MQ Market Updates - 24 August 2023

MQ Trader

Publish date: Thu, 24 Aug 2023, 05:20 PM

Sime Darby Bhd has entered into a conditional share purchase agreement to acquire Permodalan Nasional Bhd's (PNB) entire 61.2% stake in UMW Holdings Bhd for RM3.57bil cash or RM5 per share. Once the agreement becomes unconditional, the group said it will undertake a general offer for the remaining 38.8% stake it does not hold with the aim of delisting UMW from Bursa Malaysia. (TheStar)

Kuala Lumpur Kepong Bhd (KLK) has proposed to acquire 739.2 million shares in Boustead Plantations Bhd, representing 33 per cent and one share of the total issued shares of the plantations arm from Boustead Holdings Bhd. This confirms the report by the New Straits Times earlier on the talks of KLK buying a major stake in BPlant from Boustead, and taking the firm private. (NST)

Avaland Bhd has returned to the black with a net profit of RM11.12 million in the second quarter (Q2) ended June 30, 2023 versus a net loss of RM7 million in Q2 2022. Its revenue for the quarter more than doubled to RM113.84 million from RM53.5 million in the same period last year. (NST)

NCB Holdings Bhd’s controlling shareholder MMC Port Holdings Sdn Bhd, a wholly owned unit of MMC Corporation Bhd (MMC Corp), has proposed to undertake a selective capital reduction and repayment exercise (SCR) involving cash distribution of RM19 million to entitled shareholders at RM4.80 for each share. In a statement on Thursday (Aug 24), NCB said the SCR will provide greater flexibility to MMC Port in the implementation of any business plan of NCB, moving forward. (TheEdge)

Electronics manufacturing services (EMS) provider Betamek Bhd is investing in software and system development and implementation to facilitate factory automation towards industry 4.0 (“IR 4.0”). In a statement on Thursday (Aug 24), Betamek managing director Mirzan Mahathir said to further automate the core business process and systems, the company is in the process of adopting customised software and system to complement its business operations, which will allow them to better monitor and control the complex processes executed during the production processes. (TheEdge)

JF Technology Bhd's net profit eased to RM12.1 million for the financial year ended June 30 2023 from RM17.2 million a year ago. Group revenue was marginally higher at RM45.4 million from RM45.3 million posted a year ago. (NST)

MBM Resources Bhd's core net profit in the second quarter ended June 30 2023 (2Q23) is weaker by 35 per cent quarter-on-quarter (q-o-q). Affin Hwang Capital said MBM had clocked in a weaker core net profit of RM52.2 million, down 34.7 per cent q-o-q from a high base from vigorous delivery of backlog orders during the prior quarter. (NST)

Sports Toto Bhd's net profit jumped 37.94 per cent to RM221.92 million in the year ended June 30 2023 from RM160.89 million in 2022. Group revenue went up 16.64 per cent to RM6.1 billion from RM5.23 billion a year ago. (NST)

RGB International Bhd posted a net profit of RM26.5 million for the second quarter ended June 30, 2023 (2QFY2023), compared with a net loss of RM2.66 million a year earlier, driven by higher earnings from its sales and marketing (SSM) and technical support and management (TSM) divisions. The Penang-based integrated gaming solutions specialist registered earnings per share of 1.72 sen, versus a loss per share of 0.17 sen in 2QFY2022. (TheEdge)

Gold mining company Bahvest Resources Bhd reported a net profit of RM2.15 million for the three months ended June 30, 2023 (April to June 2023), on the back of a revenue of RM19.22 million. Earnings per share stood at 0.17 sen, according to its filing to Bursa Malaysia on Thursday (Aug 24). (TheEdge)

Shares of Dayang Enterprise Holdings Bhd (DEHB) continued their rally, hitting RM1.58 — the highest since its closing price of RM2.08 on March 6, 2020 — in Thursday (Aug 24)’s morning trade, ahead of its results for the second quarter ended June 30, 2023 (2QFY2023), which is scheduled to be released on Friday. Its 64%-owned subsidiary Perdana Petroleum Bhd closed at a near three-and-a-half-year high on Wednesday, after it announced a strong financial performance for 2QFY2023. (TheEdge)

Genting Plantations Bhd’s prospect for the second half of 2023 (2H23) will track the performance of its mainstay plantation segment. The group said the segment is dependent principally on the movements in palm product prices and its fresh fruit bunch (FFB) production. (TheStar)

D&O Green Technologies Bhd’s net profit nosedived by 95.33% to RM716,000 in the second quarter ended June 30, 2023 (2QFY2023), from RM15.34 million a year ago. Earnings per share dropped to 0.06 sen, from one sen previously. In its announcement to Bursa Malaysia, the company said revenue for the quarter dipped 9.13% to RM219.97 million, from RM242.06 million previously. (TheEdge)

Far East Holdings Bhd’s net profit shrank 91.56% to RM5.92 million in the second quarter ended June 30, 2023 (2QFY2023) from RM70.18 million a year earlier, amid lower average crude palm oil (CPO) and palm kernel (PK) prices as well as lower fresh fruit bunch production. In its announcement to Bursa Malaysia, the group said its quarterly revenue dropped 59.33% to RM98.57 million from RM242.36 million, as average CPO price declined 40.47% to RM3,893 per tonne from RM6,540 per tonne, while average PK price dropped 42.89% to RM1,988 per tonne from RM3,481 per tonne. (TheEdge)

Trading in the securities of Boustead Plantations Bhd has been suspended from 9am to 5pm on Thursday (Aug 24) at the request of the planter pending the release of material announcement. In a filing on Thursday, the group said the request for suspension is made under subparagraph 3.1(b) of Practice Note 2 on Request for Suspension of the Main Market Listing Requirement of Bursa Securities. (TheEdge)

Eastern & Oriental Bhd (E&O) plans to launch developments with a combined gross development value (GDV) of between RM17bil and RM20bil within its township project in Andaman Island, Penang over the next 15 years. E&O managing director Kok Tuck Cheong said the Andaman Island would be the primary focal point for the property developer in the coming decades. (TheStar)

Allianz Malaysia Bhd believes the continued normalisation of the economy this year bodes well for the insurance sector, expecting its business to grow in tandem with Malaysia’s recovery and expansion. Aside from riding on the economic wave, the insurer said its financial strength, diversified distributions and product offerings as well as strong focus on execution of strategic initiatives will continue to position it to deliver sustainable growth this year. (TheStar)

T7 Global Bhd is optimistic over its prospects, which remain supported by a RM2.4bil order book to be recognised over the next 10 years. In the second quarter ended June 30, 2023, T7 Global posted a net profit of RM6.43mil, which was an increase of about 140% over RM2.65mil in the same quarter in 2022. (TheStar)

Property developer SkyWorld Development Bhd has partnered with Maybank to offer a home interior makeover financing scheme to all SkyWorld’s homeowners. According to a press statement issued on Thursday (Aug 24), the scheme, Maybank MyDeco, is a first-of-its-kind home renovation financing scheme that allows homeowners an additional 30% margin of finance or up to a combined total of 120% of the property value. (TheEdge)

Sunsuria Bhd has launched its latest residential development called Seni Residences which pairs British elegance with smart living. Nestled within the heart of the vibrant Sunsuria City in Sepang, the residence spans over 4.45 hectares of freehold land and comprises only 131 meticulously designed two-storey and 2.5-storey terrace homes. (NST)

The final tower of Solasta Dutamas condominium development by YNH Property Bhd will be officially open for sale in October this year, following the success of the project’s first two towers, which achieved an average 90% take-up rate as of Thursday (Aug 24). Solasta Dutamas is spread across a 3.52-acre freehold tract in Dutamas, Kuala Lumpur. With a combined gross development value of RM771 million, the project comprises three condominium towers; Block A, B and C. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 24 August 2023