MQ Market Updates - 14 June 2023

MQ Trader

Publish date: Wed, 14 Jun 2023, 05:13 PM

Digital solutions specialist Agmo Holdings Berhad's share price rose 17 per cent or hit a high of RM0.64 in early trade today, after it signed a memorandum of understanding with Alibaba Cloud (Malaysia) Sdn. Bhd. to launch the Agmo Electric Vehicle (EV) SuperApp. Agmo's share price closed 11 per cent higher at RM0.60, at the end of morning trade at 12.30pm. Some 20.7 million shares changed hands. (NST)

Shares in newly listed Radium Development Bhd continued to decline from their initial public offering (IPO) price of 50 sen, falling 26% or 13 sen to 37 sen in Wednesday morning trade (June 14), with 7.37 million shares changing hands, after another subsidiary became embroiled in a legal battle with buyers of its development. On Tuesday, Radium said its 80%-owned Vistarena Development Sdn Bhd was being sued by 241 individual purchasers for alleged misrepresentation and breach of contract in the sale of its property project in Bukit OUG, Kuala Lumpur. (TheEdge)

Pharmaniaga Berhad, which is planning to place out new shares to raise up to RM44.21 million for working capital, has today clarified that it will be using the proceeds from the exercise to pay suppliers/trade creditors of the group. The company's shares fell almost four per cent to a low of RM0.365 today from its closing of RM0.38 yesterday, after Pharmaniaga tagged a RM0.34 price to the planned shares placement.(NST)

Pesona Metro Holdings Bhd (PMHB) has received a letter of acceptance (LoA) worth RM180.8mil from MRCB Builders Sdn Bhd for the construction of the Malaysian National Film Development Board’s headquarters in Damansara Damai, Selangor. In a filing with Bursa Malaysia, PMHB said the LoA was received by its wholly-owned subsidiary Pesona Metro Sdn Bhd, adding that the project shall be for a period of 18 months from the date of site possession. (TheStar)

PCCS Group Bhd has acquired an additional 18.8 million shares, or 15% equity interest, in Southern Auto Capital Sdn Bhd (SAC), a subsidiary of the company for RM18mil. In a filing with Bursa Malaysia, PCCS said the subscription would increase its equity participation from four million shares to 22.8 million shares, representing 95% of the total issued share capital of SAC. (TheStar)

BIG Industries Bhd is disposing of a parcel of industrial land in Plentong, Johor, to SJ Holdings Sdn Bhd for RM4.5mil. In a filing with Bursa Malaysia, BIG Industries said it had operated its industrial gas branch at the piece of land it is disposing of. (TheStar)

Datasonic Group Bhd’s wholly-owned subsidiary, Datasonic Technologies Sdn Bhd has received a contract amendment from the Home Affairs Ministry for the supply of passport chips. In a filing with Bursa Malaysia, Datasonic said the letter dated June 6 was in respect of the amendment to the contract for the supply of the Malaysian passport chips or 12.5 million of passport chips commencing from Dec 1, 2021, to Nov 30, 2023.Datasonic said the additional quantity of passport chips would have an additional ceiling value of RM37.61mil, bringing its total contract ceiling value to RM387.75mil. (TheStar)

Tomypak Holdings Bhd has revived its efforts to purchase a stake in flexible plastic packaging manufacturer and seller EB Packaging Sdn Bhd, after earlier memorandums of understanding for the deal lapsed in November. On Tuesday (June 13), Tomypak's unit Tomypak Flexible Packaging Sdn Bhd (TFP) entered into two conditional share and sale agreements with the four vendors of EB Packaging to acquire their stakes in the company amounting to 70% for RM73.5 million in cash. (TheEdge)

Tomypak Holdings Berhad plans to takeover poly-packaging company EB Packaging Sdn Bhd through a combination of two share sales agreement with shareholders of the company that own 70 percent, and call and put options for the remaining 30 per cent interest, pricing EB Packaging at a maximum of RM105 million. The company will fund the acquisition of the 70 per cent interest using the proceeds from the insurance compensation payment for the fire incident at its main manufacturing plant in Senai, Johor on 19 December 202 and/or bank borrowings, if required. Tomypak Holdings received RM205 million in insurance compensation payment for the fire incident. (NST)

DKSH (M) Holdings Bhd's revenue is expected to grow at a slightly slower pace, ranging between 3.3 per cent and 3.6 per cent in the financial years 2023-2025. Affin Hwang Capital said this is due to the lagged effect of tighter financial conditions affecting consumer sentiment for the consumer goods segment, although there is support from likely stable sales growth in the healthcare segment. (NST)

Datasonic Group Bhd is expected to achieve another record net profit and revenue for the financial year 2024 (FY24), driven by robust demand for passports and MyKads in the market, said BIMB Securities Research. The firm said Datasonic had received a letter from the Ministry of Home Affairs stating an increase in the ceiling value for the supply of Malaysian passport chips. This brings the total contract ceiling value to RM387.8 million from RM350 million. (NST)

The hike in sugar price is eating into the margins of Able Global Bhd, and the company may need to adjust the prices of its food and beverage (F&B) products if sugar price remains high in the near-term. Following a briefing with its management, TA Research said that the price of sugar, which is a key raw material for the group’s F&B segment, is about 21% higher in 2023 compared with the average levels in 2022. (TheStar)

Analysts are positive on Mah Sing Group Bhd’s recent acquisition of a 75.7-acre freehold land in Pulai, Johor Bahru for RM76.1mil, as it enables the group to expand its M-series of affordable projects. According to preliminary plans, the total gross development value (GDV) of the new development to be named M Tiara is approximately RM480mil. (TheStar)

Analysts are positive on Kerjaya Prospek Group Bhd securing a RM404mil residential building contract known as KL48, which is the group’s third contract win for financial year 2023 (FY23). RHB Research said the latest contract brings the construction group’s outstanding order book to RM4.7bil from RM4.5bil as at the end of the first quarter of this year. (TheStar)

Bermaz Auto Bhd (BAuto) is expected to see an improvement in earnings for the financial year 2024 (FY24) and FY25, thanks partly to its strong order book. UOB Kay Hian (UOBKH) Research said it is lifting its FY24-FY25 earnings by 5% to 10% to account for higher sales targets following the stronger-than-expected outstanding orders, higher average selling prices and improved profit margins. (TheStar)

Source: New Straits Times, The Edge Markets, The Star 14 June 2023