MQ Market Updates - 22 August 2023

MQ Trader

Publish date: Tue, 22 Aug 2023, 05:08 PM

AMMB Holdings Bhd's (AmBank) first quarter ended June 30, 2023 (1Q24) results came in below expectations, making up 20 to 21 per cent of Hong Leong Investment Bank Bhd (HLIB) and consensus full-year forecasts. In a note today, HLIB said the key variance came from higher-than-expected loan loss provision. (NST)

Matrix Concepts Holdings Bhd’s net profit for the first quarter ended June 30, 2023 (1QFY2024) rose 37.3% to RM64.6 million from RM47.04 million a year ago, as it benefitted from improved speed of construction activity with labour shortage issues resolved. Earnings per share was 5.16 sen versus 3.76 sen previously, the property developer reported in a Bursa Malaysia filing on Tuesday (Aug 22). (TheEdge)

MY EG Services Bhd's (MyEG) net profit rose 25.85 per cent to RM111.56 million for the second quarter ended June 30, 2023 (2Q23) from RM88.64 million a year ago, underpinned by an overall increase in revenue from its existing services. The company said higher margins made up for the lack of revenue contribution from health screening and quarantine services. (NST)

Solarvest Holdings Bhd is optimistic its overall performance will remain satisfactory over the coming financial year as Malaysia's renewable energy (RE) sector benefits from the government's efforts to ramp up its capacity. In a bourse filing, the clean energy firm said net profit in the first quarter of its 2024 financial year rose to RM6.7mil from RM4.28mil in the same quarter in 2022. (TheStar)

TIME Dotcom Bhd plans to expand its fibre footprint from its more than 1.3 million premises by using about RM1bil from the proceeds of its partial stake sale in AIMS Group. There are also good opportunities for the regionalisation of the company’s data centre (DC) business, leveraging on strong enterprise demand for DC co-locations and cloud services, according to RHB Research. (TheStar)

Apex Securities Bhd has initiated coverage on Lagenda Properties Bhd, which specialises in developing affordable landed properties and integrated townships to the B40 and M40 income groups in Malaysia, at RM1.24 and fair value of RM1.52. In a note on Tuesday (Aug 22), the research house said the demand for affordable housing remains neglected while unsold units in other segments remain high as they exceed affordability levels. (TheEdge)

Petronas Chemicals Group Bhd's (PetChem) net profit slumped 66% to RM628 million for the second financial quarter ended June 30, 2023 (2QFY2023), from RM1.87 billion a year ago, in line with lower earnings before interest, tax, depreciation and amortisation and share of profit from joint ventures and associates. Revenue for the quarter rose to RM7.11 billion, versus RM6.58 billion previously, largely due to higher sales volumes and inclusion of revenue from a recently acquired subsidiary. (TheEdge)

Swift Haulage Bhd’s earnings growth momentum is expected to be fuelled by its warehousing segment, fleet expansion and the monetisation of its unutilised land bank. MIDF Research said Swift Haulage’s core profit after tax and minority interest dropped by 48.7% year-on-year (y-o-y) to RM7.1mil in the second quarter of financial year 2023. (TheStar)

Ramssol Group Bhd saw its shares actively traded in the morning session on Tuesday (Aug 22), after Top Glove Corp Bhd founder and executive chairman Tan Sri Dr Lim Wee Chai emerged as a substantial shareholder. At the time of writing, Ramssol, which provides solutions for human capital management, saw 19.12 million shares change hands, which was more than 10-fold its 200-day average volume of 1.83 million shares. (TheEdge)

CelcomDigi Bhd is unperturbed about competition but will focus on providing a wide range of products from affordable to high-end, according to Kenanga Research. The company would also include an opt-in strategy for customers who preferred 5G allowing them to have a seamless experience, said the research house. (TheStar)

Public Investment Research has retained its 'neutral' call on Hextar Global Bhd given near-term operational challenges in light of the company's weaker first half performance due to weaker selling prices of key herbicides. The research house said Hextar Global's customers are adopting a "wait-and-see" attitude in anticipation of the lower selling prices. (NST)

Hong Leong Investment Bank (HLIB) Research has rated Berjaya Food Bhd (BFood) a "trading buy" and said that going into the financial year 2024 (FY2024), there is optimism that cost pressures will alleviate, primarily due to lower raw material costs and a stronger ringgit. In a technical tracker on Tuesday (Aug 22), the research house said that additionally, the group is planning to open 40 to 45 new Starbucks stores in FY2024, higher than its usual target of 35 to 40 stores. (TheEdge)

RHB Research maintained its call and target price (TP) for LBS Bina Group Bhd after its earnings for the second financial quarter ended June 30, 2023 (2QFY2023) met the research firm's expectations, despite chalking a year-on-year (y-o-y) decline. In a research note on Tuesday (Aug 22), RHB reaffirmed its “buy” call and unchanged TP of 56 sen for the property developer, with a 4% upside and an about 4% yield forecast for FY2023, based on a 65% discount to revalued net asset value. (The Edge)

Source: New Straits Times, The Edge Markets, The Star 22 August 2023