MQ Market Updates - 15 June 2023

MQ Trader

Publish date: Thu, 15 Jun 2023, 05:08 PM

Serba Dinamik Holdings Bhd's (SDHB) net loss for the third quarter (3Q) 2023 ended March 31, 2023 widened to RM972.91 million from RM434.19 million in the preceding year corresponding quarter. Revenue fell to RM6.18 million due to a decline in operation and maintenance (O&M) activities in overseas market compared with RM205.48 million previously, the company said a filing with Bursa Malaysia. (TheStar)

Alliance Bank Malaysia Bhd has inked a memorandum of understanding (MoU) with Sedania Innovator Bhd's sustainable energy arm Sedania Technologies Sdn Bhd to launch a fully funded programme to help small and medium enterprises (SME) become energy sustainable organisations. In a statement, the bank said Sedania would bear the cost of initial outlays and provide advice to eligible Alliance Bank and Alliance Islamic Bank SME customers on office or building upgrades, which includes energy efficient smart air-conditioning, smart controllers and lighting solutions. (TheStar)

Hong Leong Industries Bhd (HLI) has entered into a conditional sales and purchase agreement yesterday to dispose of its entire issued and paid-up share capital in wholly-owned subsidiary Hume Cemboard Industries Sdn Bhd (HCB) to manufacturer Saint-Gobain (M) Sdn Bhd, for a cash consideration to be confirmed later. In a filing with Bursa Malaysia yesterday, HLI said the selling price of the shares in HCB – which is principally involved in the manufacture and sale of fibre cement products – shall be an amount equal to the sum of the latter’s net asset value once all conditions precedent on the sale agreement have been fulfilled, plus a premium of RM20mil. (TheStar)

Betamek Bhd has partnered with Shenzen Zhonghong Technology Co Ltd to develop advanced driver assistance systems (ADAS) and automotive cockpit systems as it explores growth opportunities in the Asean automotive industry. Betamek, through wholly-owned Betamek Electronics Sdn Bhd, inked a memorandum of understanding (MoU) with Shenzen Zhonghong to develop a range of new innovative products. (NST)

GIIB Holdings Berhad today announced that executive chairman Tai Boon Wee was remanded a day after two other directors, Tai Qiyao and Wong Ping Kiong were remanded by the MACC on the 30th May, 2023 to assist in an ongoing investigation under the Section 409 Penal Code. This is the second time Tai and Wong has had a run in with MACC. Earlier this year MACC charged both Tai and Wong under Section 18 of the MACC Act for allegedly furnishing fake documents to auditor Grant Thornton Malaysia PLT. (NST)

Paramount Corp Bhd has set a sales target of RM1.2 billion for the financial year ending Dec 31, 2023 (FY2023), representing about a 10% increase against the RM1.1 billion sales achieved in FY2022. Speaking at a press conference after the group' annual general meeting on Thursday (June 15), group chief executive director and executive director Jeffrey Chew Sun Teong said the 10% targeted sales growth is “conservative”, considering weaker market sentiment this year compared to last year amid concerns over high inflation and economic prospects. (TheEdge)

NationGate Holdings Bhd’s managing director, Ooi Eng Leong, has triggered an unconditional mandatory takeover offer to acquire all shares in metal fabrication firm Ewein Bhd, following his share sale agreement (SSA) with Hijauwasa Sdn Bhd to acquire 120.6 million ordinary shares in Ewein. The Ewein shares, represents 39.99% of its issued shares, were acquired for a total cash consideration of RM72.4mil or 60 sen per share. (TheStar)

Sapura Energy Berhad's (SEB) external auditor Ernst & Young has raised material uncertainty on the group's ability to continue as a going concern in its audit of the group's financial statements for the financial year ended 31 January 2023. The audit firm cited current liabilities for the group and company that exceed their current assets by RM12.7 billion and RM1.79 billion respectively, along with the group's severe liquidity constraints. (NST)

KGW Group Bhd has entered into an underwriting agreement with TA Securities Holdings Bhd for the group’s upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities. “We have plans to diversify our geographical focus and services within our logistics services business and this IPO will help us in getting there. We are happy to work with TA Securities to expedite the listing exercise on the ACE Market. (TheStar)

Capital A Bhd is currently carrying out an interim financial review as part of the evaluation of its Practice Note 17 (PN17) status regularisation plan. The group said, in a filing with Bursa Malaysia on Thursday (June 15), the interim financial review is part of the regularisation plan prior to any regulatory submission. (TheEdge)

AEON Credit Service (M) Bhd has made its second issuance of sukuk wakalah under the Islamic commercial papers programme of RM80mil in nominal value and a six-month tenure from the date of issuance. In a filing with Bursa Malaysia, AEON Credit said the proceeds raised from the issuance would be utilised for syariah-compliant purposes. (TheStar)

Engineering services provider Seremban Engineering Bhd (SEB) has entered into a joint venture (JV) with Negri Sembilan state statutory body NS Corp to develop three pieces of land measuring 28 acres in the Port Dickson area, including one where the Jetty Arang is located. SEB will hold an 80% equity stake in the yet-to-be-named special-purpose JV company, with the balance belonging to NS Corp. (TheStar)

Boustead Holdings Bhd is considering divesting its gas stations in Malaysia and is seeking as much as RM2 billion, according to people with knowledge of the matter. The Kuala Lumpur-based conglomerate is working with an adviser to sell Boustead Petroleum Marketing Sdn., also known as BHPetrol, the people said. Oil and gas companies as well as investment firms have shown interest in the deal, the people said, asking not to be identified as the process is private. (TheEdge)

Consumer packaged goods company Kim Teck Cheong Consolidated Bhd (KTC)'s expansion plans to build two new manufacturing facilities in Kuching, Sarawak and Balikpapan, Indonesia and add more warehouse space and trucks, sweetens the pot for Rakuten Trade, which has tagged a "Buy" call to the company's shares with a target price of RM0.33. KTC is in the process of identifying land to build manufacturing facilities in Kuching and Balikpapan, Indonesia due to the perishable nature of bakery products, with a shelf life of up to seven days. (NST)

UOA Development Bhd (UOA Dev) plans to spend RM21.17mil as part of a move to venture into the restaurant business following a term sheet agreement with Hokkien Peng Restaurant Group Sdn Bhd and Hoteland Sdn Bhd. UOA Dev’s venture into the food and beverage (F&B) business will be via its wholly owned subsidiaries, Armada Hartasegar Sdn Bhd and Regenta Development Sdn Bhd. (TheStar)

JAG Bhd’s wholly owned subsidiary, Jaring Metal Industries Sdn Bhd (JMI), will be appointed as a services partner of Atreon Holdings Sdn Bhd (AHSB) for the spent catalyst processing and treatment at JMI’s facilities in Malaysia. zAccording to an agreement signed on June 13, 2023, AHSB is required to pay a minimum value of RM27.6mil throughout the course of the three-year contract, in accordance with the right invoices that have been reviewed and accepted by both JMI and AHSB. (TheStar)

Sapura Industrial Bhd will continue to strengthen its operational efficiencies, improve productivity and optimise its resources as the total industry volume for 2023 is expected to drop by 10% to 650,000 vehicles. In a filing with Bursa Malaysia yesterday, Sapura said it recorded a 30% year-on-year jump in revenue to RM72.1mil, with the manufacturing segment being the main contributor to the group’s first quarter ended April 30, 2023 (1Q23) (TheStar)

Pharmaniaga Bhd’s proposed private placement to raise funds for working capital is viewed positively by analysts as it is more viable than bank borrowings. On Tuesday, Pharmaniaga announced plans to undertake a private placement of up to 10% of its total shares issued, which entails an issuance of up to 131 million shares. (TheStar)

Fraser & Neave Holdings Bhd (F&N) said is looking into investing at least RM1bil in developing phase one of its integrated dairy farm in Gemas, Negeri Sembilan, which will reduce its reliance on imported milk for downstream production and distribution. According to the group, the farm is expected to put the group on track to becoming one of Malaysia's largest milk producers when Phase 1 reaches full production at 100 million litres of fresh milk. (TheStar)

Radium Development Bhd said it is still too early to assess the financial and operational effects of the lawsuit brought on June 1, 2023, against its 80 per cent subsidiary, Vistarena Development Sdn Bhd. The outcome of the lawsuit would determine any effects on the company's finances and operations, it said in a statement. (NST)

Sunway Construction Group Bhd (SunCon) is on track to achieving its internal target of RM2bil worth of construction contracts after having secured RM1.3bil worth of new jobs, in addition to a healthy tender book of RM22.7bil. According to Kenanga Research, the groups’ tender book includes notable packages under the mass rail transit three, data centres and warehouse jobs. (TheStar)

Analysts have maintained their stance on UMW Holdings Bhd despite a possible turnaround at its unit UMW Aerospace (UMWA) in the current financial year ending Dec 31, 2023 (FY2023) following better utilisation rate and newer contracts, including the award by Rolls Royce. MIDF Research has maintained its ‘buy’ call and a target price (TP) of RM5.28 on UMW, based on its FY2023 forecast price-to-earnings ratio (PER) of 9.7 times, a 24% discount to historical mean. (TheEdge)

Sunway Bhd’s positive start in the first quarter of 2023 (1Q23) has set the stage for a potentially prosperous financial year ahead. Hong Leong Investment Bank (HLIB) Research said the conglomerate recorded a commendable start in 1Q23, leading the brokerage to anticipate further improvement for the rest of the financial year 2023 (FY23), especially in the second half (2H23). (TheStar)

Analysts are positive about Mah Sing Group Bhd’s latest RM76.1mil land-buy in Johor that is slated for a residential property development, called M Tiara, with a gross development value (GDV) of about RM480mil. According to Hong Leong Investment Bank (HLIB) Research, the acquisition price for the freehold 75.7 acres in Pulai was “fair”. (TheStar)

Source: New Straits Times, The Edge Markets, The Star 15 June 2023