MQ Market Updates - 24 May 2023

MQ Trader

Publish date: Wed, 24 May 2023, 05:35 PM

Malayan Banking Bhd's (Maybank) net profit for the first quarter ended March 31, 2023, rose 10.7 per cent to RM2.27 billion from RM2.05 billion a year ago, underpinned by continued improvement in asset quality, treasury and market gains that supported the group's net operating income. The bank's revenue for the quarter rose 29.4 per cent to RM14.78 billion versus RM11.42 billion previously. (NST)

Hibiscus Petroleum Bhd’s net profit for the third quarter ended March 31, 2023 (3Q 2023), increased to RM71.51 million compared to the "normalised” net profit of RM35.1 million recorded in the same quarter last year. The "normalised” net profit in 3Q 2022 arrived after removing one-off non-operational adjustments which consisted of negative goodwill amounting to RM317.3 million and impairment of intangible assets of RM44.9 million, the group said in a statement today. (TheStar)

Property developer Matrix Concepts Holdings Bhd registered a net profit of RM56.56 million for its fourth quarter (Q4) ended March 31, 2023 (FY23) from RM61.08 million in Q4 FY22, effectively overcoming industry challenges of labour shortage and higher building material costs. Revenue rose by 20.5 per cent to RM302.2 million from RM250.8 million, mainly attributed to the company's higher revenue contribution from its townships. (NST)

Redtone Digital Bhd has transferred its entire issued share capital from the ACE Market to the Main Market of Bursa Malaysia Securities Bhd. The integrated telecommunications and digital infrastructure services to the Malaysian government and enterprises saw its share price open at 61 sen this morning. (TheStar)

MISC Bhd's net profit for the first quarter ended March 31, 2023 (1Q) jumped to RM612.9 million from RM376.4 million registered in the same quarter a year ago. Revenue for the quarter under review improved to RM3.08 billion from RM2.87 billion. (TheStar)

The normalisation of container freight rates is taking a bite out of total logistics service provider FM Global Logistics Holdings Bhd's profits, as seen in its latest results for its third financial quarter ended March 31, 2023 (3QFY2023). The group saw its net profit for the quarter fall 9.5% to RM10.78 million from RM11.91 million a year earlier on lower revenue. As a result, earnings per share was lower at 1.93 sen in 3QFY2023 compared with 2.13 sen in 3QFY2022 (TheEdge).

Affin Bank Bhd sees a positive development towards realising the aspirations of its A25 strategic plan following the sale of a 4.95% stake in the bank by the Armed Forces Fund Board (LTAT) to the State Financial Secretary Sarawak.Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah said the bank regarded the Sarawak government’s purchase of a stake in the bank as a positive endorsement of its transformation plan. (TheStar)

UOA Development Bhd’s strong pipeline of property launches for this year is expected to see the property developer raking in commendable sales for the remaining quarters. Property developers of late are turning positive with more new launches in the pipeline this year, especially the large-cap players, who are becoming more confident and aggressive with their projects. (TheStar)

Southern Cable Group Bhd is currently applying for UL certificates for several new products to target the US market to improve export sales.“The group is also in the process of formalising an agreement with a US-based customer to supply various power cables and wires,” the cable and wire manufacturer said in a filing with Bursa Malaysia. (TheStar)

A dismal showing by Sports Toto Bhd, which charted sharply lower earnings in its recent quarter, failed to lift the outlook on the numbers forecast operator (NFO). The group's 3QFY23 core earnings plunged 77.5% year-on-year (y-o-y) to RM19.2mil on the back of 4.2% lower revenue of RM1.7bil, resulting from lower contribution from both its NFO and car franchising operations. (TheStar)

Leon Fuat Bhd is cautiously optimistic about the forecast for the fiscal year 2023 (FY23) and will continue to explore possibilities to diversify its products and services, as well as its client base, to ensure earnings sustainability. Executive director Calvin Ooi Shang How said the company positively views the recent announcement of Malaysia's better-than-expected 5.6 per cent year-on-year economic growth as this is a good indicator of the country's economic strength that the company would want to leverage on. (NST)

Sime Darby Bhd CEO Datuk Jeffri Salim Davidson said the group is confident the Asia Pacific region holds enormous potential for its motor and industrial divisions in the mid-to long-term. In a statement, Jeffri Salim said its acquisition of Onsite Rental Group, an Australian specialist equipment rental business, is key in providing diversification to its industrial rental equipment offerings across a broad range of industries in the Australian market. (TheStar)

CelcomDigi Bhd said it plans to reinvest 15% to 18% of total revenue in capex to support both existing networks and the new modernised integrated network. The telco said it had started pilot network integration efforts in select clusters and full-speed network integration will commence from the second quarter of 2023 onwards. (TheStar)

JF Technology Bhd (JF Tech) expects the elevated market uncertainties to persist and continue to affect the global economy. In a filing with Bursa Malaysia, the company said global semiconductor revenue is anticipated to decline 11% in 2023.

PIE Industrial Bhd is set to deliver strong growth in the future, underpinned by its prospects of securing potential new clients in the server, medical device and consumer goods sectors. Kenanga Research in a report said this would be fuelled by steady orders from current clients, as well as Customers “A” and “N,” who are engaged in the production of household entertainment devices and ASIC-based equipment, respectively. (TheStar)

Petronas Dagangan Bhd (PetDag), which reported a two-fold profit jump in the first quarter ended March 31 (1Q23), is expected to see another good quarter. But its medium-term outlook could be clouded by potential fuel subsidy cuts, according to CGS-CIMB Research. (TheStar)

Duopharma Biotech Bhd is expected to have a solid year in 2023, driven by higher insulin contracts, new products and reinvestment allowance incentives. All of this is anticipated to help mitigate cost pressures from rising overnight policy rates, electricity tariffs and labour costs, said TA Research. (TheStar)

Analysts are mixed on Cahya Mata Sarawak Bhd’s latest first-quarter 2023 (1Q23) results, but continue to maintain a “buy” call on the stock given the group’s good prospects in securing state construction projects. Maybank Investment Bank (Maybank IB) Research describes Cahya Mata’s 1Q23 results as a positive surprise. (TheStar)

Sarawak Plantation Bhd's core earnings plummeted 65 per cent year on year (y-o-y) to RM9.2 million in the first quarter ended March 31, 2023 (1Q23), falling short of Public Investment Bank's (PublicInvest) and the street's estimates, making up only 13 per cent and 12 per cent, respectively. The investment bank has reduced its earnings expectation for the planter for fiscal year 2023-2025 (FY23-25F) by 16 to17 per cent. It has also revised down its fresh fruit bunches (FFB) production forecast and margin assumption, due to reduced palm kernel credit and crude palm oil (CPO) prices. (NST)

Kerjaya Prospek Group Bhd's core profit of RM29.3 million in the first quarter ended March 31, 2023 (1Q23) was 20 per cent of RHB Research's full-year expectation. RHB Research noted in a report today that the modest negative deviation was attributable in part to higher-than-expected administrative expenditures. (NST)

Source: New Straits Times, The Edge Markets, The Star 24 May 2023