MQ Market Updates - 12 December 2023

MQ Trader

Publish date: Tue, 12 Dec 2023, 04:57 PM

Kinergy Advancement Bhd (KAB) has entered into a shareholder agreement with Agromate Holdings Sdn Bhd to establish a cooperative partnership, via Genplan Advisory & Management Sdn Bhd, to generate renewable energy (RE) across palm oil mills (POM). Malaysia is the world's second-largest palm oil producer, supported by its 447 POMs that has a processing capacity of 119.5 million tonnes per year. KAB believes the collaboration with Agromate will help it capitalise on a largely under-tapped market with huge recurring income potentials. (NST)

Straits Energy Resources Bhd plans to go on a multi-year reforestation initiative to rehabilitate deteriorated forest areas within the Setiu Wetlands State Park in Terengganu. According to a statement released today, its 51 per cent-owned subsidiary , Benua Hijau Sdn Bhd, has entered into a Memorandum of Understanding (MoU) with the Management Council of Terengganu State Parks (MPTN) and Setiu Land Office, both entities under the Terengganu State Government for the project. Benua Hijau intends to plant 100,000 Pokok Gelam trees across 200 acres in a designated area around Tasik Berombak within Setiu Wetlands as part of a five-year reforestation project. (NST)

Yinson Holdings Bhd's Singapore unit Yinson Production Offshore Pte Ltd has sealed a five-year corporate facility loan of up to US$500 million (RM2.34 billion). The loan is the first of its kind raised by Yinson Production and underpins the banks' confidence in it as a leading independent owner and operator of floating production storage and offloading (FPSO) worldwide, the company said today. It also reflects the banks' confidence in the robust fundamentals and attractiveness of the FPSO industry in the global energy infrastructure space, Yinson Production added. (NST)

DRB-Hicom Bhd and Zhejiang Geely Holding Group Co Ltd (Geely Holding) have signed a joint venture agreement (JVA) for the development of the Automotive Hi-Tech Valley (AHTV) in Tanjong Malim, Perak. This follows the recent master collaboration agreement signed in Oct 2023, which had set forth the underlying principles, governance framework, and mutual commitment for the AHTV project. The JV agreement outlines the key principles of the strategic collaboration, alignment on objectives, and terms of the partnership, DRB-Hicom said in a statement. (NST)

Sarawak Cable Bhd has announced that Serendib Capital Ltd has emerged as a "white knight” for the company, having submitted its interest in performing a resuscitation exercise at the PN17 Main Market-listed manufacturing company on Dec 5, 2023. In a filing with Bursa Malaysia today, the company said Serendib Capital is an experienced United Kingdom-based investor with over two decades of experience in advisory and financial asset restructuring in South Asia. (TheStar)

Mega First Corp Bhd’s renewable energy (RE) business in southern Laos is set to power earnings growth on higher power tariffs and capacity, backed by a higher equity stake in the asset. Ambank Research noted Mega First is set to gain from raising its effective stake in Don Sahong Hydropower Plant (DSHP) to 91.3% from 80% recently and should result in a 5% increase in earnings contribution from the hydropower facility. The installation of a fifth turbine at the 260MW DSHP in the third quarter (3Q) of financial year 2024 (FY24) is expected to boost net profit by another 2%, the research house noted. (TheStar)

CIMB Islamic Bank Bhd has been named the Islamic retail bank of the year at The Banker’s Islamic Bank of the Year 2023 awards. This accolade recognised CIMB Group’s Islamic retail banking franchise for its excellence in bringing products and services to market while prioritising customer convenience and experience. It recognised institutions with innovative retail products, services, impactful deals, and meaningful sustainability initiatives. (TheStar)

Jentayu Sustainables Bhd has clarified that the funds that it is planning to raise from its latest private placement to be spent on pre-development expenses for the 170MW hydro project Oriole is part of "tried and tested industry norms" that are benchmarked against similar hydropower plant developments in Sabah. Last Friday, the group announced the placement to raise between RM46.22 million and RM62.9 million, from which it plans to use RM26 million to part finance its pre-development spending for Oriole, a project involving the development of two hydropower plants in Sabah — along Sungai Maligan and Hulu Sungai Padas — that is estimated to cost RM2.77 billion to develop. It had just raised RM11.1 million back in July for similar pre-development spending. In a statement, Jentayu said Oriole is now in the fourth of its six-phase development, which involves negotiating and finalising the power purchase agreement (PPA) for the project and securing financing for its full construction. (TheEdge)

AMMB Holdings Bhd (AmBank) recently integrated Google Pay into its cashless services in line with the bank's commitment to providing its customers with secure, seamless, contactless payment options. With the integration of Google Pay, AmBank Visa and Mastercard Credit Card/-i customers can now add their cards to Google Wallet on their Android devices and tap to pay on point of sales (POS) terminals where contactless payments are accepted and easily checkout on e-commerce merchants that offer Google Pay. (NST)

AirAsia X Bhd (AAX) departments joined forces to bring positive change through Women's Aid Organisation's (WAO) shelters in the Klang Valley, in conjunction with the International Day for the Elimination of Violence against Women. This event confirms the company's dedication to actively participating in initiatives that improve the lives of others. These activities align with AirAsia's core principles, which uphold gender equality and guarantee equal opportunities. (NST)

Sarawak Consolidated Industries Bhd's (SCIB) executive chairman Abang Abdillah Izzarim Bin Datuk Patinggi Tan Sri Abang Haji Abdul Rahman Zohari's surprise withdrawal of his bid for re-election to the board of the company sent the company's share price down by 4 per cent. It was trading at 77 sen a share and was the most actively traded counter in early trade. A resolution to re-elect Abang Abdillah to the board of directors of the company was withdrawn at the company's annual general meeting yesterday.No reason was given for the change. He was appointed as executive chairman in June 2023. (NST)

Hong Leong Investment Bank (HLIB) remains cautious about TSH Resources Bhd, amid concerns over flattish fresh fruit bunch (FFB) output growth, while crude palm oil production cost will be maintained at current levels. In a note on Monday, the research house maintained its "hold" rating and target price of RM1.07 for the planter that operates in the cultivation, processing and refining of oil palm, based on an unchanged 15 times core earnings per share of 7.1 sen forecast for the financial year ending Dec 31, 2025 (FY2025). The research house maintained its earnings forecasts for TSH, which are below consensus estimates, pending completion of the group 5,000-hectare (ha) land disposal in Indonesia by mid-2024. (TheEdge)

Kenanga Research has initiated coverage of Solarvest Holdings Bhd with an “outperform” rating at RM1.23, and a target price (TP) of RM1.47, and said that prospects for the renewable energy (RE) sector in Malaysia are strong, backed by the government’s commitment towards RE making up 70% of the generation capacity mix by 2050. In a note on Tuesday, the research house said Solarvest is also building a portfolio of solar photovoltaic assets for recurring income. (TheEdge)

RHB Retail Research said MyEG Services Bhd is poised for a technical breakout as it bounced off the 21-day simple moving average line, testing the 83 sen immediate resistance on Monday. In a trading stocks note on Tuesday, the research house said that if a breakout above that level happens, the stock may climb towards 87 sen (June 15’s high), followed by the next resistance at 95 sen. (TheEdge)

RHB Retail Research said Samchem Holdings Bhd is set for an uptrend rebound, as it bounced off the 21-day simple moving average line, surpassing the 56 sen level on Monday, on surging trading volume. In a trading stocks note on Tuesday, the research house said that coupled with a “Bullish Marubozu” candlestick formation, the stock is set to heading towards 59 sen — the highest level since March 8 — followed by the next resistance at 63 sen. (TheEdge)

Phillip Capital has initiated coverage of AME Elite Consortium Bhd with a “buy” rating at RM1.59, and a target price (TP) of RM1.96, and said the company is poised to reap rewards from the ongoing US–China geopolitical tension and potential Johor-Singapore special economic zone (SEZ). In a note on Tuesday, the research house projected AME Elite’s earnings to grow 8% year-on-year (y-o-y) in the financial year ending March 31, 2025 (FY2025), and 15% y-o-y in FY2026, to be driven by higher contributions from its flagship development of i-TechValley, coupled with margin expansion. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 12 December 2023