MQ Market Updates - 31 July 2023

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Publish date: Mon, 31 Jul 2023, 05:09 PM

CIMB has inked a memorandum of cooperation (MoC) with the Malaysian Green Technology and Climate Change Corporation (MGTC) to explore opportunities to drive sustainability adoption among SMEs via a sustainability-linked financing programme. The programme is the latest extension of CIMB’s award-winning GreenBizReady proposition launched in 2021 as a one-stop sustainability solution for SMEs. (TheStar)

Property developer Ibraco Bhd has secured a contract worth RM529.83 million to build the Sarawak Second Trunk Road. In a bourse filing on Monday (July 31), Ibraco said its subsidiary, Ibraco Construction Sdn Bhd, has accepted the letter of acceptance from the Jabatan Kerja Raya Sarawak to complete the new Batang Samarahan bridge And 9km new four-lane dual carriageway road JKR R5 Standard from Batang Samarahan To Batang Sadong. (TheEdge)

Eksons Corp Bhd has exited its loss-making core plywood manufacturing operations. The plywood operations were ceased in January this year due to the constant challenge in procuring the supply of logs and workers, according to group managing director Datuk Philip Chan Hon Keong. In the financial year ended March 31, 2023 (FY23), he said Eksons’ plywood division revenue plunged 40% to RM22.1mil from RM37.1mil in FY22. (TheStar)

Bursa Malaysia Bhd’s net profit for the second quarter ended June 30, 2023 (2QFY2023) rose 28.2% to RM76.25 million from RM59.47 million a year ago, as operating expenses fell on a one-off reversal of the provision of sales and service tax (SST) on digital services amounting to RM27.66 million. Earnings per share increased to 9.40 sen from 7.30 sen. Bursa also declared an interim dividend of 15 sen for 2QFY2023, amounting to approximately RM121.4 million, which represents a payout ratio of 91.7%. (TheEdge)

Gamuda Bhd shares went through a sharp decline on Monday (July 31) morning, amid a slew of negative news linked to the Sydney Metro West project, casting uncertainties on the group’s contract in the Australian metro project, triggering a round of profit-taking on the stock that was on a steady rise since the beginning of last year. Gamuda fell as much as 7.6% in the first half of the trading session on Monday, before paring some losses to trade at RM4.18 at market break, down 32 sen or 7.1%, with 11.99 million shares exchanging hands. (TheEdge)

Hartalega Holdings Bhd is aiming to complete 10 per cent of total projects focused on sustainability in the current financial year 2024 (FY2024) to amplify its research and development (R&D) capabilities. In its annual report 2023, the glove maker said plans are already underway to grow its R&D team in the fiscal year to bring new ideas to develop an even more diverse product portfolio. (TheStar)

Duopharma Biotech Bhd (DBB) will invest up to US$1 million into a US-based biotech company, The Live Green Co (TLGC), to explore the use of plant ingredients and technology to replace animal, synthetic, and ultra-processed ingredients in pharmaceutical products. The investment will see DBB acquire shares in TLGC, enabling the company to secure manufacturing, marketing, and distribution rights for co-developed products in ASEAN. (NST)

Daythree Digital Bhd, a newly listed company, is expanding its current operations in order to capitalise on the promising future of Malaysia's global business service (GBS) industry. The GBS sector is anticipated to develop at a rate of more than six per cent annually over the course of the following five years, said its managing director, Raymond Davadass. (NST)

Malayan Cement Bhd (MCB) will benefit directly from the revival of major construction and property projects as the largest cement brand in Malaysia, according to RHB Research. The investment bank said that while cement production has tapered off from April and May, the latest news regarding the Kuala Lumpur-Singapore High-Speed Rail, Johor Bahru-Singapore Rapid Transit System, Bayan Lepas Light Rail Transit, and Mass Rapid Transit 3 (MRT 3) projects has lifted the property and construction markets' sentiment, signalling potential pick-ups in Peninsular Malaysia's construction activities for the next four to five years. (NST)

British American Tobacco (M) Bhd (BAT Malaysia) anticipates that the combustible cigarettes segment will face continued challenges due to the growing popularity of vaping and the impact of reduced disposable income. Hong Leong Investment Bank Bhd (HLIB Research) said while the illicit market share decreased 2.4 per cent year-on-year (YoY) in the second quarter (Q2) of 2023, while the legal industry volume only saw a modest 1.2 per cent increase as the burgeoning vape segment eroded a portion of its potential growth. (NST)

TDM Bhd’s subsidiary TDM Plantation Sdn Bhd (TDMP) has set a target of having 100 per cent local general workers and 70 per cent local harvesters in its oil palm plantations by 2027. TDMP chief executive officer Hamdan Ibrahim said this commitment exemplifies the group’s investment in empowering the local community and reducing the reliance on foreign workers. (TheStar)

Wepay System Sdn Bhd will be raising RM700 million or equivalent through a foreign direct investment to finance the development of Theta Edge Bhd’s fully integrated and multi-functional digital platform project. In a filing with Bursa Malaysia, Theta Edge -- one of Malaysia’s pioneer information, communication and technology service providers -- said it has appointed Wepay System Sdn Bhd and its international technology associates as its technology partner to develop the platform. (TheStar)

CTOS Digital Bhd will continue to see a strong growth trajectory as it ramps up all three of its business segments, coupled with better associate contribution. In the second quarter ended June 30, 2023 (2Q23), the credit reporting company recorded a 17% year-on-year (y-o-y) rise in net profit to RM25.5mil, bringing the six-month profitability to RM37.71mil. (TheStar)

Sime Darby Property Bhd saw its counter rise to its highest since March 2022, and was actively traded on Monday morning (July 31). At the time of writing, its share price had risen three sen or 5.13% to a high of 61.5 sen, against its last closing price of 58.5 sen last Friday. Its market capitalisation was RM4.15 billion. Its share price was at the highest since more than a year ago on March 2, 2022 at 61 sen. (TheEdge)

Hong Leong Investment Bank Bhd (HLIB Research) has maintained a positive outlook on the CelcomDigi merger, foreseeing significant long-term rewards for Axiata Group Bhd. However, the investment bank acknowledged that regulatory hurdles, particularly in Nepal, and economic challenges in Sri Lanka remain major points of concern. (NST)

Apex Securities Bhd has derived a target price of 32 sen for ACE Market-bound geotechnical instrumentation and testing specialist Glostrext Bhd, saying valuation is based on the 14x PER (price-to-earnings ratio) of Glostrext’s FY2025F EPS of 2.3 sen, which is in line with the average forward 12-month PER of the Bursa Malaysia Construction Index. (TheEdge)

RHB Investment Bank Research (RHB IB) has maintained its “buy” rating on health and wellness direct selling group DXN Holdings Bhd at 75 sen with an unchanged target price (TP) of 93 sen, and said DXN’s 1QFY2024 results met expectations with a robust topline growth, on the back of positive traction in key markets more than offsetting the effects of a higher effective tax rate (ETR). DXN’s current valuation is attractive, considering its solid growth prospects, underpinned by new market expansion and insulation from the rising costs. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 31 July 2023