Malaysia Morning Wrap | CTOS Records 13% Increase in Q3 Net Profit, Hits Record Quarterly Revenue

On November 11th, the market climbed to a trifecta of closing highs for indices. The S&P 500 broke through 6k Friday and traded above the historic mark again Monday before the market pulled back in the afternoon. Just past 4 pm ET, the $S&P 500 Index (.SPX.US)$ traded +10 bps, the $Dow Jones Industrial Average (.DJI.US)$ climbed 69 bps, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.06%.

$CTOS (5301.MY)$ announced a 13% increase in net profit to RM27.55 million for the third quarter ending September 30, 2024 (3QFY2024), rising from RM24.39 million the previous year, driven by elevated sales and enhanced tax incentives. The company also achieved a record quarterly revenue of RM79.81 million, a 20.1% increase from RM66.45 million in 3QFY2023, thanks to stronger performance in key segments including international, direct-to-consumer, and commercial businesses. A higher third interim dividend of 0.84 sen per share was declared, up from 0.64 sen last year. Over the first nine months of 2024 (9MFY2024), CTOS reported a net profit of RM73.88 million, a 19% increase from RM62.1 million, with revenue growing 21.1% to RM228.03 million from RM188.29 million. Erick Hamburger, CTOS Group CEO, expressed optimism about future growth, citing ongoing strategies to increase customer engagement and raise average revenue per user (ARPU) across all segments. — "CTOS CEO sees 'abundant' opportunities as group logs 13% rise in 3Q profit with record high revenue."

$TCS (0221.MY)$ is actively collaborating with developers and consultants to address structural concerns at the J Satine mixed development. Datuk Tee Chai Seng, Managing Director, confirmed the company's full cooperation with authorities investigating the cause of reported building cracks. “Initial findings suggest that the building cracks are not caused by us," he stated. This statement follows directives from Kuala Lumpur City Hall (DBKL) to cease all construction activities at the site in Wangsa Maju.

Gano Global Supplements Pte Ltd, a substantial shareholder of $DXN (5318.MY)$, has reduced its ownership to 8.79% by selling a 4.5% stake in a direct transaction. The exact sale price was undisclosed, though Bloomberg data indicates that the 223.77 million shares were traded at 60 sen each, totaling RM134.26 million. Initially, Gano Global, which is an investment arm of KV Asia Capital Pte Ltd, acquired a 25.7% stake in DXN in 2017 as stated in DXN's 2024 annual report.

$TMCLIFE (0101.MY)$ has received formal requests from its two principal shareholders for an extraordinary general meeting aimed at removing Wan Nadiah Wan Mohd Abdullah Yaakob, the group's chief executive officer, from her directorial role. These notices came from Sasteria (M) Pte Ltd and the Regent of Johor, Tunku Ismail Sultan Ibrahim. Sasteria owns 70.13% of the company, while Tunku Ismail holds 7.64%. Wan Nadiah has been temporarily suspended from her roles within the group and its subsidiary, Thomson Hospitals Sdn Bhd, since January 29, pending an internal investigation into multiple allegations of misconduct.

$EIB (0255.MY)$ has been awarded a RM200 million contract to construct a TG2 pellet plant in Kuantan's Gebeng industrial area. TG2, a recycled industrial agricultural waste product, serves as a sustainable alternative to coal. The contract for engineering, procurement, and construction was given to Ecoscience Manufacturing & Engineering Sdn Bhd by Wilhemina Energy Malaysia Sdn Bhd.

$KTI (0308.MY)$ has secured a RM49.99 million sub-contract from Jawat Johan Sdn Bhd for the Armed Forces Family Housing (RKAT) construction project at the Labuan Air Base. The project, which will involve KTI as the specialist in industrialised building systems, is set to last 14 months starting November 25. This is KTI's second contract under the RKAT initiative.

$DESTINI (7212.MY)$ has obtained a RM33.05 million contract from the Ministry of Defence (Mindef) for comprehensive maintenance of airborne safety and survival equipment. This three-year agreement commences on November 11, 2024, and extends through November 10, 2027.

$AZAMJAYA (5329.MY)$, which recently debuted on the Main Market of Bursa Malaysia, is setting its sights on expansion beyond its primary market of Sabah. According to Executive Director Datuk Jessica Lo Vun Che, the company is considering opportunities in Sarawak and Kalimantan and potentially other neighboring countries. The firm also plans to bid for further phases of the RM29 billion Pan Borneo Highway project.

$MEGAFB (5327.MY)$, a manufacturer of security seals, anticipates minimal impact from the prospective US tariffs of up to 10%. The US, being the company's second-largest market, poses familiar challenges as Mega Fortris has long dealt with similar multi-jurisdictional taxes in Europe and elsewhere. CEO Datuk Adrian Ng, during a press briefing at the company’s listing event, revealed plans to adapt its pricing strategy and possibly establish a manufacturing base in the US to mitigate tariff risks.