MQ Market Updates - 13 December 2023

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Publish date: Wed, 13 Dec 2023, 05:18 PM

Sapura Energy Bhd has received written confirmation from the Corporate Debt Restructuring Committee (CDRC) that at least 75 per cent of the financiers of its some RM10.3 billion in multi-currency financing facilities (MCF) have provided the requisite approval-in-principle for a proposed debt restructuring scheme. The confirmation marked a significant milestone in its reset plan, which included efforts to address its unsustainable level of debt and amounts owed to trade creditors, Sapura Energy said today. The exercise involves about RM1.5 billion in claims from vendors. Sapura Energy chief executive officer Datuk Mohd Anuar Taib said the company and its advisors will continue working with the financiers and CDRC to achieve successful closure of its debt restructuring. (NST)

UMW Group registered sales of 396,820 units in the January-November period, an increase of 16% from 341,390 units in the same period last year. "Year-to-date November 2023, both companies registered higher sales compared with the same period of 2022. "The strong sales achieved was driven by the introduction of competitive and exciting new models as well as attractive sales promotions," it said in a statement. According to the auto distributor, November sales had come in strong with 42,315 vehicles registered, which was 8% higher than 39,034 units in November 2022, on the back of the delivery of outstanding orders for both UMW Toyota Motor (UMWT) and the group's associate company, Perodua. (TheStar)

Scientex Packaging (Ayer Keroh) Bhd is optimistic it will be able to sustain its performance in the current financial year despite the challenging external operating environment. The plastic packaging manufacturer said it will address its operational efficiency with a focus on waste reduction, machine and labour optimisation. "Our investment in technology and innovation has enabled us to make good progress in our development of customer centric packaging products, meeting their requirements on functional performance and sustainability. (TheStar)

SP Setia Bhd has partnered Mitsui Fudosan (Asia) Malaysia Sdn Bhd to develop two parcels of prime commercial land measuring 2.67 acres in Setia Federal Hill, Bangsar. In a statement, the property developer said the joint venture represents a significant opportunity for it to expand its presence and establish a strong foothold in the Bangsar district. The project will have an estimated gross development value of RM1.4bil and will comprise two residential towers of about 1,300 units. The first tower of the project is slated for launch next year. (TheStar)

Sarawak Cable Bhd (SCB) shares were among the most briskly traded on Bursa Malaysia on Wednesday morning, after the Practice Note 17 company announced that it had found a white knight to undertake a “resuscitation exercise”. The stock went up as much as six sen, or 28.57%, to a one-year high of 27 sen. Its market capitalisation swelled to RM107.73 million. The counter was the second-most actively traded as at the time of writing, with 64.92 million shares done. For context, the counter opened at 6.5 sen per share on Tuesday. (TheEdge)

Datasonic Group Bhd's subsidiary Datasonic Technologies Sdn Bhd has won the Asean Master Class Award – Leading in Innovative ICT Security System Excellence at the 9th Asean Outstanding Business Awards 2023. Datasonic chief of special projects Datuk Syahril Abdullah said being the winner is a testament to its unwavering commitment to excellence and innovation in the field of security-based ICT systems and solutions. He added that the recognition serves as a symbol of prestige and motivation for aspiring entrepreneurship within the organisation and the industry at large. Syahril also emphasised the significance of the awards in fostering growth and leadership within the business community. (NST)

Sime Darby Bhd's (Sime Darby) group chief financial officer (GCFO) Mustamir Mohamad has been named the new president and chief executive officer of UMW Holdings Bhd, with the completion of Sime Darby's purchase of a 61.2 per cent stake in UMW Holdings. With Mustamir's move to UMW Holdings, Sime Darby Motors' CFO Muhammad Noor Abd Aziz takes on the role of GCFO at Sime Darby. The change in ownership has prompted adjustments to UMW's board. The company eagerly anticipates the addition of new members, including Sime Darby's independent non-executive director Tan Sri Muhammad Shahrul Ikram Yaakob, Sime Darby's group chief executive officer Datuk Jeffri Salim Davidson, and Mustamir Mohamad. (NST)

Bermaz Auto Bhd rallied on Wednesday following a set of positive financial numbers announced in its recent quarterly report. At the open, the auto distributor added three sen to RM2.33 a share before rising to an intra-morning high of RM2.39. Post-results, MIDF Research raised its FY24/25 net profit forecast on the share by 3.4% each to reflect higher sales volume for Mazda Malaysia, given the stronger-than-expected demand for the CX30 and more-resilient-than-expected demand for the CX5. (TheStar)

CGS-CIMB maintained its “add” call on Power Root Bhd at RM1.78, as it expects Power Root sales and net profit growth to reaccelerate given its export sales growth, new product launches, and brand-building exercises. (TheEdge)

Maybank Investment Bank Research (Maybank IB) has upgraded Hartalega Holdings Bhd to a tactical “buy” at RM2.29, with a higher target price (TP) of RM3.02 (from RM2.25). The research house said that while the glove maker remains cautious on the sector outlook, it had turned more positive and expects a better second half ending March 31, 2024 (2HFY2024) on better cost efficiency and a higher utilisation rate post the decommissioning of the Bestari Jaya facility. In a note on Wednesday, the research house said the utilisation rate is expected to improve to about 50% in the coming quarters, leading to lower production cost. (TheEdge)

RHB Retail Research said Ranhill Utilities Bhd is in the midst of a technical rebound as it trended upwards for three consecutive sessions and tested the 90 sen resistance recently. In a trading stocks note on Wednesday, the research house said that if a breakout above that level happens, the stock may climb towards the recent high of 98 sen, followed by the next resistance of RM1.10, the highest level since Sept 18, 2019. (TheEdge)

RHB Retail Research said SFP Tech Holdings Bhd is poised for an uptrend reversal, as it bounced off the 21-day simple moving average line and tested the strong resistance point of RM1.02 on Tuesday as trading volume surged. In a trading stocks note on Wednesday, the research house said that pending a breakout above that level, the stock may propel higher towards the RM1.10 mark, before possibly testing the all-time-high of RM1.19. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 13 December 2023