MQ Market Updates - 25 August 2023

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Publish date: Fri, 25 Aug 2023, 05:10 PM

Aurelius Technologies Bhd's (Atech) wholly-owned unit BCM Electronic Corporation Sdn Bhd has embarked on manufacturing 5G communication modules with applications in Internet of things and automotive components. In a statement, Atech said this marked its foray into the new automotive industry sector. (NST)

Genetec Technology Bhd’s move to transfer its listing status from the ACE Market to the Main Market has been approved by Bursa Malaysia. In a filing with the stock exchange, the company said the Securities Commission had approved the proposed transfer under Section 214(1) of the Capital Markets and Services Act 2007 and under the bumiputra equity requirement for public-listed companies. (TheStar)

Mestron Holdings Bhd's (MHB) subsidiary, Liziz Biogas Sdn Bhd (LBSB), received approval from the Sustainable Energy Development Authority (SEDA) on the revised feed-in tariff (FiT) rate for its biogas plant at Gua Musang. In a Bursa Malaysia filing today, the company said the rate has been set competitively at 39.75 sen/kW from 9 sen previously and will commence on July 26, 2023, for 21 years. (NST)

UMW Holdings Bhd has achieved its highest level since 2019 following Sime Darby Bhd's offer to buy out Permodalan Nasional Bhd's (PNB) stake in the company at RM3.57 billion or RM5 per share in the country's largest automotive deal. Additionally, analysts on Friday (Aug 25) said minorities should accept the offer should the deal become unconditional, and a mandatory general offer (MGO) is launched by Sime Darby to buy the remaining shareholding of 38.82% and take UMW private. The MGO is expected to cost roughly RM2.27 billion, Sime Darby said in a Bursa Malaysia filing. (TheEdge)

The unplanned shutdown of the Armada Kraken floating production storage and offloading (FPSO) vessel has taken a bite out of the earnings of Bumi Armada Bhd. In the second quarter ended June 30, 2023, the energy and offshore services provider said net profit had fallen to RM118.77mil from RM186.25mil in the same quarter in 2022. (TheStar)

Pintaras Jaya Bhd’s wholly-owned Singapore subsidiary, Pintary International Pte Ltd and via its wholly-owned subsidiary, Pintary Foundations Pte Ltd, has secured eight new piling contracts in aggregate worth approximately RM160mil. In a filing with Bursa Malaysia, Pintaras Jaya said these projects have commencement dates starting from April 2023 to December 2023 and contract periods ranging from three to 12 months. (TheStar)

Affin Bank Bhd registered a net profit of RM113.23 million or 4.98 sen for the second financial quarter ended June 30, 2023 (2QFY2023), a 22.93% decline from RM146.91 million or 6.92 sen a year prior. The lower earnings was due to lower net interest income (NII) and Islamic banking income amounting to RM76.2 million, higher allowances for impairment losses of RM11.9 million, and higher overhead expenses of RM7.3 million. (TheEdge)

Dutch Lady Milk Industries Bhd posted a higher net profit of 24.25 million, up 12.64 per cent year-on-year (YoY) in the second quarter (Q2) ended June 30, 2023 from RM21.53 million a year ago on the back of higher revenue. Group revenue rose 3.3 per cent to RM351.19 million from RM340.09 million a year ago. (NST)

Petronas Gas Bhd said its performance in 2023 is expected to remain healthy on the back of stable-earnings contracts and sustained operational excellence. "Amidst higher operating costs environment post-pandemic, the group will continue to strive for operational excellence as well as to strike the right balance between growth investments, financial prudence and shareholders' distribution," it said in a filing with Bursa Malaysia. (TheStar)

Hap Seng Consolidated Bhd recorded a nearly five-fold rise in net profit to RM661.89 million for the second quarter ended June 30, 2023 (2QFY2023) from RM132.58 million a year ago, boosted by a disposal gain. The group recognised a disposal gain of RM594.98 million from the disposal of its entire stake in HS Credit (Manchester) Ltd, a company involved in the provision of term loans to corporations in the United Kingdom. (TheEdge)

Eco World International Bhd (EWI) was among the five most active counters in the early session on Friday (Aug 25), as it saw 34.15 million shares changing hands, more than 23 times its average trading volume, after declaring its first interim dividend of 33 sen the day prior. The counter gained 7.8% or five sen to 69 sen at time of writing, valuing the company at RM1.66 billion. (TheEdge)

Tenaga Nasional Bhd (TNB) plans to step up its investments by nearly six-fold between 2025 and 2030 to prepare for its future energy transition (ET). TNB’s allocated ET for 2018-2024 stood at RM6 billion from a total of RM45 billion allocated on the domestic grid. (TheStar)

Kuala Lumpur Kepong Bhd's (KLK) acquisition of a 33 per cent stake and one share of Boustead Plantations Bhd (BPlant) and the subsequent privatisation of the latter through a mandatory general offer are a sound investment opportunity, say analysts. Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan said it would benefit BPlant as it needed the cash at this moment to service its loans. (NST)

Malaysia Airports Holdings Bhd (MAHB) registered more than 11 million total passenger movements for July 2023, in an ongoing upward trend of steady traffic growth with both Malaysia and Türkiye operations recording a new high of 7.4 million and 3.7 million passenger movements respectively. International and domestic passenger movements were also recorded at the highest volume for the year- to-date, with 5.4 million international passengers and 5.7 million domestic passengers. (TheStar)

Source: New Straits Times, The Edge Markets, The Star 25 August 2023