MQ Market Updates - 16 November 2023

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Publish date: Thu, 16 Nov 2023, 05:11 PM

ELK-Desa Resources Bhd's net profit decreased to RM8.84 million in the second quarter financial year ended September 30, 2023 from RM11.53 million in the previous corresponding quarter due to lower contribution from its hire purchase and furniture segment. In a filing with Bursa Malaysia, it said revenue was up 8.8 per cent to RM39.2 million, from RM36.04 million due to higher contributions from the hire purchase segment. (NST)

Bumi Armada Bhd's net profit rose 15.8 per cent to RM177.77 million in the third quarter (3Q) ended Sept 30, 2023 from RM149.72 million in the previous corresponding quarter. Revenue, meanwhile, was lower at RM524.8 million compared with RM653.07 million last year. The increase in net profit was due to higher contribution from Armada Kraken FPSO and a gain on disposal of Armada Claire floating production storage and offloading (FPSO), and the last remaining offshore support vessels (OSV) in Q2 2023. (NST)

Main Market-listed DPS Resources Bhd (DPS) has entered into a joint venture agreement (JVA) with Mutiara Mahajuta Sdn Bhd (MMSB) to undertake agro, agro-tourism and potentially solar farm projects in Melaka. The JVA involves a piece of land measuring 190.09 acres in the Mukim of Bukit Apit II, Alor Gajah, which has been granted by the landowners to MMSB. (TheEdge)

Berjaya Corp Bhd had disposed of 4.89% stake or 37.8 million shares in Redtone Digital Bhd via a direct business transaction, raising some RM27.59 million or 73 sen per share. Following the disposal, Berjaya Corp told Bursa Malaysia on Wednesday that the group and its subsidiaries’ shareholdings in Redtone now stands at 42.57% or 329.06 million shares. (TheEdge)

Amway (Malaysia) Holdings Bhd posted record earnings in the quarter ended Sept 30, 2023 (3QFY2023) despite lower revenue, with net profit more than doubling year-on-year, as the group paid significantly lower incentives to its “Amway Business Owners”, in line with lower sales recorded. The improved profitability came after Amway issued a profit warning in August, taking into consideration that inflation would squeeze consumers’ purchasing power and appetites to spend. (TheEdge)

VSTECS Bhd’s net profit in the third quarter ended September 30, 2023 (3QFY2023) dropped 23.02% to RM12.73 million, from RM16.54 million last year, on higher distribution expenses, as it recorded lower sales revenue in the period. Also contributing to the weaker performance was higher impairments of financial instruments and lower forex gains, the ICT products, software and IT services provider said in its filing. (TheEdge)

Berjaya Food Bhd's (BFood) revenue projections' and target price has been cut on expectations of foreign exchange (forex) pressure dampening margins and a boycott of main revenue earner, Starbucks, impacting revenue. BFood reported lower than expected profits for the first quarter of financial year 2024, on higher-than-expected costs due to inflationary pressures and unfavourable forex. (NST)

Dialog Group Bhd has acquired Tarpon Platform Systems Malaysia Sdn Bhd for RM5.5mil. The move is part of its strategy to expand and diversify across the upstream, midstream, downstream and renewable businesses of the energy sector, it said in a filing with Bursa Malaysia. Dialog said Tarpon provides engineering, construction, installation and maintenance services to upstream energy companies that use the Tarpon platform system. (TheStar)

Malaysian Pacific Industries Bhd (MPI), controlled by Malaysia’s second-richest man Tan Sri Quek Leng Chan, reported another set of weak results as net profit contracted for the fifth consecutive quarter. The semiconductor player hinted its poor financial performance could persist amid the ongoing global semiconductor downcycle. (TheStar)

Automotive upholstery maker, Pecca Group Bhd, is open to forming partnerships with electric vehicle (EV)-related business entities. Chief executive officer Foo Ken Nee said the group is aggressively looking to diversify into the EV-related industry. (NST)

MAA Group Bhd is divesting an 85% stake in its Philippine general insurance business — MAA General Assurance Philippines Inc — to Triple P Philippines Pte Ltd for US$49.3 million (about RM234.86 million) cash, with an option to sell the remaining 15% stake for US$8.7 million within a 14-month period. The total selling price of US$58 million was arrived at after taking into consideration an implied price-to-book ratio of about 1.64 times based on MAA General Assurance’s audited net assets of RM168.44 million as at end-2022, MAA Group said in a stock exchange filing on Wednesday. (TheEdge)

Kumpulan Perangsang Selangor Bhd (KPS), which is being sued — together with Menteri Besar Selangor (Inc), or MBI, and the Kuala Langat land administrator — by three individuals for alleged fraud involving a land transaction in Kuala Langat, said the deal occurred 42 years ago. (TheEdge)

Apex Equity Holdings Bhd is disposing off the 11-storey Menara Apex in Kajang, together with the land, for RM55 million to Era Edu Sdn Bhd, which operates the New Era University College education arm. Taking into account related expenses and taxes, Apex Equity estimates net proceeds of RM49.95 million, with an actual gain on disposal of RM39 million. (TheEdge)

UEM Sunrise Bhd has surpassed its 2023 sales target of RM1.5bil earlier than expected and the group expects to be on a “firmer footing” amid a moderate market outlook ahead. UEM Sunrise, which is in the midst of executing its turnaround plan that involves offloading inventories, non-strategic lands and non-core assets, said its inventories reduced by 33% in the past nine months to RM136mil. (TheStar)

KPJ Healthcare Bhd has appointed Sherene Azli as its new chief marketing officer (CMO), effective today. Sherene was previously CEO of the Malaysia Healthcare Travel Council (MHTC) and credited for leading Malaysia to become the top healthcare destination by volume in 2019. (NST)

Siab Holdings Bhd has proposed a private placement, a rights issue with warrants and the acquisition of 100 per cent in Taghill Projects Sdn Bhd. The company said the private placement would involve100 million new ordinary shares representing 20.42 per cent of the existing issued shares to independent investor(s) to be identified, and at an issue price to be determined later. (TheStar)

HSS Engineers Bhd is tendering for RM442mil worth of projects across multiple sectors including highways, public transport, ports and water infrastructure. Among other venues, the group will be looking towards the government's RM11.8bil allocation for flood mitigation projects as it seeks to boost its order book, which stood at RM1.5bil as at Sept 30, 2023. (TheStar)

Samchem Holdings Bhd is anticipating further improvements to its earnings on the back of its construction and infrastructure projects as well as higher activities across sectors. (TheStar)

Maybank Investment Bank research expects Kossan Rubber Industries Bhd to be profitable in the financial year ending 2023 (FY23) with a core net profit of RM21 million, rebounding from previous net loss of RM57 million. It also expects a higher net profit of RM50 million and RM92 million in FY25 and FY26. Maybank said the 3Q23 net profit of RM34 million was above its expectations but that management remains cautious on 4Q23 outlook due to stiff competition, leading to low plant utilisation of 45 per cent currently. (NST)

Source: New Straits Times, The Edge Markets The Star 16 November 2023