MQ Market Updates - 17 January 2024

MQ Trader

Publish date: Wed, 17 Jan 2024, 05:29 PM

Cybersecurity and e-business solutions company Systech Bhd plans to propel the company forward with plans to acquire Wilstech Sdn Bhd for RM75 million. It also plans to raise RM51.84 million cash by issuing new shares in the company and undertake a bonus issue of up to 160,656,399 new warrants based on one warrant for every four existing Systech shares held on a date determined later by the board to reward existing shareholders. Systech has entered into a conditional share sale agreement with Low Min Yew, Sea Capital LP and Maybank Trustees Bhd to acquire the entire 552,255 ordinary shares in Wilstech Sdn. Bhd through a combination of RM20 million cash and 152.78 million shares. (NST)

Chin Hin Group Property Bhd (CHGP) is buying six parcels of land in Melaka for RM41.94 million to develop a residential project with an estimated gross development value of RM1.01 billion. The group through its indirect wholly owned Chin Hin Property (Melaka) Sdn Bhd (CHPMSB) has inked the agreement to acquire the plots from MDS Developments Management Sdn Bhd, Aim Development Worldwide Sdn Bhd (ADW) and Aim Holdings Worldwide Sdn Bhd (AHW). In a filing with Bursa Malaysia Securities Bhd, Chin Hin said its acquisition of leasehold plots totaling 838,736 sq ft in Kawasan Bandar XLIII, Melaka Tengah was made at a substantial discount of 50 per cent from the prevailing market value, amounting to RM41.94 million. (NST)

Artroniq Bhd has received an unusual market activity (UMA) query from Bursa Malaysia over the sharp fall in its share price on Wednesday. At midday, the ICT provider saw its share price tumble 37.74%, or 30 sen to 50 sen. In the past five trading sessions, it has fallen almost 43%. Bursa Malaysia, in its query, asked Artroniq to disclose any corporate developments, rumours or reports concerning the business and affairs of the group which may account for the UMA. (TheStar)

Malaysia Airports Holdings Bhd (MAHB) has announced that a consortium consisting of ALSTOM Transport Systems (Malaysia) Sdn Bhd, IJM Construction Sdn Bhd (IJMC) and Pestech Technology Sdn Bhd will be completing the aerotrain replacement project. The announcement confirms a report by The Edge last month. In a statement, MAHB said it has entered into an agreement with Alstom and the IJMC-Pestech joint venture (JV) to steer the aerotrain replacement project back on track. (TheEdge)

Mercury Securities Bhd’s share price plunged 40% or 30 sen to 45 sen, from 75 sen, making it the latest counter on Bursa Malaysia to hit limit down on Wednesday. The brokerage firm’s share price climbed to an all-time high of 88.5 sen on Monday (Jan 15) but tumbled to 45 sen on Wednesday, leading to a loss of RM388.4 million in market capitalisation. At 45 sen, the group is valued at RM401.9 million, down from RM790.3 million at its peak of 88.5 sen per share. At the time of writing, 53.53 million shares had changed hands. This is the second consecutive day that the stock has come under selling pressure. (TheEdge)

Sarawak Consolidated Industries Bhd (SCIB) is in talks with the Sarawak state government over a potential land acquisition, the company said in response to an unusual market activity (UMA) query issued on Wednesday, after its shares hit limit down for the second consecutive day. “The company had on Jan 4, 2024 received the letter of offer from the Land and Survey Department of Sarawak to acquire some parcels of land measuring approximately 22 acres in size for the purpose of expanding the production capacity of the group. “The management is in the midst of discussion and considering the acceptance of this proposal. The Board believes that it would be more appropriate to release announcement(s) to Bursa Securities once the decision is made,” it stated. (TheEdge)

Steel products maker Leform Bhd extended its losses for the second consecutive trading day on Wednesday, down as much as 9.5 sen or 35.19% after it was slapped with an unusual market activity (UMA) query by Bursa Securities. The counter, which fell 22 sen or 55% on Tuesday, opened two sen higher before selling kicked in to touch a low of 17.5 sen in the morning session. The most active counter on Wednesday saw some 294.1 million shares traded in the morning session, higher than Tuesday’s overall trading volume of 215.31 million shares. (TheEdge)

Master Tec Group Bhd, which is listing on the ACE Market later this month, has garnered target prices of 40 sen to 50 sen by analysts covering the company, on expectations of high demand for power cables from its major customers. Apex Securities ascribed a fair value of 50 sen for the company, on the back of 17 times financial year 2024 (FY2024) forecast price-to-earnings ratio (PER), “derived from Southern Cable Group Bhd’s average PE as it is the only comparable on the local stock exchange”. “The premium to Master Tec’s FY2023 forecast PER is justifiable, premised on Master Tec’s superior profit margins,” said the research house, which forecasted earnings per share (EPS) of 2.7 sen for FY2023, and 2.9 sen for FY2024. (TheEdge)

The latest RM111.8 million property construction job win by Kerjaya Prospek Group Bhd from sister company Kerjaya Prospek Property Bhd (KPPROP) is within its anticipated contract replenishment of RM1.5 billion to RM1.6 billion this year, analysts said. The analysts have subsequently kept earnings forecasts unchanged, although with different calls on its share price, due to different valuation multiples ascribed, and on the back of a recent rally in Kerjaya Prospek's shares to its highest in nearly five years. The counter traded unchanged at RM1.70 following the Tuesday announcement of the contract win. Since mid-2023, its shares have risen by around 60%. (TheEdge)

ACE Market-bound freight forwarding and aerospace logistics provider AGX Bhd made a net profit of RM3 million on the back of revenue of RM47.3 million in its third quarter ended Sept 30, 2023 (3QFY2023). The company, which is set to be listed on Feb 7, announced the results in a bourse filing on Tuesday, with earnings per share at 0.69 sen. There are no comparative figures available for the preceding year's corresponding quarter, as this is the first interim financial report announced by the company. (TheEdge)

MSM Malaysia Holdings Bhd, in which FGV Holdings Bhd holds a 51% stake, is considering venturing into upstream sugar cane cultivation to safeguard raw sugar security in the country. "Countries like Thailand and India have banned their [raw sugar] exports. Let us say Brazil also bans its exports. Where are we going to get [raw sugar]? So we have to look from a food security perspective,” said MSM group chief operating officer Hasni Ahmad. “MSM has to take the lead as it is the biggest producer of sugar in the country,” Hasni told reporters during a media visit to MSM Sugar Refinery (Johor) Sdn Bhd on Tuesday. (TheEdge)

Minetech Resources Bhd, which has seen active trading since the appointment of Abang Abdillah Izzarim Abang Abdul Rahman Zohari as executive chairman, yesterday announced that the founder of the company, Choy Sen @ Chin Kim Sang resign from the board. Chin Kim Sang set up Minetech Construction Sdn Bhd in 1989, to provide specialised drilling and blasting, loading and haulage services, focusing on rock excavation and infrastructure development projects. (NST)

Source: New Straits Times, The Edge Markets The Star 17 January 2024