanghai, China, with four weekly flights from Kuala Lumpur starting on March 2. The low-cost long-haul airline plans to increase the capacity and frequency of flight services to Shanghai similar to pre-pandemic frequency with 11 weekly flights by the second quarter of this year, along with the increasing demand and the easing of travel restrictions to China. (NST)

PublicInvest Research has derived a fair value of 92 sen based on a 23x PE multiple to its FY24F EPS of 4.0 sen for ACE Market-bound integrated circuit (IC) design services provider Oppstar Bhd. In an IPO note on Friday (March 3), the research house said that Oppstar has maintained a good working relationship with its customers over the years by delivering IC design services that meet their specifications and requirements on a timely basis. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 03 Mar 2023