MQ Market Updates - 05 September 2023

MQ Trader

Publish date: Tue, 05 Sep 2023, 04:52 PM

UEM Edgenta Bhd has allocated RM100 million for its 'Sustainable Zero-Capex Program" through wholly-owned Opus Consultants. This is part of UEM Edgenta's foray into energy efficiency and sustainable asset management targeting growth in healthcare support, infrastructure and technology. (NST)

Malaysia’s biggest wireless carrier Axiata Group Bhd and Indonesian conglomerate PT Sinar Mas Group have revived talks that could lead to a merger of their telecommunications operations in Indonesia, according to people familiar with the matter. The owners of PT XL Axiata and PT Smartfren Telecom are working with advisers to help weigh a potential transaction, the people said, asking not to be identified because the matter is private. Other options under consideration could include network sharing agreements and partnerships, the people said. (TheEdge)

Gamuda Land Sdn Bhd, a wholly-owned subsidiary of Gamuda Bhd, has partnered Engie Services Malaysia to implement solar technologies, energy efficiency and sustainable transport solutions in the property developer's townships. In a joint statement, the parties said the collaboration will include the development of rooftop solar installations and green transportation infrastructure for the townships of Gamuda Cove in Kuala Langat, Gamuda Gardens in Rawang, and twentyfive7 in Kota Kemuning, all in Selangor, by 2024. (TheStar)

HSS Engineers Bhd’s (HEB) associate company, HSS Integrated Sdn Bhd (HSSI), has received a RM68.51mil contract from Malaysia Airports Sdn Bhd to be the lead consultant for the amendment to the Sultan Abdul Aziz Shah Airport master plan. In a filing with Bursa Malaysia, HEB said HSSI would be the lead consultant for the preparation, submission and approval of the amendment to the Sultan Abdul Aziz Shah Airport’s master layout plan and the subsequent infrastructure works and associated works for Malaysia Airports Sdn Bhd – Phase 2 and Phase 3. (TheStar)

Glove maker Careplus Group Bhd's share price opened almost six per cent higher after it said it was going to shareholders for approval to diversify into the EV business. As at 9.09 am, its share price was trading almost eight per cent higher at 27.5 sen a share. (NST)

PPB Group Bhd is cautious of potential renewal of geopolitical tension between Ukraine and Russia, along with unpredictable weather conditions that could choke grain and exert impact on the performance of the group’s grains and agribusiness segment for the rest of the year. PBB’s managing director Lim Soon Huat emphasised that potential supply risks on the downside could increase cost pressures in procuring raw materials for the group. (TheEdge)

KIP Real Estate Investment Trust’s (KIP REIT) proposed related-party RM80 million acquisition of KIPMall Kota Warisan in Sepang is “fair, reasonable and not detrimental” to non-interested unitholders, said independent adviser Asia Equity Research Sdn Bhd (AER). KIP REIT is purchasing the land piece together with the one-and-a-half storey commercial centre from Cahaya Serijaya Sdn Bhd. (TheEdge)

Hong Leong Investment Bank Bhd (HLIB Research) expects Tenaga Nasional Bhd's (TNB) earnings to improve in the coming quarters as coal price stabilises. In a research note today, it said it is positive on the company's performance under Regulatory Period 2022-2024 (RP3) and imbalance cost pass-through (ICPT) mechanism, and given TNB's position as Malaysia's largest utilities group to leverage onto the National Energy Transition Roadmap (NETR). (NST)

RHB Investment Bank Bhd (RHB) Research has kept a neutral call on the transportation sector after the June-end quarter results for the sectorcame in line with the firm's expectations except for GDEX Bhd. "Despite the prolonged weakness in trade flows and soft Malaysia trade data for 2Q23, FM Global Logistics (FM), Westports Holdings, and TASCO chalked in-line earnings," it said in its note today. (NST)

Kenanga Research has revised downwards its current year earnings forecast for Tenaga Nasional Bhd (TNB) by 13%, to take into account a RM650 million “negative fuel margin”, which implies coal inventory cost being significantly higher than the applicable coal price (ACP). The research house also adjusted its financial year ending Dec 31, 2023(FY2023)’s net dividend per share proportionally based on an unchanged payout ratio of 50%. (TheEdge)

RHB Investment Bank (RHB IB) Research has maintained its “buy” call on Malaysia Airports Holdings Bhd (MAHB) at RM7.70 with a higher target price (TP) of RM8.70 (from RM8.31) and said it continues to favour MAHB premised on the salient recovery of international tourism numbers from China and Türkiye. In a note on Tuesday, the research house said the Malaysian Aviation Commission’s Third Consultation Paper is also set to be published this month, which will finally nail down the gazetted passenger service charges for Regulatory Period 1, or RP1 (2024-2026). (TheEdge)

Hong Leong Investment Bank (HLIB) Research has maintained its “buy” rating on Sports Toto Bhd with a target price of RM1.79 and said at RM1.51, the stock is trading at an undemanding 9.4 times financial year 2023 (FY2023) price-earnings (P/E) — a discount of 46.8% against five-year average of 17.7 times and 5% against Magnum Bhd's FY2024 P/E of 9.9 times — along with an attractive 7.9% dividend yield. In a technical tracker on Tuesday, the research house said that under the current market volatility with an increasing risk of recession, the stock will stand out due to its stable earnings profile supported by its resilient business segments. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 05 September 2023