MQ Market Updates - 25 May 2023

MQ Trader

Publish date: Thu, 25 May 2023, 05:17 PM

CelcomDigi Bhd's net profit for the first quarter ended March 31, 2023 (Q1FY23) came in below forecast due to higher-than-expected depreciation and amortisation costs (D&A), said Affin Hwang Capital Research. On a comparable basis, CelcomDigi's Q1FY23 earnings before interest, taxes, depreciation, and amortization (Ebitda) grew by three per cent year-on-year (y-o-y) to RM1.5 billion on the back of higher service revenue.

Malayan Banking Bhd's (Maybank) will maintain its solid liquidity position to support asset growth going forward and pursue growth opportunities in its consumer and business segments within its Asean franchise, despite the prevailing global challenges. The banking group said asset quality management remains a priority and the group will continue to monitor its loan portfolio and offer targeted support to customers, if needed. (NST)

Public Bank Bhd, which posted an improved set of results in the first quarter of its financial year, said it remained cognisant of the prevailing challenges and evolving landscape."The group will remain focused on cost discipline, preservation of sound asset quality and upholding strong corporate governance to safeguard its resilience against adversity. (TheStar)

Sime Darby Property Bhd is bullish about its prospects in 2023 given its diversified launch pipeline of RM3bil in gross development value, which will include residential high-rise and landed properties as well as industrial properties. Group managing director Datuk Azmir Merican said the group will deliver more than 4,000 units of vacant possession in 2023, as a result of its robust performance in recent years. (TheStar)

Hibiscus Petroleum Bhd remains committed to providing top performance in an environment with high oil prices, supported by its strong position to expand on its operational track record already established in Malaysia and the United Kingdom. The upstream oil company said its strong operational performance resulted in an average net production of 21,214 barrels of oil equivalent per day of oil, condensate and gas, beating production seen in all the previous quarters. (TheStar)

MUI Properties Bhd has appointed Datuk Leanne Goh as an independent and non executive director effective May 23. Goh built her career in the Star Media Group Bhd (SMG) and became the editor-in-chief in 2015. (TheStar)

Iris Corp Bhd was among the top active stocks on Bursa Malaysia on Thursday (May 25) morning trade, after it announced that the government had granted its wholly owned subsidiary a one-year extension for the National Integrated Immigration System (NIISe) project. At 10.35am, Iris Corp was the eighth most active counter on Bursa Malaysia, with 15.23 million shares changing hands — one-and-a-half times its 200-day average trading volume of 9.71 million shares. (TheEdge)

Bumi Armada Bhd’s net profit for the first quarter ended March 31, 2023 (1Q 2023) rose to RM201.01 million from RM185.76 million in the corresponding period last year.Its revenue for the quarter was higher at RM543.99 million from RM529.01 million a year ago, the oil and gas offshore oilfield services provider said in a filing with Bursa Malaysia today. (TheStar)

Lower contributions from its core operations of plantation and manufacturing have dragged Kuala Lumpur Kepong Bhd's (KLK) earnings in the second quarter (Q2) of financial year 2023.KLK said its net profit eased to RM231.5 million in Q2 2023, and RM714.3 million for the six-month period of the financial year ending Sept 30 2023. (NST)

Parkson Holdings Bhd shares rose 10% or 1.5 sen to 16.5 sen in early trade on Thursday (May 25) after the group returned into the black in the first quarter ended March 31, 2023 (1QFY2023). At the time of writing, some 29.57 million shares changed hands versus its average daily volume of just 1.49 million, making it the second most actively traded stock on Bursa Malaysia. At 16.5 sen, Parkson was valued at RM189.6 million, implying a gain of 22.22% year to date. (TheEdge)

Kejuruteraan Asastera Bhd has entered into a memorandum of understanding (MoU) with Universiti Tenaga Nasional to provide opportunities for the exchange of expertise, experience and skills. The electrical and mechanical engineering group said in a filing with Bursa Malaysia the MoU will be effective for a period of five years. (TheStar)

Kim Teck Cheong Consolidated Bhd (KTC) aims to move up a notch after its listing status is transferred from the ACE Market to the Main Market of Bursa Malaysia Securities. The Securities Commission Malaysia has approved the transfer of the company, which is involved in the distribution and warehousing of a variety of consumer packaged goods, including foods and beverages, personal care, cosmetics, over-the-counter drugs, health supplements, and household products. (NST)

Taliworks Corp Bhd expects steady contribution from water and solar segments, with a slight dip for its highways, going forward. Recognition from its construction segment is likely back loaded in financial year 2023 (FY23). (TheStar)

Mega First Corp Bhd is positive on its prospects and expects earnings to remain highly resilient given its strong business foundation, low leverage, high cash generation from existing renewable energy portfolio and prudent capital deployment strategy.It acknowledged headwinds towards the global economy coming from high interest rates and elevated cost environment and tightening credit conditions, could dampen economic activities and overall consumer spending. (TheStar)

Kerjaya Prospek Group Bhd’s venture into the industrial building segment is expected to drive the construction group’s earnings, moving forward. Through its partnership with Samsung C&T, Kerjaya Prospek’s move into industrial building could serve as a strategic buffer in the event that jobs from the property market face a slowdown. (TheStar)

Wah Seong Corp Bhd may see some positives in the medium term that should help bolster its performance. This include jobs that are being executed in the next two to three years and potentially new job wins, including those in the new energy segments. (TheStar)

Ta Ann Holdings Bhd expects the demand for both tropical logs and plywood to exceed supply, leading to expectation of stable timber prices.In a filing with Bursa Malaysia yesterday, the group explained this situation was due to a reduced supply base, combined with stringent environmental controls on log harvesting in the context of a post-Covid economic recovery in the region. (TheStar)

Malaysia continues to be the core market for Focus Point Holdings Bhd's optical business, said its president and chief executive officer Datuk Liaw Choon Liang. While expanding its optical business domestically, the optical retail chain store operator said it is planning to grow its food and beverages (F&B) segment overseas. (TheEdge)

Velesto Energy Bhd returned to profitability in the first quarter ended March 31, 2023 (1QFY2023) with a net profit of RM14.22 million or 0.17 sen per share, from a net loss of RM46.20 million or 0.56 sen per share a year ago. Its turnaround was in line with its revenue quadrupling to RM287.51 million from RM77.41 million in 1QFY2022, thanks to higher average jack-up rigs utilisation and higher average charter rates under its drilling services segment, as well as more progress for the i-RDC project under its integrated services segment during the quarter. (TheEdge)

SAM Engineering & Equipment (M) Bhd shares rose by as much as 27 sen or 6.8% to RM4.26 in Thursday (May 25) morning trade, as the company's results for the financial year ending March 31, 2023 (FY2023) improved and met analysts’ expectations. (TheEdge)

MISC Bhd says long-term charters for its liquefied natural gas (LNG) tankers and strong demand in the floating production storage and offloading (FPSO) market as well as steady charter rates for its oil tankers will overcome any weakness in the heavy engineering business. (TheStar)

Kenanga Research has downgraded Media Prima Bhd to “market perform” at 42 sen with a lower target price (TP) of 42 sen (from 57 sen) and said while partially offset by disposal gains, the group was hit by the weaker advertisement spending during the first quarter of calendar year 2023 (1QCY2023), resulting in weaker earnings contributions across key segments. (TheEdge)

Hong Leong Investment Bank (HLIB) Research has reiterated its bullish view on Sunway Bhd following an encouraging start to its financial year and expansion plans over the coming year. According to the research firm, Sunway is scaling up growth through more launches in property development and expanding its hospital capacity. (TheStar)

Genting Plantation Bhd's first quarter (Q1) financial year 2023 (FY24) results did not meet expectations due to softer-than-expected palm oil prices, said Kenanga Research. The research house said Genting Plantation's net profit came in at only 10 per cent of the firm's full-year estimate and 8 per cent of consensus. (NST)

Dayang Enterprise Holdings Bhd is expected to record a decent performance this year, despite the group’s core net loss of RM15.9mil in its first quarter of 2023 (1Q23). According to Hong Leong Investment Bank (HLIB) Research, recent ground checks indicated improved job orders from oil majors amid the elevated oil prices. (TheStar)

Serba Dinamik Holdings Bhd's subsidiary, Serba Dinamik Sdn Bhd has defaulted on its payment to Public Bank Bhd (PBB) and Public Islamic Bank Bhd (PIBB) for term equity and financing facilities totalling about RM14.63 million. According to Serba Dinamik in a filing with Bursa Malaysia, the default was caused by cash flow constraints in settling the outstanding payments to the two banks. (NST)

Source: New Straits Times, The Edge Markets, The Star 25 May 2023