MQ Market Updates - 31 May 2023

MQ Trader

Publish date: Wed, 31 May 2023, 05:18 PM

Hong Leong Bank Bhd's (HLB) net profit grew 18.5 per cent to RM929.96 million for the third quarter ended March 31, 2023 (3Q23) from RM784.8 million in the same quarter last year. Its revenue increased to RM1.4 billion from RM1.35 billion previously, HLB said in a filing to Bursa Malaysia today. As a result, the bank's earnings per share (EPS) rose to 45.39 sen from 38.32 sen in 3Q22. (NST)

Petronas Chemicals Group Bhd’s (PetChem) profit outlook for the second quarter of financial year 2023 (2Q23) looks even weaker than 1Q23, given the cyclical headwinds facing the petrochemical sector, say analysts. The group registered 1Q23 core net profit of RM604mil, down 29% quarter-on-quarter and fell 71% year-on-year. (TheStar)

Daythree Digital Bhd is offering a public issue of 110.4 new shares, representing 23.0 per cent of its enlarged share capital, under listing exercise. Daythree's initial public offering (IPO) also entails an offer for sale of 12.0 million existing shares to selected investors by way of private placement. (NST)

Radium Development Bhd's share price opened at 35 sen today on the Main Market of Bursa Malaysia. The launching price of 35 sen is 30 per cent lower than the price of its initial public offering (IPO) of 50 sen. Radium's IPO public tranche of 273 million shares was completely subscribed after it received a total of 10,496 applications for 279.12 million shares. (NST)

Edelteq Holdings Bhd, a provider of engineering support to the chip industry, said that its initial public offering (IPO) operation comprising 100 million new shares was 152.03 times oversubscribed. According to the firm, 35,292 applications for 4.08 billion issue shares were received from the general public, reflecting a 152.03-fold oversubscription rate. (NST)

Main Market-listed EP Manufacturing Bhd (EPMB) reported a net profit of RM3.55 million for the first quarter (Q1) ended March 31, 2023, up 819.2 per cent year-on-year (YoY) from RM386,000 posted in the same quarter last year. Increased automotive parts sales drove the more-than-eightfold jump in net profit as carmakers continued clearing substantial backlog orders. (NST)

Automotive upholstery maker Pecca Group Bhd (PGB) posted a net profit of RM8.56 million in the third quarter (Q3) ended March 31, 2023 (FY23), as compared to RM8.09 million in the same quarter last year. Revenue for the quarter increased 28 per cent year-on-year (YoY) to RM58.58 million in the three months. (NST)

Shares of Star Media Group Bhd jumped 7.14% in the afternoon session, after minority shareholders voted against a proposal to sell an industrial land, upon which factory buildings will be built, to Matang Bhd in a share and cash deal. Shares of the media group rose three sen or 7.14% to 45 sen at the time of writing, to reverse losses in the morning session, with 14.37 million shares traded, versus its two-month average of 10.31 million shares. (TheEdge)

Econpile Holdings Bhd has received a letter of acceptance worth US$9.5 million (RM43.77 million) for a project in Cambodia. In a bourse filing on Wednesday (May 31), Econpile said its unit Global Piling Solutions Co Ltd secured the contract for Odom Living Co Ltd for the Odom development at Norodom Boulevard, Sangkat Tonle Bassac, Phnom Penh. (TheEdge)

Bintulu Port Holdings Bhd's net profit for the first quarter ended March 31, 2023 (1QFY2023) fell 45.25% to RM22.48 million from RM41.06 million on the back of higher expenditure. In a bourse filing on Wednesday (May 31), the port operator said revenue for the quarter dipped 5% to RM187.89 million from RM198.11 million. (TheEdge)

Dairy group Farm Fresh Bhd shares fell to their record low since listing, down as much as 9% in the morning session, as earnings missed expectations due to higher-than-expected dairy raw material costs. The counter, which was listed in March 2022 at RM1.35 per share, opened lower at RM1.50, from RM1.55 at Tuesday’s close. At 10.03pm, it was among the top losers, trading down 12 sen or 7.74% to RM1.43, with 3.78 million shares changing hands. (TheEdge)

Property developer YNH Property Bhd’s loss attributable to ordinary equity shareholders narrowed to RM1.27 million for the quarter ended March 31, from RM4.68 million in the previous quarter ended Dec 31, 2022. Loss per share for the quarter ended March 31 stood at 0.24 sen. (TheEdge)

SKP Resources Bhd’s net profit fell 63.31% to RM20.09 million in the fourth quarter ended March 31, 2023 (4QFY2023) from RM54.76 million a year ago, dragged by rising production costs. In a bourse filing, it said production costs rose due to higher manpower costs, lower manufacturing plant utilisation rate and a softer order book. This resulted in gross profit margin dropping to 8% from 14% previously. (TheEdge)

Oriental Holdings Bhd’s net profit fell 64.82% to RM94.24 million for the first quarter ended March 31, 2023 (1QFY2023), from RM267.84 million a year earlier when there was an exception gain of RM210 million on the disposal of a hotel in Melbourne, Australia. The lower earnings were also attributed to a lower unrealised foreign exchange gain from the strengthening of the rupiah against the Singapore dollar and yen denominated borrowings from the plantation segment, the group said in a bourse filing. (TheEdge)

MyEG Services Bhd was the fourth most actively traded stock on Bursa Malaysia in the morning session today, with 20.48 million shares traded. The stock likewise opened 1.5 sen, or 1.9 per cent higher at 80.5 sen, before jumping as much as 4.5 sen, or 5.7 per cent to 83.5 sen, for a market value of RM6.24 billion. (NST)

Propel Group Bhd, a provider of oil and gas services as well as downstream specialty chemicals, says it will be uplifted from the PN17 classification of the listing requirements effective from today. Propel Global received a letter dated May 30 from Bursa Malaysia granting it a modification of compliance based on the net profit for the three-month financial period ended Dec 32 2022 and three-month ended March 31 2023, following the completion of its regularisation plan on Oct 7 last year. (NST)

Duopharma Biotech Bhd has reaffirmed its commitment to expanding its portfolio diversity, including halal pharmaceuticals and plant-based products, and growing its product availability and affordability. Group managing director Leonard Ariff Abdul Shatar said Duopharma was doing its part to support the government's goals by making its products available and affordable to everyone, while continuously expanding its portfolio of products to serve more diverse patient and consumer needs. (NST)

Pestech International Bhd, through its joint venture with China Energy Engineering Group Tianjin Electric Power Construction Co Ltd (TEPC), has won a contract worth US$81.77 million (RM372.78 million) from the Iraqi government to build 132kV substations in Baghdad. It said in a bourse filing that the JV had, on Tuesday (May 30), received consent for the announcement of the contract agreement that was executed between the JV and Iraq's Ministry of Electricity in relation to the acceptance of the JV's bid for the project. (TheEdge)

Integrated chemicals and lubricants distributor Samchem Holdings Bhd is in preliminary discussions with several companies to expand its chemical businesses through mergers and acquisitions (M&As), according to chief executive officer Eugene Chong Wee Yip, as a number of small and medium enterprises (SMEs) are looking to leave the industry. “I think we see a lot of opportunity during this period of time — a lot of SME competitors are exiting the business — so we are looking at some of these companies to complement our product reach,” he told The Edge after the group’s 16th annual general meeting (AGM) here on Wednesday (May 31). (TheEdge)

Propel Global Bhd, which took over the listing status of Daya Materials Bhd last year, has regularised its financial condition and exited Practice Note 17 (PN17) classification of the listing requirements as at today. The oil and gas services and downstream speciality chemicals company said Bursa Securities had granted the company a modification of compliance with Paragraph 5.2(c) of PN17 of the listing requirements, based on the net profits for the three-month financial period ended Dec 31, 2022, and three-month financial period ended March 31, 2023. (TheStar)

Allianz Malaysia Bhd is set to continue on its growth path with expectations that more dividends could be paid out in the quarters ahead. The company’s net profit for the first quarter of financial year 2023 (1Q23) grew 15% year-on-year (y-o-y), outperforming analysts’ expectations. (TheStar)

Shangri-La Hotels (M) Bhd was among the top gainers on Bursa Malaysia in Wednesday morning trade (May 31), after it returned to the black in the first quarter ended March 31, 2023 (1QFY2023). The stock gapped up on Wednesday, opening eight sen or 3.13% higher at RM2.64, before rising as much as 19 sen or 7.42% to RM2.75. (TheEdge)

QL Resources Bhd's convenient store (CVS) and palm oil and clean energy (POCE) segments are expected to prompt growth of its earnings per share in financial year 2024 (FY24E), said Affin Hwang Capital. This is alongside QL Resources' expansion plans for its Family Mart, FamiCafe and FM Mini as well as orders from its clean energy division. (NST)

IJM Corp Bhd’s construction job wins will likely accelerate in the new financial year ending March 31, 2024 (FY24) after a sluggish performance in FY23. In an analysts briefing, IJM chief executive officer Lee Chun Fai said the group has set RM3bil as new order replenishment target for FY24 (TheStar)

Berjaya Corp Bhd (BCorp) expects its business segments to improve going forward, underpinned by strong consumer spending, rebound of tourism activities and better-than-expected labour market conditions. In a filing with Bursa Malaysia, BCorp said it will monitor the prevailing global and local political development in the countries where it has business operations. (TheStar)

The outlook for Mah Sing Group Bhd is bright for the remainder of its financial year ending Dec 31, 2023 (FY23), following a solid performance for the first quarter (1Q23) of the year. Supported by conversion of bookings and new projects worth about RM1.4bil, the property developer, which also has business in plastics and healthcare, is expected to register robust sales for FY23. (TheStar)

While maintaining a profit in the first quarter of the year, FGV Holdings Bhd expects the coming months to remain challenging amid squeezed margins in the plantation sector and increased production cost in the sugar sector. The group also noted the risk of adverse weather conditions that could impact palm oil production including the El Nino weather phenomenon towards the end of year.(TheStar)

Analysts favour Tenaga Nasional Bhd (TNB), given its capability to generate good earnings despite the share price weakness of the counter. Kenanga Investment Bank Research said the company’s core profit of RM1.02bil for its first quarter ended March 31, 2023 (1Q23) made up 21% each of both the securities firm’s full-year forecast and full-year consensus estimates. (TheStar)

Hong Leong Investment Bank (HLIB) Research maintains its "Sell" recommendation on Press Metal Aluminium Holdings Bhd at RM4.73, with a lower target price (TP) of RM4.22 from RM4.29. This is based on a P/E multiple of 20x on rolled-over fiscal year 2024 (FY24f) profits, it said in a note today. (NST)

PublicInvest Research has upgraded QL Resources Bhd to “outperform” at RM5.56 with an unchanged target price (TP) of RM6.20. The research house said QL Resources’ core net profit for the fourth quarter of financial year 2023 (4QFY2023) grew by 5.7% year-on-year (y-o-y) to RM73.3 million, mainly attributable to the stronger contribution from the integrated livestock farming, and palm oil and clean energy segments. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 31 May 2023