Avaland tops out Casa Embun Phase 1 in Cybersouth
https://www.edgeprop.my/content/1908811/avaland-tops-out-casa-embun-phase-1-cybersouth

Prolintas briefing saying commercial vehicles paying triple the rates.

Genting's 20%-owned TauRx says new data on Alzheimer's drug show sustained benefits
https://theedgemalaysia.com/node/703916

Cabinet has approved construction of West Ipoh Span Expressway, says Perak MB.
https://theedgemalaysia.com/node/693906

WISE, at 60km in length and a cost of RM5.75 billion, it works out to about RM90 million per km

PNB values four highways at RM1.05 bil for trust IPO, expects 6.7% yield ( IPO price 0.95 cts). Cost of constructing WCE highway exceeded RM8bil.
https://theedgemalaysia.com/node/703624

Prolintas BT

Total 4 Highways mainline length - 84 km
Remaining tenure of concession - 3 Highways about 38 yrs, 1 Highway about 13 yrs
Annual Average Daily Traffic in FYE 2023 - 458,800 vehicles
Toll collection revenue in FYE 2023 - 294.8 million

Section 11

WCE project is crucial as it is a strategic route to expand the transport network, not only between cities and districts, but also to connect Perak to economic growth centres — starting with Port Klang, Lumut Port and Penang Port.

This route is also important because it is a catalyst for Perak’s plan to drive socio-economic growth along the west coast and transform Perak’s tourism landscape by facilitating access to strategic destinations, in line with the Visit Perak Year 2024 campaign.

“When it opens later, road users will have alternative routes to existing roads, to areas on the west coast of Perak, such as Teluk Intan, Manjung, Pulau Pangkor, Beruas, Trong, Changkat Jering and Taiping,” he added.

It also gives users the option to skip the Menora Tunnel on the NSE, which is an accident-prone area. The congestion on the NSE could also flow some traffic onto this highway.

SMRT's venture could lead to bigger things in Philippines
https://www.thestar.com.my/business/business-news/2024/03/05/smrt039s-venture-could-lead-to-bigger-things-in-philippines

SMRT makes inroads into Philippines via managed ATM infrastructure deal
https://thesun.my/business/smrt-makes-inroads-into-philippines-via-managed-atm-infrastructure-deal-NF12175190

Pito AxM Platform Inc. (PAPI), a wholly owned subsidiary of Seven Bank and PSC, aims to cover more than 3,000 7-Eleven stores nationwide by the end of 2023.
https://www.philstar.com/business/2023/06/18/2274593/seven-bank-7-eleven-partner-install-more-atms-nationwide

SMRT lands ATM infrastructure project in the Philippines
https://theedgemalaysia.com/node/703321

Prospects and Outlook for the Current Financial Year

The global economy would continue to face challenges and uncertainty with the business environment of the
geopolitical tension in Middle East that may impact the global growth. The Group will monitor the US Monetary
Policy to the exposure on foreign exchange movements on a regular basis for our management's assessment on
the need to utilise financial instruments to hedge such currency exposure. The Board is optimistic of the prospects
to provide a sustainable and strong positive result for financial year ending 30 June 2024.

Following the completion of increasing production hours in all the three factories by adding a second working shift, thus increasing our production hours from 12 hours a day to 18 hours a day. Therefore, our total annual capacity is expected to increase to approximately 190,000 MTS in financial year 2024 compared with approximately 166,000 MTS in financial year 2023. The Group continues to capture on the increasing demand from markets of China and India which are the largest world consumers of natural rubber driven by the growth of their automotive industries.

The installation of the Biomass System to generate gas from wood chips as a fuel source for our dryer system is
aiming towards cost-saving by replacing the consumption of diesel; however, there is further fine-tuning required
by the vendor after the commissioning. This initiative will not only result in substantial cost savings in diesel
consumption and carbon footprint deduction but also demonstrates our commitment to compliances of ESG
requirements and in the long-run achieving sustainability objective.

In cognizant of the significance of sustainability in generating long-term value for the businesses and stakeholders
and as part of the growth strategies, Syarikat Tenaga (Gemas) Sdn Bhd, a wholly-owned subsidiary of the
Company has entered into the sales contract with Guangdong Ruobo Intelligent Robot Co Ltd from China on 1
December 2023 to purchase the Smart Rubber Manufacturing Equipment at a purchase price of
RMB10,430,000.00 (Renminbi Ten Million Four Hundred and Thirty Thousand) or equivalent to approximately
RM6,779,500.00 (Ringgit Malaysia Six Million Seven Hundred Seventy Nine Thousand Five Hundred). Such
installation would take place in Factory 2 first; this is in line with the adoption of Industry 4.0 towards automation
in manufacturing processes which is to further enhance production efficiency and achieve cost-efficiency as well
as reduce reliance on foreign workers.

Q2 Dec 23 Report dd 23022024

Blockchain platform lifts MyEG 4Q net profit by double, proposes 1.68 sen final dividend
https://theedgemalaysia.com/node/702771

Section 11 of West Coast Expressway at 99.33% completion, says Perak MB
https://theedgemalaysia.com/node/702694

Key highlights:
• Toll concession segment has demonstrated a significant 25% quarter-on-quarter
improvement
• Opening of Section 6 (Bandar Bukit Raja Utara – Assam Jawa) on 21 November
2023
• Achieved 140,000 vehicles daily during the recent Christmas festive holidays
• Target to open Section 11 (Beruas – Taiping Selatan) soon, followed by another
two more sections in 4Q FY2024

Daily vehicles using the highway will explode upon opening of Section 11.

Q4 Dec 23 EPS 7.65 cts

For current quarter under review, the Group’s revenue decreased for approximately 3.47%
or RM3.93 million, from RM113.35 in the immediate preceding quarter million to RM109.42
million for the current quarter. This was mainly due to significantly lower volume of eggs
sold.

The Group reported profit before taxation of RM30.06 million for the current quarter as
compared to RM7.51 million in the immediate preceding quarter. The considerable improved
pre-tax profit of RM22.55 million or 300.32% was mainly due to lower feed costs and
outstanding subsidies received from the Government during the current quarter under
review as compare to the immediate preceding quarter.

PPJACK eps 0.66 share price 1.01, EMCC eps 0.60 share price 0.435 - 27022024

Avaland may extend uptrend, says RHB Retail Research
https://theedgemalaysia.com/node/702456

ITMAX Records Full Year Growth Of 55.7% On PATAMI Of RM63.3 Million, Dividend 1.2 Sen Declared
https://www.businesstoday.com.my/2024/02/26/itmax-records-full-year-growth-of-55-7-on-patami-of-rm63-3-million-dividend-1-2-sen-declared/

Egg producer Lay Hong's 3Q net profit jumps nearly eight times as govt subsidies help
https://theedgemalaysia.com/node/702317

Seng Fong posts best quarterly earnings since listing; planning private placement, bonus issue
https://theedgemalaysia.com/node/702191

AVALAND Q4 Dec 23 EPS 2.58 cts Share Price @ 0.295 cts,
LBS Q4 Dec 23 EPS 1.97 cts Share Price @ 0.67 cts,
E&O Q3 Dec 23 EPS 1.88 cts Share Price @ 0.87 cts
as at 22022024

Genting Singapore posts 80% y-o-y increase in FY2023 net profit to S$611.6 mil
https://theedgemalaysia.com/node/701964

Avaland plans to launch projects with RM1.4bil in GDV
https://www.thestar.com.my/business/business-news/2024/02/21/avaland-plans-to-launch-projects-with-rm14bil-in-gdv

Zetrix and Web3Labs launch Zetrix Global Accelerator Programme
https://www.thestar.com.my/business/business-news/2024/02/20/zetrix-and-web3labs-launch-zetrix-global-accelerator-programme

Sarawak - Transitioning Into An Economic Powerhouse
https://klse.i3investor.com/web/blog/detail/rhbinvest/2024-02-19-story-h-188360429-Sarawak_Transitioning_Into_An_Economic_Powerhouse

These are the stocks analysts favour for 2024
https://theedgemalaysia.com/node/701095

These are the stocks analysts favour for 2024
https://theedgemalaysia.com/node/701095

Prolintas inks underwriting agreement, set for 1Q listing
https://theedgemalaysia.com/node/700934

Maybank IB expects ITMAX's turnover to increase by RM23.6m for FY2024-FY2025
https://theedgemalaysia.com/node/700747

HLIB raises ITMAX’s target price by 40% to RM2.91 on premium valuation
https://theedgemalaysia.com/node/700503

DBKL expands scope of KL street lighting job for ITMAX by RM47.2m
https://theedgemalaysia.com/node/700250

ITMAX System attempting to stage a bullish breakout, says RHB Retail Research
https://theedgemalaysia.com/node/699044

Sime Darby Property, Lagenda Properties 50-50 Joint Venture To Revolutionise Affordable Housing
https://www.businesstoday.com.my/2024/01/24/sime-darby-property-lagenda-properties-50-50-joint-venture-to-revolutionise-affordable-housing/

MyEG's Zetrix, Web3Labs, And Summer Capital To Advance HK's Web3 Initiatives
https://www.businesstoday.com.my/20
24/01/22/myegs-zetrix-web3labs-and-summer-capital-to-advance-hks-web3-initiatives/

CGS-CIMB: East Malaysia store expansion to drive growth of MR DIY
https://theedgemalaysia.com/node/697152

AHB bolsters EV business with acquisition of KSP Vista
https://www.nst.com.my/business/corporate/2024/01/998777/ahb-bolsters-ev-business-acquisition-ksp-vista

Evergreen Max Cash Capital adds two pawnshops to network
https://www.thestar.com.my/business/business-news/2024/01/05/evergreen-max-cash-capital-adds-two-pawnshops-to-network

MyNews upgraded as analysts turn upbeat on signs of positive turnaround - TP 0.68 by RHB & 0.62 by Maybank
https://theedgemalaysia.com/node/694939

MULTIPLE PROPOSALS SYSTECH BHD ("SYSTECH" OR THE "COMPANY") (I) PROPOSED SHARES ISSUANCE; (II) PROPOSED ACQUISITION; (III) PROPOSED BONUS ISSUE OF WARRANTS; AND (IV) PROPOSED ESS (COLLECTIVELY, REFERRED TO AS THE "PROPOSALS")
https://www.malaysiastock.biz/Company-Announcement.aspx?id=1529647

Blockchain solutions drive MyEG’s earnings
https://www.thestar.com.my/business/business-news/2023/12/21/blockchain-solutions-drive-myegs-earnings

Southern Cable set to resume uptrend, says Rakuten Trade
https://theedgemalaysia.com/node/694762

Commentary of Prospects - Q3 Sep 2023

Southern Cable's prospects are supported by the growing demand for cables and wires in
Malaysia, in line with ongoing development and infrastructure projects.

As at 30 September 2023, the Group’s orders in hand amounted to RM893.2 million, and are
expected to be fulfilled by 2026. These orders include the supply of underground cables and
conductors to Tenaga Nasional Berhad and Sarawak Energy Berhad, the supply of rectifier and
battery systems to Telekom Malaysia Berhad, as well as purchase orders from EPCC
(Engineering Procurement Construction Commissioning) contractors, resellers, and others.

Notably, the Group’s annual cable and wire production capacity has increased by 21% to
40,780 km from 33,780 km in the previous financial year ended 31 December 2022 due to
installation of new machinery, enabling the Group to deliver more orders and enhance its
revenue.

Meanwhile, Southern Cable is aiming to capitalise on the growing demand for power cables
and wires from Malaysia’s National Energy Transition Roadmap (NETR) objectives.

On 27 July 2023, the Ministry of Economy of Malaysia unveiled 10 flagship projects under
Phase 1 of the NETR, encompassing solar farms, hydrogen energy, and others, with anticipated
investments of RM25 billion. A projected total investment of between RM435 billion to RM1.85
trillion until 2050 will be required to enable Malaysia to achieve its target of 70% Renewal
Energy (RE) capacity mix, which involves investment in RE generation sources, strengthening
of grid infrastructure including transmission lines enhancement, and energy storage systems,
among others.

To this end, Southern Cable has supplied a wide range of power cables and wires used in
power transmission and distribution networks, including TÜV SÜD certified solar photovoltaic
cables. These products have been used by EPCC solar players in projects such as Large Scale
Solar, positioning the Group favourably to tap into the renewable energy market.

Barring unforeseen circumstances, Southern Cable’s outlook remains positive for the financial
year ending 31 December 2023.

SMRT set to resume uptrend, says RHB Retail Research
https://theedgemalaysia.com/node/694320

SMRT earnings growth gaining momentum
https://www.thestar.com.my/business/business-news/2023/12/15/smrt-earnings-growth-gaining-momentum

Cabinet has approved construction of West Ipoh Span Expressway, says Perak MB
https://theedgemalaysia.com/node/693906

EPF CEO Amir Hamzah appointed as finance minister II in Cabinet reshuffle
https://theedgemalaysia.com/node/693537

The company also just secured a contract from Malaysia Airports Holdings Bhd to supply and install aeronautical ground lighting control systems for six airports in the country - HLIB

ITMAX reports strong 3Q results, contract wins
https://www.thestar.com.my/business/business-news/2023/12/12/itmax-reports-strong-3q-results-contract-wins

In several announcements released in December, My EG Services (MYEG) officially launched Zcert with its JV partner Beitou Investment Group, secured a RM108m foreign worker accommodation project in Penang, and received approval from JPJ for its MYEG Drive Testing System’s pilot phase.

COMMENT



 Potentially huge returns from the launch of Zcert with China’s Beitou Investment Group. Over the weekend, MYEG officially launched ZCert, a cross-border credential service on Zetrix-XInghuo Blockchain with its 50% JV partner - China's state-owned Guangxi Beitou IT Innovation Technology Investment Group (Beitou Investment Group). The launching of Zcert and signing ceremony was witnessed by Deputy Prime Minister, Dato’ Seri Ahmad Zahid Bin Haimidi. The JV between MYEG and Beitou Investment Group offers cross-border credential service for China domestic users to digitise their driving license and other documents on the Zetrix-Xinghuo blockchain.
 Zcert’s cross-border digitisation credential service for driving licences can theoretically raise MYEG’s revenue by >RM100m. For the driver licence business segment, Zcert will offer a digitised-blockchain (and competing) version of China’s first and largest outbound car rental platform Zuzuche’s services that provide a translated and notarised version of china's driving licence. We assess the earnings potential to be huge for MYEG, given the guesstimate Zuzuche’s international car rental users of c.11m. Assuming around 20% of these 11m users convert into using Zcert which charges around Rmb220 (vs Zuzuche’s Rmb250), potential revenue accretion to MYEG’s 50% stake could be as much as RM159m. We expect Zcert to soon launch more digitised-blockchain services.

 In Malaysia, MYEG secures a RM108m foreign worker accommodation project in Penang. On 6 Dec 23, MYEG’s subsidiary MYEG Lodging (NC) Sdn Bhd signed a lease agreement with the Penang Development Corporation (PDC) to build a RM108m foreign workers’ housing in Batu Kawan. The workers’ village project, located at Batu Kawan Industrial Park 3 (BKIP3), is expected to house at least 8,000 foreign workers upon completion. We estimate that the RM108m foreign worker accommodation project in Penang will contribute annually >RM30m revenue and c.RM10m pre-tax profit upon completion by 2026 (Assumptions: 8,000 foreign workers, RM400/month rental).  Receives approval from JPJ for MyEG Drive Testing System’s (MYDTS) pilot phase. Earlier this month, MYEG received approval from the Road Transport Department (JPJ) to proceed with the pilot phase of the MyEG Drive Testing System (MYDTS) involving actual test candidates. The pilot phase will run from 18 Dec 23 till 16 Feb 24 before being commercially launched. Our earlier assessments revealed that e-testing may potentially lift MYEG’s profit by RM40m-50m upon commercial rollout.
 Zetrix possesses huge option value on earnings and valuations for MYEG upon maturity. We had previously assessed that Zetrix’s services can produce annual revenues of >RM650m via charging gas fees, service fees per credentials/contract and annual fees upon optimal utilisation of Ztrade services. Zetrix will also charge gas fees on its cross-border supply chain traceability and financing services after it is launched tentatively in 4Q23.

UOB KayHian 11122023