MQ Market Updates - 13 March 2024

MQ Trader

Publish date: Wed, 13 Mar 2024, 05:11 PM

Malaysia Airports Holdings Bhd (MAHB) is expected to collect higher revenue and achieve stronger earnings through the increased passenger service charges (PSC) coming into effect on June 1, 2024. Hong Leong Investment Bank Bhd (HLIB Research) said this includes the new PSC for transfer passengers, and incremental aircraft landing and parking charges."MAHB's cashflow will also improve, allowing for higher capex spending," it said in a note. (NST)

Calcium carbonate producer Zantat Holdings is poised to capitalise on the escalating demand for plastics in India given that 43 per cent of its sales are attributed to the region's plastic industry. Hong Leong Investment Bank (HLIB) research said the Indian plastic industry is forecasted to experience exponential growth, with market size expected to triple from US$42.2 billion in 2022-23 toor US$120 billion in 2027-2028. (NST)

Gas Malaysia Bhd's joint venture with Tokyo Gas Engineering Solutions Corp has commissioned operation of its combined heat and power (CHP) plant for its third customer, Fatty Chemical (Malaysia) Sdn Bhd (FCM), in Prai, Penang. In a statement, the gas provider said its JV company Gas Malaysia Energy Advance Sdn Bhd (GMEA) inked an energy supply agreement with FCM, which includes the provision of up to 6.7MW of power and 35 tonnes per hour of steam to FCM for 15 years. (TheStar)

South Malaysia Industries Bhd (SMI) is seeing signs of renewed clashes between two groups of shareholders seeking to take control of the company in its upcoming annual general meeting (AGM) scheduled on March 27. It appears that Techbase Industries Bhd, formerly Prolexus Bhd, is making another attempt to take control of SMI boardroom at the upcoming shareholders’ meeting. (TheEdge)

CTOS Digital Bhd’s share price rebounded on Wednesday’s morning after analysts said the recent sell-off was overdone, following the management’s positive stance that the continuity of its operations was not at risk. This follows the High Court’s recent ruling against a CTOS unit in a negligence and breach of fiduciary duty suit. (TheEdge)

Eversendai Corp Bhd has announced that its subsidiaries have secured new projects worth a combined RM5.4bil in Saudi Arabia, the UAE and India. In a filing with Bursa Malaysia, the structural steel specialist contractors said its subsidiary Eversendai Engineering Saudi LLC in collaboration with Albawani Co Ltd have secured their first structural steel signature building from NEOM for the Trojena Ski Village in Tabuk, Saudi Arabia. (TheStar)

Sarawak Consolidated Industries Bhd (SCIB) yesterday said it mutually agreed to terminate a RM97.7 million contract to build student hostels for University Malaysia Kelantan in Bachok, Kelantan two months after the award. SCIB said in the filing with Bursa Malaysia Securities Bhd that it had agreed with Landasan Kapital (M) Sdn. Bhd to terminate the contract awarded to it on Jan 16, 2024, to " mitigate the project risks arising from potential project delays due to tight project timeline". (NST)

UMediC Group Bhd's (UMC) second quarter ended Jan 31, 2024 (2QFY24) results came in below Hong Leong Investment Bank's (HLIB Research) and the street's expectations. The negative deviation was due to higher-than-expected operating costs and tax expenses, HLIB Research said in a note. (NST)

Maybank Investment Bank Bhd (Maybank IB) is neutral on Globetronics Technology Bhd's latest technology provision agreement with Kaynes Technology India Ltd's subsidiary Kaynes Semicon Private Ltd (KSPL). Globetronics' wholly owned subsidiary, ISO Technology Sdn Bhd, had secured a contract worth US$7.59 million (RM35.90 million) to provide technical services related to outsourced semiconductor assembly and testing (OSAT). (NST)

Tomei Consolidated Bhd is strategically positioned for robust sales during the upcoming Hari Raya period, historically driving sales for the company's 916 gold products. Hong Leong Investment Bank Bhd (HLIB Research) said this, coupled with margin expansion, is expected to yield strong results for the second quarter ending June 30, 2024 (2QFY24). (NST)

Source: New Straits Times, The Edge Markets The Star 13 March 2024