Malaysia Morning Wrap | Petronas Chemicals Reports First-Ever Quarterly Loss of RM789 Million Since Listing

Moomoo News MY wrote a column · Nov 21, 2024 08:45

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

●The Market was Mixed Wednesday, With Tech Holding Its Breath. Nvidia Forward Guidance Was Not Perfect

●Amir Hamzah Announces Malaysia’s Strategy To Synchronize the Real Economy With the Capital Market To Foster Inclusive Growth

● Petronas Chemicals Reports First-Ever Quarterly Loss of RM789 Million Since Listing

● Stocks to Watch: Petronas Chem, Sime Darby Property, SD Guthrie, etc.

- Moomoo News MY

Malaysia Morning Wrap | Petronas Chemicals Reports First-Ever Quarterly Loss of RM789 Million Since Listing

Wall Street Summary

On Wednesday, the market experienced a mixed performance, with technology stocks remaining cautious. The S&P 500 ended the day without significant gains or losses. Despite Nvidia reporting better-than-expected revenue and adjusted earnings per share, its future revenue projections fell short of the midpoint of analysts' estimates, resulting in a roughly 2% decline in its stock price. At 4:01 p.m. ET, the $Nasdaq Composite Index (.IXIC.US)$ was off 0.32%. The $Dow Jones Industrial Average (.DJI.US)$ was up 0.32% and $S&P 500 Index (.SPX.US)$ was flat for the day, climbing just 0.13 points.

Breaking News

Amir Hamzah Announces Malaysia’s Strategy To Synchronize the Real Economy With the Capital Market To Foster Inclusive Growth

Malaysia's Finance Minister II, Datuk Seri Amir Hamzah Azizan, has outlined the country's strategy to align its real economy with capital market developments to foster equitable wealth distribution and economic growth across sectors. He emphasized the capital market's crucial role in facilitating business expansion and economic progress, noting a 5.2% average growth in Malaysia's economy over the first three quarters of this year. The vibrancy of Bursa Malaysia, with the FTSE Bursa Malaysia KLCI surpassing 1,600 points and a total market capitalization of RM2 trillion, was highlighted, along with 46 new IPOs and 11 companies transitioning from the ACE Market to the Main Market. Amir Hamzah also underscored Malaysia's advantage in global supply chain disruptions, particularly in the E&E sector, and the government's focus on creating a robust ecosystem to attract multinational corporations, including strengthening talent, supply chains, and logistics infrastructure, with GLICs playing a key role in funding these initiatives for long-term economic resilience.

A Fund of RM3 Billion, Along With a Suite of Initiatives, Has Been Established To Enhance the Skill Sets of Workers

Malaysia's Minister of Human Resources, Steven Sim Chee Keong, has pledged RM3 billion for skills training in 2025 to prepare the workforce for changes prompted by AI advancements. This investment targets to support an estimated 600,000 jobs that could be affected, through re-skilling, up-skilling, and cross-skilling programs, enabling workers to adapt to new technologies and workplace dynamics.

Stocks to Watch

$PCHEM (5183.MY)$ reported its first-ever loss since its initial public offering over a decade ago for the third quarter of the financial year 2024, which concluded on September 30, 2024 (3QFY2024). The company posted a net loss of RM789 million for 3QFY2024, contrasting with a net profit of RM424 million in the corresponding quarter of the previous year. This downturn was primarily due to an unrealized foreign exchange loss amounting to RM1.1 billion. Despite the challenges, the company's quarterly revenue increased by 18%, reaching RM7.99 billion from RM6.78 billion, attributed to increased sales volume and higher product prices. No dividend was announced for this quarter.

$SIMEPROP (5288.MY)$ saw its net profit for the third quarter of the financial year 2024 (3QFY2024) decrease by 12% to RM128.26 million from RM144.92 million, as higher administration expenses took their toll. Despite this, the company's revenue grew by 4% to RM1.09 billion from RM1.05 billion, thanks to strong sales. The quarter ended with no dividend declared.

$SDG (5285.MY)$ reported a 36.75% drop in net profit for the third quarter of the financial year 2024 (3QFY2024), with earnings falling to RM766 million from RM1.21 billion in the same period of the previous year. This decline was attributed to the lack of a gain from land disposal, even though crude palm oil (CPO) prices were higher. The company's quarterly revenue, however, increased by 10.33% to RM5.27 billion from RM4.77 billion, reflecting the positive impact of higher CPO prices. No dividend was declared for this quarter.

$PERDANA (7108.MY)$ reported a threefold increase in net profit for the third quarter of the financial year 2024 (3QFY2024), reaching RM75.8 million from RM22.75 million in the previous year. This surge is attributed to improved charter rates, vessel utilization, and foreign exchange gains. The company's quarterly revenue also saw a 22.45% increase to RM127.25 million from RM103.92 million, due to higher vessel utilization. No dividend was declared for this quarter.

$SPTOTO (1562.MY)$ experienced a 31.3% decrease in net profit for the first quarter ending September 30, 2024 (1QFY2025), falling to RM41.33 million from RM60.17 million a year prior. This decline was due to reduced lottery sales and lower sales performance, compounded by the impact of foreign exchange losses. Quarterly revenue also decreased by 9.5% to RM1.44 billion from RM1.59 billion. The group declared a first interim dividend of two sen per share, payable on January 17, 2025.

$HSPLANT (5138.MY)$ saw its net profit for 3QFY2024 rise by 46% to RM55.43 million, the highest in nearly three years, from RM37.85 million a year ago. This increase was driven by strong palm oil prices and lower operating expenses. Quarterly revenue also climbed 7.7% to RM177.26 million from RM164.56 million. No dividend was declared for the quarter.

$RCECAP (9296.MY)$ recorded a 27.25% drop in net profit for the second quarter ending September 30, 2024 (2QFY2024), falling to RM27.83 million from RM38.25 million a year ago. Revenue also slipped by 8.4% to RM80.41 million as the group prioritized better credit quality disbursement for sustainable financing growth. The group declared a first interim dividend of three sen per share, payable on December 31.

$MYEG (0138.MY)$ increased its net profit for 3QFY2024 by 62.55% to RM195.05 million from RM120 million in the same quarter of the previous year. Revenue for the quarter grew by 27.8% to RM248.13 million from RM194.12 million, driven by the fair value gain in its investment in HeiTech Padu Bhd (KL:HTPADU) due to mark-to-market practice. No dividend was declared for the quarter.

$POS (4634.MY)$ reported a 49.6% increase in net loss for 3QFY2024, rising to RM49.89 million from RM33.34 million in the same quarter of the previous year. This was due to lower postal and freight volumes and higher other and tax expenses. Revenue for 3QFY2024 remained largely flat at RM458.96 million compared with RM461.71 million in 3QFY2023, as lower volumes in postal and logistics were offset by a higher number of in-flight meals served in the aviation segment. No dividend was declared for the quarter.

$UOADEV (5200.MY)$ saw its net profit for 3QFY2024 drop by 5.2% to RM48.34 million compared with RM50.86 million a year ago, despite a 32% increase in revenue to RM141.36 million from RM107.04 million due to higher progressive recognition of ongoing development projects. No dividend was declared for the quarter.

$AMWAY (6351.MY)$ reported a drop in net profit for 3QFY2024 to RM32.9 million from RM46.2 million a year earlier, as revenue fell by 10.1% to RM299.84 million from RM333.5 million due to softer consumer demand for health and wellness products and home appliances. The group declared a third interim dividend of five sen per share, payable on December 18.

$FPI (9172.MY)$ incurred a net loss of RM18.1 million for the third quarter ending September 30, 2024 (3QFY2024), marking its first loss since 2015, compared to a net profit of RM48.87 million in 3QFY2023. This was due to foreign exchange losses and lower revenue of RM200.65 million compared with RM234.46 million in the corresponding quarter. No dividend was recommended for the quarter.

$HEXIND (0161.MY)$ saw its net profit for 3QFY2024 drop by 12.59% to RM11.47 million from RM13.12 million in the same quarter a year earlier, due to impairment loss and higher administrative expenses. This occurred despite a 13.98% increase in quarterly revenue to RM285.71 million from RM250.68 million, thanks to the consolidation of newly acquired subsidiaries. No dividend was declared for the quarter.

$TGUAN (7034.MY)$ reported a nearly one-third decrease in net profit for 3QFY2024, falling to RM15 million from RM21.9 million a year ago, due to lower contributions from its plastic packaging products segment. Quarterly revenue rose by 3.77% to RM329.34 million from RM317.38 million the previous year. No dividend was declared for the quarter.

$KAWAN (7216.MY)$ saw its net profit for 3QFY2024 plummet by 87.5% to RM960,000 from RM7.69 million in the same quarter of the previous year, due to unrealized foreign exchange losses and a higher tax charge. However, revenue increased by 12.2% to RM88.9 million from RM79.2 million in 3QFY2023, mainly driven by its export markets. The company declared a second interim dividend of 2.8 sen per share, payable on December 20.

$RHBBANK (1066.MY)$ announced that the Kuala Lumpur High Court has ruled in favor of Tokio Marine Life Insurance Malaysia Bhd in their bancassurance business dispute, confirming the insurer's right to first refusal remains in effect. The court ordered RHB to present the bancassurance terms offered by the best bid to Tokio Marine within seven days and for Tokio Marine to confirm within two weeks of receiving RHB's affidavit whether they will match those terms.

$IFCAMSC (0023.MY)$ is aiming for RM440 million in new sales over the next three years, primarily through new customers from its property management system solutions, optimizing pricing, and expanding its distributor program. Approximately RM170 million of the sales is expected to come from new large property owners through its new property management system solutions.

$SAPNRG (5218.MY)$ has been awarded a contract to provide pan-Malaysia services, including offshore maintenance, construction, modification, hook-up, and commissioning services, by Petronas Carigali Sdn Bhd. The contract duration is five years, but the value is not specified as it is a call-out contract with agreed unit rates.

$RL (0219.MY)$ 's unit has been appointed as a panel contractor for integrated well continuity services by national oil-and-gas company Petroliam Nasional Bhd (Petronas). The potential value of the services was not disclosed.

$VELESTO (5243.MY)$ is collaborating with Petronas, through Malaysia Petroleum Management and National Oilwell Varco LP, to explore the implementation of robotics and mechanized automation processes for its drilling rig operations.

$ZELAN (2283.MY)$ 's Chief Executive Officer, Mohd Ariff Abd Samat, has resigned from his post three months after his appointment to pursue other career opportunities. The 42-year-old was appointed CEO in August, filling a position that had been vacant for over a year following the termination of his predecessor Hazimi Baharum's contract in June of the previous year.

$SCABLE (5170.MY)$ 's trading is set to resume on Thursday as Bursa Malaysia has filed an application to the High Court seeking clarifications on the legal implications of the court's appointment of an interim judicial manager.

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

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