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

Farm Fresh to acquire 65% stake in The Inside Scoop for RM83.9m
https://www.theedgemarkets.com/node/655404

MyEG’s Zetrix partners Uni Malaya and CAICT in G2G programme between Malaysia-China
https://www.theedgemarkets.com/node/655197

Perodua launches 2023 Axia, 20,100 units booked
https://www.nst.com.my/business/2023/02/879638/perodua-launches-2023-axia-20100-units-booked

Betamek bags six-year supply contract for Perodua's new car model
https://www.thestar.com.my/business/business-news/2023/02/14/betamek-bags-six-year-supply-contract-for-perodua039s-new-car-model

The recent rebound in China economic activity was encouraging. There were 36.8 million daily passenger trips made in seasonal rush to hometowns, which was 50% above last year's levels. Domestic tourism grew over 23.1% last year during the holidays, and retail sales increased 6.8% year on year - The Edge Malaysia Feb 13, 2023

Berjaya Food (BFD MK)
Onwards and upwards

Maintain BUY with unchanged TP of MYR1.50
BFD is navigating through heavier cost pressures in FY23 with internal cost
efficiencies and product price adjustments at BStarbucks. With this, FY23
group operating margins may ease YoY but strong sales momentum, driven
by resilient demand, should keep BFD’s earnings on its positive trajectory
in the near-term. Our earnings estimates, TP of MYR1.50 (20x FY23E PER,
about mean) and BUY call are maintained.

Strong demand continues
Based on channel checks, BStarbucks demand in 2QFY23 has been tracking
internal expectations with the Dec quarter being a seasonally strong
earnings contributor driven by festive sales and high store footfall. At
present, c.75% of revenue comes from in-store sales while delivery and
drive-thru window sales account for c.12% and c.13% respectively.

Mitigating cost pressures with price adjustments
The group is facing additional cost pressures arising from higher raw
material costs (milk) and unfavourable USD/MYR currency exchange (c.50%
of raw materials are purchased in USD). Note that BFD’s milk costs are in
MYR. To mitigate this, BFD has raised product prices for all its beverage
items in BStarbucks by MYR1/item (effective Nov 2022) which translates
to a 5%-10% increase in permanent beverage product ASPs. On average,
beverage sales attributed to c.67% of BStarbucks revenue.

No changes to earnings estimates
BFD’s outlook is positive based on its resilient product demand and
unhindered ability to grow its store network amid weak consumer
sentiment. That said, we believe that its recent price adjustments will
only partially buffer cost increases from raw materials and the stronger
USD currency as BFD tries to strike a balance between maintaining
consumer affordability and defending group operating margins. Our model
has assumed for higher costs to weaken FY23 EBIT margins by 2ppts YoY.

Maybank Investment Bank
December 13, 2022

Perodua January sales up 43.5% year-on-year
https://www.thestar.com.my/business/business-news/2023/02/08/perodua-january-sales-up-435-year-on-year

Exciting deals at Sunway Theme Parks Mega Roadshow
https://www.thestar.com.my/business/business-news/2023/02/05/exciting-deals-at-sunway-theme-parks-mega-roadshow

SDS Group Rises To The Occasion
https://www.businesstoday.com.my/2023/01/28/sds-group-rises-to-the-occasion/

Perodua aims for maximum production, sales in 2023
https://www.thestar.com.my/business/business-news/2023/01/31/perodua-aims-for-maximum-production-sales-in-2023

Theme park, daily company saddle up for Wild West fun
https://www.thestar.com.my/metro/metro-news/2022/12/09/theme-park-dairy-company-saddle-up-for-wild-west-fun

Sunway Group's Sunway Lagoon Resort, Selangor, in December unveiled its Wild Wild West-themed night park. Developed jointly with daily manufacturer Farm Fresh, the attraction features a mini cow barn - The Edge Malaysia January 30, 2023
https://www.klook.com/en-MY/blog/sunway-lagoon-night-park/

Rubber market ends with SMR 20 at highest level since November 2022
https://www.nst.com.my/business/2023/01/874095/rubber-market-ends-smr-20-highest-level-november-2022

Malaysia’s 2022 TIV hits record high, surpasses 2015
https://www.thesundaily.my/business/malaysia-s-2022-tiv-hits-record-high-surpasses-2015-LA10547950

Anwar Announces RM1 Billion To Upgrade Sarawak, Sabah Border Infrastructure
https://www.businesstoday.com.my/2023/01/20/anwar-announces-rm1-billion-to-upgrade-sarawak-sabah-border-infrastructure/

Berjaya Food to set up five more Paris Baguette after maiden Pavilion KL opening
https://www.nst.com.my/business/2023/01/871444/berjaya-food-set-five-more-paris-baguette-after-maiden-pavilion-kl-opening

Farm Fresh to open Jom Cha outlet at AEON Big's Wangsa Maju
https://www.nst.com.my/business/2023/01/870617/farm-fresh-open-jom-cha-outlet-aeon-bigs-wangsa-maju

Wellspire Factory Visit & Business Operations

https://www.youtube.com/watch?v=7RyNVzePeMU

QES & Focusp already transferred from ACE to the Main Market. Coming soon be Sds & Scomnet.

Infomina likely to secure RM100mil-RM150mil new IT contracts
https://www.nst.com.my/business/2023/01/867694/infomina-likely-secure-rm100mil-rm150mil-new-it-contracts

Perodua hits record sales of 282,019 units in 2022
https://www.thestar.com.my/business/business-news/2023/01/05/perodua-hits-record-sales-of-282019-units-in-2022

China consumer confidence highest in the world
https://www.thestar.com.my/business/business-news/2022/12/28/china-consumer-confidence-highest-in-the-world

Cnergenz

Expanding Its Range Of Solutions Offerings

 MYR1.09 FV based on 22x FY23F P/E. Cnergenz is riding on its proven
track record, expansion of multinational corporation (MNC) manufacturers
and growing surface mount technology (SMT) demand by electronics
manufacturing services (EMS) players. This, on top of it being in a sweet
spot of the US-China trade war and its effort in providing new innovative
solutions in the next two financial years, lead us to project a 3-year earnings
CAGR of 37.9% for the stock. We see it as a proxy to MNC manufacturers
with its expansion plans.

 Represents the top equipment brands. The group has established long
business relationships with about 54 suppliers comprising reputable
international brand owners and manufacturers of machinery, equipment
and tools of particular SMT processes used for the electronics and
semiconductor (E&S) industries. Its proven track record in meeting the
stringent selection and quality requirements set by its customers makes its
solutions greatly in demand by many EMS providers.

 Beneficiary of US-China trade diversion. Vietnam has proven to be the
biggest winner of the US-China trade war in the past years, followed by
Malaysia and other South-East Asian countries (US Census Bureau, China
General Administration of Customs and Nomura). Cnergenz should benefit
from the trade diversion as its distribution territories including Vietnam,
Thailand, and Malaysia – Penang, Klang Valley and Kedah. The EMS
market is expected to witness significant growth from the rising demand for
electric vehicles – management is targeting it next from its new solutions.

 Moving up the manufacturing value chain. Management is in talks with
a few new distributors (for different manufacturing process) to secure
distributorship rights in FY23. In FY24, the group’s new facility is expected
to commence operations, expanding its smart factory solutions business to
encompass workshop and assembly area to design and develop its
proprietary range of smart factory solutions. There will be no territory
restrictions for its proprietary range of smart factory solutions. It also
supports the nation’s sustainability goal of Industry 4.0 in manufacturing
lines. The wider range of solutions will bode well for it in the years to come.

 Earnings forecasts and valuation. Coupled with the expansion of MNC
manufacturers and expected pipelines of new solutions offerings, we are
projecting an earnings CAGR of 37.9% from FY22F-24F. We like Cnergenz
for its diversified customer base and as a representative of top brands. We
ascribe a 22x P/E on its FY23F earnings, which is c.25% discount from its
peer average 2-year forward P/E due to its lower profit margin and market
capitalisation.

 Key risks. Loss of skilled engineers and technicians, failure to secure new
projects and risk of termination, non-renewal and exclusivity of
distributorships.

RHB Research 22122022

*STOCK ON RADAR*
20 December 2022
AmBank Retail Research

*Betamek* (0263)
Shariah Compliant: Yes
Entry : RM0.535-0.575
Target : RM0.65, RM0.70
Exit : RM0.46

Disclaimer: This message is for information purposes only and is not intended to be distributed to any third party. It does not construe as an offer/a solicitation/a recommendation to buy/sell any stocks. Please consult your own independent adviser(s) before investing in any stocks and no responsibility or liability can be accepted for any loss or damage that may arise from the reliance of this message. The information herein constitutes our findings as of this date and is subject to change without notice.

Wong Engineering counts on manufacturing division
https://www.thestar.com.my/business/business-news/2022/12/15/wong-engineering-counts-on-manufacturing-division

SNS Network posts 3Q net profit of RM11.9mil
https://www.thestar.com.my/business/business-news/2022/12/13/sns-network-posts-3q-net-profit-of-rm119mil

Focus Point hungry for F&B growth after ‘elementary mistakes’ in early years
https://www.theedgemarkets.com/article/focus-point-hungry-fb-growth-after-elementary-mistakes-early-years