MQ Market Updates - 23 May 2023

MQ Trader

Publish date: Tue, 23 May 2023, 05:21 PM

The initial public offering (IPO) of ACE Market-bound Synergy House Bhd, which issued 25 million shares to the Malaysian public, was 14.02 times oversubscribed. The cross-border e-commerce seller and furniture design company said in a filing with Bursa Malaysia yesterday that it received a total of 12,347 applications from Malaysians for 375.42 million IPO shares valued at RM161.43 million. (NST)

Deleum Bhd, an oil and gas services provider, has appointed former president and chief executive officer (CEO) of Petroliam Nasional Bhd (Petronas), Tan Sri Shamsul Azhar Abbas, as its chairman effective June 1. In a statement today, Deleum said Shamsul Azhar would succeed Datuk Izham Mahmud, who would remain in the company as a director. (TheStar)

Redtone Digital Bhd will be transferred to the Main Market of Bursa Malaysia from the ACE Market on May 24. Bursa Malaysia said in a statement the stock’s short name Redtone and stock number of 0032 will remain unchanged. Redtone closed one sen, or 1.75% lower, at 56 sen with 629,800 shares being traded yesterday. (TheStar)

MISC Bhd’s wholly owned subsidiary Gas Asia Terminal (L) Pte Ltd (GATL) has entered into an agreement with Regas Terminal (Sg Udang) Sdn Bhd (RGTSU) for a one-off prepayment of US$233.6 million as early settlement of the capex hire fees payable for the remaining charter period of its two floating storage units at LNG Regas Terminal Sungai Udang in Melaka. In a bourse statement on Tuesday (May 23), MISC said the amount will be paid fully in cash, and the FSUs will continue to be employed by RGTSU until August 2032 as agreed upon. (TheEdge)

Petronas Gas Bhd will make a one-off cash settlement of US$233.6mil (RM1.07bil) for the prepayment of remaining capex hire fees under the time charter parties of two floating storage units (FSU) at LNG Regasification Terminal Sungai Udang.In a filing with Bursa Malaysia, PETRONAS Gas said its wholly-owned subsidiary, Regas Terminal (Sg Udang) Sdn Bhd came into agreement with MISC Bhd's Gas Asia Terminal (L) Pte Ltd for the early settlement of the residual contract value payable for FSU Tenaga Satu and FSU Tenaga Empat. (TheStar)

AirAsia X Bhd (AAX) is placing out 32 million new shares to AHAM Asset Management, AIIMAN Asset Management and Lavin Group for RM50mil.In a filing with Bursa Malaysia, AAX said the proposed placement, which represents 7.78% of the total number of issued AAX shares, will allow it to raise funds expeditiously to fund the working capital requirements of the group. (TheStar)

Pharmaniaga Bhd shares rose as much as four sen or 11.43% to 39 sen in the early trading session on Tuesday (May 23) after a report of investment intentions, including that from BP Healthcare Group, in the financially troubled company. At the time of writing, some 13.81 million shares changed hands, more than triple the average daily volume of 4.18 million. At 39 sen, market capitalisation was RM504.4 million. (TheEdge)

Duopharma Biotech Bhd's prospects are expected to remain bright following a strong performance in the first quarter of 2023, as resilient patient footfall in the public and private hospital segments drove higher prescription pharmaceutical product sales. In a company update, investment research firm RHB Research said Duopharma made a strong start to its financial year by booking a first quarter core profit of RM28.3mil, which made up 30% and 29% of its and consensus full-year expectations. (TheStar)

Sunway Construction Group Bhd (SunCon) expects its precast segment to contribute more to the group’s financials in the near future. In a filing with Bursa Malaysia yesterday, the construction company said it was cautiously optimistic of registering positive growth for the financial year ending 2023, based on its existing order book. (TheStar)

Lagenda Properties Bhd foresees its top line and bottom line improving towards the later part of the year, thanks to acceleration in the construction progress of its township developments. In a filing with Bursa Malaysia, the property developer said it expects increased construction activities later this year, particularly in two of its townships, one in Kedah and the other in Perak.

Petronas Dagangan Bhd (PetDag) remains cautiously optimistic about its prospects for the current financial year and will continue to strengthen its core and business growth. In a filing with Bursa Malaysia, the company said it will leverage its digital platform with the aim to provide a superior value proposition to customers. (TheStar)

QL Resources Bhd will have a resilient outlook in the fiscal year 2024 (FY24), according to Maybank Investment Bank (Maybank IB). The investment bank said that the growth for the company will be aided by continued expansion in its marine product manufacturing (MPM) and integrated livestock farming (ILF) divisions. (NST)

Analysts remain upbeat on Cahya Mata Sarawak Bhd (CMSB)'s performance for the rest of the year, despite first quarter earnings falling short of expectations. MIDF Research maintains their “buy” call on CMSB, with a revised target-price (TP) of RM1.50 (previously RM1.55). (TheEdge)

TSH Resources Bhd's core earnings in the first quarter (Q1) of fiscal year 2023 (FY23) was in line with forecasts, according to Public Investment Bank (PublicInvest) Research. The research house said the weak results were in line with its and the consensus full-year expectations, accounting for 22.6 per cent and 23.4 per cent respectively. (NST)

Kelington Group Bhd (KGB) is expected to see good earnings visibility, going forward, underpinned by its robust order book and tender book. Kenanga Research said the group’s strong outstanding order book of RM1.8bil will keep the group busy into its financial year ending Dec 31, 2024. (TheStar)

Source: New Straits Times, The Edge Markets, The Star 23 May 2023