Malaysia Morning Wrap | Mah Sing Secures 5.24 Acres on Old Klang Road for New TOD Project, M Aurora

Markets climbed Thursday, the second day of a post-election blitz for prices pushed higher after the FOMC said they would lower the target Federal Funds Rate again.Markets responded by keeping the uptrend in prices strong, but the Dow fell. After 4 pm ET, the $Dow Jones Industrial Average (.DJI.US)$ itraded flat. The $S&P 500 Index (.SPX.US)$ cliumbed 0.74% and the $Nasdaq Composite Index (.IXIC.US)$ is up 1.51%.

$EKOVEST (8877.MY)$ principal shareholder, Tan Sri Lim Kang Hoo, is contemplating the sale of his toll-road enterprise, Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), potentially fetching up to RM5 billion, as per a Bloomberg report citing informed sources. Ekovest holds a 60% stake in Kesturi, with the remaining portion owned by the Employees Provident Fund (EPF). According to the report, Lim is collaborating with a financial advisor to potentially divest a majority interest in Kesturi. Discussions are still in progress, and it is possible that Ekovest may retain the assets, the source noted.

$ECOWLD (8206.MY)$, through its 81%-owned subsidiary Mutiara Balau Sdn Bhd, is acquiring 10 parcels of land spanning 847.25 acres in Semenyih, Selangor for RM742.41 million in cash. The land will be developed into a new mixed-use project named Eco Forest 2, expected to generate an estimated gross development value of RM4.6 billion. On Wednesday, Mutiara Balau signed two conditional sale and purchase agreements with Boustead Properties Bhd’s affiliates, Boustead Plantations Bhd and Boustead Palau Sdn Bhd, following a successful proposal request initiated by Boustead Properties for these plots, situated adjacent to EcoWorld's existing Eco Forest township. Boustead Properties retains a 19% stake in Mutiara Balau.

$MAHSING (8583.MY)$ has secured a 5.24-acre freehold site on Old Klang Road for about RM113 million from Team Keris Bhd, aiming to develop a transit-oriented project called M Aurora. The acquisition agreement was finalized on Thursday, with the project set to open for registration in the first quarter of 2025. M Aurora is projected to have a gross development value of RM660 million, according to the company’s statement.

$PENTA (7160.MY)$ reported a 49.9% decrease in net profit to RM11.77 million for the third quarter ending September 30, 2024 (3QFY2024), down from RM23.49 million the previous year, primarily due to diminished automated test equipment (ATE) sales and foreign exchange losses. This quarterly net profit marks the lowest since 1QFY2018, when it was RM7.32 million. Revenue also fell 17% year-on-year to RM150.18 million from RM180.74 million, with ATE division sales dropping nearly 46% to RM53.42 million. No dividends were declared for the period.

$SENTRAL (5123.MY)$, predominantly managing office towers, reported a 25% increase in net property income in the third quarter ending September 30, 2024, boosted by earnings from a newly acquired property. The net property income reached RM37.6 million, enhancing the net distributable income to RM20.5 million, as stated in the exchange filing. No income distribution was declared for the quarter.

$KKB (9466.MY)$ has obtained contracts totaling RM93 million from several entities, focusing on industrial and infrastructure projects. The company announced that the new contracts include a three-year pricing agreement with Petroleum Sarawak Bhd (Petros), a subcontract from Bina Puri Builder Sdn Bhd—a wholly owned subsidiary of Bina Puri Holdings Bhd (KL:BPURI), and a purchase order from Greenchain Capital Sdn Bhd.

Software company $MICROLN (0126.MY)$ has resolved its legal dispute with Italian contractor Danieli & C Officine Meccaniche SpA concerning the construction of a hot-rolled coils plant, a conflict that originated in August 2016. The resolution was finalized through a settlement agreement signed on Wednesday. As per the agreement, Danieli will compensate Southern Steel's subsidiary, Southern HRC Sdn Bhd (SHRC), with a total of €42.48 million (RM187.08 million). This sum includes €35.48 million for the plant itself and an additional €7 million for associated spare parts and equipment. In exchange, SHRC will transfer the plant's ownership to Danieli.