MQ Market Updates - 26 June 2023

MQ Trader

Publish date: Mon, 26 Jun 2023, 05:11 PM

CIMB Group Holdings Bhd has reinforced its commitment towards supporting the recovery of small and medium enterprises (SMEs) by extending a flexible and convenient payment assistance to promote their long-term financial resilience. CIMB Bank Bhd and CIMB Islamic Bank Bhd continue to provide comprehensive financing solutions with flexible and staggered repayment structures of 25 per cent and 50 per cent of the existing monthly instalments, for up to 12 months through seamless application and approval process with minimal documentation required. (TheStar)

Kinergy Advancement Bhd (KAB) and Future NRG Sdn Bhd (FNSB) have agreed to take another month to to complete KAB's purchase of a biogas power plant for RM15 million, with completion now expected on 24 July 2023. This is the third extension since signing a sale and purchase shares agreement with FNSB on 16 January 2023 to acquire Future Biomass Gasification Sdn Bhd (FGB). (NST)

Bank Islam Malaysia Bhd said there is currently no plan to enter into mergers and acquisitions (M&As) with any entities, according to chief executive officer Mohd Muazzam Mohamed. Speaking at the media briefing on Bank Islam’s second half of 2023 economic outlook on Monday (June 26), Mohd Muazzam said the bank will continue to focus on investing into its operations. (TheEdge)

LBS Bina Group Bhd won the Top Ten Developers Award 2023 at the BCI Asia Awards (BCIAA) held recently in Kuala Lumpur. The BCI Asia Award recognises the achievements of regional property developers that have made a great impact across Asia. (NST)

Tenaga Nasional Bhd (TNB) receivables from imbalance cost pass-through (ICPT) are set to trend lower as the government continues to uphold the mechanism and make consistent payment to the utility giant, said analysts. “As the government is committed to subsidise RM5.2 billion in the second half of 2023 (2H2023), we estimate that the remainder will be collected from the surcharges imposed,” said RHB Research analyst Sean Lim. (TheEdge)

GHL Systems Bhd is expected to register stronger growth in the second half of this year, underpinned by its robust transaction payment acquisition (TPA) segment and higher share services contribution. According to UOB Kay Hian (UOBKH) Research, the payment service provider’s TPA segment is currently being driven by increased tourist arrivals, meaningful contribution from cross-border transactions and the e-tunai scheme introduced by the Malaysian government. (TheStar)

RGT Bhd plans to produce evaluation and test interface systems for the automotive industry this year. Group chief executive officer Datuk S.H. Lim told StarBiz that negotiations were now being carried out with potential customers from Europe and the United States involved in the automotive, hygiene care, factory automation, and precision engineering business. (TheStar)

New projects it is tendering and negotiating could double Sunway Construction Group Bhd's (SunCon) remaining order book of RM6.03 billion as at March 31, 2023, said Affin Hwang Capital. The firm said SunCon is bidding/negotiating for semiconductor industrial plants and power plant projects to broaden its construction expertise and grow its order book. (NST)

The easing in YTL Power International Bhd share price following the move by the Singapore Energy Market Authority (EMA) to implement price cap is seen as an opportunity to accumulate the stocks. CGS-CIMB Research noted YTL Power’s current valuations at 8.4 times financial year 2024 price to earnings which is a 33% discount to its 10-year mean of 12.5 times, and 0.6 times price to book value, does not fully capture the earnings prospects from Singapore’s tightening electricity supply market. (TheStar)

Hong Leong Investment Bank (HLIB) Research has initiated coverage on Hektar REIT at 67 sen with a “Hold” rating and target price (TP) of 60 sen based on FY2024F DPU at a targeted yield of 11%. In a note on Monday (June 26), the research said it projects Hektar’s earnings to grow by 9.5% for FY2023F, 8.2% for FY2024F and 3.5% for FY2025F — mainly driven by expansion in occupancy rate offsetting the slight negative rental reversion. (TheEdge)

CGS-CIMB Securities has maintained its “Add” rating on Yinson Holdings Bhd at RM2.56 with a lower target price (TP) of RM3.50 (from RM3.68), saying Yinson’s 1QFY2024 core net profit was below expectations at 15% of the research house's previous full-year estimate but above Bloomberg consensus at 30%. In a note on Monday (June 26), the reesarch house said the underperformance was mainly due to lumpy cost items, which was reflected by cutting Yinson’s FY2024F core EPS forecast by 20%. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 26 June 2023