MY Morning Wrap | TNB Reports Over Fourfold Increase in Q2 Net Profit to RM1.45 Billion

The market is in the green Thursday, and the S&P 500 was flat for the day by the close after pulling close to an all-time high. $NVIDIA (NVDA.US)$ fell 6% for the day, but the market did not feel it as it normally does.Just past the 4 pm ET close, the $S&P 500 Index (.SPX.US)$ traded exactly flat for the day, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.59%, and the $NASDAQ 100 Index (.NDX.US)$ fell 0.23%.

$TENAGA (5347.MY)$ experienced a significant rise in its net profit for the second quarter ending June 30, 2024 (2QFY2024), with a more than fourfold increase to RM1.45 billion, up from RM327.9 million in the previous year. This boost was attributed to increased electricity sales, favorable foreign exchange rates, and reduced net finance costs. The company's revenue saw a 7.83% increase to RM14.4 billion, compared to RM13.3 billion, primarily driven by a 5.7% rise in electricity sales, equivalent to RM745.8 million. TNB has announced an interim single-tier dividend of 25 sen per share, an increase from last year's 18 sen per share, with the payment dates to be confirmed later.

$PMETAL (8869.MY)$ also reported a substantial 65% surge in net profit for 2QFY2024, reaching RM505.83 million, up from RM305.79 million during the same period last year. This increase was largely due to higher selling prices and a stronger US dollar, which enhanced export earnings. The company's quarterly revenue increased by 5.2% to RM3.95 billion from RM3.76 billion. Furthermore, an interim dividend of 1.75 sen per share has been declared, totaling a payout of RM144.2 million, scheduled for payment on September 30.

$IHH (5225.MY)$ saw its second-quarter net profit for fiscal year 2024 more than double to RM623 million, up from RM301 million in the corresponding period last year. This significant increase was fueled by robust operational performance and the favorable impact of deferred tax credits. The company's revenue surged by 30.36% to RM6.09 billion, compared to RM4.67 billion, driven by consistent patient volume growth and the handling of more acute, complex cases across all markets. IHH announced an interim dividend of 4.5 sen per share, scheduled for payment on October 30.

$PPB (4065.MY)$ experienced a 52.32% increase in its 2QFY2024 net profit, reaching RM308.92 million from RM202.81 million a year earlier, largely due to a significant contribution from Wilmar International Ltd. However, revenue decreased by 10.93% to RM1.32 billion, down from RM1.48 billion in the second quarter of the previous fiscal year, following the sale of its Indonesian flour operations. PPB has declared an interim dividend of 12 sen per share, which will be paid on September 26.

$GENTING (3182.MY)$, a diversified conglomerate spanning gaming to plantation sectors, reported a 49% increase in its 2QFY2024 net profit, with figures rising to RM239.66 million from RM160.55 million in the same period last year. This growth was partly supported by other non-operating gains and a reduction in shared losses. Revenue grew by 3% year-on-year to RM6.86 billion, up from RM6.66 billion, thanks to contributions from its leisure and hospitality division. Genting announced an interim single-tier dividend of six sen per share, payable on October 11.

$GENM (4715.MY)$ reported a significant 74.5% increase in net profit for the second quarter of FY2024, reaching RM82.24 million, up from RM47.12 million in the previous year. This growth was primarily fueled by its leisure and hospitality sector. The company also saw a 7.9% increase in quarterly revenue, which rose to RM2.67 billion from RM2.47 billion, again attributed to the leisure and hospitality business. Genting Malaysia announced an interim dividend of six sen per share, which will be payable on October 7.

$VELESTO (5243.MY)$ experienced a substantial rise in its second-quarter net profit for FY2024, which soared more than threefold year-on-year to RM62.81 million from RM17.40 million. This increase was driven by higher utilization rates and a rise in average daily charter rates. Revenue for the quarter also grew by 40.86%, totaling RM393.43 million compared to RM279.32 million previously. Velesto declared an interim dividend of 0.25 sen per share, amounting to RM20.5 million, set to be payable on November 28, 2024.

$TROP (5401.MY)$ saw a dramatic increase in its earnings for the second quarter of FY2024, bolstered by a substantial unrealised gain of RM62.97 million on quoted shares. Additional factors such as higher progress billing and reduced finance costs from debt reduction initiatives helped boost the net profit to RM43.56 million — the highest since 4QFY2020 — up from just RM305,000 a year earlier. However, quarterly revenue decreased by 17.18% to RM384.7 million from RM464.51 million, largely due to the disposals of key investment properties and lower revenue from land sales.

$KENANGA (6483.MY)$ reported a 43.9% decrease in net profit for the second quarter of FY2024, which led to a significant drop in its share price, reaching a six-month low. The stock plummeted by as much as 15% to RM1, marking the lowest price since February 7, 2024. This decline prompted a temporary halt in intraday short-selling of the stock. Despite the fall in net profit to RM9.37 million from RM16.7 million, largely due to RM6.6 million in impairment provisions, Kenanga's quarterly revenue actually increased by 22.6% to RM243.13 million, thanks to higher brokerage fee income and gains from trading and investments. The closing share price stood at RM1.05, down 13 sen or 11.02%, giving the company a valuation of RM772.6 million.

$CAPITALA (5099.MY)$ announced a substantial increase in its net loss for the second quarter of fiscal year 2024 (2QFY2024), primarily due to escalated foreign exchange losses and higher aircraft depreciation charges. The net loss surged to RM454.18 million, marking a fourth consecutive quarter of losses, compared to a net loss of RM91.55 million in the first quarter (1QFY2024) and a net profit of RM646.28 million in the same quarter of the previous year (2QFY2023). Despite these challenges, quarterly revenue increased by 54% to RM4.86 billion from RM3.15 billion the prior year, driven by robust recovery in both domestic and international travel which helped mitigate the impact of rising fuel costs and maintenance expenses. The company's CEO, Tan Sri Tony Fernandes, expressed intentions to resolve the Practice Note 17 (PN17) status by the first half of 2025.

$HLFG (1082.MY)$, under the leadership of Tan Sri Quek Leng Chan, reported a 21% rise in net profit for the fourth quarter ended June 30, 2024 (4QFY2024), amounting to RM806.09 million compared to RM663.91 million in the corresponding period last year. This growth was predominantly fueled by its banking division. The group declared a final dividend of 36 sen per share, increasing the total dividends for FY2024 to 54 sen per share. The majority of HLFG's earnings are generated by its listed entity, Hong Leong Bank Bhd (KL:HLBANK), with additional contributions from its investment banking and asset management operations under $HLCAP (5274.MY)$ and insurance activities through the unlisted HLA Holdings Sdn Bhd.

$BJCORP (3395.MY)$ reported a significant increase in its fourth-quarter fiscal year 2024 net loss, expanding to RM147.84 million from RM79.33 million a year earlier. This was largely attributed to underperformance in its retail, property, and hospitality sectors, slightly mitigated by robust results in its services division. The group's revenue saw a 3.76% decline to RM2.46 billion, primarily due to reduced earnings from the retail and property sectors.

The High Court in Shah Alam sided with $HARTA (5168.MY)$ against former executive director Dr. Danaraj Nadarajah, citing breaches of fiduciary duties and employment contract. Dr. Danaraj was also found in violation of specific sections of the Capital Markets and Services Act and the Companies Act concerning director responsibilities and misuse of company assets. Hartalega plans to file complaints with the Securities Commission of Malaysia (SC) and the Companies Commission of Malaysia (SSM).

$AXIATA (6888.MY)$ announced an initiative to repurchase up to US$200 million (RM864.75 million) in medium-term notes due in 2050 from its wholly-owned subsidiary, Axiata SPV5 (Labuan) Ltd. These notes, currently listed on the Singapore Exchange, will be retired upon repurchase.

$99SMART (5326.MY)$ revealed an oversubscription rate of 3.04 times for its IPO, set for a Main Market debut on September 9. The company received 49,354 applications for 678.6 million shares against the 210 million offered to the Malaysian public.

$BNASTRA (7195.MY)$ has been awarded a RM155.01 million contract to redevelop a sewage treatment facility in Sri Hartamas. The project, handled by its subsidiary Binastra Builders Sdn Bhd, involves constructing a membrane biological reactor-type plant capable of serving 160,000 population equivalents.

$KIPREIT (5280.MY)$ is poised to expand its portfolio by acquiring four industrial properties located in Cheras Jaya, Pulau Indah, Pasir Gudang in Johor, and Bintulu in Sarawak. The total investment for these acquisitions amounts to RM98.3 million, facilitated through sale and purchase agreements by Pacific Trustees Bhd, acting as trustee.