MQ Market Updates - 09 June 2023

MQ Trader

Publish date: Fri, 09 Jun 2023, 05:08 PM

Petronas Gas Bhd (PetGaS) is exploring the prospect of developing a mini hydro power plant and managing a terminal in Terengganu. PetGas today signed a Memorandum of Understanding (MoU) with Terengganu's Menteri Besar Incorporated (MBI) on the prospects that, if materialised, would strengthen the state's economic development.(NST)

Sapura Energy Holdings Bhd shares were heavily traded during early session on Friday (June 9) with 235 million shares changing hands, more than six times its average daily trading volume, after it announced that it has secured 10 contracts worth RM1.4 billion. At the time of writing, Sapura Energy shares settled at 0.4 sen or 14.3% higher at four sen, implying a market capitalisation of RM639 million. (TheEdge)

Boustead Plantations Bhd hogged the limelight in the morning trade on Friday (June 9), as the counter rose as much as 21.09% or 13.5 sen to 77.5 sen, with brisk trading. Boustead Plantations was among the top gainers (by value) on Bursa Malaysia. At noon break, the counter pared some gains at 75.5 sen, still up 17.97% or 11.5 sen, bringing it a market capitalisation of RM1.69 billion. Some 14.39 million units were traded so far — more than four times its 200-day average volume of 3.33 million shares. Year to date, the counter has rallied 20% or 12.5 sen, from 63 sen on Jan 3 this year. (TheEdge)

Power Root Bhd has signed a co-investment agreement with Thailand’s Sappe PCL to become the sole distributor of the Thai nata de coco drink, Mogu Mogu, in Malaysia. The co-investment was valued at 20 million Thai baht (approximately RM2.66 million). The local instant and canned beverage manufacturer said that the collaboration provides an opportunity for Sappe to extend its Mogu Mogu brand presence into Malaysia by leveraging its marketing and distribution strength in the local market. (TheEdge)

George Kent (Malaysia) Bhd has formed a partnership with University of Technology Sarawak (UTS) to bolster collaboration in human capital development and related activities. The parties will focus on academic and industrial cooperation that enhances George Kent's commitment to corporate social responsibility (CSR). (NST)

Citaglobal Bhd has disclosed that Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah has increased his stake in the company to 7.967%. In a filing with Bursa Malaysia, Citaglobal said the King acquired 1.378 million shares on June 6. This raised the King’s direct shareholding in Citaglobal to 33.26 million, or 7.967%. He has been increasing his stake in Citaglobal. (TheStar)

Sunway Construction Group Bhd (SunCon) is disposing of machinery used for the construction of a prefabrication plant in Singapore for RM43.38mil. In a filing with Bursa Malaysia, SunCon said its indirect wholly-owned foreign subsidiary, Sunway Concrete Products (S) Pte Ltd (SCPS), had entered into a sale and purchase agreement with HL-Sunway JV Pte Ltd (HLSJV) for the disposal. HLSJV is a 49%-owned joint venture company of SCPS. (TheStar)

Cypark Resources Bhd is claiming RM61.34 million from the government for loss and expenses arising from various instructions that caused delays in the completion of a job through arbitration. The renewable energy engineering company alleged that the claimed amount has not been paid despite acknowledgement of its rights to claim, notices provided and submission of its finalised claim for the loss and expenses dated Jan 3, 2022. (TheEdge)

Dayang Enterprise Holdings Bhd has been awarded a contract for the provision of integrated hook-up and commissioning or iHUC services from PETRONAS Research Sdn Bhd. In a filing with Bursa Malaysia, Dayang said the contract was secured by its wholly-owned subsidiary company Dayang Enterprise Sdn Bhd. (TheStar)

Refined sugar producer MSM Malaysia Holdings Bhd intends to expand its export market presence and engage with the government for a price increase for standard sugar soon. Group chief executive officer Syed Feizal Syed Mohammad said the company’s retail business segment was generally experiencing negative margins, which has resulted in net losses to its bottom line. (TheStar)

Sentral Real Estate Investment Trust (Sentral-REIT) is proposing to acquire the 27-storey Menara CelcomDigi in Petaling Jaya from Malaysian Resources Corp Bhd (MRCB). In a filing with Bursa Malaysia, Sentral-REIT said its management company, Sentral-REIT Management Sdn Bhd, had accepted a letter of intent to commence negotiations with Puncak Wangi Sdn Bhd, a wholly-owned subsidiary of MRCB, for the proposed acquisition of the building. (TheStar)

Golden Pharos Bhd will sell its downstream timber products overseas in a strategic partnership with Supreme Group, the largest timber company in Selangor. Golden Pharos said its subsidiary Pesama Timber Corporation Sdn Bhd had signed a Memorandum of Understanding with Supreme Group's unit Forest Avenue International on the partnership. (NST)

Practice Note 17 (PN17) company Serba Dinamik Holdings Bhd said it is finalising its financial report for the third quarter ended March 31, 2023 (3QFY2023). In a bourse filing on Friday (June 9), the beleaguered oil and gas outfit said it is aiming to release the report to Bursa Malaysia by June 13, about a week after the June 7 date it had set earlier. The group previously missed the May 31 deadline to release the results, due to a "significant loss of manpower and loss of critical personnel". (TheEdge)

Bina Puri Holdings Bhd said that its wholly-owned subsidiary Bina Puri Sdn Bhd (BPSB) had applied for a restraining order (RO) due to sluggish construction activities and a weak property market climate brought on by severe disruption to the overall operating environment caused by the implementation of the movement control order (MCO). This circumstance has caused construction projects to be delayed and sales to be slower, resulting in lower revenue recognition, the company told the stock exchange yesterday. (NST)

RHB Investment Bank upgraded Gamuda Bhd to “buy” from “neutral”, with a new RM4.95 target price (TP) from RM4.35, as the research house views the stock as a strategic hedge towards downside risks from the local construction sector, given its sizeable overseas footprint. RHB Investment in a note on Friday (June 9) said that about 88% of Gamuda’s outstanding order book is from overseas, thus warranting its upgrade, implying a 20% upside and circa 3% FY2024 (Jul) yield. (TheEdge)

UMediC Group Bhd’s foray into the lab-related business and sustained demand for medical devices and consumables are expected to drive its growth prospects in the upcoming quarters. Hong Leong Investment Bank (HLIB) Research said the integrated healthcare supply chain group’s core net profit for the third quarter of financial year 2023 (3Q23) of RM1.7mil was below both its and consensus expectations, accounting for 58% and 63% full year forecasts respectively.

Potential contract wins and existing projects in the pipeline are expected to support Solarvest Holdings Bhd’s earnings growth in the quarters ahead. RHB Research said the solar turnkey engineering, procurement, construction and commissioning (EPCC) services provider’s growing asset portfolio will provide recurring income for the group. (TheStar)

PublicInvest Research remains cautious about the execution of Sapura Energy Bhd's projects even though the group’s contract wins ensure visibility to its topline numbers for the next few years. The research firm maintained its 'underperform' call on the integrated oil and gas services company’s shares with the target price of two sen per unit, given its liquidity constraints to cater to such sizeable contract values despite some clients possibly providing advances to ensure the successful completion of the projects. (TheStar)

Source: New Straits Times, The Edge Markets, The Star 09 June 2023