MQ Market Updates - 11 August 2023

MQ Trader

Publish date: Fri, 11 Aug 2023, 05:22 PM

Financially troubled Pharmaniaga Bhd has warned that an extensive business restructuring exercise it is undertaking to regularise its financial condition, could lead to an adverse one-off financial impact in the upcoming quarters. In a statement today, Pharmaniaga said it is undertaking a comprehensive review of its position in all business segments, and implementing rigorous fiscal discipline initiatives across its operations as part of its comprehensive recovery plan to exit the Practice Note 17 (PN17) status. (NST)

ACE Market-bound Glostrext Bhd posted a net profit of RM1.46mil on the back of RM6.43mil revenue for its first quarter ended June 30 (1Q24). The geotechnical instrumentation and testing service provider’s earnings per share for the quarter was 0.48 sen. There are no comparative figures available for the preceding year corresponding quarter and period as this is the first interim financial report announced by the company in compliance with the ACE Market Listing Requirements of Bursa Malaysia Securities. (TheStar)

Pentamaster Corp Bhd remains forward-looking with optimism in sustaining a steady momentum of growth in the second half of 2023 (2H23) with its encouraging order book strength. In the second quarter ended June 30, Pentamaster’s net profit rose 23.2% to RM23.6mil from RM19.2mil in the same period last year. Revenue rose 16.9% to RM176.9mil against RM151.3mil previously, while earnings per share climbed to 3.33 sen versus 2.70 sen a year prior. (TheStar)

A consortium comprising Kinergy Advancement Bhd’s (KAB) wholly owned subsidiary KAB Smart Solar Energy Sdn Bhd (KSSE) and Salcon Bhd has been selected to be a solar power producer under the Corporate Green Power Programme (CGPP), with an allocated export capacity of seven megawatts (MW). In separate bourse filings on Friday (Aug 11), both KAB and Salcon said the Energy Commission (EC) informed that the consortium met the criteria in the CGPP information guide for the development of a 7MW solar photovoltaic plant in Sungai Siput, Perak. (TheEdge)

Top Glove Corp Bhd has been dropped as a constituent for the MSCI Global Standard Indexes which will take place as of the close of Aug 31, 2023. In the list released on Thursday (Aug 10), there were no Malaysian securities added to the list. With the deletion of Top Glove, there are 32 Malaysian securities remaining on the list. (TheEdge)

Berjaya Land Bhd (BLand) has appointed Abang Abdillah Izzarim Abang Abdul Rahman Zohari as an independent non-executive director, effective August 10. Abang Abdillah, 45, is the son of Sarawak premier Tan Sri Abang Abdul Rahman Zohari Abang Openg, more popularly known as Abang Johari or Abang Jo. BLand, whose major businesses include property development, property investing, gaming, and lottery management, is part of Tan Sri Vincent Tan Chee Yioun's Berjaya Group empire. (NST)

EA Holdings Bhd has called an extarrodinary general meeting (EGM) requested by a Ng Cheng Shin for August 22, 2023 as defective and void, and advised shareholders not to attend and vote at the scheduled EGM. In a filing with Bursa Securities EA Holdings said the EGM is independent of the company and against the terms of Ad Interim Injunction granted by the High Court in favour of Vinvest Capital Holdings Bhd and Mohammad Sobri Saad, which among others, prohibits the company from holding an EGM while the injunction is in force. (NST)

Hong Leong Investment Bank Research (HLIB Research) has trimmed its earnings forecasts for Sentral REIT after its second quarter (2Q) 2023 core net profit of RM17.6 million came below expectations. The research unit said the results were below its estimates (45 per cent) but within street estimates (50 per cent) due to higher-than-expected property operaing expenditure and finance costs. "We trim our financial year 2023 (FY23)/FY24/FY25 forecasts by -7.0 per cent/-6.6 per cent/6.9 per cent as we pencil in higher utilities and finance costs assumptions," the research unit said. (NST)

Analysts are positive on IHH Healthcare Bhd’s acquisition of Bedrock Healthcare Sdn Bhd (BHSB) for RM245mil cash. IHH’s subsidiary, Pantai Holdings Sdn Bhd has inked a share purchase agreement (SPA) with Saravita Holdings Sdn Bhd and nine individual founders for the acquisition. BHSB operates an 82-bed hospital, Timberland Medical Centre (TMC), in Kuching, Sarawak and has earmarked a vacant land in central Kuching for the construction of a 200-bed hospital. (TheStar)

Kenanga Research has maintained its "neutral" stance on the property sector, naming Eco World Development Group Bhd (EcoWorld) and IOI Properties Group Bhd as its top picks, which have strong cash flows that could anchor good dividends in the current challenging operating environment. In a note on Friday (Aug 11), Kenanga said it favours EcoWorld because of its strong branding and mature townships, while IOI Properties is a top pick because of the hidden value of its prime investment properties in the Klang Valley, Singapore and China that could potentially be developed through a real estate investment trust. (TheEdge)

CGS-CIMB maintained its "buy" call on Sime Darby Property Bhd and raised its target price (TP) by 19% to 87 sen from 73 sen on the group’s diversified product mix, high unbilled sales and strong balance sheet. CGS-CIMB's revised TP of 87 sen is based on 0.6 times its financial year ending Dec 31, 2024 (FY2024) price-to-book (P/B) value, and is one standard deviation above its five-year historical mean. In a research note on Thursday (Aug 10), CGS-CIMB said it recently hosted Sime Darby Property for a luncheon where the group’s managing director Datuk Azmir Merican reaffirmed that demand for industrial products remains strong, driven by warehousing, data centres and manufacturing-related businesses. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 11 August 2023