MQ Market Updates - 26 May 2023

MQ Trader

Publish date: Fri, 26 May 2023, 05:05 PM

Telekom Malaysia Bhd (TM) is likely to gradually transition away from the perceived Mandatory Standard on Access (MSAP) impact and towards ongoing good earnings performance, according to Maybank Investment Bank Bhd (Maybank IB). This is after TM posted a core net profit of RM327 million for the first quarter of 2023 (1QFY23) which decreased by 9.0 per cent year-on-year (y-o-y) and increased significantly by 252 per cent for quarter-on-quarter (q-o-q). (NST)

RHB Bank Bhd's net profit rose 17.6 per cent to RM 761.67 million in its first quarter (Q1) financial year ended March 31, 2023, as compared to RM582.33 million in the same quarter in 2022. The bank said this is due to the higher non-fund-based income and lower expected credit losses. (NST)

Malayan Banking Bhd (Maybank) announced that all Secure2u authorisations will be moved to its MAE app on July 1, 2023, to ensure enhanced online security features for the bank’s customers. Starting July 1, Secure2u on the MAE app will be the only way to approve transactions via M2U web, M2U app, MAE app and online transactions for Maybank cards. (TheStar)

Conglomerate YTL Corp Bhd’s profit after tax for its third quarter ended March 31 (3Q23) surged more than three-fold quarter-on-quarter (q-o-q) to RM659.4mil from the RM196.6mil registered in the same period a year ago.Turnover for the third quarter grew 11% to RM7.33bil. (TheStar)

Axiata Group Bhd returned to the black in the first quarter ended Jan 31, 2023 (1Q23) with a net profit of RM73.85 million compared to a RM42.97 million net loss posted a year ago. The group attributed the turnaround to higher top lines, lower foreign exchange losses as there were significant foreign exchange losses in 1Q22, mainly contributed by mobile operations in Sri Lanka, higher share of results of associates mainly from CelcomDigi Bhd, and lower taxes, partially offset by higher depreciation and amortisation and higher finance costs. (NST)

Bolstered by an improved performance in its Islamic banking segment, Affin Bank Bhd said it continues to pursue its three-year strategy with an aim to achieve 10% return on equity by 2025. In a statement, president and group CEO Datuk Wan Razly Abdullah said the group's strategy will focus on three thrusts: unrivalled customer service, digital leadership and responsible banking with impact. (TheStar)

Shares of MSM Malaysia Holdings Bhd fell 5.71% or six sen to 99 sen in early Friday (May 26) trade, after it closed near its 15-month high on Thursday. The sugar producer's stock soared to RM1.05 on Thursday, the highest since RM1.08 on Feb 22, 2022, following the government’s announcement that MSM could sell fine white sugar at market price effective immediately. (TheEdge)

YTL Power International Bhd was among the most active stocks on Bursa Malaysia in Friday (May 26) morning trade as its latest set of results beat analysts' expectations. At the time of writing, YTL Power was the seventh-most active stock on the local bourse, with 15.41 million shares traded, triple its 200-day average volume of 5.29 million. (TheEdge)

Property developer LBS Bina Group Bhd actively continues to promote the attractiveness and viability of investing in Malaysia to China. In May this year, LBS organised two sharing sessions for prominent leaders from the Fujian Government in China, who were on a reciprocal visit to Malaysia following Malaysia's prime minister Datuk Seri Anwar Ibrahim's official visit to China in April. (NST)

Axiata Group Bhd plans to launch its digital bank by end-2023 and targets to make it profitable over the next three to four years, said its chief executive officer and managing director, Vivek Sood. Vivek said the initial capital commitment for the digital bank would be around RM100 million, and it would make available large product offerings, including deposits for current account and saving account (CASA) holders as well as insurance products and other financial products that would be gradually launched starting end-2023. (TheEdge)

MN Holdings Bhd's strong performance over the current financial year hinges on the continued progress and commencement of several major projects, according to managing director Loy Siong Hay. In a statement, Loy said the utilities sector is seeing sustained growth momentum through rising renewable energy adoption, which was further supported by continued activities in the conventional utilities segment including power and gas. (TheStar)

YNH Property Bhd’s land deal with Sunway Group Bhd seems to have hit a stumbling block as Bursa Securities has raised more questions on the transaction. On May 16, YNH Property announced that it was disposing of a piece of land measuring 5.09 acres in Desa Sri Hartamas to Sunway’s wholly-owned subsidiary Sunway Living Space Sdn Bhd for RM170 million cash. (TheEdge)

Genting Bhd expects its respective business operations to continue to recover from the Covid-19 related impacts. The group said revenue in the first quarter ended March 31, 2023 (1Q23) increased 38% to RM5.8bil, mainly from the leisure and hospitality division. (TheStar)

Betamek Bhd is confident that the demand for its vehicle audio video products and vehicle accessories will continue to grow. The electronics manufacturing services provider reported a net profit of RM5.7mil on the back of RM55.9mil revenue in the fourth quarter ended March 31. (TheStar)

Solarvest Holdings Bhd remains optimistic about the outlook for the local solar photovoltaic (PV) industry, in light of the government’s firm commitment towards the development of the renewable energy sector. For its fourth quarter ended March 31, 2023, Solarvest’s net profit rose to RM5.2mil from RM3.7mil in the previous corresponding period, while revenue grew to RM113.22mil from RM77.34mil. (TheStar)

MISC Bhd is more optimistic on the progress of the Mero-3 floating production, storage and offloading (FPSO) vessel that is being built for the Petrobras-operated ultra-deepwater Mero field offshore Brazil.CGS-CIMB Research said MISC’s guidance for the delivery of the Mero-3 FPSO in May 2024 remains unchanged, which is six months later than the original delivery timeline due to Covid-19-related delays in China and supply-chain issues. (TheStar)

Hextar Industries Bhd expects the local fertiliser industry to recover and grow, driven by continuous interest from the government in the development of plantation crops. For its first quarter ended March 31, 2023, the company reported a net profit of RM20.42mil on revenue of RM269.43mil a year earlier. (TheStar)

Tan Chong Motor Holdings Bhd’s earnings are expected to remain soft in the quarters ahead, due to weaker demand for its model line-ups and rollouts. Maybank Investment Bank (Maybank IB) Research said the market response for its Malaysian vehicle sales was underwhelming, with a decline of 33% year-on-year (y-o-y). (TheStar)

UMW Holdings Bhd president and group CEO Datuk Ahmad Fuaad Kenali said the group was encouraged by its first quarter results in 2023, which exceeded pre-pandemic levels."Moving forward, the group will continue to focus on strengthening its core businesses through operational efficiency and cost management initiatives as well as accelerate its CREST@UMW initiatives to improve its business resilience. (TheStar)

Maybank Investment Bank Bhd (Maybank IB) said that Inari Amertron Bhd's third quarter for the fiscal year 2023 (3QFY23) revenue was lower than expected. The investment bank said the company's earnings loss was primarily due to decreased volume loading across all product classes, with turnover down 24 per cent year on year (y-o-y) and 32 per cent quarter on quarter (q-o-q) at RM275.8 million. (NST)

Source: New Straits Times, The Edge Markets, The Star 26 May 2023