MQ Market Updates - 06 December 2023

MQ Trader

Publish date: Wed, 06 Dec 2023, 05:23 PM

UMW Group’s wholly owned subsidiary, UMW Industrial Power Services Sdn Bhd (UIPS) has signed a long-term service agreement (LTSA) with IOI Corp Bhd’s plantation business valued at RM50mil. UIPS is an authorised distributor of INNIO’s Jenbacher engines in Malaysia. (TheStar)

Tenaga Nasional Bhd (TNB) is currently finalising partnerships and conducting feasibility studies for the development of renewable energy (RE) zones for large-scale solar and hybrid floating solar photovoltaic totalling 2,500MW in capacity. The company is also exploring groundbreaking co-firing projects involving hydrogen and ammonia, signalling a clear commitment to innovation and sustainability. (TheEdge)

Axiata Group Bhd has embarked on a plan to shift towards becoming a ServeCo and a FibreCo via the structural transformation of its Indonesian subsidiaries, XL Axiata and Link Net. In a statement on Wednesday, the telecommunications and digital conglomerate said that both of its Indonesian subsidiaries had reached non-binding agreements to transfer Link Net’s fixed broadband business, including its 750,000 customers, to XL Axiata, and to roll out an additional two million new homes passed by Link Net. (TheEdge)

Construction player Haily Group Bhd (HGB) has secured a RM64 million construction contract from Meridin East Sdn Bhd (MESB), a wholly-owned subsidiary of Mah Sing Group Bhd, to build 327 residential units and two Tenaga Nasional Bhd (TNB) substations for the Meridin East township in Johor Bahru. This contract, among HGB's largest to date and the fifth major job clinched by the company this year, brings the total contract value of its ongoing projects to RM697.51 million. (NST)

Malakoff Corporation Bhd has partnered Abu Dhabi Future Energy Company PJSC-Masdar (Masdar) to identify potential business opportunities through investment and solar photovoltaic power plant project development with a targeted aggregate capacity of up to 1,000 Megawatt (MW). Both firms have signed a heads of agreement outlining their collaboration to look into other prospective renewable energy (RE) projects in Peninsular Malaysia, Malakoff said in a statement. (TheStar)

MSM Malaysia Holdings Bhd plans to export its latest addition to its Gula Prai lineup, premium white sugar Gula Super, to neighbouring countries next year. Group chief executive officer Syed Feizal Syed Mohammad said MSM is mainly targeting Singapore for now due to the close proximity between its factory in Johor and the city-state. (NST)

Sime Darby Bhd has issued an unconditional mandatory takeover offer to acquire the remaining 38.82% stake it does not own in UMW Holdings Bhd for a cash price of RM5.00 per share, it said in a statement on Wednesday. This follows the group’s conditional share purchase agreement with Permodalan Nasional Bhd (PNB) on Aug 24, 2023, to acquire 714.81 million shares or a 61.18% stake in UMW, making Sime Darby the largest shareholder in the automotive group. (TheEdge)

Land & General Bhd’s (L&G) The Wyn Residences in Puchong Jaya, Selangor has achieved a take-up rate of 35% since its official launch on Dec 3 (Sunday). Occupying a 3.55-acre leasehold land, The Wyn Residences has a gross development value (GDV) of RM630 million and will have a total of 1,546 units with two built-ups — 700 sq ft (two-bedrooms, two bathrooms) and 850 sq ft (three-bedrooms, two bathrooms). The selling price starts from RM486,000. (TheEdge)

PublicInvest Research has valued ACE Market-bound Jati Tinggi Group Bhd at 35 sen, based on a 14 times price-earnings multiple to its earnings per share of 2.5 sen forecast for the financial year ending Nov 30, 2024 (FY2024). In a note on Wednesday, the research house said the underground and overhead utilities engineering services and solutions provider’s growth will be driven by: i) the establishment of its presence as a main contractor; and ii) its geographical expansion to Sabah and Sarawak. (TheEdge)

TA Securities has maintained its "buy" rating on Able Global Bhd, a manufacturer and trader of food products, with an unchanged target price of RM1.55 per share, based on the sum-of-parts valuation method, as it believes the group’s growth momentum is sustainable, riding on normalised input costs and a diverse pool of suppliers. In a note on Wednesday, TA Securities said demand for Able Global’s filled milk products is escalating in the US market, where the company made its maiden exports in July 2023, due to inflationary pressure and lower price point product offerings. (TheEdge)

Phillip Capital has initiated coverage of Pentamaster Corp Bhd with a "buy" rating at RM4.56, and a target price of RM5.65, based on a target 35 times price-earnings (P/E) multiple on estimated earnings per share for the financial year ending Dec 31, 2024 (FY2024). In a note on Wednesday, the research house said that trading at forward 28 times P/E, it sees opportunities on the back of positive views on the rising electric vehicle adoption trend, semiconductor sector recovery, and growing opportunities in the medical segment. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 06 December 2023