MQ Market Updates - 18 January 2024

MQ Trader

Publish date: Thu, 18 Jan 2024, 05:14 PM

Malaysia Airports Holdings Bhd (MAHB) has denied that the aerotrain replacement project will cost 30 per cent more, maintaining that the project cost increase will be capped at 15 per cent. RHB Research in its report today suggested that the combined job value of RM176 million and RM456 million awarded to the IJM Corp Bhd-Pestech joint venture and Alstom Transport Systems (Malaysia) could be 30 per cent higher than the remainder work that was terminated. This assumes that the contract for Alstom is distinct from the IJM-Pestech joint venture. (NST)

Samaiden Group Bhd has signed a memorandum of understanding (MoU) with Universiti Tunku Abdul Rahman (UTAR), marking a critical step towards integrating academic prowess with industry expertise, particularly in the field of renewable energy. The renewable energy (RE) specialist said the MOU established a collaborative framework aimed at enhancing educational and professional practices, benefiting students, faculty, and industry professionals alike. (TheStar)

Sime Darby Property Bhd’s Great Deals sales campaign achieved sales bookings of 1,107 units worth RM1.1 billion. In a statement today, the property developer said the campaign, which ran from Aug 15 to Dec 31, 2023, provided attractive offers for a limited number of properties in the townships owned by Sime Darby Properties all over the country. Chief marketing and sales officer Datuk Lai Shu Wei said the success of the Great Deals campaign showed how well the company understand the needs of its customers. (TheStar)

Eco World Development Group Bhd (Ecoworld Malaysia) has announced that its wholly-owned subsidiary Eco Botanic 3 Sdn Bhd has struck a deal to purchase about 240.214 acres of land in Pulai, Johor Bahru, for RM450.13mil, and develop it into a mixed-used project. According to the property group, the land belonging to River Retreat Sdn Bhd is located next to the group's Eco Botanic and Eco Botanic 2 townships in Iskandar Malaysia. "It is proposed to be developed into a mixed residential and commercial township development suitable for both first-time home buyers and M40 group to be known as Eco Botanic 3," said the group in a filing with the stock exchange. (TheStar)

Widad Group Bhd, which is involved in construction activities and integrated facilities management services, has joined a growing list of Bursa Malaysia-listed companies being issued unusual market activity (UMA) queries from Bursa Securities, on the sharp fall in its share price. Widad saw its share price hit limit down during the morning trading session on Thursday, down 30 sen or 61% to a low of 19 sen — its lowest since 2015. At Thursday’s noon market break, it pared some of its earlier losses to close down 25.5 sen or 52% to 23.5 sen. Widad was the second most active stock on Bursa, with 124.99 million shares changing hands. It saw as much as RM792 million of market capitalisation wiped off to RM727.7 million at noon market break, from RM1.52 billion at Wednesday's (Jan 17) closing price. (TheEdge)

Builder Gagasan Nadi Cergas Bhd has bagged a contract from Kwasa Land Sdn Bhd, a wholly owned subsidiary of the Employees Provident Fund, to jointly develop affordable houses on a parcel of land in the township of Kwasa Damansara, Selangor at an estimated construction cost of RM750 million. Spanning 34.86 acres, the proposed development will feature 4,183 units of affordable housing with an estimated gross development value (GDV) of RM1 billion. In a filing with Bursa Malaysia on Thursday, Gagasan Nadi said it had on Wednesday (Jan 17) accepted the letter of award (LOA) from Kwasa Land for the proposed development. (TheEdge)

The selling wave on penny stocks hit Tanco Holdings Bhd on Thursday morning, with its shares tumbling by 17.5 sen or 26.72% after the opening bell, prompting Bursa Securities to suspend the counter's intraday short selling. At the time of writing, shares of Tanco have plunged to 48 sen from 65.5 sen, wiping out all its gains accumulated since October last year. Just Tuesday, the stock hit its five-year high at 65.5 sen. (TheEdge)

Rexit Bhd was one of the top gainers in early trade on Thursday, following the emergence of new major shareholders that triggered a mandatory general offer (MGO). At the time of writing, Rexit rose 26 sen, or 28.26%, to RM1.18 per share, translating into a market capitalisation of RM223.41 million. This is despite a downgrade by TA Securities, which recommended a “sell” on the counter (from "hold" previously) citing that now is a good exit opportunity for investors. (TheEdge)

Jentayu Sustainables Bhd, responding to an unusual market activity (UMA) query from Bursa Malaysia after a sharp fall in its share price, said the recent completion of its private placement might be the reason for increased trading activity in the counter. Last month, Jentayu announced a private placement of up to 57.24 million shares or 10% of its share base of 572.37 million shares. The placement had raised RM66.39 million to fund the company's pre-development expenditures related to two hydropower plants in Sabah, new projects and working capital. Jentayu said Bursa had approved the listing of the placement shares early this month. (TheEdge)

Heavy selling pressure in YNH Property Bhd has led Bursa Malaysia Securities Bhd to unearth an oversight on YNH Property Bhd's part in not announcing a planned acquisition of a 2.06 hectare site in Desa Hartamas, Kuala Lumpur for RM150 million. When queried by Bursa Malaysia Securities Bhd on an announcement made in May 2023 that its subsidiary Kar Sin Bhd is to dispose of land in Desa Hartamas for RM170 million to Sunway Living Space Sdn Bhd, YNH Property said not announcing the proposed acquisition of the Desa Hartamas land from Great Wall Park Sdn Bhd (GWP) was an oversight on its part. (NST)

Artroniq Bhd, which fell to its bottom trading limit in the previous session, is continuing to see heavy selling pressure, even as investors on Bursa Malaysia grow cautious amid a downturn in global sentiment. Artroniq Bhd hit limit down in Wednesday trade, after a sell-off that began on Tuesday picked up speed. Going by its opening price on Thursday trading, there is yet to be any let up in the furious disposal of the ICT provider. (TheStar)

Maybank Investment Bank (IB) Bhd maintained its "Sell" call on Ranhill Utilities Bhd following an impending water tarriff hike, believing that its recent share price rally has priced in the potential boost to earnings. Maybank IB has set its target price for Ranhill Utilities at 70 sen, an almost 37 per cent discount to the RM1.11 it is trading at now. Suruhanjaya Perkhidmatan Air Negara (SPAN) has announced that water tariffs for the domestic segment in Peninsular Malaysia and Labuan will be raised by an average of RM0.22 per cubic metre from Feb 1, 2024. (NST)

Kenanga Research is upgrading oil and gas services provider Velesto Energy Bhd’s earnings projections for its financial year 2023 (FY23) and FY24 due to higher average daily charter rates (DCR) from contract renewals for rigs. However, it acknowledged the company’s significant scheduled maintenance activities in FY24 could limit its earnings upside. The research house said it is upgrading Velesto’s FY23 and FY24 earnings projections by 20% and 46%, respectively, factoring in higher average DCR assumptions. (TheStar)

Analysts have assigned a fair value of 36 sen to 38 sen for ACE Market-bound HE Group Bhd, compared to its initial public offering (IPO) price of 28 sen, representing a significant price multiple discount relative to its industry counterparts. Apex Securities has ascribed a fair value of 36 sen on the company, determined by projecting forward price-earnings ratio (P/E) valuations of 19 times for financial year 2025, based on an estimated earnings per share (EPS) of 3.0 sen and 3.3 sen, respectively. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 18 January 2024