MQ Market Updates - 08 September 2023

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Publish date: Fri, 08 Sep 2023, 05:16 PM

CelcomDigi Bhd inked a memorandum of understanding (MOU) on Friday with South Korean technology company VIRNECT for the development and commercialisation of industrial extended reality solutions in Malaysia. The collaboration aims to explore the development of experiential learning and education using the metaverse for multiple Malaysian universities. (TheEdge)

KNM Group Bhd (KGB), which is currently embroiled in a boardroom tussle, fears that an abrupt takeover attempt will create a disruptive uneasiness amongst creditors, who have been very supportive of the company so far. Chief executive officer and managing director Ravindrasingham Balasingham said this uneasiness might prompt significant actions from external creditors, such as the Asian Development Bank and TA/Danos. (NST)

Serba Dinamik Holdings Bhd reported a net loss of RM1.3 billion for the financial period ended June 30, 2023, compared to RM1.09 billion a year ago, due to corporate expenses and elimination of intergroup transactions. Revenue declined to RM403.23 million versus RM1.35 billion a year ago, while loss per share weakened further to 34.88 sen from 29.34 sen. (TheEdge)

Apollo Food Holdings Bhd’s net profit for the first quarter ended July 31, 2023 (1QFY2024) rose 67.51% to RM7.64 million from RM4.56 million in the same quarter a year earlier, on the back of higher sales. Earnings per share rose to 9.55 sen compared with 5.7 sen previously, according to the confectionary maker’s bourse filing on Thursday. (TheEdge)

ACE Market-bound SSF Home Group Bhd is setting its initial public offering (IPO) price at 25 sen per share. The home-grown furniture, home decor and home living product retailer is set to have a market capitalisation of RM200 million upon listing, with an enlarged share capital of 800 million. This values the company at 12.5 times its price-earnings ratio, based on a net profit of RM16 million for the financial year ended April 30, 2023 (FY2023). (TheEdge)

The Employees Provident Fund (EPF) has acquired a 0.17% stake in Tenaga Nasional Bhd (TNB) for RM98 million. According to a bourse filing on Thursday, the pension fund acquired the stake comprising 10 million shares on Monday. This was accompanied by an acquisition of 465,000 shares or a 0.01% stake on the same day, raising its stake in the national utility company to 904.38 million or 15.63%. (TheEdge)

Brahim's Holdings Bhd today denied having a 25-year "legacy contract" with Malaysia Airlines System Bhd (MAS), explaining that the partnership only lasted 10 years, cut short by the restructuring of the company. The company's executive chairman, Datuk Seri Ibrahim Ahmad said the contract, which was supposed to end in 2028, ended early due to the MAS Act that came into effect in 2015 after MAS underwent a restructuring exercise. (NST)

Litrak Trans Kota Holdings Bhd is set to be delisted on Sept 12 from the Main Market of Bursa Malaysia. In a bourse filing on Thursday, Litrak said its entire issued share capital will be removed from the official list, in accordance with the Main Market Listing Requirements. (TheEdge)

OMH Holdings Bhd is cautious on the outlook for its product prices given the economic challenges in China. A significantly lower average selling price year-on-year in the first half of 2023 led to a 31 per cent decline in OMH's revenue. Adding salt to the wound, Kenanga Research said the cost of its inputs did not drop as much, resulting in OMH's gross profit margin shrinking to 21.4 per cent from 27.7 per cent while net profit plunged by 61 per cent. (NST)

The Chinese government's potential ban on the use of foreign-branded devices, including iPhones, for work purposes is expected to have a minimal effect on Inari Amertron Bhd's earnings, said TA Securities. “China accounted for 19% of the major US end-customer’s sales in its latest fiscal year. However, we deduce an insignificant impact to Inari with our back of the envelope estimates indicating a ~1.0%/~1.7% hit to its revenue/earnings for every 10% decline in sales suffered by its major US end-customer in China,” said the research house in a note on Friday. (TheEdge)

Kenanga Research has maintained its "neutral" stance on the logistics sector, naming Bintulu Port Holdings Bhd and Swift Haulage Bhd as its top picks. Notwithstanding challenges in global trade due to economic uncertainty and stricter carbon emission regulations, the sector is set to benefit from the local e-commerce boom, with industry experts forecasting 7% annual growth in merchandise volume from 2023 to 2027, the research firm said. (TheEdge)

Source: New Straits Times, The Edge Markets, The Star 07 September 2023