MQ Market Updates - 12 June 2023

MQ Trader

Publish date: Mon, 12 Jun 2023, 05:03 PM

CCK Consolidated Holdings Bhd’s newly acquired Indonesian shrimp firm and the robust sales of in-house processed chicken products in Indonesia have bolstered the group’s overall sales and profitability. PT Bonanza Pratama Abadi, which CCK acquired for RM33.8mil in July last year, has driven up the group’s prawn segment revenue by 500% to RM23.2mil in the January to March 2023 quarter (1Q23) and pre-tax profit to RM2.3mil from RM200,000 in 1Q22. (TheStar)

Public Investment Bhd (PublicInvest) cut sustainable packaging company, SLP Resources Bhd's, earning forecasts after management guides that it is likely for profits to remain depressed due to its key export markets, particularly Japan, experiencing extended periods of low growth. The weakening of the Yen, and higher inflation undermining consumer sentiment and eroding households' purchasing power, as well as downward pressure on average selling prices (ASP) amid intense competition and lower resin cost are not helping matters. (NST)

Malaysia Building Society Bhd (MBSB) shares were actively traded on news that the bank will buy out Permodalan Nasional Bhd's (PNB) entire stake in Malaysian Industrial Development Finance (MIDF) in a RM1.01 billion share deal. About 27.64 million shares changed hands, surging nearly eightfold from 3.58 million shares traded last Friday (June 9) — making the counter the fourth most actively traded stock on Bursa Malaysia so far in Monday’s morning session. In comparison, its 200-day average trading volume was only about 5.46 million shares. (TheEdge)

Shares in Axiata Group Bhd fell as much as 3.6% or 10 sen to a six-month low in the evening session on Monday (June 12), after it said it will book a RM376.6 million write-off, following the dismissal of arbitration claims the group and its Nepalese mobile network operator Ncell brought against the Nepalese government over a tax dispute. At the time of writing, the counter was down nine sen or 3.24% at RM2.69 — still a six-month low — against the FBM KLCI’s 0.87% increase and a 0.07% rise in the Bursa Malaysia Telecommunications & Media Index. (TheEdge)

Sancy Bhd's associate company, Sancy Global Solutions Sdn Bhd, signed an agreement to implement and manage an automation system for storing patient information for Aichi Healthcare Group, a prominent private medical institution in Bangladesh. The agreement was signed on June 10 and marked a milestone for Sancy to expand its healthcare industry services. (NST)

Local stock market players approved of Malaysia Building Society Berhad (MBSB)'s takeover of Malaysian Industrial Development Finance (MIDF) from Permodalan Nasional Berhad (PNB) for RM1.01 billion, with buying pressure pushing up MBSB's share price almost four per cent higher in early trade Monday.MBSB's share price closed 2.5 sen higher at 65.5 sen with some 40.6 million shares traded at 12.30pm. (NST)

Optimax Holdings Bhd will seek growth through the expansion of its eye centres in strategic locations in the country as well as to Cambodia. Chief executive officer Sandy Tan said the company would set up a total of two new ambulatory care centres located in Kota Kinabalu, Sabah and Bukit Mertajam, Penang. It also planned for four new satellite clinics in Kota Kemuning, Selangor, Kepong, the Overseas Union Garden and Cheras Selatan in Kuala Lumpur. (TheStar)

Axiata Group Bhd said its claims by its wholly-owned subsidiary Axiata Investments UK Ltd and 80%-owned Ncell Axiata Ltd against the government of Nepal over taxes imposed on the latter has been dismissed by the Bilateral Investment Treaty arbitration tribunal at the International Centre for Settlement of Investment Disputes. In a statement, the telco said in view of the unfavourable outcome of the case, it will adjust its statement of comprehensive income by about RM376.6mil arising from the write-off of related receivable assets. (TheStar)

RHB Investment Bank (RHB IB) has upgraded the construction sector to 'overweight' from 'neutral' mainly due to its upgrade on Gamuda Bhd, which accounts for 36.5% weightage on the KL Construction Index. "Additionally, we take note of dissipating headwinds in the form of a more manageable building material cost environment and reasonable supply of labour to support construction progress,” it said in a note on Monday (June 12). (TheEdge)

TA Securities has maintained its “buy” call on Coastal Contracts Bhd, with a target price (TP) of RM3.10, as it believes the oil and gas outfit’s strong order book could provide earnings visibility. The research house noted that Coastal’s order book stood at RM4.3 billion, with a potential additional RM666.9 million from contract extensions. Meanwhile, the group has a tender book worth RM5.2 billion, including one project in regard to production-related infrastructure projects and three renewable energy projects, mainly involving solar power and wind farms in Southeast Asia, and four gas-related projects in Mexico. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 12 June 2023