Malaysia Morning Wrap | Varia Wins RM571.8 Million Contract from Socso for Rehabilitation Centre

The stock market experienced fluctuations, initially driven by enthusiasm in Taiwan Semiconductor-led industries, which boosted the S&P 500 and the Dow to trading highs. However, the market pulled back in the afternoon. By just past 4:10 PM ET, $S&P 500 Index (.SPX.US)$ decreased slightly by 0.02%, the $Dow Jones Industrial Average (.DJI.US)$ climbed by 0.37%, and the $Nasdaq Composite Index (.IXIC.US)$ was up by 0.04%.

$GENM (4715.MY)$: Genting Malaysia Bhd (KL:GENM) has stated that the lawsuit filed by RAV Bahamas Ltd, which is seeking over US$600 million (approximately RM2.57 billion) in damages, will not have a material impact on its financial results or operations. The lawsuit, related to the operations of Resorts World Bimini, was filed on October 7 in the US District Court for the Southern District of Florida and served to Genting’s indirect subsidiary, GAI, on October 11. The casino operator is currently preparing a comprehensive legal response, expected to be filed in the coming weeks.

$VARIA (5006.MY)$: Varia Bhd (KL:VARIA) has secured a significant RM571.8 million contract from the Social Security Organisation (Socso) to construct a rehabilitation center in Setiu, Terengganu. The contract, undertaken by its wholly-owned subsidiary Pembinaan Teguh Maju Sdn Bhd, spans 30 months starting October 29, 2024, with an expected completion date of April 28, 2027. This new project boosts Varia's current order book to RM3.08 billion, up from RM2.24 billion as of August 27.

$SALCON (8567.MY)$: Salcon Bhd (KL:SALCON) has announced that its wholly-owned subsidiary, Salcon Engineering Bhd, has been awarded a contract worth RM18.5 million for external water reticulation work. The contract, awarded by LTE Engineers Sdn Bhd on behalf of F&N AgriValley Sdn Bhd, pertains to Fraser & Neave Holdings Bhd's (KL:F&N) integrated dairy farm located in Gemas, Negeri Sembilan. The project is divided into two main sections, focusing on enhancing the water infrastructure for the dairy operation.

$SCBUILD (0109.MY)$: SC Estate Builder Bhd (KL:SCBUILD), in partnership with JK Spark Sdn Bhd, has announced plans to participate in the bidding for large-scale solar power plant projects in Sabah. This initiative, led by the Energy Commission of Sabah (ECoS), aims to establish solar photovoltaic (PV) power plants with a combined capacity of 100MW. The bidding marks the first step towards expanding Sabah's renewable energy infrastructure, with the plants expected to commence operations by 2026. SC Estate Builder stated that the consortium intends to bid for projects ranging in capacity from 1 MWac to 15 MWac, contributing to the region’s sustainable development goals.

$AMEREIT (5307.MY)$: AME Real Estate Investment Trust (KL:AMEREIT) is moving forward with its plan to acquire four single-storey detached factories in Johor for RM119.45 million, a transaction which has been assessed as fair and reasonable by independent adviser MainStreet Adviser Sdn Bhd. According to the advisory firm, the purchase price is at a 2.1% discount, equating to a RM2.55 million savings compared to the properties' assessed fair value of RM122 million.

$AIRPORT (5014.MY)$: Malaysia Airports Holdings Bhd (KL:AIRPORT) reported a 10% year-over-year increase in passenger numbers for the third quarter of 2024, totaling 36.1 million and nearing pre-pandemic levels. International passenger traffic led the growth, surpassing 3Q2019 levels by 7.4% with 18.9 million passengers, while domestic travel reached 88.9% of pre-pandemic levels at 17.2 million passengers.