MN Holdings sees sustained growth momentum
https://www.thestar.com.my/business/business-news/2023/05/26/mn-holdings-sees-sustained-growth-momentum

RHB 20 Jewels 2023 Edition - Fair Value RM0.68 - 0.82

Report dated 16/5/2023

RHB 20 Jewels 2023 Edition - Fair Value RM0.52

Report dated 16/5/2023

Commentary Of Prospects

The spike demand of the ICT products including smart phone during the COVID period has created slow demand of the ICT products in the past 9 months. Despite of the slowdown of the semiconductor market globally, the Company has experienced a steady increase in the demand of the chips for the industrial applications. The demands for Internet of Things and Artificial Intelligence for automotive, medical, computers and communication are strong. Companies are back to business as usual and investing in digitalizing and automating their operation to the next level. The Company has announced a total of RM70M of projects since November 2022 and the outlook is good for the foreseeable near future. The Group sees stronger demand in AI chips for different applications and increasingly strong demand for IOT and high precision sensor chips and power devices for various chargers. The Group is well positioned to capitalize on this growing demand.

The group having a net cash of 22 million.

Quarter 2 Feb 2023 Report dd 27 April 2023

Kronologi proposes one-for-five bonus issue of shares and warrants
https://www.theedgemarkets.com/node/664748

Kronologi rides wave of growing cloud demand.

Ace-Market listed data storage and cloud specialist Kronologi Asia Bhd, whose operations in China count Baidu Inc as a client, reveals that it is in talks with Amazon Web Services (AWS), Alibaba Cloud, Tencent, Ping An Cloud and Microsoft Azure to offer them its enterprise data management (EDM) services - The Edge Malaysia April 24, 2023

GHL diversifies into micro lending, supports BNPL
https://www.theedgemarkets.com/node/662790

ASML shrugs off chip market headwinds with strong backlog
https://www.theedgemarkets.com/node/664003

Outstanding Contracts : RM70,000,000.00

06/03/2023 4 Turnkey ASIC Design service contracts RM16,000,000.00 3 years

06/12/2022 2 Asic Design Service Contracts RM26,000,000.00 3 years

17/10/2022 Chip Design RM28,000,000.00 3 years

Infomina bullish on FY23
https://www.thestar.com.my/business/business-news/2023/04/17/infomina-bullish-on-fy23

Infomina says revenue boosted by hike in rates for customers, overage fee
https://www.theedgemarkets.com/node/663315

Malaysia Seen As Emerging Data Centre Hub In Asia
https://www.businesstoday.com.my/2023/04/13/malaysia-seen-as-emerging-data-centre-hub-in-asia/

Malaysia To Witness DC Investments With Over 800 Megawatt Capacity In 5 years
https://www.businesstoday.com.my/2023/04/13/malaysia-to-witness-dc-investments-with-over-800-megawatt-capacity-in-5-years/

Malaysia’s DC Landscape Continues To Grow With USD6 Billion Investment Recently Announced By AWS
https://www.businesstoday.com.my/2023/04/13/malaysias-dc-landscape-continues-to-grow-with-usd6-billion-recently-announced-by-aws/

Telecommunications - the Rise of Data Centres in ASEAN
https://klse.i3investor.com/web/blog/detail/rhbinvest/2023-04-13-story-h-273387881-Telecommunications_the_Rise_of_Data_Centres_in_ASEAN

MN Holdings Berhad TP 0.45 by HLIB

Power it up

As an underground utilities and substation engineering services and solutions provider, MNHLDG is in a favorable position to benefit from Tenaga's sustainable T&D investment and the perpetually increasing demand for power. Moreover, the thriving data center industry in Malaysia has resulted in a greater requirement for power infrastructure, which presents an opportunity for MNHLDG to expand its order book. With a strong order book of RM332.7m, we are projecting MNHLDG’s core net profit to grow at a strong FY23f-25f CAGR of 16.4%. We value MNHLDG at RM0.45 based on 12x FY24f EPS of 3.7sen.

An underground utilities and substation engineering services and solutions provider. MNHLDG, through its subsidiaries MNSB and MPTSB, is principally engaged in the provision of underground utilities and substation engineering services and solutions. Its clientele comprises main contractors for power projects, property developers, and industries that require its services and solutions to facilitate the supply of power to specific locations and premises. The group has a track record of involvement in various projects, such as large-scale solar (LSS), data centers, and semiconductor plants. In FY22, underground utilities engineering contributed 79.2% of the group's revenue, with the remainder generated by substation engineering. As of January 2023, the group's order book stood at RM332.7m, with underground utilities and substation engineering accounting for 43% and 57%, respectively. Furthermore, the current tender book amounts to approximately RM203m, of which 76% is in the substation engineering segment.

Growth in power infrastructure investments. MNHLDG is in a strong position to leverage on Tenaga’s sustainable transmission and distributional system (T&D) investments and the long-term growing power demand. Under 2022-2024 Regulatory period (RP3), Tenaga is investing RM20bn (Figure #1) in enhancing and modernizing T&D infrastructure to ensure long-term sustainability and meet future requirements. The higher allowable CAPEX than RP2’s RM18.8bn has presented more contract opportunities to MNHLDG for its underground utilities and substation businesses. Meanwhile, Energy Commission's projection of a steady growth in peak electricity demand and new capacity supplies coming online until 2039 (Figure #2&3), highlights the need for power infrastructure over the long term. This trend has been observed in the past, with underground cable capacity and the number of substations growing in tandem with rising electricity demand (Figure #4).

Data center – a booming sector that drives the need of power infrastructure. MNHLDG stands to benefit from the rapidly growing data center industry in Malaysia, which has emerged as a preferred location for data center players due to Singapore government's more selective approach in approving data center investments. Factors like proximity to Singapore and Malaysia government's friendly policies have attracted major global data center players such as Equinix, AirTrunk, and NTT Ltd, as well as tech giants like Google, Microsoft, and Amazon, to build and manage hyper-scale data centers here. Since powering servers and supporting infrastructure such as cooling equipment require enormous amount of energy, data center owners often build their private substations for a high level of power supply security. Substation contract value ranges from RM20-60m depending on the capacity of the substation. The growing data center investment in Malaysia will continue to fuel the demand for power infrastructure thus benefiting MNHLDG.

Forecast. We are projecting MNHLDG's FY23f-25f core net profit to grow at a CAGR of 16.4%, backed by its order book of RM332.7m and anticipated sustainable order replenishment. It's worth noting that MNHLDG has recently entered into an MOU with Shanghai DC-Science Co Ltd, under which MNHLDG will provide the necessary utilities, including land, power supply, water supply, and other infrastructure, for the data center project with a power load of 120MW. If this project materializes, we see an uptick bias in our forecast.

Fair Value of RM0.45. We value MNHLDG at RM0.45, based on 12x FY24f EPS of 3.7sen. This P/E ratio represents a significant discount compared to solar EPCC contractors and construction players, whose forward P/E ratios are 16x-20x and 15x, respectively. We justify this valuation discount due to its smaller size and listing on ACE market, which makes it less investible to most institutional investors.

HLIB Research 12/4/2023

MN Holdings to benefit from Tenaga’s T&D investment, says HLIB
https://www.theedgemarkets.com/node/663044

Infomina bags six-year contract from SSM
https://www.theedgemarkets.com/node/662274

Infomina eyes new territories, ventures in tech industry for growth
https://www.thesundaily.my/business/infomina-eyes-new-territories-ventures-in-tech-industry-for-growth-JL10829022

China's blockchain technology for PCO to better facilitate Malaysia's exports to China
s://www.thestar.com.my/business/business-news/2023/04/04/china039s-blockchain-technology-for-pco-to-better-facilitate-malaysia039s-exports-to-china

MYEG Partners China Customs For Cross-Border Trade Connectivity On Zetrix Blockchain Platform
https://www.businesstoday.com.my/2023/03/30/myeg-partners-china-customs-for-cross-border-trade-connectivity-on-zetrix-blockchain-platform/

MYEG Partners China Customs For Cross-Border Trade Connectivity On Zetrix Blockchain Platform
https://www.businesstoday.com.my/2023/03/30/myeg-partners-china-customs-for-cross-border-trade-connectivity-on-zetrix-blockchain-platform/

Farm Fresh Malaysia offers new Ramadan menu - TAWA RIA, JA-MOO SELERA
https://www.thesundaily.my/spotlight/farm-fresh-malaysia-offers-new-ramadan-menu-tawa-ria-ja-moo-selera-LJ10803190

Agmo @ 0.60, TP 0.96 by UOB on 29/3/2023

Agmo An Emerging Beneficiary Of The Digitalisation Trend

Agmo appeals as a digital solutions and application development specialist that is well positioned
to prosper from Malaysia’s transition towards the new digital economy. Its
established track records with various notable clients and partnerships with key
suppliers promise good growth prospects with outstanding orderbook of >RM18m.
Agmo is trading at an undemanding 15x FY24F PE which implies a PEG ratio of only
0.6x. Intiate coverage with a target price of RM0.96.

WHAT’S NEW

• Buying opportunity from the current overhang as MYEG distributes Agmo shares as
dividend in specie to shareholders. Agmo Holding’s (Agmo) share price has weakened
21% since My EG Services (MYEG) began distributing its 25.8% stake in Agmo as dividend
in specie (via two tranches in Mar 23 and potentially Aug/Sep 23).

• Agmo a clear beneficiary of businesses’ digital establishment and transition. Agmo’s
bottom line has accelerated in recent years in tandem with explosive demand by business
organisations’ digitalisation efforts, reflecting the country’s nascent demand for software
development services in AI, blockchain, cloud computing, data analytics and extended
reality. To note, Agmo has an established track record of developing applications for over
100 customers from various industries including healthcare, logistics, oil and gas,
automotive, financial services and government agencies.

• Multi-pronged strategy for Agmo to catalyse earnings growth. Agmo is poised for a
new leg of growth, underpinned by: a) investment in R&D division as well as the group’s
sales, marketing and business development team; b) in-house proprietary development
framework - Agmo Genesis which enhances the group’s efficiency in application
development; c) EV-related ventures with strong emphasis to EG themes; and d) establish a
training and development centre to generate additional revenue and recruit new industry
talent.

• Option value for Zetrix potentially as high as RM100m. To note, Agmo has a project
management and advisory role for Zetrix, with an option to get a 5% share in exchange for
Zetrix’s contract sum. Hypothetically, if we assume that Zetrix’s China-ASEAN trades can
achieve 2% of China’s rough annualised domestic trades of 1.8t transactions, at 0.4 US
cents per transaction, Zetrix could generate around RM650m revenue or RM100m net profit
annually. This can potentially translate into a RM100m option value for Agmo, based on 20x
PE of its 5% Zetrix stake.

UOB KayHIan Research 29/3/2023

SNS Network's net profit jumps 40.5pct, revenue soars 46.2pct in Q4
https://www.nst.com.my/business/2023/03/893351/sns-networks-net-profit-jumps-405pct-revenue-soars-462pct-q4

Blockchain Technology in Healthcare
https://www.businesstoday.com.my/2023/03/21/blockchain-technology-in-healthcare/

Blockchain Technology in Healthcare
https://www.businesstoday.com.my/2023/03/21/blockchain-technology-in-healthcare/

Agmo inks MOU to look into providing one-stop healthcare solution to hajj pilgrims
https://www.theedgemarkets.com/node/658556

Infomina Appoints Premier Partner For Global Technology Provider Software AG In Malaysia
https://www.businesstoday.com.my/2023/03/09/infomina-appoints-premier-partner-for-global-technology-provider-software-ag-in-malaysia/

BursaKakis

Astro @ 0.595 Feb 9, 2023

Steeply oversold. Valuations are undemanding at 6.9x FY1/24 P/E with superb DY of 10%, and an eventual recovery in its subscription and advertising revenue would signal an inflection point which could result in a re-rating catalyst for Astro - HLIB Feb 10, 2023

3 weeks ago

Astro rebounded strongly adding 12 cts to close @ 0.73 on March 8, 2023

Infoline gears up for public jobs
https://www.theedgemarkets.com/node/657063

Perodua's production & sales soar 33pct each in first two months of 2023
https://www.nst.com.my/business/2023/03/886984/peroduas-production-sales-soar-33pct-each-first-two-months-2023

Opcom Completes The RM90 Million Acquisition of T&J Engineering
https://www.businesstoday.com.my/2023/03/07/opcom-completes-the-rm90-million-acquisition-of-tj-engineering/

Main Market-bound Cape EMS posts net profit of RM33.54mil in FY22
https://www.thestar.com.my/business/business-news/2023/03/07/main-market-bound-cape-ems-posts-net-profit-of-rm3354mil-in-fy22

Homegrown Agmo Bolsters SME Digitalisation With AI-Powered App
https://www.businesstoday.com.my/2023/03/01/homegrown-agmo-bolsters-sme-digitalisation-with-ai-powered-app/

Dancomech Bhd

Growth momentum to continue in FY23F
■ FY22 core net profit of RM21.6m (+28.9% yoy) was above expectations, at
126% of both our and Bloomberg consensus’ estimates.
■ We expect Dancomech’s net profit to rise 6.3% yoy in FY23F, driven by
strong contribution from its metal stamping and E&E engineering divisions.
■ Reiterate Add, with a higher TP of RM0.58 (based on 10x CY24F P/E).

FY22 core net profit rose 28.9% yoy, above our expectations
Core net profit in 4Q22 came in at RM10.1m (+80.4% yoy), after accounting for one-off
losses of RM3.6m (mainly provisions for credit loss worth RM2.1m and impairment of
contract assets worth RM1.5m). This brought FY22 core net profit to RM21.6m (+28.9%
yoy), above expectations at 126% of both our and Bloomberg consensus’ FY22
forecasts. Dancomech declared an interim dividend of 1.25 sen/share for 4Q22, bringing
FY22 dividend to 2 sen/share (a 41% dividend payout).

4Q22: stronger qoq thanks to better segmental performance
Revenue in 4Q22 rose 8.1% qoq to RM61.0m, thanks to higher contributions from the
E&E engineering, trading and metal stamping divisions. 4Q22 EBITDA margin rose 8.2%
pts qoq to 22.7%, thanks to higher contribution from high-margin segments (trading and
E&E engineering) and greater economies of scale. Accordingly, 4Q22 core net profit rose
112.2% qoq to RM10.1m. On a cumulative basis, FY22 revenue and core net profit rose
3.2% and 28.9%, respectively. The stronger FY22 gross profit (GP) was thanks to higher
contribution from the trading, E&E engineering and metal stamping divisions, which offset
lower GP from pump manufacturing (-44.8% yoy) and MHS solutions (-69.1% yoy).

FY23F growth to be driven by acquired subsidiaries
In FY23F, we expect Danco’s net profit to rise 6.3% yoy, mainly driven by its metal
stamping (+10% yoy) and E&E engineering divisions (+40% yoy). We believe the metal
stamping division will be driven by: i) strong demand from existing clients and new client
acquisitions; and ii) its capacity addition of 15-20% as of end-FY22. Meanwhile, the E&E
engineering segment’s growth could be driven by a robust orderbook (RM7m at end-
CY23F), in our view. We also gather that Danco is not discounting further M&As, given its
robust net cash position of RM82.0m (as at end-FY22, 45.2% of its market cap).

Reiterate Add, with a higher TP of RM0.58 (10x CY24F P/E)
With the 4Q22 earnings beat, we raise our FY23-24F EPS by 16.3-18.0% to account for
higher contributions from its trading, metal stamping and E&E divisions, as well as
greater economies of scale. In tandem with our EPS hikes, our TP rises to RM0.58
(based on 10x CY24F P/E, 5-year historical mean). We also introduce our FY25F
estimates. We like Danco for: i) its undemanding valuation (7.1x CY24F P/E); ii) attractive
dividend yields of 5.7-7.1% for FY23-25F, and iii) the defensive nature of its businesses
(diversified business segments, especially trading in valves, which are used in all
industries). Downside risks: input cost spike, lower sales volume and price competition.

CgsCimb 28/2/2023

Farm Fresh Reports 67.8% Growth In PATAMI
https://www.businesstoday.com.my/2023/02/24/farm-fresh-reports-67-8-growth-in-patami/

Agmo Launches ChatGPT Powered Training Programme For Coders
https://www.businesstoday.com.my/2023/02/22/agmo-launches-chatgpt-powered-training-programme-for-coders/

Reiterate Add with a 12% higher TP of RM1.32

We raise FY23F/24F core EPS by 18%/16% to factor in lower opex and other
housekeeping adjustments post-FY22 results. Following our earnings upgrade, we raise
KPJ’s TP by 12% to RM1.32, based on an updated CY24F P/E of 31x (10-year mean, vs.
32x previously). While share price rose 34% from its 1-year low at end-Sep 22, its FY23F
P/E of 26.2x is still 17% (0.5 s.d.) below its 10-year historical mean. Potential re-rating
catalysts: full earnings recovery, rising health tourism contributions and improving ROIC.
Key downside risks: severe Covid-19 waves and longer gestation for its new hospitals.

CgsCimb 18/2/2023

KPJ Healthcare reports over 3-fold profit jump in 4Q
https://www.thestar.com.my/business/business-news/2023/02/17/kpj-healthcare-reports-over-3-fold-profit-jump-in-4q

Vestland secures another construction contract in Shah Alam worth RM84 mil
https://www.theedgemarkets.com/node/655752

Mirzan Mahathir making waves with Betamek, eyes EV market
https://www.freemalaysiatoday.com/category/highlight/2023/02/17/mirzan-mahathir-making-waves-with-betamek-eyes-ev-market/

TP 0.33 by Kenanga on 17/2/2023

Vestland wins contracts totalling RM200mil
https://www.thestar.com.my/business/business-news/2023/02/16/vestland-wins-contracts-totalling-rm200mil

Farm Fresh’s proposed buy of Inside Scoop earnings-accretive, synergistic, say analysts
https://www.theedgemarkets.com/node/655462

Turkey’s Textile and Garment Industry is in Crisis
https://sourcingjournal.com/topics/sourcing/turkey-syria-earthquakes-textile-mills-garment-factories-amazon-inditex-calik-bossa-416389/

Infomina Berhad

Securing a place in the heart of the tiger
■ Infomina announced today that it has secured a US$3.3m (RM14.4m)
contract from Maybank Indonesia for services under its renewal segment.
■ We estimate that Infomina currently has an orderbook of RM400m across
FY23-25F and a tenderbook of above RM550m.
■ Infomina remains a key proxy to ride on rising demand for mainframe and IT
transformation services in Asia. Reiterate Add.

Wins a RM14.4m contract from Maybank Indonesia
● In a Bursa announcement today, Infomina announced that it has obtained a letter of
confirmation to provide a contract worth US$3.3m (RM14.4m) from Maybank Indonesia.
This is to provide technology applications and infrastructure operations, maintenance
and support services over a five-year tenure (from 30 Nov 2022 to 27 Nov 2027).

Positive on this contract win; opens doors of opportunities
● We view this contract positively, as this is Infomina’s maiden contract in Indonesia. We
believe that this is the testament to Infomina’s ability in the mainframe and IT
transformation space and a strong demonstration of the close working ties of Infomina
and Broadcom, especially in its partner regions (Malaysia, Singapore, Thailand,
Indonesia, the Philippines, China, Hong Kong and Taiwan).
● In our view, this is also another feather in Infomina’s cap (in terms of reputable clientele),
given the profile of Maybank as a leading banking group in Southeast Asia. We also
believe that it would further strengthen opportunities for Infomina to obtain more
contracts from Maybank, which has operations across various countries.

Expecting more contract wins to add to its RM400m orderbook
● In terms of earnings contribution, this RM14.4m first new contract has already been
accounted for in our forecast of RM275m contract wins in FY23-25F. We estimate that
Infomina’s current orderbook stands at above RM400m (as at end-Jan 23) for the next
three years.
● We gather from Infomina that it is still targeting to obtain more contracts from local and
overseas customers in the next six months (estimated to be another RM100m-150m for
the next five years). We estimate that Infomina’s tenderbook currently stands above
RM550m; we expect it to further grow as Infomina’s existing and potential customers
expand their businesses in the IT transformation and mainframe space.

Reiterate Add; TP unchanged at RM1.70 (25x CY24F P/E)
● No changes to our FY23-25F EPS estimates as we had earlier inputted RM275m
contract wins for the next three years into our forecast. We maintain our Add call, with a
TP of RM1.70, pegged to 25x CY24F P/E, a 29.5% premium to the weighted average
CY23F P/E of its local peers in the IT space (19.3x). We continue to like Infomina for: i)
its unique exposure to rising demand for mainframe and related-businesses, ii) its
regional position as sole appointed Value-Added Distributor in Asia Pacific for
Broadcom’s mainframe software, and iii) its robust earnings growth profile (3-year EPS
CAGR of 41.6% vs. peers’ weighted average of 16.2%).
● Re-rating catalysts: robust EPS growth and more contract wins. Downside risks: nonrenewal of Tier 1 VAD status with Broadcom, a sharp dip in orderbook value, and lowerthan-expected margins.

CgsCimb Feb 15, 2023

Infomina bags contract worth US$3.3 mil from Bank Maybank Indonesia. Yee Chee Meng, managing director of Infomina in a press statement said the contract adds to the company's outstanding orderbook which has increased to over RM500 million.
http://www.theedgemarkets.com/node/655381#.Y-zU8mITFXk.telegram

February 13, 2023

Berjaya Food (BFD MK)

2QFY23: Dividend surprise

Maintain BUY with unchanged MYR1.50 TP
BFD’s 2QFY23 earnings were within our/consensus expectations. We
expect earnings to be stable in sequential quarters owing to the group’s
resilient product demand and new store expansion. Our earnings estimates
are unchanged but we lift FY23E-FY25E DPS estimates to 5sen p.a. (from
2sen p.a.), in-line with its higher payout in 2QFY23. Rolling forward
valuation to FY24E, our TP remains unchanged at MYR1.50 based on an
updated mean PER of 19x (vs. 20x previously).

Results in-line
2QFY23 core net profit of MYR33m (-21% YoY, -3% QoQ) brought 1HFY23
core net profit to MYR67m (+25% YoY). The latter accounted for 49% of
both our and consensus FY23E. Positively, a second interim DPS of 2sen
was declared, bringing 1HFY23 DPS to 2.5sen (1HFY22: 0.4sen), which was
above our FY23 DPS estimates of 2sen.

Revenue growth driven by new store openings
2QFY23 revenue grew 8% YoY predominantly due to the contribution from
new stores whilst BStarbucks SSSG remained flat YoY. EBIT however fell
12% YoY (EBIT margin: -4.7 ppts YoY) given higher costs from raw materials
(milk) and labour. On a QoQ basis, higher sales during the Christmas and
school holiday period led to a revenue growth of 4% QoQ. EBIT also grew
7% QoQ (EBIT margin: +0.5ppt) largely due to a MYR1 product price
adjustment made to its permanent beverage menu at the beginning of Nov
2022 and the strengthening of MYR/USD currency. The total count for
BStarbucks and Kenny Rogers Malaysia (KRR Msia) were 373 (+30 stores YoY,
+10 stores QoQ) and 70 (+1 store YoY, +2 stores QoQ) respectively.

Raised FY23E-FY25E DPS estimates
Our earnings estimates are maintained but we raise FY23E-FY25E DPS
estimates to 5sen p.a. (from 2sen p.a. previously). Sequential quarters are
expected to be stable with resilient sales demand boosted by intermittent
months of festive sales (CNY, Aidilfitri) in 3Q and 4QFY. Internal operating
costs are also being closely monitored in order to defend margins against
further operating cost increases in FY23. Nevertheless, our model has
imputed for FY23 EBIT margins to ease by 2 ppts YoY.

Maybank Investment Bank

Malaysia Top Dairy Farm Company Farm Fresh Berhad annouces F&B expansion under Jom Cha by farm fresh brand
https://www.thesundaily.my/home/malaysia-top-dairy-farm-company-farm-fresh-berhad-annouces-fb-expansion-under-jom-cha-by-farm-fresh-brand-ID10642468