MY Morning Wrap | Infineon's RM25bil in investment in Kedah a sign of confidence in Madani Govt

The $S&P 500 Index(.SPX.US)$ dropped 0.3%, while the $Dow Jones Industrial Average(.DJI.US)$ declined 0.2%, or 66.63 points. The tech-heavy $Nasdaq Composite Index(.IXIC.US)$ slipped 0.1%.

$TM(4863)$: Telekom Malaysia Bhd (TM) says it is in active engagement with access seekers to reach an agreement following the release of its new reference access offer (RAO), which outlines the wholesale pricing of its high-speed broadband network. The telecommunications company said the adoption of the mandatory standard on access pricing (MSAP) for the wholesale rate, expected to begin this September, will encourage service providers to offer better Internet packages.

$QL(7084)$: QL Resources Bhd said its wholly-owned subsidiary, QL Oil Sdn Bhd (QLO), has commenced arbitration proceedings against two Indonesian firms to resolve disputes relating to a master joint venture agreement (MJVA) signed by the three parties in 2006. QLO filed the notice of arbitration against Hang Ting Pte Ltd (HT) and PT Pipit Citra Perkasa (PCP) at the Singapore International Arbitration Centre on Thursday (Aug 3). Under the MJVA, QLO and HT formed a joint venture company known as QL Mutiara (S) Pte Ltd, which in turn owns a 95% stake in plantation firm Pipit Mutiara Indah (PMI), with PCP holding the remaining 5% stake. QLO thus has an effective interest of 74.5% in PMI, whereas HT and PCP collectively have an effective interest of 25.5% in PMI. QLO is now launching the arbitration to seek relief from HT and PCP, and specific performance orders to compel HT and PCP to comply with their obligations and duties under the MJVA. QLO is also seeking damages from the two firms.

$F&N(3689)$: Fraser & Neave Holdings Bhd's (F&N) net profit increased 1.9% to RM99.37 million for its third quarter ended June 30, 2023 (3QFY2023), from RM97.5 million a year earlier, driven by overall higher prices, margin and cost management, as well as contribution from Cocoaland Holdings Bhd, which the group acquired in November 2022. However, earnings were partially offset by one-off non-operating items (fair value loss on investment properties, impairment loss on property, plant and equipment, and inventories written down). Quarterly revenue jumped 19% to RM1.33 billion from RM1.12 billion, thanks to robust festive sales, improvement in the food and beverage (F&B) markets in both Malaysia and Thailand, recovery in export markets and the additional Cocoaland contribution. F&N is maintaining a cautiously optimistic outlook amid the volatility in commodity prices and foreign exchange rates, and inflationary pressures on its costs and its impact on consumer demand.

$SUNWAY(5211)$: Sunway Bhd's property arm, Sunway Property, announced that its wholly-owned subsidiary — Sunway Rawang City Sdn Bhd — acquired a 245-acre land in Kuang, Rawang for RM115 million from Kauthar Equities Sdn Bhd. The acquisition and proposed development of the 245-acre land will be carried out via a joint venture with Amal Resources Sdn Bhd for a proposed industrial tech park comprising factories, warehouses and commercial components, carrying a gross development value of at least RM2 billion.

$MRCB(1651)$: The redevelopment of the KL Sentral Station on a private-finance-initiative basis with Malaysian Resources Corp Bhd (MRCB) at a cost of more than RM1bil is a well-timed chance to enhance the company's commercial presence in a prime and strategic area, according to Hong Leong Investment Bank (HLIB) Research.“We view this as a timely opportunity to expand MRCB's commercial exposure in a prime and strategic location. From what we gather, demand has been strong historically, with residential developments seeing take-up rates of 85% and above,” the research house said.

$KITACON(5310)$: Kumpulan Kitacon Bhd announced that its wholly-owned subsidiary, Kitacon Sdn Bhd, has today accepted a letter of award (LoA) worth RM62.3 million from KL-Kepong Country Homes Sdn Bhd for construction work in Ijok, Selangor. The scope of the contract includes the development of 128 units of two-storey cluster houses, a guardhouse, and a TNB substation. The contract is scheduled to commence on August 4, 2023, and is expected to be completed within 18 months.

$SUNVIEW(0262)$: Renewable energy player Sunview Group Bhd has aborted plans to venture into the biogas renewable energy industry after it terminated the proposed acquisition of Provectus Bioenergy Sdn Bhd. Sunview said the termination was due to the parties' inability to reach a consensus on the terms of the share sale agreement for the entire shareholding in Provectus Bioenergy.

$LITRAK(6645)$: Lingkaran Trans Kota Holdings Bhd (Litrak) shares on the Main Market will be suspended with effect from Aug 9 to facilitate the implementation of the company's capital reduction and repayment exercise. The capital repayment involves a cash distribution of 50.63 sen for each share held, or a total sum of RM275.78 million. The entitlement date for the capital repayment is Aug 10. Litrak had announced the capital repayment on April 6, after the company was classified as a cash company following its disposal of its 100% stake in Lingkaran Trans Kota Sdn Bhd for RM2.33 billion, and its 50% interest in Sistem Penyuraian Trafik KL Barat Sdn Bhd (Sprint) for RM904 million, to Amanat Lebuhraya Rakyat Bhd. Litrak’s shares will continue to be suspended until the completion of the capital repayment followed by the delisting of its shares, after which Litrak intends to voluntarily wind-up the company.

$GESHEN(7197)$: Johor-based plastic injection moulding and metal stamping company Ge-Shen Corp Bhd is buying a controlling 60% equity interest in Kedah-based Kibaru Manufacturing Sdn Bhd (KMSB) for RM16.8 million cash. This is in line with the group’s objective of acquiring strategic stakes in companies involved in high value-added industries with potential for future growth. KMSB is involved in the manufacturing of and dealing in all kinds of rubber products and medical devices. Ge-Shen said the acquisition will enable the group to further expand its overall engineering and manufacturing capabilities and product offerings to its customers.

$SERBADK(5279)$: Serba Dinamik Holdings Bhd's liquidator has called for a meeting with the group's creditors in October to provide a status update on the liquidation as well as to consider the appointment of a committee of inspection. Four separate meetings had been scheduled with the creditors of the group as well as the creditors of its subsidiaries Serba Dinamik Group Bhd, Serba Dinamik Sdn Bhd and Serba Dinamik International Ltd. The meetings are scheduled to be held on Oct 11 to 13, said the troubled oil and gas group.

$MINETEC(7219)$：Minetech Resources Bhd's subsidiary, Coral Power Sdn Bhd (CPSB) has been granted the commissioning test certificate (CTC) by the Energy Commission for a 60 acres large scale solar (LSS) power plant as announced in the letter from the Energy Commission (EC) dated August 2, 2023.“Our investment in renewable energy is not just a business decision; it's a statement of our commitment to sustainable growth. By generating 9.99MW of clean energy, we are contributing to the environment and ensuring long-term sustainable contribution to our company's revenue for 21 years.”