MQ Market Updates - 10 August 2023

MQ Trader

Publish date: Thu, 10 Aug 2023, 05:21 PM

Sapura Energy Bhd, a Practice Note 17 (PN17) company, is in the final stages of completing its restructuring scheme with lenders and trade creditors. Group chief executive officer Datuk Anuar Taib told the New Straits Times that Sapura Energy expects to wrap up the process by the end of the year. Sapura Energy's restructuring will also entail a potential financial investment of about RM1.8 billion from a white knight, which according to Anuar will support the group's goal to preserve the industry eco-system. (NST)

Sentral Real Estate Investment Trust (REIT) will continue with its active leasing management strategies and marketing efforts to lease out the current vacant spaces with targeted strategies to address market changes. “Sentral has approximately 162,000 sq. ft. or 10% of its total committed net lettable area (NLA) due for renewal in 2023, with approximately 47% of these NLA due in 1H 2023. Sentral achieved a renewal rate of 98% for the NLA due in 1H 2023,” Sentral REIT Management Sdn Bhd chief executive officer Derek Teh Wan Wei said in a statement. (TheStar)

Perak Corp Bhd has agreed to sell some 110 acres of leasehold agricultural land in Kampar, Perak, for RM5.5mil to Kim Poh Sitt Tat Feedmill Sdn Bhd. In a filing with Bursa Malaysia, Perak Corp noted as an affected listed issuer under Practice Note 17, the disposal provided an avenue for the company to raise funds to channel towards the group’s business operations which will improve its overall cash flow position as part of its regularisation effort. Valuation done by an independent value put the market value of the property at RM5.8mil. (TheStar)

Bumi Armada Bhd’s unplanned shutdown of the Armada Kraken floating production, storage and offloading (FPSO) which is mobilised in the UK North Sea has been restored following work done. In a filing with Bursa Malaysia, Bumi Armada noted an additional HSP transformer has been reconditioned from the failed HSP transformer units. Following the successful installation of the second reconditioned HSP transformer on the FPSO, the vessel’s operational performance has now been restored to pre-shutdown levels. (TheStar)

Binasat Communications Bhd’s wholly-owned subsidiary, Binasat Sdn Bhd, has agreed to sell two double-storey semi-detached adjoining office building for RM10.5mil cash. In a filing with Bursa Malaysia, Binasat noted the properties, located at Taman Industri Bukit Permai in Ulu Langat, Kuala Lumpur, will be sold to to Advance Fountain Sdn Bhd. Binasat stands to make a net gain of RM4.5mil on the sale. (TheStar)

Property developer Sunsuria Bhd saw its share price went up by 15.96% and was actively traded on Thursday's (Aug 10) morning session on Bursa Malaysia. It reached an intra-day high of 54.5 sen before paring gains by 5.5 sen or 11.70% to 52.5 sen. It is higher than its last closing price of 47 sen on Wednesday. At 54.5 sen, the counter is at its highest since May 3, when it closed at 57 sen. (TheEdge)

Shares in Mr DIY Group (M) Bhd climbed as high as 10 sen or 6.99% to an intra-morning high of RM1.53 in early Thursday (Aug 10) trade, after reporting an 11.19% increase in net profit for the second quarter ended June 30, 2023 (2QFY2023) to RM150.32 million, from RM135.19 million the year before. At the time of writing on Thursday, the counter took a breather, retreating to RM1.51, still up eight sen or 5.59%, giving it a market capitalisation of RM14.15 billion. (TheEdge)

Hong Leong Investment Bank (HLIB) Research cut profit targets and its target price for Hartalega Holdings Bhd on lower-than-expected revenue, as sales volume took a hit. "Key discrepancy to our forecast was due to lower-than-expected revenue, as sales volume took a hit despite average selling price (ASP) growing marginally. (NST)

CGS-CIMB has lowered its sum of parts (SOP)-derived target price for MISC Bhd after cutting its discounted cashflow (DCF) valuation of its FPSO Mero-3 project by 10 sen, underpinned by higher tax rate assumptions. The higher tax rate assumptions are mitigated by a small increase in its DCF valuation of MISC’s liquefied natural gas (LNG) tankers, as the research house thinks that the group will replace its tankers’ long-term contracts which are set to expire in the next few years with short-term jobs, instead of leaving its fleet idle. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 10 August 2023