Malaysia Morning Wrap | Maybank Reported a 7.6% Increase in Net Profit to RM2.54 Billion for the Third Quarter of 2024

Moomoo News MY wrote a column · Nov 27, 2024 08:51

Good morning mooers! Here are things you need to know about today's market:

● U.S Market Soars as Trump Announces Tariffs on Canadian, Mexican, and Chinese Imports

● The Plantation Ministry Plans to Replant 77,000 Hectares of Land With Oil Palm in the Next Five Years

● Supreme Consolidated’s IPO Oversubscribed by 350 Times

● Stocks to Watch: IJM, MAYBANK, SUNWAY etc.

- Moomoo News MY

Malaysia Morning Wrap | Maybank Reported a 7.6% Increase in Net Profit to RM2.54 Billion for the Third Quarter of 2024

Wall Street Summary

The market reached new highs on Tuesday in response to President-Elect Trump's announcement of imposing a 25% tariff on goods from Canada and Mexico, and a 35% tariff on Chinese goods. This could lead to a $409 billion increase in tax revenue from a 25% tariff on 41% of the U.S.'s total imports, amounting to $1.6 trillion in trade so far in 2024. The Canadian and Mexican currencies depreciated against the dollar, while the Dow and S&P 500 hit record highs following the news.

By the close of trading at 4pm ET, the $S&P 500 Index (.SPX.US)$ climbed 0.57%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.28%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.63%.

Breaking News

The Plantation Ministry Plans to Replant 77,000 Hectares of Land With Oil Palm in the Next Five Years

The Malaysian government has set a goal to replant oil palms on 77,000 hectares over five years to sustain and enhance the competitiveness of the palm sector. The Ministry of Plantation and Commodities (KPK) is focusing on R&D to produce high-yielding oil palm plants using tissue culture and conventional seed production. The Malaysian Palm Oil Board (MPOB) has introduced three commercial clones to boost yield and productivity and is promoting automation and IR4.0 technologies. In response to queries about the agri-commodity sector, KPK highlighted its long-term strategy, including collaboration with MCMC through the AgriNXT program to provide digital solutions for the oil palm industry, aiming to improve management effectiveness and increase national output.

Supreme Consolidated’s IPO Oversubscribed by 350 Times

Supreme Consolidated Resources Bhd, a frozen food distributor, is set to list on the ACE Market on November 29th. The company's IPO, which includes a public issuance of 70 million new shares, has seen its 8.6 million shares allocated to the Malaysian public oversubscribed by 349.42 times. This high demand reflects a total of 23,955 applications for 3.01 billion shares. Out of these, 11,984 applications from Bumiputera investors oversubscribed by 317.38 times, while the remaining public portion had an oversubscription rate of 381.46 times. The IPO is priced at 25 sen per share, aiming to raise RM17.5 million, with approximately two-thirds of the funds earmarked for the expansion of the company's warehouse and the addition of a new distribution center. Supreme Consolidated's product range includes both third-party and in-house frozen, chilled, and ambient food products, as well as non-food items.

Stocks to Watch

Penang Development Corporation (PDC) has turned down an RM818 million proposal from a consortium led by $IJM (3336.MY)$ to develop Batu Kawan Industrial Park 2 in Penang. The state-owned agency did not provide a reason for the rejection, despite the bid being the highest at RM818 million, surpassing the RM780 million reserve price. IJM Corporation declined to comment on the matter.

$MAYBANK (1155.MY)$ reported a 7.6% increase in net profit to RM2.54 billion for the third quarter of 2024, compared to RM2.36 billion the previous year. The growth in non-interest income compensated for a decline in net interest income. The bank aims to achieve a return on equity of 11% for the fiscal year 2024, maintaining a 11.1% return in the third quarter.

$SUNWAY (5211.MY)$'s net profit for the third quarter of 2024 doubled to RM376.08 million from RM180.3 million a year ago, driven by stronger performance across its main businesses. Revenue for the quarter increased by 31.8% to RM2.03 billion. No dividend was declared for the quarter.

$IOICORP (1961.MY)$'s net profit for the first quarter of 2025 surged 133.8% to RM710.7 million from RM304 million in the same period last year, due to foreign exchange gains and fair value adjustments on biological assets and financial instruments. Revenue increased by 21.4% to RM2.67 billion.

$YTL (4677.MY)$'s net profit for the first quarter of 2024 fell by more than a third to RM333.7 million from RM521.73 million a year earlier, as contributions from its utilities business declined. YTL's quarterly revenue increased by 3.36% to RM7.77 billion. YTL Power International Bhd's net profit for the quarter was RM470.6 million, compared to RM847.91 million a year ago.

$KLK (2445.MY)$'s net profit for the fourth quarter of 2024 plummeted 94.18% to RM6.77 million from RM116.31 million in the same quarter of 2023, due to non-cash losses and inventory write-downs related to its investment in Synthomer Plc. Revenue decreased by 1.7% to RM5.68 billion. Batu Kawan Bhd, which owns a 47% stake in KLK, recorded its first net loss in over two decades in the same quarter.

$AIRPORT (5014.MY)$ 's net profit for the third quarter of 2024 more than doubled to RM210.37 million from RM94.76 million a year ago, driven by increased passenger volumes. Revenue for the quarter rose by 20% to RM1.53 billion. No dividend was declared for the quarter.

$TM (4863.MY)$ 's net profit for the third quarter of 2024 fell 13.6% to RM465.04 million from RM538.19 million the previous year, due to higher tax expenses. Profit before tax increased by 32.3% to RM668.23 million. Quarterly revenue decreased by 1.2% to RM2.92 billion.

$GREATEC (0208.MY)$'s net profit for the third quarter of 2024 was halved to RM22.95 million due to foreign exchange losses. Revenue for the quarter dropped by 16.03% to RM188.79 million. The company cited the completion of projects, reduced activity in the e-mobility sector, and unfavorable solar sector timing.

$LHI (6633.MY)$'s net profit for the third quarter of 2024 slightly increased to RM135.02 million from RM132.96 million a year earlier, as tax expenses decreased significantly. Quarterly revenue, however, fell by 11.45% to RM2.23 billion due to lower average selling prices and sales volume of day-old chicks in Indonesia and Malaysia.

$PHARMA (7081.MY)$ saw a turnaround in the third quarter of 2024, with a net profit of RM101.03 million compared to a net loss of RM49.34 million in the same period last year. Revenue for the quarter increased by 16% to RM1.03 billion. The company did not provide details on the penalty charges reversed.

$TCHONG (4405.MY)$ suffered its largest loss in a decade in the third quarter of 2024 due to higher foreign exchange losses and a challenging business environment. The net loss widened to RM90.28 million from RM50.7 million in the same period of 2023. Quarterly revenue decreased by 28.8% to RM462.66 million.

Property developer $MATRIX (5236.MY)$ 's net profit for the second quarter of 2025 increased by 5.29% to RM67.42 million from RM64.03 million a year ago, as gains on disposals offset a drop in revenue. Revenue for the quarter decreased by 10.66% to RM321.04 million. The company declared a second interim dividend of 2.75 sen per share.

Property developer $E&O (3417.MY)$ declared a special dividend of one sen, as its net profit for the second quarter of 2025 increased by 2.2% to RM30.39 million from RM29.73 million a year earlier. Quarterly revenue rose by 38% to RM171.03 million.

Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE

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