MQ Market Updates - 08 May 2023

MQ Trader

Publish date: Mon, 08 May 2023, 05:25 PM

Hartalega Holdings Bhd will be decommissioning its Bestari Jaya facility and consolidating operations at its Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang as it embarks on a rationalisation plan. The glove maker said the exercise is expected to incur an impairment loss of RM347mil in FY23, and a further provision for retrenchment costs and contract obligation expenses amounting to about RM70mil in FY24. (TheStar)

Sime Darby Property Bhd and LOGOS SE Asia Pte Ltd's joint venture - SDPLOG - has signed J&T Distribution Solutions Sdn Bhd (J&T) as its first tenant for Metrohub 2, within the E-Metro Logistics Park in Bandar Bukit Raja, Klang, Selangor. J&T and SDPLOG entered into a lease arrangement for J&T to occupy roughly 21 per cent of the property, with an option to increase that to 23 per cent. (NST)

Power Root Bhd has inked a memorandum of understanding (MOU) with Saudi Arabian distributor Abbar & Sons Food Co Ltd (Abbar Foods) to distribute its powdered Alicafe and Alitea beverages throughout Saudi Arabia. Established in 1955, Abbar Foods has built a strong reputation by distributing a wide range of consumer products, including international and domestic brand beverages, bakery and confectionery products, dairy products, spices, sauces and confectionery. (TheEdge)

Loss-making courier outfit Pos Malaysia Bhd said it has opened its first convenience store Pos Shop along Jalan Tuanku Abdul Rahman here, as part of its strategic transformation journey. The group, which operated 541 post offices and over 200 more Pos Laju and mini branches as at last year, said in a statement that the convenience store is “leveraging on its unrivalled reach and retail footprint”. (TheEdge)

Data centre arm of TIME dotCom Bhd, AIMS Group will construct AIMS Cyberjaya Block 2 to meet the overwhelming demand for data centre space in Malaysia. This is also in line with AIMS’ plan to accelerate the expansion of its data centre business across Asia, AIMS said in a statement on Monday (May 8), adding that the group will collaborate with Gamuda Engineering Sdn Bhd, a wholly-owned subsidiary of Gamuda Bhd, for the construction. (TheEdge)

Eversendai Corp Bhd's independent auditor has expressed concerns about the loss-making construction group's capacity to continue as a going concern in its audited financial statements for the year ended Dec 31, 2022 (FY2022). Messrs Baker Tilly Monteiro Heng PLT highlighted that Eversendai had incurred a net loss of RM366.86 million and that its current liabilities had exceeded its current assets by RM168.33 million. (NST)

Measat Global Bhd has deployed a portable communications-on-the-pause (COTP) service for Mont Aero Sdn Bhd (MASB), a technology solutions company specialising in the oil and gas and maritime industries. The portable COTP service is a quick-to-deploy mobile satellite broadband solution that enables users to utilise high-speed broadband where broadband coverage is lacking. (NST)

Globetronics Technology Bhd's (GTB) prospects for the financial year 2023 (FY23) are anticipated to remain challenging, according to Maybank Investment Bank (Maybank IB) Research. The investment bank said that the ongoing end-demand uncertainties and margin pressure from rising overhead costs are to blame for this. (NST)

Ta Ann Holdings Bhd has secured approval from the Sarawak authorities to renew the licence of all its timber concessions for 30 years until 2053. The group’s timber concessions have been consolidated and amalgamated into three forest management units (FMUs) in the Song-Kapit region in central Sarawak, covering a total of 346,021 ha, according to executive chairman Datuk Amar Abdul Hamed Sepawi. (TheStar)

Maybank Investment Bank (Maybank IB) Research has a neutral opinion of the prospects of Westports Holdings Bhd as it waits for the new concession to be finalised. The investment bank said that fund-raising efforts for Westports 2.0 are anticipated to begin about a year after the concession is finalised, which may occur as early as the second half of 2023 (2H23). (NST)

TA Securities Research has lowered its earnings forecast for Fraser & Neave Holdings Bhd (F&N) for the financial year ending Sept 30, 2023 (FY2023) by 1.8%, followed by a 0.8% cut for FY2024, and another 1.8% for FY2025, due to higher commodity prices and financing costs. The research house forecast a FY2023 net profit of RM426.7 million on revenue of RM4.76 billion for F&N. For FY2024, net profit is estimated at RM455.1 million, with revenue at RM4.92 billion. (TheEdge)

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