MQ Market Updates - 22 November 2023

MQ Trader

Publish date: Wed, 22 Nov 2023, 05:18 PM

Malayan Banking Bhd's net profit rose 12.3 per cent to RM2.36 billion in the third quarter (Q3) ended September 30, 2023 from RM2.10 billion in the same period last year. The group's revenue also rose 22.9 per cent to RM16.01 billion in Q3 2023 from RM13.02 billion last year. For the quarter, the group's net operating income decreased by 5.2 per cent to RM6.75 billion, attributed to a decrease in net fund based income of RM4.81 billion compared with RM5.29 billion a year earlier as net interest margin (NIM) compressed due to persisting funding competition. Non-interest income (NOII) however was up 6.1 per cent at RM1.94 billion while net impairment provisions improved with a 59.3 per cent decrease to RM342.2 million. (NST)

Mestron Holdings Bhd (MHB) has obtained approval from the Securities Commission (SC) to transfer its shares and warrants from the ACE market to the main market of Bursa Malaysia. The approval marks a key milestone for MHB, as it will allow the company to expand its investor base to include those specifically interested in investing in main market companies. Managing director Por Teong Eng said this is a long-awaited key milestone for MHB, as the transfer will open up new growth and investment opportunities, signalling a promising future for the company and its shareholders. (NST)

Berjaya Assets Bhd (BAssets) reduced its net loss by half to RM2.26 million in the first financial quarter ending Sept 30, 2023 (1QFY2024). This improvement can be attributed to increased revenue and a reduced payout from its lottery arm, Natural Avenue Sdn Bhd. In the previous year, the group reported a net loss of RM4.22 million. This marks BAssets' 15th consecutive quarter in the red since 3QFY2020. (NST)

Kumpulan Perangsang Selangor Bhd (KPS) has secured a contract with an estimated sum of RM162.181 million to supply various water treatment chemicals to Pengurusan Air Selangor Sdn Bhd for two years, effective Jan 1 next year. KPS told the stock exchange yesterday that its 51 per cent-owned Aqua-Flo Sdn Bhd had signed a framework agreement (FA) with Air Selangor on Nov 21. The supply order will be for two years until Dec 31, 2025. Air Selangor and Aqua-Flo may also renew the FA for further terms to be mutually agreed upon, giving not less than one month's notice in writing prior to the expiry of the contract period, KPS said. (NST)

Hibiscus Petroleum Bhd recorded a higher net profit of RM154.29 million in the first quarter ended Sept 30, 2023 for the financial year ending June 30, 2024 (1Q FY2024), from RM135.26 million in the corresponding quarter of FY2023. In a filing with Bursa Malaysia today, the oil and gas exploration and production company said revenue also improved by 23 per cent to RM746.62 million versus RM604.76 million. A total of 1.4 million barrels (MMbbl) of oil and condensate and 0.6 million barrels of oil equivalent (MMboe) of gas were sold in 1Q FY2024, whilst net production exceeded 20,000 boe per day. (TheStar)

Kerjaya Prospek Group Bhd targets to secure construction contracts with a combined value of about RM1.5bil in its financial year ending Dec 31, 2024 (FY24), up from its target of RM1.2bil in FY23. Chairman Datuk Tee Eng Ho said the group’s year-to-date construction contracts awarded currently stand at RM1.2bil, successfully meeting its target for the year. He added that this figure will be sustained throughout FY23, as any contracts to be secured will be deferred to early next year instead. (TheStar)

The immediate outlook for MR DIY Group (M) Bhd is bright, underpinned by its strong year-on-year financial performance for the nine months ended Sept 30, 2023, according to analysts. RHB Research said the home improvement retailer’s nine-month net profit of RM402mil has met 71% of the consensus full-year expectations. It anticipates a stronger fourth quarter (4Q23) ahead for MR DIY, in line with the historical seasonal patterns. (TheStar)

AMMB Holdings Bhd's net profit rose 10.06% to RM469.78 million in the second quarter ended Sept 30 (2QFY2024) from RM426.84 million, as write-back of provisions and lower loan impairments more than offset the weaker operating profit in the quarter. Earnings per share rose 14.20 sen from 12.89 sen. The 2QFY2024 performance is AMMB’s highest quarterly net profit attributable to equity holders since 4QFY2015, when it posted net profit of RM519.22 million against net income of RM1.11 billion. (TheEdge)

MISC Bhd's net profit fell 47.55% year-on-year (y-o-y) in the three months ended Sept 30, 2023 (3QFY2023), in absence of a one-off gain from its petroleum and products shipping segment, lower vessel conversion progress, and losses in its 66.5%-owned subsidiary Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE). Quarterly earnings fell to RM430.4 million or 9.6 sen per share, from RM820.6 million or 18.4 sen per share the year before — MISC’s strongest quarterly performance since 2014. Revenue also declined 6.89% to RM3.37 billion in 3QFY2023 from RM3.61 billion in 3QFY2022, as revenue growth from gas shipping and heavy engineering segments more than offset the weaker petroleum business and offshore business contributions. (TheEdge)

Shares of Pertama Digital Bhd fell as much as 94 sen or 26.78% in early trade, prompting Bursa Securities to suspend the counter’s intraday short selling (IDSS) for a second day. The counter, which fell 24.5% on Tuesday, extended its losses in the first hour of trading, with 4.66 million shares changing hands — double its two-month average daily volume of 2.11 million shares. From its peak closing price of RM4.65 on Nov 20, the counter was trading at RM2.67 at the time of writing, down 42.58% or RM1.98. (TheEdge)

Malaysia Airports Holdings Bhd (MAHB) aims to reopen all its retail space at Kuala Lumpur International Airport (KLIA) by the first quarter of next year, and 90% of the space by end of this year, according to acting chief executive officer Mohamed Rastam Shahrom. “As you can see, the vibrancy is coming back to our airport. [There are] more to come, the stores are going to be largely open by the end of the year, will be 90%; [and] fully open by the first quarter. I hope that vibrancy will get KLIA back to its shine,” he told the audience here after attending the opening ceremony of two Eraman duty free stores by subsidiary Malaysia Airports (Niaga) Sdn Bhd on Wednesday (Nov 22). (TheEdge)

Hong Leong Investment Bank (HLIB) research has raised its target price (TP) for Sports Toto Bhd post its first quarter financial year (FY) 2024 (1QFY2024) results announcement. "Forecast for FY24- 25 is raised by 2-3 per cent after incorporating annual report updates. We also introduce our (core net profit) FY26 forecast of RM249.9 million. Post earnings revision, our TP is raised to RM1.86 (from RM1.79 previously)." "With the key overhanging risks now removed, we are of the opinion that concerns in the market regarding number forecast operator (NFO) counters have diminished," HLIB research said in its note today. As at 11.27am, Sports Toto was trading at RM1.50 a share. (NST)

Public Investment Bank (PublicInvest) has increased its earnings forecast by 6.0 per cent for Mega First Corp Bhd for the financial years 2024 and 2025 (FY23/FY24), reflecting the additional core earnings contribution from the Don Sahong Hydropower project. Mega First announced yesterday that it is raising its shareholding in the 260MW Don Sahong hydropower project in Laos from 80 per cent currently to 91.25 per cent for a total consideration of US$85 million (RM396.9 million). (NST)

Hong Leong Investment Bank (HLIB) upgraded its call for DKSH Holdings (Malaysia) Bhd from “hold” to “buy” with a target price (TP) of RM5.50, after DKSH Holdings (Malaysia) achieved a core net profit of RM27.3 million in its third quarter of financial year 2023 (3QFY2023), reflecting an increase of 21.7% year on year (y-o-y). This earnings contributed to a total of RM97.5 million in core net profit for the first nine months ended Sept 30, 2023 (9MFY2023), reflecting a 14.8% increase y-o-y. According to a note on Wednesday, HLIB stated that its 9MFY2023 results beat its and consensus’ projections, accounting for 83% and 88% of full-year forecasts, respectively. (TheEdge)

Hong Leong Investment Bank (HLIB) has maintained its "buy" rating on ITMAX System Bhd at RM1.74 with an unchanged target price (TP) of RM2.08, pegged to 25 times price-to-earnings (PE) multiple of its 2025 forecast (FY2025f) earnings following the group's latest financial results for the third quarter ended Sept 30, 2023 (3QFY2023). According to HLIB, the group’s earnings have matched its expectations, accounting for 75% of the research house's consensus and 73% of its full-year forecasts. The research house said it expects ITMAX to win more jobs in Johor over time to realise the integrated smart city system, as well as include other solutions such as networked lighting and smart parking in the future. (TheEdge)

MIDF Research has maintained its “buy” rating on Matrix Concepts Holdings Bhd at RM1.60 with an unchanged target price of RM1.86 and said it expects the developer’s 2QFY2024 earnings to be stronger on a yearly basis, due to a pick-up in construction progress at its project sites. In a note on Wednesday, MIDF said it is forecasting Matrix Concept's FY2024 earnings to come in at RM256 million, which represents a growth of 15.8% year-on-year (y-o-y). Matrix Concepts is scheduled to release its 2QFY2024 earnings by the end of this month. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 22 November 2023