MQ Market Updates - 25 September 2023

MQ Trader

Publish date: Mon, 25 Sep 2023, 05:35 PM

Petroliam Nasional Bhd's (Petronas) subsidiary Petronas CCS Ventures Sdn Bhd has signed a term sheet with Mitsui OSK Lines Ltd (MOL) and MISC Bhd to jointly develop liquefied carbon dioxide (LCO₂) carriers for carbon capture and storage (CCS) projects in Malaysia. The parties have agreed on key commercial terms in principle to allow progress to the next stage. (NST)

Solarvest Holdings Bhd via its wholly-owned subsidiary, Solarvest (Vietnam) Co Limited, has secured 11 rooftop solar photovoltaic (PV) installation projects in Vietnam, with a combined capacity of 12.8 megawatt-peak (MWp). The clean energy expert, in a Bursa filing, said it is collaborating with a renowned local partner that will deliver engineering, procurement, construction, and commissioning (EPCC) services for these projects. (TheStar)

Land & General Bhd (L&G) has allayed fears that its joint venture partner Hong Kong-listed Country Garden's liquidity issues would have a negative impact on their 167-acre township development in Semenyih. "Our joint venture with them (Country Garden) for this Diamond City project is ongoing. So far, there is no impact from the holding company's financial issues," said L&G managing director Low Gay Teck. (NST)

Puncak Niaga Holdings Bhd has discontinued its RM14 billion suit against the Selangor state government for what it had alleged was a forced takeover of the state’s water industry back in March 2017. The suit, first filed six years ago, followed Selangor’s long-delayed water restructuring exercise after state-owned Kumpulan Darul Ehsan Bhd took over PNSB Water Sdn Bhd and a 70% stake in Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) for RM1.55 billion cash from Puncak Niaga. (TheEdge)

Malakoff Corp Bhd stands a chance to secure a new gas plant in the longer run and the opportunity for further growth through energy export deals with Singapore. RHB Research said Malakoff sees the opportunity to increase its gas portfolio mix, given that it will remain the dominant fuel source for baseload power till 2050. The company is targeting energy exports to Singapore. (NST)

Edgenta Healthtronics Sdn Bhd (EHSB), a subsidiary of UEM Edgenta Bhd, has won a Malaysia Book of Records award for the rapid construction of its field hybrid intensive care unit (FHyICU). According to the company, the award for "Fastest Construction of the FHyICU Building During Covid-19 Pandemic" demonstrated the company's unwavering commitment to innovation and exceptional project execution under difficult conditions. (NST)

United Malacca Bhd’s first quarter ended July 31 (1Q24) earnings missed expectations, which has led to analysts cutting estimates. Kenanga Research said United Malacca’s 1Q24 core net profit came in at only 11% and 10% of our full-year forecast and the full-year consensus estimate, respectively. (TheStar)

Contractors like Sunway Construction Group Bhd (SunCon) and Gamuda Bhd are well-positioned to benefit from the Johor Bahru-Singapore Rapid Transit System (RTS) Link project and rising demand for data centres in Johor, according to RHB Research. Following a recent visit to Johor and insights from Lee Ting Han, a Johor State Executive Council member for Investment, Trade, and Consumer Affairs, RHB Research sees a promising outlook for the state's construction sector. (TheEdge)

ITMAX System Bhd was heavily traded on Monday’s morning trade, prompted by its subsidiary securing a 15-year contract for the provision of video surveillance for the Johor Bahru City Council (MBJB) worth RM105.32 million. At 12.30pm, ITMAX advanced 2.9% or five sen to RM1.80, the highest level ever recorded since its shares floated in the Main Market of Bursa Malaysia Securities in December 2022. ITMAX debuted at RM1.52, representing a 42.06% premium over the initial public offering price of RM1.07. (TheEdge)

Maybank Investment Bank (Maybank IB) Research has upgraded MNRB Holdings Bhd to “buy” at RM1.10 with a higher target price (TP) of RM1.40 (from RM1.09) and said with expectations of stable interest rates, the research house expects MNRB to see positive gains on its investments this financial year, as well as positive contributions from its 20%-associate Labuan Re. In a note on Monday, the research house upgraded its financial year 2024 (FY2024) to FY2026 earnings forecasts for MNRB by 6%-11% to factor in higher investment income. (TheEdge)

Apex Securities Bhd has recommended investors to “subscribe” to ACE Market-bound SSF Home Group Bhd at 25 sen and derived a target price of 34 sen for the stock. In a note on Monday, the research house said its valuation is based on 15 times price-earnings ratio (PER) of the group’s financial year 2024 (FY2024) earnings per share (EPS) forecast of 2.3 sen, which is below the Bursa Malaysia Consumer Product and Services PER at 20 times and its peers average PER at 15.5 times. (TheEdge)

Source: New Straits Times, The Edge Markets 25 September 2023