MQ Market Updates - 18 May 2023

MQ Trader

Publish date: Thu, 18 May 2023, 05:48 PM

Cloudpoint Technology Bhd, which is en-route to Bursa Malaysia's ACE Market, announced that its initial price offering (IPO) was oversubscribed by 112.94 times by the Malaysian public. In a press statement, Tricor Investor & Issuing House Services Sdn Bhd (TIIH), representing Cloudpoint, said that a total of 36,608 applications for 3.03 billion new shares with a value of RM1.15 billion were received from the Malaysian public. For the Bumiputera portion, a total of 20,448 applications for 1.35 billion new shares were received, representing an oversubscription rate of 100.74 times.(TheEdge)

DRB-HICOM Bhd's subsidiary Composite Technology Research Malaysia Sdn Bhd (CTRM) has been awarded a new contract worth RM3.4 billion for the manufacturing and production of aero components for several level 1 vendors supplying to global aircraft manufacturer Airbus. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the contract would run from 2022 to 2030, with a cumulative value of RM6.64 billion until 2030, according to a report by Bernama. (NST)

Itmax System Bhd's (ISB) net profit increased 127.4 per cent to RM15.2 million for the first quarter (Q1) ending December 31, 2023 (FY23). Revenue for the quarter rose 80.1 per cent to RM34.7 million. The strong financial performance was mainly attributed to substantial improvements in the video surveillance and analytics services segment, contributing 78.2 per cent to the Q1 revenue. (NST)

NextGreen Global Bhd, a pulp and paper manufacturer, is developing a special area plan in Gua Musang, together with Perbadanan Menteri Besar Kelantan (PMBK). The plan includes the development of a collection and processing centre of oil palm biomass on 1,260 hectares. It is expected to be completed in phases over 10 to 15 years. (NST)

SP Setia Bhd's first quarter ended March 31, 2023 (1Q23) core net income of RM50.5 million has come in slightly below expectations, making up 17 per cent of MIDF Research's and consensus full-year estimates. MIDF Research said the negative deviation could be mainly attributed to the higher than expected tax rate in 1Q23. (NST)

Affin Hwang Investment Bank Bhd has cut Samaiden Group Bhd's core earnings per share (EPS) by 34 per cent in the financial year 2023 estimate (FY23E) due to lower-than-expected progress billings and slower replenishment of its order book. The research firm noted that Samaiden's three Large Scale Solar 4 (LSS4) engineering, procurement, construction, and commissioning (EPCC) projects are still in the early phases of construction. (NST)

Kobay Technology Berhad's outlook remains challenging, according to Hong Leong Investment Bank (HLIB Research), based on the fact that the company's profits fell short of forecasts. Its nine-month core net profit for the fiscal year 2023 (9MFY23) of RM29 million, a decrease of 26 per cent year-over-year (y-o-y) was a disappointment due to the manufacturing division's underperformance, which was influenced by two new projects that are in the incubation stage. (NST)

Kenanga Research has cut its financial year 2023 forecast (FY23F) and FY24F earnings for SDS Group Bhd by 12 per cent and 11 per cent respectively. The research firm said this is to reflect higher operating cost, particularly, staff cost according to the recent amendment to Employment Act that reduces the maximum weekly working hours to 45 from 48 and utility cost. (NST)

Shares of AHB Holdings Bhd jumped as much as more than 10 per cent yesterday following the appointment of Tunku Kamariah Aminah Maimunah Iskandariah Sultan Iskandar, a member of the Johor royal family as its new chairman. Tunku Kamariah's appointment came a few days after AHB saw the emergence of a new substantial shareholder. (NST)

Berjaya Corp Bhd (BCorp), through unit Berjaya Land Bhd (BLand), is eyeing Kuala Lumpur-Singapore high speed rail (HSR) project and other railway-related projects. The group intends to submit a bid for the HSR project particularly when the tender is open. It is understood that the Tan Sri Vincent Tan-led group may also consider the potential of railway development in markets where it already operates. (NST)

Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) aims to capture opportunities in the domestic and international markets as well as those in the renewable energy and decarbonisation sectors to sustain and grow its order book. “The rapid growth of renewable energy and decarbonisation efforts driving global energy transition could present the group with new business opportunities,” MMHE said in a Bursa filing. (TheStar)

Boustead Heavy Industries Corp Bhd (BHIC) has secured two contracts worth a total of RM140mil from the Defence Ministry. In a Bursa filing, BHIC said its wholly owned subsidiary, BHIC Submarine Engineering Services Sdn Bhd (BSES) was awarded a contract for the interim in-service support for the Royal Malaysian Navy Prime Minister’s Class Submarines at a contract value of RM99.8mil. (TheStar)

CGS-CIMB Research believes that greater clarity on the country’s 5G rollout plans will allow the telecommunications sector to better gauge its future capital expenditure and cost profiles, picking Telekom Malaysia Bhd (TM) as their top-pick with a changed target price (TP) of RM6.80. In early May, Malaysia’s Ministry of Communications and Multimedia announced that it would allow a second 5G network to provide services once the owner of the first network — Digital National Bhd — hits 80% population coverage, essentially pushing Malaysia to a dual wholesale network (DWN) model.(TheEdge)

Mercury Securities Sdn Bhd has set a target price (TP) of 95 sen for Main-Market bound DXN Holdings Bhd — representing a potential return of 35.7% over its initial public offering (IPO) price of 70 sen — with a “subscribe” recommendation. “We like the stock for its global market presence and established integrated supply chain equipped for an attractive expansion plan, well-positioned to leverage on the growth of the global market size of health and wellness product which is estimated by Frost & Sullivan to grow at [a] CAGR [compound annual growth rate] of 10.1% from 2022 to 2026,” it said in a note on Wednesday (May 17). (TheEdge)

Qew Group Bhd (QGB) has formed a strategic partnership with Bina Darulaman Bhd (BDB) to organise various side events for the upcoming Langkawi International Maritime and Aerospace Exhibition (Lima) 2023.In a statement on Thursday (May 18), QGB said its subsidiaries will also be organising several events in conjunction with Lima 2023, including business forums, business matching sessions and the signing of memoranda of understanding (MOUs).(TheEdge)

AEON Co (M) Bhd announced changes to the board on Wednesday (May 17) with two new appointments and three retirements. In a filing with Bursa Malaysia, the department store and supermarket operator said it has appointed Datuk Merina Abu Tahir, 57, and Jenifer Thien Bit Leong, 55, as the group’s new independent and non-executive directors, effective Wednesday.(TheEdge)

PPB Group Bhd has announced the retirement of its non-independent and non-executive chairman Tan Sri Oh Siew Nam, effective Wednesday (May 17). Oh, 84, has been on the company’s board as non-independent and non-executive chairman since March 2016, according to the diversified conglomerate’s filing on local bourse.(TheEdge)

LYC Healthcare Bhd proposed a 10% private placement of its total issued shares to raise RM14.3 million for the group’s working capital. Twelve months prior to this, LYC had executed a private placement up to 30% in March 2022 to raise gross proceeds of RM23.38 million, which was utilized for the partial redemption of the outstanding redeemable non-cumulative preference shares (RPS), business expansion and working capital.(TheEdge)

Southern Steel Bhd’s net profit for the third quarter ended March 31, 2023 (3QFY2023) fell 47.12% to RM1.66 million from RM3.14 million a year ago, dragged by lower selling prices. Earnings per share dropped to 0.28 sen, from 0.53 sen per share a year ago. Quarterly revenue, however, increased by 10.31% to RM652.06 million, from RM591.12 million a year before, supported by higher sales volume, the steel company’s bourse filing showed. (TheEdge)

Information and communications technology (ICT) distributor VSTECS Bhd’s net profit increased 24.95% to RM14.85 million in the first quarter ended March 31, 2023 (1QFY2023) from RM11.88 million posted a year ago. Quarterly revenue grew 3.25% to RM664.74 million in 1QFY2023 from RM643.76 million a year ago, its bourse filing showed. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 18 May 2023