MQ Market Updates - 24 November 2023

MQ Trader

Publish date: Fri, 24 Nov 2023, 05:38 PM

Sime Darby Plantation Bhd's net profit surged threefold to RM1.21 billion in the third quarter ended Sept 30, 2023 (Q3 2023) versus RM396 million in the same period last year supported by its upstream operations. SD Plantation said its upstream business improved in the quarter led by the strong recovery of the Malaysian operations, which saw a 38 per cent year-on-year (YoY) increase in fresh fruit bunch (FFB) production, due to having more harvesters and intensive rehabilitation efforts. The Malaysian production volume achieved in Q3 2023 was higher by 43 per cent quarter-on-quarter (QoQ) and also represented 43 per cent of the total Malaysian production for the cumulative nine months of the year. Quarterly revenue, however, declined 11.46 per cent to RM4.77 billion from RM5.39 billion a year ago. (NST)
DPS Resources Bhd's net profit surged more than threefold to RM2.25 million for the second quarter (Q2) ended September 30, 2023 (FY24), compared to RM0.70 million in the same quarter last year. Revenue stood at RM14.9 million, an increase of 22.7 per cent from RM12.2 million in the same quarter of the previous year. This surge is primarily attributed to the furniture business segment, which experienced robust growth due to rising demand and the strengthening of the US dollar. Concurrently, the property development segment saw increased inventory sales, bolstering overall revenue growth. (NST)

GFM Services Bhd posted a net profit of RM9.5 million in the third quarter (Q3) ended September 30, 2023, from RM8.06 million in the same quarter last year, further boosted by Highbase Strategic Sdn Bhd's contribution of RM2.3 million. Revenue for the integrated facilities management service provider was down to RM34.3 million in Q3 from RM40.17 million a year ago. For the nine months ending September 30, 2023 (9M23), GFM Services registered a higher net profit, which rose 28.0 per cent to RM16.5 million from RM12.9 million last year. The company's revenue rose to RM97.88 million in 9M23 from RM97.04 million a year ago. (NST)

Sime Darby Property Bhd's net profit rose 158.2 per cent to RM144.92 million in the third quarter (Q3) ended Sept 30, 2023 from RM56.13 million a year ago. The company's impressive revenue for Q3 2023 outperformed the preceding quarter by 52.4 per cent at RM1.0 billion, with pre-tax profit doubling to RM228.5 million from RM114.3 million. SD Property said the strong quarter performance was driven by the property development segment which saw a significant improvement with 56.7 per cent increase in revenue to hit RM1.0 billion. (NST)

Evergreen Max Cash Capital Bhd's net profit rose 81.4 per cent to RM3.0 million in the third quarter (Q3) ended September 30,2023 compared to RM1.6 million last year. During the quarter, the company recorded a 47.7 per cent increase in revenue to RM22.8 million, from RM15.4 million in the preceding year's corresponding quarter. The growth was mainly due to higher revenue contributions from the pawnbroking, and gold and luxury products retail and trading businesses. For the period of nine months ended September 30, 2023 (9M23), Evergreen Max's net profit rose to RM10.2 million from RM7.5 million last year, while its revenue surged 63.8 per cent to RM74.8 million from RM45.7 million previously. (NST)

Minox International Group Bhd recorded a net profit of RM2.2 million in the third quarter (Q3) ended September 30, 2023 on the back of RM13.6 million revenue.This is the second interim financial report announced in compliance with the ACE Market Listing Requirements of Bursa Malaysia. There are no comparative figures for the preceding corresponding quarter and period-to-date available as no interim financial report was prepared for the comparative financial period concerned. For the period of nine months ended September 30 (9M23), 2023, Minox delivered a revenue of RM39.6 million of which 93.1 per cent was derived from customers in the food and beverage (F&B) industry with the balance from pharmaceutical and semiconductor sectors. (NST)

Salcon Bhd, in which Berjaya Corp Bhd holds an indirect 5.43 percent equity interest, is expanding its presence in the country's solar energy sector. Its subsidiary, Fortune Command Sdn Bhd (FCSB), held through its Renewable Energy (RE) arm, Inergist Sdn, has entered into a solar power purchase agreement (SPPA) with HeveaBoard Bhd. Under the SPPA, FCSB will be responsible for establishing a 25-year built-own-operate solar photovoltaic (PV) system with a total capacity of 862.5 kWp on the rooftops of HeveaBoard's particleboard production facilities in Gemas, Negeri Sembilan. (NST)

MSM Malaysia Holdings Bhd, which holds a 60 per cent share of the domestic sugar market, saw losses narrow to RM36.06mil for the third quarter ended Sept 30, 2023 (3Q23) on improved margins from industry and export segment. The national sugar refiner told Bursa Malaysia Securities Bhd in a filing today that lower freight cost and better capacity utilisation also helped. Net losses for the third quarter o financial year 2022 were RM72.80 million. Revenue for the quarter grew 21 per cent to RM806.72 million from RM668.13 million previously, due to higher overall sales volume and average selling price for the group. (NST)

Tenaga Nasional Berhad (TNB) and the Perak state government are working together to explore the possibility of floating solar systems near the Sungai Perak hydroelectric project, reservoir, and dam. This is a major step forward toward promoting large-scale renewable energy (RE) in accordance with the National Energy Transition Roadmap (NETR), according to TNB. TNB and Majuperak Holdings Bhd (MHB), a Perak government-affiliated company, are collaborating on a 100 megawatt (MW) ground-mounted solar project as part of a parallel endeavor under NETR's centralised solar park project. In the first strategic alliance, TNB will work with Perbadanan Kemajuan Negeri Perak (PKNPk) through its fully owned subsidiary, TNB Power Generation Sdn Bhd (TNB Genco). (NST)

Sam Engineering & Equipment (M) Bhd’s net profit for the second quarter ended Sep 30, 2023 (2Q FY2024) rose to RM32.63 million from RM26.94 million in the same quarter last year. Revenue increased by RM22.1 million to RM428.62 million from RM406.52 million previously. In a filing with Bursa Malaysia, Sam Engineering said the higher 2Q group revenue posted was due to a RM33.8 million increase in revenue from its aerospace segment, which was offset by a RM11.7 million decrease from the equipment segment. (TheStar)

Jentayu Sustainables Bhd (JSB) is disposing of a piece of land measuring 1,197 sq m in Kuala Lumpur to Armani Development Sdn Bhd for RM25mil. In a filing with Bursa Malaysia, JSB said the proposed disposal is in line with its focus on its core business. (TheStar)

Tambun Indah Land Bhd remains mindful of current and upcoming challenges, amid rising interest rates and the escalation in construction costs. In a filing with Bursa Malaysia, the company said it will continue to exercise prudence in new project launches, with a focus on mid-market landed projects. For the third quarter ended Sept 30, 2023, its net profit was lower at RM12.89mil, compared with RM17.32mil in the previous corresponding period. Revenue dipped to RM48.21mil from RM65.58mil before. Basic earnings per share stood at 2.93 sen versus 3.94 sen previously. (TheStar)

KSL Holdings Bhd is acquiring freehold land measuring 72,820 sq m in Shah Alam, Selangor, from S P Setia Bhd for RM228.8mil. In a filing with Bursa Malaysia, KSL said the acquisition will enlarge the group’s land bank and enhance its future revenue and earnings. “The land will be used for residential development projects and further enhance its presence in the property market in Selangor. “The project is expected to commence in 2025 and is envisaged to spread over a period of 10 to 15 years,” it said. (TheStar)

Al-Aqar Healthcare Real Estate Investment Trust’s (Al-Aqar REIT) net income for the third quarter fell marginally to RM17.59 million from RM17.62 million in the same period last year, on lower net rental from its Australia segment due to higher professional fees. Earnings per unit for the third quarter ended Sept 30, 2023 (3QFY2023) declined to 2.18 sen from 2.39 sen, the REIT said in its filing on Friday. Quarterly net rental income, however, increased 2.27% to RM30.79 million, from RM27.42 million in 3QFY2022, on the back of a 13% rise in the Malaysia segment's contribution to RM27.7 million from RM24.5 million. (TheEdge)

Avaland Bhd's net profit for the third quarter ended Sept 30, 2023 (3QFY2023) almost tripled to RM17.2 million from RM6.2 million a year ago, as robust sales and encouraging construction progress drove similarly strong growth in revenue. Revenue likewise rose by almost three-fold to RM156.2 million from RM56.3 million — its highest since the fourth quarter ended Dec 31, 2020 — with healthy progress from four of its ongoing projects. Earnings per share rose to 1.18 sen, from 0.42 sen, its bourse filing showed. (TheEdge)

Sunway Property, the real estate arm of Sunway Bhd, has signed a memorandum of understanding (MOU) with Putrajaya Holdings Sdn Bhd to team up for the development of commercial land in Precincts 7 and 8 within the administrative capital. In a statement on Friday, Sunway said the MOU lays the foundation for future cooperation between organisations in various sectors such as medical, education, property development and hospitality for development. (TheEdge)

CIMB Group Holdings Bhd has announced its 2030 climate targets for its palm oil and power portfolios by focusing on sustainable palm oil production, extending the banking group’s milestone announcement last year of net zero targets for both its thermal coal mining and cement portfolios in pursuit of its overarching 2050 Net Zero commitments. The group aims to reduce the emission intensity of its palm oil portfolio by 16% from 1.81 tonnes of carbon dioxide equivalent or tCO2e/tCPO in 2022 to 1.52 tCO2e/tCPO by 2030 — which averages to a 2% annual reduction, it said in a statement. These include Scope 1 and 2 emissions, originating from plantation and milling clients, along with Scope 3 upstream emissions associated with clients’ sourcing of fresh fruit bunches from suppliers. (TheEdge)

Builder-cum-property developer WCT Holdings Bhd has gone back to the red in the third quarter ended Sept 30, 2023 (3QFY2023) with a net loss of RM13.54 million despite stronger revenue compared to a net profit of RM12.49 million a year ago, due to absence of positive one-off items recognised in the previous corresponding quarter — including a land disposal gain. Quarterly revenue, however, rose 5.6% to RM496.56 million from RM470.04 million a year ago, the group's filing with Bursa Malaysia on Thursday showed. WCT also incurred a net loss of RM7.69 million in 1QFY2023. For the nine months ended Sept 30, 2023 (9MFY2023), WCT reported a net loss of RM8.23 million against a net profit of RM101.54 million in the corresponding period in the previous year, while revenue dipped 19% to RM1.33 billion from RM1.64 billion. (TheEdge)

Pestech International Bhd said an injunction has been issued against its indirect wholly-owned subsidiary CRSE Sdn Bhd to restrain the company from calling on two bonds worth RM14.25 million.The bonds were issued in favour of CRSE pursuant to a sub-supply contract entered into in 2018 between Pestech's 50%-owned unit Pembinaan Tajri Sdn Bhd and Universal Cable (M) Bhd, a wholly-owned unit of Sarawak Cable Bhd. Pestech said that on Oct 23, CRSE issued a demand to Bangkok Bank Bhd on the two bonds — a performance bond in the sum of RM9.5 million and a retention bond in the sum of RM4.75 million. (TheEdge)

YTL Power International Bhd's core profit of RM909 million in the first quarter to Sept 30 2023 has beaten expectations, RHB Research said. This was achieved on a stronger power generation division that masked the weaker numbers from Wessex Water. RHB Research expects to see more data centre (DC) deals upon the successful delivery of Phase 1 of YTL Power's DC project and expediting of solar assets while riding on the implementation of the National Energy Transition Roadmap. (NST)

Kelington Group Bhd's results for the nine months ended Sept 30 2023 have beaten expectations, according to Kenanga Research. This was buoyed by margin expansion stemming from account finalisation of a turnkey job and accelerated billings from high-margin ultra-high purity gas system projects. (NST)

The trading stock of Genting Bhd got a shot in the arm following the release of its quarterly results yesterday, which revealed better-than-expected earnings. Shares in the conglomerate opened 14 sen or 3.2% higher at RM4.50 a share on Friday. In a stock exchange filing yesterday, Genting announced 3Q23 core profit after tax, amortisation and minority interest (Patami) of RM642.7mil, which represented a 137.3% jump year-on-year, bringing 9M23 core Patami to RM1.16bil. The positive surprise to the earnings was due to stronger-than-expected contribution from Genting's joint venture and associates, as well as interest income, Hong Leong Investment Bank (HLIB) Research said in its results note. (TheStar)

Analysts maintain a positive outlook on DRB-Hicom Bhd, despite the group recording a 50.8% drop in net profit in the third quarter ending Sept 30, 2023 (3QFY2023), compared to the same period last year. In a research note on Friday, Kenanga Investment Bank Bhd stated that the group's results for its nine-month period ending Sept 30, 2023 (9MFY2023) met expectations, reaching 75% of both its full-year forecast and the consensus estimates. (TheEdge)

Research analysts have valued Main Market-bound engineering precision parts manufacturer CPE Technology Bhd between RM1.25 and RM1.27. Apex Securities Bhd recommended investors “subscribe” to CPE Technology Bhd at RM1.07, with a target price of RM1.25. In a note on Friday, the research house said Main Market-bound CPE Technology was valued by pegging its FY2024F core earnings per share (EPS) of 5.4 sen to a price-to-earnings (PE) ratio of 23.0x, leading to a fair value of RM1.25 (16.8% potential upside from its IPO price). (TheEdge)

Hong Leong Investment Bank (HLIB) upgraded Malayan Cement (MCement) from “hold” to “buy” at RM 3.94, with a higher target price (TP) of RM 4.80, after it recorded a core profit after tax and minority interest (Patami) of RM96.2 million for the first quarter of 2024 (1QFY2024), beating both HLIB's and consensus expectations. In a note on Friday, HLIB stated that MCement’s 1QFY2024 revenue of RM1.15 billion, which increased by 13.6% quarter-on-quarter (q-o-q) and 33.7% year-on-year (y-o-y), came in well above its and consensus full-year forecasts of 46%. This result is attributed to a combination of higher-than-expected sales and margins due to stronger volumes, while gains from lower coal costs remained sticky, said the research house. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 24 November 2023