MQ Market Updates - 12 January 2024

MQ Trader

Publish date: Fri, 12 Jan 2024, 05:32 PM

HE Group Bhd plans to raise RM24.33 million for business operations and expansion through its upcoming initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia. The electrical engineering services provider will be listed on Jan 30, 2024. The group's IPO exercise comprises the issuance of 86.89 million new shares in HE Group, constituting 19.75 per cent of HE Group's enlarged share capital. (NST)

Bumi Armada Bhd's earnings assumptions remain conservative, as reported by Public Investment Bank Bhd (PublicInvest), assuming charter contributions from the second quarter of the financial year 2024 (2QFY24) onwards. The company achieved the first oil for its 30 per cent-owned Armada Sterling floating production, storage and offloading (FPSO) on Jan 7, slightly later than guided by the investment bank. Bumi Armada initially projected achieving first oil by November 2023, however, the actual date was later than anticipated. (NST)

Uzma Bhd and its wholly-owned subsidiary Uzma Engineering Sdn Bhd has entered into a memorandum of understanding with PT Pertamina Drilling Services Indonesia to explore potential collaborations in oil and gas and geothermal drilling services as well as other services. In a filing with Bursa Malaysia, the group said the partnership would not be limited onshore/ offshore rigs, gas monitoring system services, fishing services, tubular running services and other upstream services in several countries including Malaysia, Philippines and Thailand. (TheStar)

Eonmetall Group Bhd's wholly-owned subsidiary Eonmetall Land Sdn Bhd has received a notice from the district and land office of Klang invoking compulsory acquisition of about 8,996 sqm of land for RM30.41mil. In a filing with Bursa Malaysia, Eonmetall said the affected land forms part of a larger 2.88 million sq ft tract of industrial land in Kapar, Klang, which is currently vacant and held for development. The land was acquired by Eonmetall Land in 2019 for an original investment cost of RM57.18mil. (TheStar)

Sunsuria Bhd has entered into a co-construction agreement with the Fuzhou Municipal People’s Government (Gulou district) for the construction of the Asean Digital Trade Industrial Park in Fuzhou, China. The agreement was signed on Dec 21 during the First Overseas Chinese Talent Conference for Development in Fuzhou, China. Sunsuria executive chairman Tan Sri Ter Leong Yap said: “Sunsuria, in collaboration with Fuzhou (Gulou district) to build the Asean Digital Trade Industrial Park in Fuzhou, welcomes outstanding talents and digital companies from China and Malaysia to join us and promote the developments of the digital economy in China and Malaysia.” (TheEdge)

Ranhill Utilities Bhd has announced the renewal of its licence by the National Water Services Commission (SPAN) to treat and supply water to consumers in Johor for the next three years. In a filing on Friday, the group disclosed that its subsidiary, Ranhill SAJ Sdn Bhd, received a letter from SPAN on Jan 10, notifying it of the renewal for the sixth operation licence. The renewed licence, issued under the Water Services Industry Act 2006 (Act 655), is effective from Jan 1, 2024, to Dec 31, 2026. (TheEdge)

Sarawak Cable Bhd’s share price rebounded by up to five sen or 16% to an intra-morning high of 35.5 sen after two straight days of declines, from Tuesday (Jan 9)’s closing price of 41.5 sen. The counter hit 42.5 sen at the end of Friday’s noon trading session, its highest since Nov 11, 2021. At the time of writing, the stock had pared its gains to settle three sen or 9.84% higher at 33.5 sen, giving it a market capitalisation of RM133.92 million. (TheEdge)

Magna Prima Bhd, which drew the attention of Bursa Malaysia Securities Bhd following a spike in its share price over the last three days, said it is in “final stage of negotiations for the monetisation of one of its land bank”. In a reply to the stock market regulator's unusual market activity (UMA) query, Magna Prima said the company and its subsidiaries have been continuously on the lookout for opportunities to strengthen its financial position. "The group will make the necessary announcements in compliance with the Main Market Listing Requirements upon any execution of the agreement in relation thereto,” it said. (TheEdge)

Cahya Mata Sarawak Bhd (CMS) said that Norges Bank, which manages Norway’s Government Pension Fund Global, is no longer a substantial shareholder after holding less than a 5% stake in the Sarawak-based cement manufacturer. In a bourse filing on Thursday (Jan 11), CMS said it received an email notification the same day saying Norges Bank’s total shareholding stood at 4.989% as at Dec 6, 2023. However, the filing did not disclose the total number of shares disposed of. (TheEdge)

Sik Cheong Bhd is offering up to 66 million new shares in an initial public offering (IPO), as it seeks to list on the ACE Market of Bursa Malaysia, according to its prospectus disclosure filed on Wednesday (Jan 10). The group said the 66 million new shares comprise a public offering of 13.3 million shares via balloting, four million shares for eligible directors and employees of the group, while the remaining 48.7 million shares are for private placement to selected investors. Meanwhile, Sik Cheong is also planning an offer-for-sale of 20 million existing shares by way of private placement to selected investors. (TheEdge)

NetX Holdings Bhd has proposed a bonus issue of 468.98 million free warrants on the basis of one warrant for every two shares held on an entitlement date to be determined later. In a bourse filing on Thursday, the software and systems developer said the illustrative exercise price is eight sen per warrant. This, it said, represents a discount of about 25.7% to the theoretical ex-all price (TEAP) of NetX shares of 10.77 sen, calculated based on the five-day volume-weighted average market price of NetX shares up to the latest practicable date or LPD (Jan 2) of RM0.1215. (TheEdge)

EVD Bhd has temporarily relieved its executive director Mah Seong Huak from his operational duties as an employee of the company effective Jan 11, 2024. Mah oversaw the day-to-day executive management functions in project management and engineering, project tender and budget, project system engineering and business development. (NST)

Financial troubled Serba Dinamik Holdings Bhd is looking for a white knight to either assume its listing status or facilitate a reverse take-over of the company. According to a notice in an english daily, the company has appointed PwC to call for submissions to participate in the restructuring of Serba Dinamik, which is listed on the Main Market of Bursa Malaysia Securities Bhd. The closing date for submissions is March 29, 2024. (NST)

Tomei Consolidated Bhd managing director Datuk Ng Yih Pyng has called on the government to reconsider its decision to implement the high-value goods tax at a rate of 5% to 10% from May 1, 2024. "We have not heard from the government on the threshold or the details. I am still hoping that the government will consider not to implement the tax,” he told reporters at the media launch of Tomei's Chinese New Year Promo Tour 2024. “There are a lot of negative impacts. With [the liberalisation of] visas [for China and India], we expect more tourist arrivals from this year onwards. And jewellery will be appealing to them,” he said. (TheEdge)

Rapid Synergy Bhd, in which businessman Datuk Dr Yu Kuan Chon owns a 22.8% stake, was once again in focus as the stock continued to be pounded by selling pressure in Friday morning's trading session, marking the third consecutive day of hitting limit down. The counter fell as much as 23.33% to RM8.05 in the first trading hour after the opening bell. At the time of writing, Rapid Synergy pared some losses to RM9.35, still down 18.7% or RM2.15, making it the largest loser again on Bursa Malaysia. At RM9.35, Rapid Synergy's market capitalisation stood at RM978.1 million. (TheEdge)

Hong Leong Investment Bank (HLIB) research anticipates a re-rating of Sunway Bhd with its upcoming healthcare listing and robust development in Sunway Iskandar. It has a "Buy" call on the stock, with a higher target price of RM3 from RM2.76. The firm said conversations on Sunway will be centred around the listing of its healthcare segment as the timeline for Sunway to list the segment, within the next two to three years, draws closer. (NST)

Maybank Investment Bank (Maybank IB) has trimmed its earnings estimates for Genting Malaysia Bhd by RM40 million per annum and raised its target price to RM3.03 a share, following its US$100 million (RM456 milion) capital injection into Empire Resorts. "To be sure, we do not look kindly on the most recent related party transaction (RPT) involving Empire. "That said, it does appear to us that room for more RPTs involving the Empire is narrowing," it said in its note. Genting Malaysia announced yesterday that it will subscribe for up to US$100 million of Series M Preferred Stock of Empire. The proceeds will be used for working capital and to fully repay an existing bank facility of US$58 million. (TheEdge)

CGS-CIMB Securities has upgraded home improvement retailer MR DIY Group (M) Bhd to "add" with a higher target price (TP) of RM1.90, citing a positive outlook driven by the company’s focused store expansion and private label strategy. In a note on Friday, the research house said MR DIY’s revenue growth trajectory has shifted to a positive stance after a recent meeting with the management to discuss its five-year store expansion plan (2024-2028). (TheEdge)

HB Retail Research said Nationgate Holdings Bhd is eyeing a technical breakout as it bounced off the 21-day simple moving average line on Thursday — heading towards the RM1.57 immediate resistance. In a trading stocks note on Friday, the research house said that if a breakout happens above that level, the stock may travel higher towards the RM1.63 resistance, followed by the RM1.77 all-time high. “Meanwhile, falling below the RM1.47 support would see a direction shift to downwards,” it said. (TheEdge)

RHB Retail Research said Petra Energy Bhd is expected to propel higher after climbing above both the 99 sen immediate resistance on strong trading volume, and the rising 21-day simple moving average line. In a trading stocks note on Friday, the research house said that if it remains above that level, the positive momentum may take the stock towards the RM1.08 recent high, before rising towards the RM1.13 next resistance. “In the event it falls below the 94 sen support, this expectation would be cancelled,” it said. (TheEdge)

TA Securities has downgraded Scientex Bhd to “sell” at RM3.92 with an unchanged target price of RM3.89, following the recent increase in share price. In a note on Friday, the research house said Scientex has a target to build 50,000 affordable homes throughout the nation by 2028 and these acquisitions are aligned with the interest of the group. It said as at December 2023, the group has completed 32,975 homes. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 12 January 2024