Malaysia Morning Wrap | Frontken Achieves Record Profits and Revenue in Q3FY2024

In a day of mixed market movements, the majority of equities experienced declines, with the $Dow Jones Industrial Average (.DJI.US)$ falling by 0.36%. However, contrary to the general downtrend, the $Nasdaq Composite Index (.IXIC.US)$ rose by 0.78%, reaching an all-time trading and closing high. Meanwhile, the $S&P 500 Index (.SPX.US)$ saw a slight decrease of 0.15%. This divergence highlights varying investor sentiments across different sectors and industries.

$SYMLIFE (1538.MY)$: Former chief financial officer of Symphony Life Bhd, Ng Ying Yiing, and former group adviser Datuk David Goh, faced charges at the Sessions Court in Shah Alam for allegedly using RM2.57 million of company funds to buy shares in Cycle and Carriage Bintang Bhd (CCB) without board approval. The transactions, which occurred between June 28, 2021, and June 30, 2024, led to charges under Section 218 of the Companies Act 2016 and Section 34 of the Penal Code against the duo. In a twist, the Industrial Court found that Symphony Life's CEO, Chin Jit Pying, had authorized the share purchases, according to a judgement dated October 24, which was part of Ng's successful claim against unlawful dismissal related to the incident.

$FRONTKN (0128.MY)$: Frontken Corp Bhd (KL:FRONTKN) has reported a substantial 32% increase in net profit for the third quarter ending September 2024, reaching RM35.32 million, up from RM26.75 million in the same period last year, marking its highest quarterly profit to date. This growth was primarily fueled by robust demand for its services in the semiconductor industry, particularly leading to higher revenue and utilization at its Taiwan facility. The group also recorded an 8.08% increase in quarterly revenue, achieving a new high of RM144.31 million compared to RM133.52 million in 3QFY2023. Despite the strong financial performance, no dividend was declared for the quarter.

$UNISEM (5005.MY)$: Unisem (M) Bhd (KL:UNISEM) has reported a significant growth in its financial performance for the third quarter ended September 30, 2024 (3QFY2024), with a net profit of RM26.75 million, marking a 48% increase year-on-year and a 60% rise quarter-on-quarter. This improvement has been attributed to higher sales volumes and gains from foreign exchange. The company's revenue also saw a 15% increase year-on-year to RM409.74 million, the highest since the last semiconductor upcycle in 4QFY2022. In line with its financial growth, Unisem declared a quarterly dividend of two sen per share, payable on December 20, maintaining its nine-month dividend at six sen per share, consistent with the previous year.

$LPI (8621.MY)$: LPI Capital Bhd (KL:LPI) experienced a 27% increase in net profit for the third quarter of FY2024, reaching RM123.94 million, primarily driven by higher investment returns and reduced reinsurance expenses. Although net profit saw a significant rise, revenue for the quarter remained relatively flat at RM499.83 million, slightly up from the previous year. This stagnation in revenue growth was attributed to the adverse impact of currency translation from its Singapore operations, exacerbated by the appreciation of the Malaysian ringgit. No dividend was declared for this quarter.

$INFOTEC (0253.MY)$: Infoline Tec Group Bhd (KL:INFOTEC) reported a 54.6% increase in net profit for the third quarter of FY2024, totaling RM8.04 million, up from RM5.2 million in the same period last year. This growth was driven by strong contributions from its managed IT services and the successful delivery of significant IT infrastructure and cybersecurity projects. Revenue also surged by 86.8% to RM30.45 million, marking the company's highest quarterly earnings since its July 2022 debut on the ACE Market. Reflecting its robust financial performance, Infoline declared an interim single-tier tax-exempt dividend of 0.79 sen per share, payable on November 28.

$TASCO (5140.MY)$: Tasco Bhd (KL:TASCO), a provider of integrated logistics solutions, has reported a significant 48.7% decrease in net profit for the second financial quarter ending September 30, 2024 (2QFY2025), with earnings falling to RM8.13 million from RM15.85 million in the same period last year. The company attributes the decline primarily to a lower contribution from its supply chain solutions (SCS) division within the international business solution (IBS) segment. Despite the decrease in net profit, Tasco saw its quarterly revenue increase by 8.1% to RM295.69 million, up from RM273.63 million in 2QFY2024, bolstered by performance in its IBS segment. No dividend was declared for the quarter, reflecting the company's cautious stance in light of the challenging operating environment it anticipates ahead.

$TM (4863.MY)$: Telekom Malaysia Bhd (KL:TM) has announced the appointment of Ahmad Fairus Rahim as the new group chief financial officer, effective November 1. At 45 years old, Ahmad Fairus takes over from Razidan Ghazalli, who retired at 61 after nearly five years in the role. With over 20 years of experience in commercial finance and accounting within the telecommunications sector, Ahmad Fairus is set to bring a wealth of knowledge and expertise to his new position at TM.

$KITACON (5310.MY)$: Kumpulan Kitacon Bhd (KL:KITACON), through its subsidiary Kitacon Sdn Bhd, has been awarded a RM131.9 million contract from Tropicana Alam Sdn Bhd, part of Tropicana Corp Bhd (KL:TROP), to construct terraced houses in Bandar Puncak Alam, Ijok, Selangor. The 24-month project, set to commence on November 1, includes the construction of 449 double-storey terraced houses measuring 20'x70', 31 units measuring 22'x70', and two power substations.

$CHINTEK (1929.MY)$: Chin Teck Plantations Bhd (KL:CHINTEK) announced a significant 64.32% increase in net profit for the fourth quarter of fiscal year 2024, driven by higher sales volumes and average selling prices (ASP) of fresh fruit bunches (FFB), crude palm oil (CPO), and palm kernel. In its recent filing, the company reported a net profit of RM22.53 million for the quarter ending August 31, 2024, up from RM13.71 million in the same quarter the previous year. Earnings per share also rose to 24.66 sen from 15.01 sen. Additionally, the company's revenue saw a substantial rise of 69.09%, reaching RM83.77 million compared to RM49.54 million in 4QFY2023. The group expressed expectations that the current trends in CPO prices are likely to continue.