MQ Market Updates - 04 August 2023

MQ Trader

Publish date: Fri, 04 Aug 2023, 05:13 PM

Citaglobal Bhd is acquiring a 60 per cent stake in registered solar photovoltaic (PV) provider Spectra Suria Sdn Bhd (SSSB) for RM2 million and a 40 per cent stake in Nova Reeco Sdn Bhd (NRSB), a solar PV investor company, for RM3 million. SSSB and NRSB are securing projects from various government departments and quasi-government agencies. Both acquisitions come with an orderbook of RM268 million, boosting Citaglobal's total orderbook to RM1.27 billion. (NST)

Malaysia's biggest lender, Malayan Banking Bhd (Maybank), has appointed Raymond Chooi as the regional head of equity capital markets (ECM) at its investment banking group, according to a memo seen by Reuters on Friday (Aug 4). Chooi will be expanding his current role as Maybank Investment Banking Malaysia Head of ECM "to help drive the growth and development of Maybank IBG's ECM business across the region", the memo said. (TheEdge)

ACE Market-bound Glostrext Bhd’s initial public offering (IPO) for the public portion has been oversubscribed by 173.54 times. In a statement on Friday (Aug 4), the geotechnical instrumentation service provider said a total of 18,730 applications seeking 3.55 billion new shares, valued at RM674.94 million, were received from the Malaysian public for 20.35 million new shares that were made available for public subscription. (TheEdge)

Kumpulan Kitacon Bhd has accepted a letter of award (LoA) worth RM62.3mil from KL-Kepong Country Homes Sdn Bhd for construction work in Ijok, Selangor. In a filing with Bursa Malaysia, the company said the LoA, which was secured by its wholly-owned subsidiary, Kitacon Sdn Bhd, will entail the development of 128 units of two storey cluster houses, a guardhouse and TNB substation. (TheStar)

LGMS Bhd, one of Malaysia's and Southeast Asia's leading cybersecurity companies, recently facilitated Cambodia-based ABA Bank's certification of the international payment card industry data security standard (PCI DSS). ABA Bank, a subsidiary of the National Bank of Canada, is Cambodia's largest commercial bank with the most substantial assets, deposits, loans and profitability, based on the National Bank of Cambodia's 2021 Annual Supervision Report. (NST)

Tenaga Nasional Bhd (TNB) is seen as the key beneficiary from the National Energy Transition Roadmap (NETR) as it will gain incremental revenue from wheeling charges of cross-border electricity exports. The grid upgrade for energy transition will be under a different scheme from the current regulated incentive-based regulation (IBR) scheme, according to TA Research. (TheStar)

Minetech Resources Bhd’s subsidiary, Coral Power Sdn Bhd (CPSB), has been granted the Commissioning Test Certificate (CTC) by the Energy Commission for a 60 acres large-scale solar (LSS) power plant. According to the power purchase agreement and Tenaga Nasional Bhd’s (TNB) letter, CPSB's power plant has been cleared for commercial operation beginning May 29, 2023. (TheStar)

Telekom Malaysia Bhd (TM) says it is in active engagement with access seekers to reach an agreement following the release of its new reference access offer (RAO), which outlines the wholesale pricing of its high-speed broadband network. The telecommunications company said the adoption of the mandatory standard on access pricing (MSAP) for the wholesale rate, expected to begin this September, will encourage service providers to offer better Internet packages. (TheStar)

UMedic Group Bhd's earnings are expected to come in stronger quarter-on-quarter at RM2.5 million in the fourth quarter of financial year 2023, bringing full-year estimates within expectations. Affin Hwang Capital said UMedic's ongoing facility expansion should be completed in September, and manufacturing capacity is expected to double by year-end. (NST)

UEM Sunrise Bhd is seeing positive demand and robust take-up rates for its recent launch, Phase 2A of Senadi Hills, with all 44 of its non-bumiputra units fully sold and all its bumiputra lots fully registered. The development, consisting of 75 double-storey terrace homes priced from RM843,000, was launched on June 18 and is targeted to be completed at the end of the second quarter of 2025 (2Q25). (TheStar)

Ge-Shen Corp Bhd is acquiring 3.3 million shares, representing a 60% stake in rubber products and medical devices manufacturer Kibaru Manufacturing Sdn Bhd for RM16.8mil. In a filing with Bursa Malaysia, Ge-Shen said it was acquiring the stake from shareholders Ooi Eng Kim, Ong Yu Yuen, Ong Yu Zhi, Sho Kim Lian, Tan Pei Pei and Un Chee Wei. (TheStar)

Hot on the heels of AMMB Holdings Bhd’s recent disposal of its 51%-held general insurance arm, analysts are bullish on the potential sale of AmMetLife Insurance Bhd and AmMetLife Takaful Bhd to Great Eastern Holdings Ltd. Not only would the deal spur AMMB’s earnings going forward, it would also enable the group to have a sleek capital structure while not significantly affecting its fee income from its bancassurance business, they said. (TheStar)

The redevelopment of the KL Sentral Station on a private-finance-initiative basis with Malaysian Resources Corp Bhd (MRCB) at a cost of more than RM1bil is a well-timed chance to enhance the company’s commercial presence in a prime and strategic area, according to Hong Leong Investment Bank (HLIB) Research. (TheStar)

Hong Leong Investment Bank Bhd (HLIB Research) is positive about Sunway Bhd's property arm Sunway Property acquiring 99.15 hectares of freehold industrial land in Kuang, Rawang for RM115 million. The investment bank stated this is due to the strategic location of the land, with good connectivity to KLIA and Port Klang, as well as the fair acquisition price. (NST)

Kenanga Research has upgraded its call on Fraser & Neave Holdings Bhd (F&N) to “outperform” at RM24.92, with an unchanged target price of RM28.44, and said the company’s financial results for the cumulative nine months ended June 30, 2023 (9MFY2023) met the house's forecast but fell short of market expectations. In a note on Friday (Aug 4), the research house said F&N saw a year-on-year growth of 13%, with strong results from Malaysia (+19%) and Thailand (+5%). (TheEdge)

RHB Investment Bank has maintained its “neutral” rating on Kelington Group Bhd (KGB) at RM1.46 with a higher target price (TP) of RM1.51 (from RM1.44), and said it expects a good financial quarter ended June 30, 2023 (2QFY2023) for KGB. In a note on Friday (Aug 4), the research house said this is supported by a strong order book of RM2.3 billion (end-April 2023), which translates into 1.8 times FY2022 revenue and year-to-date (up to April) order wins of RM568 million (about 30% of FY2022 new orders). 2QFY2023 revenue/core earnings could potentially see a double-digit expansion year-on-year. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 04 August 2023