MQ Market Updates - 30 June 2023

MQ Trader

Publish date: Fri, 30 Jun 2023, 05:01 PM

Pelikan International Corp Bhd (PICB) and its subsidiaries have agreed to dispose of Pelikan Group GMBH (PGG) to Holdham SAS for €136mil (about RM695.44mil), which will see the group exit from its core stationery business. Following the disposal, the company plans for the bulk of the proceeds to be returned to shareholders via a proposed distribution. (TheStar)

Malayan Banking Bhd (Maybank) has appointed Datuk Hamzah Bachee as its group chief risk officer (GCRO) and member of group executive committee, effective July 1, 2023. Hamzah will be responsible to strategise, lead and enforce an effective enterprise-wide risk management practice that appropriately identifies, manages and mitigates risks to achieve the strategic and business objectives of Maybank Group. (TheStar)

Shares in Aurelius Technologies Bhd were up as much as 9.68% or 21 sen on Friday (June 30) morning, after the company announced last trading day that its net profit increased 60.75% to RM8.06 million for the first quarter ended April 30, 2023 (1QFY2024), from RM5.02 million a year earlier. At the time of writing, Aurelius had pared gains to RM2.33 a share, still up by 16 sen or 7.37% from RM2.17 at Wednesday's close, with a trading volume of 734,700 shares. The stock opened at RM2.20, its intraday low. (TheEdge)

Shares in Hextar Technologies Solutions Bhd [HexTech] (formerly known as Complete Logistic Services Berhad) rose 6.03% in thin trade at mid-morning on Friday (June 30) after the company said it was selling land to entities that are partly owned by its controlling shareholder Datuk Eddie Ong. At 10.41am, the stock was up RM1.58 to RM27.80 with 18,800 shares traded. (TheEdge)

Yinson Holdings Bhd offshore production unit's joint venture with PetroVietnam Technical Services Corp (PTSC) has secured a 12-month extension for the bareboat charter contract for FPSO PTSC Lam Son, with a further automatic extension of six-month. In a statement, Yinson said the addendum entered by PTSC and the JV company PTSC Asia Pacific Pte Ltd on June 29, 2023, sets an extension of charter period from July 1, 2023, to June 30, 2024, and further automatic extension until Dec 31, 2024. (TheStar)

Multi-wall industrial paper sack manufacturer KYM Holdings Bhd executive director and deputy chief executive officer Darren Lee Ji Jin has been promoted to CEO of the group effective July 1. In his new role, Lee will lead the executive team focusing on value creation via mergers and acquisitions (M&As). Lee, 40, will succeed Lim Tze Thean, 44, who will remain on the board of directors as executive chairman. Both Lee and Lim are cousins. Lim's father is KYM's founder and former executive director Datuk Lim Kheng Yew, 71, a major shareholder of the group with a 34.6% stake. (TheEdge)

MN Holdings Berhad has bagged an underground utilities contract worth RM13.1 million for the East Coast Rail Link (ECRL) project. In a statement to the bourse on Friday (June 30), the company said its unit Mutu Nusantara Sdn Bhd had received and accepted a letter of award from the main contractor Rentak Segar Sdn Bhd for its appointment as sub-contractor. (TheEdge)

ACE Market-bound MYMBN Bhd expects to raise RM20.58 million in proceeds from a public issue of 98 million new shares at an issue price of 21 sen each. The Melaka-based company is the first bird’s nest processor to list on the Ace Market of Bursa Malaysia. It said the initial public offering (IPO) exercise will enable MYMBN to take advantage of the growing demand for edible bird's nest (EBN) in both local and international markets, and increase its raw unclean edible bird's nest (RUCEBN) processing capacity, the company said at at its IPO prospectus launch on Friday (June 30). (TheEdge)

Practice Note 17 company, Top Builders Capital Bhd said trading in its shares will continue to be suspended because another quarterly report for the financial period ended March 31, 2023 is pending submission. According to its filing with Bursa Malaysia Securities, It submitted its quarterly report for the financial period ended 31 December 2022 on June 28, 2023. (NST)

Amid the cautious sentiment surrounding the economy, Alliance Bank Malaysia Bhd has put in place a multi-pronged strategy to accelerate growth in its financial year ending March 31, 2024 (FY24). The move is also to ensure that the group remains on track to meet the goals outlined in its enhanced strategic plan, called Acceler8 2027, to drive its business over the next four years by broadening growth across multiple segments, building competitive advantages and increasing value for its key stakeholders. (TheStar)

MAG Holdings Bhd (MHB) is venturing into shrimp farming in Indonesia to tap the growing demand for shrimp in the country. MHB signed a term sheet with Lim Shrimp Organization Ltd (LSOL) to invest up to 50 per cent equity interest valued at SG$6.1 million (equivalent to RM22 million) in Lim Shrimp Aquapolis Pte Ltd (LSA) for the project. (NST)

DC Healthcare Holdings Bhd is set to capitalise on the increasing market size of the aesthetic medicine industry in the country which is projected to reach RM1.0 billion in 2027, according to CGS-CIMB Research. The research firm said the company has already attained 11.1 per cent of the market share based on its revenue reported in 2022 (FY22) which is a 7 per cent increase from posted in 2021. (NST)

YTL Corp Bhd will be paying RM1bil in dividends per year, translating into 9.5 sen in dividend per share, and a yield of 10% a year for the financial years 2024-2025 (FY24-FY25). This is higher than CGS-CIMB Research’s forecast of six sen per year for FY24-FY25. (TheStar)

Solarvest Holdings Bhd intends to raise up to RM1 billion from two sukuk issuances for capital expenditures, asset and project acquisitions, and other purposes. It aims to launch an Islamic Medium-Term Notes (IMTN) programme and an Islamic Commercial Papers programme with a combined ceiling of up to RM1 billion, according to its filing with the Securities Commission (SC). (NST)

Berjaya Food Bhd's sales momentum is predicted to be sluggish in the fourth quarter of 2023 (4Q23) due to seasonally weaker sales during Ramadan. Maybank Investment Bank Bhd (Maybank IB), however, said lower coffee average selling prices during the quarter may partially offset slower sales momentum in sequential quarters. (NST)

T7 Global Bhd, which is now an integrated energy solutions provider, will likely achieve first gas for its Bayan mobile offshore production unit (Mopu) by the second half of this year. Mopu is a type of purpose-built portable offshore structure that is used in the oil and gas production. (TheStar)

Sapura Energy Bhd’s recent contract wins of RM1.4bil will help bring stronger profits in the second half of its financial year 2024 (2H24) on the back of more lucrative engineering and construction (E&C) works and new rig contracts. UOB Kay Hian (UOBKH) Research noted that most of the new contracts were for the E&C segment, and out of this, 58% are related to transportation and installation (T&I) for the Western Hemisphere. (TheStar)

Beshom Holdings Bhd’s multi-level marketing (MLM) segment is expected to face challenges arising from elevated inflationary pressure and dampened consumer sentiment. In light of these factors, TA Research anticipates that sales in the MLM segment will either remain flat or decrease in the upcoming quarter ending on July 31, 2023 (1Q24). This expectation is also attributed to the absence of the Hari Raya promotion during this period. (TheStar)

RHB Research upgraded its ratings of Tenaga Nasional Bhd (TNB) to "buy" from "neutral", and the local power sector to "overweight" from "neutral", due to limited regulatory risk following the government's recent electricity tariff adjustments and decision to maintain the Imbalance Cost Pass-Through (ICPT) mechanism, and its consistent payments to the national utility company. (TheEdge)

M&A Securities Sdn Bhd (M&A Securities) has completed its reverse takeover (RTO) of SYF Resources Berhad (SYF) en route to list on the Main Market of Bursa Malaysia Securities Berhad. In a statement on Friday (June 30), the company said that concurrent with the RTO exercise, SYF has also changed its name to M&A Equity Holdings Berhad (M&A Equity) to better reflect its new core business and future undertakings in the financial services industry. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 30 June 2023