MQ Market Updates - 08 February 2024

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Publish date: Thu, 08 Feb 2024, 05:27 PM

MGB Bhd's indirect wholly owned unit MGB International for Industry (MGBI) has bagged two purchase orders worth 94.5 million riyals (RM119.55 million) to supply and install precast elements for 400 villas in Jeddah. The order came from Saudi Arabia-based Sany Alameriah Industrial (SA). In a statement, the company said this is in relation to a contract signed between SA and SALD Industrial Company for the supply and installation of precast elements. According to MGB, these elements include walls, staircases, beams, and hollow-core slabs (HCS) for 400 villas in the ROSHN Alarous development located north of Jeddah. (NST)

Carlsberg Brewery Malaysia Bhd's stock was the top gainer in morning trade today despite an analyst saying it missed earnings expectation for financial year 2023. It was trading 34 sen, or 1.75 per cent higher at RM19.78 a share earlier. RHB research said Carlsberg's financial year 2023 (FY23) results missed expectations on weaker-than-expected profit margin. The company's net profit of RM319 million met 95 per cent and 96 per cent of the firm's and Street's estimates. (NST)

British American Tobacco (M) Bhd’s (BAT) earnings outlook in the near term remains challenging amid the lack of robust income streams from new segments to fill the void left by the combustible cigarette segment. At the same time, while its vapour product Vuse would be a potential revenue growth driver for the tobacco company going forward, the costs of growing the brand may impact its margins in the near term. As such, analysts are cautiously optimistic about BAT and have lowered their earnings projections for this year and next. (TheStar)

Sime Darby Property Bhd chief marketing and sales officer Datuk Lai Shu Wei was honoured with the CMO of the Year – Best of the Best Award at the prestigious Malaysian CMO Awards 2023 held in Kuala Lumpur. Organised by Marketing Magazine Malaysia, the Malaysian CMO Awards 2023 recognises the creme de la creme of Malaysia’s marketers, selected through an extensive assessment and shortlisting process by a panel of industry watchers. Lai said the win serves as an excellent avenue to give recognition to Team Sime Darby Property, whose tenacity and successes serve as greater inspiration for the next generation of property marketers. (TheStar)

KLCCP Stapled Group is optimistic that the growth trend for 2024 will remain positive, as it continues to leverage on iconic assets, long-term and triple net lease arrangements, underpinned by the solid footing of its retail and hospitality segments. Malaysia’s largest self-managed stapled security comprises KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust.For the fourth quarter ended Dec 31, 2023 (4Q23), KLCCP Stapled Group’s net profit rose by 38% year-on-year (y-o-y) to RM384.6mil or earnings per share of 21.30 sen. (TheStar).

Dataprep Holdings Bhd said its Indonesian unit has inked an agreement for a 30-year concession to develop and maintain passive telecommunication infrastructure in Bandung, Indonesia. This follows its January announcement that subsidiary PT Dataprep Teknologi Indonesia Tbk (DTI) had been selected as the lead consortium member to construct and maintain the infrastructure. Dataprep said that PT Jaringan Pintar Bersama — a unit of DTI — has inked an agreement with PT Bandung Infra Investama (Perseroda) Tbk for the concession. (TheEdge)

Reneuco Bhd (formerly known as KPower Bhd) was among the most actively traded stocks in early trade, with the company expected to submit its latest annual report for the financial year ended Sept 30, 2023 (FY2023) on Thursday. If it fails to issue the report within six months from Feb 8, delisting procedures may be commenced against the company, which is mainly involved in sustainable energy and utilities activities. Shares of Reneuco rebounded 20% at Thursday’s opening bell from its all-time low of five sen. The counter then pared its gains to 5.5 sen — up half a sen or 10% — giving it a market capitalisation of RM61.71 million. (TheEdge)

Focus Point Holdings Bhd (FPHB) is expected to grow at a five-year compound annual growth of 30 per cent over the next five years, reaching RM40.2 million by financial year 2025 (FY25), said RHB research. This growth trajectory is driven by multiple factors, including the rising prevalence of vision-related issues attributed to increased screen time and the expanding population affected by presbyopia, driven by demographic shifts towards an aging population. (NST)

AmInvestment Bank Research expects YTL Hospitality REIT’s recent acquisition of Syeun Hotel in Ipoh to contribute a minimum net property income (NPI) of RM3.4 million to the group — representing only 1% of YTL REIT’s FY2024F NPI — based on a property yield of 6.1%, derived from the average property yield of its Malaysian assets. In a note on Thursday, the research house maintained its "buy" call on the REIT following its acquisition, with a higher fair value (FV) of RM1.26 per unit (previously RM1.11 per unit) after reducing the three-year beta in the equity cost for its revised weighted average cost of capital (WACC) of 7.6%, reflecting improving sentiments in both the Malaysian and Australian hospitality segments. (TheEdge)

CGS-CIMB Securities has reiterated its "add" recommendation for Velesto Energy Bhd, raising the target price (TP) to 29 sen (from 27.5 sen) in anticipation of stellar results in the fourth quarter ended Dec 31, 2023 (4QFY2023), set to be released on Feb 27. In a note on Thursday, the research house anticipates Velesto to report a core net profit of RM23 million, marking its strongest quarterly performance in four years. The better profits are attributed to increased jack-up rig drilling utilisation rates, reaching approximately 92%, said the research house. (TheEdge)

RHB Retail Research said Powerwell Holdings Bhd is looking to resume its rebound after bouncing off the 21-day simple moving average line and testing the 26 sen immediate resistance level on higher trading volume. In a trading stocks note on Thursday, the research house said that pending a breakout above this level, the bulls are likely to propel the stock towards the 28 sen recent high, followed by the next resistance level at 31 sen. (TheEdge)

RHB Retail Research said Teo Seng Capital Bhd is set to move higher after breaking past the RM1.93 immediate resistance level, forming a higher bullish pattern. In a trading stocks note on Thursday, the research house said that the bullish bias above this level may drive the stock upwards towards RM2.10, followed by the next resistance level at RM2.20. (TheEdge)

Source: New Straits Times, The Edge Markets The Star 08 February 2024