MQ Market Updates - 16 June 2023

MQ Trader

Publish date: Fri, 16 Jun 2023, 05:26 PM

AirAsia X (AAX) is expanding its medium-haul network with additional direct flights to Amritsar in Northwestern India. The four times weekly services will begin on September 3, 2023 and provide additional yearly capacity of 157,263 seats between Kuala Lumpur and Amritsar for AAX as the second destination to India after New Delhi. Benyamin Ismail, chief executive officer of AirAsia X said they are confident that the reintroduction of this route will not only improve our medium-haul destination offering with affordable fares, but will also contribute to overall business growth. (NST)

Top Glove Corp Bhd recorded lower net loss at RM130.59 million in the third quarter (Q3) ended May 31, 2023, an improvement from the net loss of RM164.67 million last year. The improvement was due to the increase in the average selling price (ASP) of its gloves and quality and cost optimisation initiatives to streamline its operations. This was despite revenue in Q3 2023 falling to RM530.62 million, down from RM1.49 billion in the same quarter last year. (NST)

Main Market listed Resintech Bhd is collaborating with Sarawak Economic Development Corporation (SEDC) to develop and produce sustainable aviation fuel (SAF). Resintech's wholly-owned subsidiary Resintech Plastics (Sarawak) Sdn Bhd (RPSB) today signed a memorandum of understanding (MoU) with SEDC Energy Sdn Bhd (SESB), a subsidiary of SEDC. (NST)

UEM Sunrise Bhd introduced the Happy Hunt campaign, in line with the developer’s ‘Find your Happy’ tagline, to allow prospective homebuyers to undertake a fun property-hunting journey. In conjunction with the campaign, the developer will hold a Happy Hunt Property Showcase at the Publika Shopping Gallery from June 20 to 25. “Happy Hunt is part of our efforts to re-emphasise our Find your Happy brand and complement it with our customers’ homebuying experience, sprinkled with incentives throughout the journey," said UEM Sunrise chief marketing officer Kenny Wong in a press statement on Friday (June 16). (TheEdge)

Malaysian Resources Corp Bhd (MRCB) has won the Gold Award at the 73rd Annual Australasian Reporting Awards 2023 held in Sydney, Australia, for its 2021 Integrated Annual Report. In a statement, MRCB said it was the fifth time that MRCB has been bestowed the coveted Gold Award. (TheStar)

Bumi Armada Bhd's jointly controlled entity, SP Armada Oil Exploration Private Limited's (SPAOEPL) today announced that India state owned oil company Oil and Natural Gas Corporation Limited has extended a charter hire contract of a Floating Production, Storage and Offloading Vessel (Armada Sterling II FPSO) by another year at a value of US$43 million. Under the original contract signed between ONGC and SPAOEPL on 13 March 2013, Armada Sterling II FPSO was chartered by ONGC to operate in the ONGC Cluster-7 field located about 210km off the west coast of Mumbai, India under a nine-year firm time-charter, with seven annual extension options. (NST)

Solarvest Holdings Bhd made another increase yesterday as it attempts to resume a rally following a brief pause. The short-term ascending trend remains intact as the share pushes higher towards a February high of RM1.17, which serves as its next price target. (TheStar)

Capital A Bhd has won shareholders’ vote of confidence on its strategy as it progressed from an airline to low-cost, high-value, inclusive aviation and travel group. Chief executive officer Tan Sri Tony Fernandes said all businesses within the group have benefited from the robust return of air travel and delivered stronger margin levels. (TheStar)

IOI Corp Bhd’s Gomali estate mill and Palm Wood plant in Johor is not expected to contribute significantly to the group earnings in the initial years. However, it is anticipated to boost the group’s sustainability credentials. The level of mechanisation at the estate and versatility and broad range of use of Palm Wood products could help customers boost their environmental, social and governance credentials. (TheStar)

Paramount Corp Bhd is aiming to build on its recent record-high property sales and targets to achieve a 10% growth to RM1.2bil this year. The group expects a better performance in top and bottom lines compared to 2022, as it shares statistics that show new supply of property completions continue to drop. (TheStar)

Boustead Holdings Bhd (BHB) has clarified that it has not had any material discussions with any parties pertaining to the alleged sale of Boustead Petroleum Marketing Sdn Bhd (BHPetrol). In a statement, the company said this was in response to a news wire story that it is proposing to divest its gas stations in Malaysia for RM2bil. (TheStar)

Jentayu Sustainables Bhd said its healthcare operation Ohana Specialist Hospital had received approval from the Ministry of Health (MOH) to reopen, after a little over two months of closure. The paediatrics and obstetrics and gynaecology specialist hospital, which was acquired by Jentayu in September last year, had its licence revoked in April due to non-compliance with mandated operating procedures. (TheEdge)

Hong Leong Investment Bank (HLIB) Research is turning negative on the prospects of VS Industry Bhd as the order outlook of key customers is starting to dwindle. "What was thought to be the anchor for the group earnings, the outlook is now turning south as the demand for some of Customer X’s products started to weakened signs. (TheStar)

RHB Investment Bank (RHB IB) has kept its "buy" call on Yinson Holdings Bhd with a lower target price (TP) of RM3.06 given the group’s commitment to green transition while maintaining floating production storage and offloading (FPSO) activities as its major source of earnings. “It continues to delve into green technology and renewable energy, while its FPSO business should still be the major earnings contributor for the time being,” said the research firm in a note on Friday (June 16). (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 16 June 2023