MQ Market Updates - 27 June 2023

MQ Trader

Publish date: Tue, 27 Jun 2023, 05:04 PM

Sarawak Consolidated Industries Bhd's (SCIB) share price rose 2 per cent, or 1.5 sen, to hit a 52-week high of 45 sen in early trade today following the resignation of three independent directors who were due to be removed in an extraordinary general meeting tomorrow. As at 10.58am, the share price was hovering at 44 sen. It was the most actively traded shares of the day with some 57.6 million shares traded. (NST)

Tenaga Nasional Bhd (TNB) and Electricite du Lao (EDL) has signed a memorandum of understanding (MoU) to explore the potentials of hydropower in Laos which is expected to generate returns of RM460 million to RM2.3 billion a year to TNB beginning 2025. It also has the potential to increase cross-border electricity trade in Asean and assist Laos to become the "Battery of Asia”.(TheStar)

Sapura Energy Bhd's share price gained by 14 per cent on Tuesday after the financially troubled company reported an almost 59 per cent jump in net profit for the first quarter of financial year 2024 (1QFY24). The company's share price was hovering at four sen with some 49.6 million shares changing hands. It was the second most active stock of the day as at 10.46am. (NST)

DGB Asia Bhd's share price fell as much as 50 per cent in early trade today to hit half a sen, after it announced a proposed share consolidation, and private placement to raise working capital. DGB's, which is in hospitality management, courier services & smart vending machine businesses, share price rebounded to trade at one sen with some 23.8 million shares changing hands. It was the 5th most actively traded stock on the stock exchange as at 10.30am. (NST)

Software development and engineering solutions provider Nova MSC Bhd (NMB) has appointed Datuk Adriana Law and Nazerollnizam Kasim as directors. Law brings two decades of experience in event and exhibition management to NMB. She has held several senior leadership positions, including the chief executive officer at two Star Media Group companies. (NST)

Automated manufacturing solutions provider ECA Integrated Solution Bhd (EIS) posted a net profit of RM3.5 million for the second quarter (Q2) ended April 30, 2023 (FY23) compared to RM4.1 million posted in the first quarter (Q1) FY23. Revenue stood at RM9.3 million against RM10.6 million in Q1 FY23. (NST)

IJM Corp Bhd, via its wholly-owned subsidiary IJM Construction Sdn Bhd, has been awarded a RM653.6mil contract for the design, execution and construction of phase one of the Shah Alam International Logistics Hub (SAILH). “Strategically located on a 71-acre site in Shah Alam, the SAILH will serve as a state-of-the-art logistics hub with excellent connectivity to major transportation networks and key industrial areas. (TheStar)

The move by Telekom Malaysia Bhd (TM) to push for domestic roaming with other players will help boost its mobile coverage and presence in the country in view of 5G. Even though the agreement is for 4G sites, it is necessary for TM to have enough mobile subscribers to be able to capture users for its 5G experience eventually. (TheStar)

Rapid Synergy Bhd does not anticipate that the proposed sale of land and a building in Perak for RM25 million will cause it to turn into a cash company or a PN17 issuer in accordance with the Main Market Listing Requirement of Bursa Malaysia. According to a stock exchange filing, the company is selling 11,345 square metres of leasehold land and a commercial building in Ipoh to unlock and realise the value of the property and to raise money for various uses. (NST)

CIMB Group Holdings Bhd reinforces 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% and 50% of the existing monthly instalments, for up to 12 months through seamless application and approval process with minimal documentation required. (TheStar)

Yinson Holdings Bhd is projected to gain stronger growth for the rest of the year following the floating production, storage and offloading (FPSO) unit Anna Nery achieving its first oil in May, as well as the completion of its FPSO Nokh solar power plant in India. The oil and gas group also expects another US$24mil (RM112mil) in Anna Nery’s mobilisation fees to be recognised in the profit and loss statement over the 25-year charter period. (TheStar)

Rapid Synergy Bhd is disposing of 11,345 sq m of leasehold land in Ipoh, Perak for RM25mil. In a filing with Bursa Malaysia, the company said it had entered into a conditional sale and purchase agreement with Intra Megamas Sdn Bhd for the proposed disposal. Rapid Synergy said the disposal represents an opportunity for it to unlock and realise the value of the property, as well as to fund working capital and/ or repayment of bank borrowings. (TheStar)

ACE Market-bound DC Healthcare Holdings Bhd, a specialist in aesthetic medical services, has priced its initial public offering (IPO) at 25 sen per share with the aim of raising RM49.81 million for working capital and repayment of borrowings. At 25 sen per share, DC Healthcare is valued at 26.04 times price earnings based on its profit after tax of RM9.56 million for the financial year ended Dec 31, 2022. (TheEdge)

Hong Leong Investment Bank (HLIB) Research said it upgraded Bumi Armada Bhd (BAB) to “Buy” (from “Sell”) with an unchanged of target price of 54 sen, as it believes the risk and reward ratio of the stock has turned attractive following a 25.6% plunge month-on-month. In a technical tracker on Tuesday (June 27), the research house said that to recap, BAB announced that the group’s heavyweight Armada Kraken FPSO, which accounted for approximately 35% of the group’s FY22 revenue, was shut-in following the failure of critical hydraulic submersible pump transformers. (TheEdge)

Kenanga Research has initiated coverage on Hong Leong Industries Bhd (HLIND) with an “Outperform” rating at RM8.86 and target price (TP) of RM11.40. nIt said that holding the exclusive local manufacturing and distribution rights for the best-selling Yamaha motorbikes, HLIND is a strong proxy to Malaysia’s booming gig economy, given the critical role of motorised two-wheelers in the last mile delivery for online transactions. (TheEdge)

CGS-CIMB Securities has maintained its “Add” rating on Bermaz Auto Bhd (BAuto) at RM2.20 with a higher target price (TP) of RM3.50 (from RM3.30), supported by higher FY2024F/2025F core net profit and an attractive 9% dividend yield.In a note on Monday (June 26), the research house forecast a sales volume of 22,700 units (+6.5% y-o-y) in FY2024F for BAuto. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 27 June 2023