MQ Market Updates - 27 September 2023

MQ Trader

Publish date: Wed, 27 Sep 2023, 05:25 PM

SAM Engineering & Equipment (M) Bhd's (SAM) proposed acquisition of Aviatron (M) Sdn Bhd from its holding company, leaves much to be desired given Aviatron's over reliance on one customer and the lack of a profit guarantee by the seller. On Monday, SAM announced that it proposes to take over Aviatron, a manufacturer of aircraft structure parts and precision and engineering components, from Singapore Aerospace Manufacturing Pte Ltd (SAMPL) for US$43.4 million. (NST)

Electronics manufacturing services (EMS) provider VS Industry Bhd (VSB) posted a net profit of RM66.1 million for the fourth quarter (Q4) ended July 31, 2023 (FY23), an increase of 85.7 per cent year-on-year (YoY) from RM36.5 million posted in the same quarter last year. Revenue stood at RM1.16 billion in Q4 versus RM1.00 billion a year ago, an increase of 15.7 per cent YoY. (NST)

Moderation of coal price will reduce Tenaga Nasional Bhd's (TNB) imbalance cost help pass-through (ICPT) receivables, which once stood at a record high of RM14.07 billion in the first quarter ended March 31, 2022. TNB expects to recover RM4.7 billion of ICPT costs from the government in the second half of this year. (NST)

I-Berhad is meticulously planning new developments for its flagship i-City project, which has advanced significantly since its inception in 1995. More than RM5 billion in gross development value has been earmarked for future development at i-City, its chairman Tan Sri Lim Kim Hong told Business Times. (NST)

Poh Kong Holdings Bhd expects a strong rebound in consumption to drive further expansion in the Malaysian economy this year. “To sustain recovery, the government is attempting to address the economic impacts by gradually rebuilding fiscal buffers through increased revenue collection and greater spending efficiency,” it said in a filing with Bursa Malaysia. (TheStar)

Cypark Renewable Energy Sdn Bhd has issued the third tranche of its Perpetual Sukuk Musharakah of RM165mil in nominal value on an unsecured basis from the issuance size of up to RM265mil under its Perpetual Sukuk Musharakah Programme. Cypark Renewable is a wholly-owned subsidiary of Cypark Resources Bhd. (TheStar)

S P Setia Bhd’s latest residential development Irama Villa III in Bandar Kinrara has achieved a 100% take-up rate over its weekend launch. With a gross development value of RM61 million, Irama Villa III is situated on a 3.97-acre land and comprises 38 freehold double-story terraced houses. (TheEdge)

Censof Holdings Bhd has secured a contract worth RM872,340.78 from Social Security Organisation (Perkeso). In a Bursa Malaysia filing on Wednesday, the company said its subsidiary Cognitive Consulting Sdn Bhd had received the letter of acceptance in relation to the renewal of subscription, supply, delivery, maintenance and support services for UiPath software as well as maintenance and support services for systems within Perkeso that utilise UiPath software. (TheEdge)

Shares of the AEON Credit Service (M) Bhd rose over 3% in early trade Wednesday after posting earnings that are in line with estimates. The counter jumped 38 sen, or 3.32% to RM11.82 at 9.49 am. Year-to-date, the counter has fallen over 6%. (TheStar)

NTPM Holdings Bhd will likely return to positive earnings in FY24 from higher volume sales of tissue paper products, normalisation of gross margins and stabilising raw material prices. CGS-CIMB Research said NTPM will likely deliver FY24–26 earnings per share (EPS) compounded annual growth rate (CAGR) of 63 per cent, fueled by a 9 per cent CAGR in its tissue paper product volume sales and normalisation in gross margins, which is from 43.6 per cent in FY23 to 51.7 per cent in FY26, as raw material costs stabilise. (NST)

Leading innovator in electrical solutions Powerwell Holdings Bhd's (PHB) wholly-owned subsidiary, Kejuruteraan Powerwell Sdn Bhd (KPSB), has secured two significant purchase orders (PO) worth RM9.27 million from Datapuri Sdn Bhd (DSB) for the Johor Bahru-Singapore Rapid Transit System (RTS) Link. The PO, dated September 25, 2023, is for the supply, delivery, and assistance during the testing and commissioning of the low-voltage electrical switchboards and associated equipment components for the RTS Link. (NST)

PublicInvest Research has derived a fair value of 28 sen for ACE market-bound SSF Home Group Bhd, which is slated to be listed on Oct 10, based on a 12 times price-earnings multiple to its financial year 2025 (FY2025) earnings per share forecast of 2.3 sen. The initial public offering (IPO) is expected to raise approximately RM50 million from the issuance of 200 million new shares. (TheEdge)

Hong Leong Investment Bank Bhd (HLIB Research) is optimistic about Bumi Armada Bhd following the announcement of a product-sharing contract (PSC) with Indonesia's Ministry of Energy and Mineral Resources for exploration in the Tarakan Basin of the North Kalimantan province of Indonesia (Akia PSC). "Although we are positive on this development, we believe it would take a few years to complete the exploration works and feasibility studies as well as development works before contribution from the first oil starts kicking in," HLIB Research said in a note today. (NST)

Source: New Straits Times, The Edge Markets 27 September 2023