MQ Market Updates - 19 June 2023

MQ Trader

Publish date: Mon, 19 Jun 2023, 05:03 PM

Scientex Packaging (Ayer Keroh) Bhd posted a slightly lower net profit in its third quarter that ended April 30, 2023 (Q3 FY2023) of RM10.14 million from RM10.31 million a year ago (Q3 FY2022), on higher interest expense and taxation. The company said in a filing with Bursa Malaysia Securities that Q3 operating profit was up by 15 per cent to RM14.15 million from RM12.29 million in Q3 FY2022 due to a softening of raw material prices, favourable product mix and gradual normalisation of freight costs revenue despite increases in electricity costs and other operating expenses. (NST)

Boustead Plantations Bhd (BPlant) shot up as much as nine sen or 10.11% to an all-time high of 98 sen in Monday (June 19) morning trades, after The Edge Malaysia weekly, citing sources, reported that Boustead Holdings Bhd is planning to divest its 57% stake in the plantations group. Year-to-date, it has risen 65.12% or 38.65 sen, from 63 sen. Meanwhile, 24.76 million shares traded hands, making BPlant the second-most traded counter on Monday morning. The volume of traded shares also exceeded its 200-day average of 2.21 million. (TheEdge)

Malaysian Resources Corporation Bhd (MRCB) has bagged Gold Award at the 73rd Annual Australiasian Reporting Awards 2023 in Sydney, Australia. MRCB received the accolade from its 2021 integrated annual report, marking the fifth time that the company has gotten the gold award. (NST)

GUH Holdings Bhd is launching RM480mil of residential and commercial properties in Negri Sembilan in the second half of 2023. Group managing director Datuk Seri Hng Bak Tee told StarBiz that 332 residential units would be launched in Bukit Kepayang, where the group still owned approximately 150 acres. (TheStar)

UMW Holdings Bhd’s aerospace division is expected to turn profitable by this year, on the back of stronger sales and improved efficiency in the segment’s manufacturing processes. Kenanga Research in a report said it estimates fan cases sales volume to double in 2023 at 192 units, compared to 96 units in 2022 with full capacity of 250 units expected by 2025. (TheStar)

Leader Energy Holding Bhd is preparing for an initial public offering (IPO) in Malaysia and is seeking to raise as much as RM2 billion, according to people with knowledge of the matter, in what would be the country’s biggest first-time share sale since 2017. The Kuala Lumpur-based power company plans to submit its draft prospectus to the regulator as soon as the end of this month, said the people, asking not to be identified as the process is private. Leader Energy may raise between RM1 billion and RM2 billion and is targeting a December trading debut, the people said. (TheEdge)

Cahaya Mata Sarawak Bhd (CMS) said the judgement rendered by the Kuching High Court last week regarding its subsidiary Cahya Mata Phosphates Industries Sdn Bhd (Phosphates) could have an impact on the company's phosphate production. CMS was unable to get a court injunction to prevent Syarikat Sesco Bhd (Sesco) from cutting off the energy supply to its phosphate production facility in Samalaju Industrial Park, Sarawak. (NST)

Analysts believe Boustead Plantations Bhd could go for up to RM3 billion given its strategic landbank size of 97,400 hectare(ha) in Malaysia, following a report in the Edge Weekly that Boustead Holdings Berhad's plans to sell its 57 per cent interest in the company via an open tender. The valuation could mean a RM1.7 billion price tag for Boustead Holdings' interest. According to the report, bid submissions were made last week and names such as YTL Group, Wilmar International, IOI Corp Bhd and Kuala Lumpur Kepong Bhd (KLK) participated. (NST)

VS Industry Bhd is in talks with several multinational corporations (MNCs) to potentially secure them as new clients. According to UOB Kay Hian (UOBKH) Research, the integrated electronics manufacturing services provider has been approached by new MNC customers, with discussions still in the infancy stage. (TheStar)

Analysts have maintained their "Sell" rating on Top Glove Corp Bhd on a dismal third quarter performance with the rubber glove maker only likely returning to the black in financial year(FY) 2025. The glove maker posted a net loss of RM130.6 million against RM530.6 million revenue for the third quarter ended May 31, 2023 (3Q23), compared with a RM15.3 million net profit on RM1.8 billion revenue for the same quarter in the previous year. (NST)

Sports Toto Bhd's dividend payout is likely to revert to a historical level of more than 75% as the political headwinds in the country dissipate by FY24, said Hong Leong Investment Bank (HLIB) Research. Following a meeting with Sports Toto's management, HLIB said the company is taking a conservative stance on conserving liquidity owing to the impending state elections and global economic uncertainties. (TheStar)

Yinson Holdings Bhd’s cocmmitment to delve into green technology and renewable energy (RE) has analysts upbeat about the prospects of the ompany. RHB Research in a report noted that Yinson is targeting to achieve annual RE generation levels of 1.7 terawatt-hours (TWh) by 2025 and 5.6 TWh by 2030. (TheStar)

Source: New Straits Times, The Edge Markets, The Star 19 June 2023