MQ Market Updates - 10 May 2023

MQ Trader

Publish date: Wed, 10 May 2023, 05:24 PM

Practice Note 17 (PN17) company Khee San Bhd has announced its regularisation plan, which includes share capital reduction, issuance of renounceable rights shares with free warrants and a scheme of arrangement with its creditors. In a bourse filing on Tuesday (May 9), the candies and sweets manufacturer said the share capital reduction entails the cancellation of RM100.97 million of its issued share capital to set off its accumulated losses. (TheEdge)

Sand Nisko Capital Bhd shed as much as 20.24% or 8.5 sen to 33.5 sen a share on Wednesday (May 10), after announcing that its unit had entered into a heads of agreement (HOA) with another company for a mixed-use development in Melaka. At 2.20pm, the property developer and furniture maker's stock had recovered slightly to 34 sen, down eight sen or 19.05% from its closing price of 42 sen on Tuesday. This gave the company a market capitalisation of RM84.86 million. (TheEdge)

Panasonic Manufacturing Malaysia Bhd (PMM) is anticipated to achieve tepid profitability due to the low plant utilisation brought on by the discontinuation of kitchen appliances and greater sunk costs as a result of surplus personnel on hand. Some kitchen appliances and rice cooker models were discontinued starting in the second half of the calendar year 2022 (2HCY22) as a result of the Panasonic group's reorganisation of its global production. (NST)

Axiata Group Bhd plans to accelerate value creation through its two Indonesian operating companies (OpCos), XL Axiata and Link Net. The diversified telecommunications and digital conglomerate is confident that delayering its Indonesian assets would spawn a unique value illumination and would provide investors with separate and segmented access to Indonesia’s fixed mobile convergence (FMC) and fixed broadband (FBB) markets. (TheStar)

Matrix Concepts Holdings Bhd has inked a strategic cooperation agreement with one of the world's largest fast-food chains, McDonald's, which has chosen Bandar Sri Sendayan (BSS) as the location for its newest outlet. McDonald's is set to open a new restaurant in Sendayan Merchant Square, complete with both dine-in and drive-through facilities. (NST)

Velesto Energy Bhd is anticipated to perform better this fiscal year 2023 (FY23), thanks to improved jack-up drilling rig utilisation rates and daily charter prices. According to Hong Leong Investment Bank Research (HLIB Research), Velesto is expected to become profitable in FY23/FY24. In light of the current climate of high crude oil prices, the firm anticipates a pick-up in Valesto's drilling rig tenders this year, leading to increased activity in the sector. (NST)

Hartalega Holdings Bhd's operating environment is predicted to continue difficult, given the sluggish worldwide demand brought on by the market's surplus supply, said Public Investment Bank Bhd (PublicInvest). The decision by Hartalega to reduce its manufacturing capacity by 30 per cent will be advantageous in the short term, according to the firm. "This is in terms of lowering cost and improving production efficiency. (NST)

TWL Holdings Bhd has signed a memorandum of agreement (MoA) with Mohamad Shohor Mahamud and Wan Abdul Halim Abdul Majid to acquire a 60 per cent interest in two notable entities. The two entities were namely Urban Masterpiece (KMN) Sdn Bhd (UMSB) and Dunia Sejahtera Sdn Bhd (DSSB). (NST)

Lotte Chemical Titan Holding Bhd’s (LCT) unit Lotte Chemical Titan (M) Sdn Bhd has signed a non-legally binding memorandum of understanding (MOU) with British biotech company Polymateria Ltd to commercialise "Resin+", a biodegradeable resin. The five-year partnership, which LCT’s subsidiary entered into on Wednesday (May 10), is part of the group’s corporate vision to manage climate change issues, minimise the environmental impact of its business operations, and provide sustainable solutions for customers, said LCT president and chief executive officer Park Hyun Chul on the sidelines of the MOU signing ceremony. (TheEdge)

Petronas Dagangan Bhd (PetDag) will continue to embark on an aggressive expansion of its convenience business, even though profit for the segment dropped markedly year-on-year (y-o-y) in the financial year ended Dec 31, 2022 (FY2022). At a press conference after PetDag's annual general meeting on Wednesday (May 10), managing director and chief executive officer Azrul Osman Rani said the decrease was only to be expected, given that the convenience segment was still in the early stages of development. (TheEdge)

Tomei Consolidated Bhd's wholly-owned precious metals arm, YX Precious Metals Bhd (YXPM) sees gold prices to be around US$1,900-US$2,001 per ounce by year-end, with the global financial market and geopolitical challenges continuing to be the key drivers influencing the price. The price of physical gold stood at US$2,000.95 per troy ounce, according to the London Bullion Market Association’s afternoon fix on May 5, 2023. (TheStar)

Hong Leong Investment Bank Research (HLIB Research) maintains its optimism over Carlsberg Brewery Malaysia Bhd due to its resilient beer sales volume. Despite the difficulties brought on by inflation and the slowdown in the economy, HLIB Research said that the company's profitability will be supported by the continued recovery in tourist arrivals and a projected decline in the illicit market share. (NST)

Telekom Malaysia Bhd (TM) has launched its new headquarters and campus in Cyberjaya today, further complementing its transformation journey towards becoming a human-centred TechCo. Group chief executive officer Datuk Imri Mokhtar said the new campus is a testament to the company's commitment to propel innovation among its employees, customers and partners. (NST)

Source: New Straits Times, The Edge Markets, The Star 10 May 2023