MY Morning Wrap | Capital A Obtains US$443 Million Bond for AirAsia
Good morning mooers! Here are things you need to know about today's market:
●Market Pullback Sees Most S&P 500 Sectors in Decline
●Malaysia's Inflation Expected to Stay Low with Government Incentives
●Malaysia to Spearhead Asean-India FTA Review
●Malaysia Anticipated to Receive Credit Rating Upgrade
●Stocks to watch: Capital A, Bumi Armada, Matrix and Sime Darby Property
-moomoo News MY
Wall Street Summary
Despite a strong market open that brought stocks close to all-time highs, Thursday's trading session saw a retreat with nine out of the eleven S&P 500 sectors ending in the red. By the closing bell at 4 pm ET, the $S&P 500 Index (.SPX.US)$ had declined by 0.89%, while the $Dow Jones Industrial Average (.DJI.US)$ fell by 0.43%, and the tech-heavy $NASDAQ 100 Index (.NDX.US)$ experienced a more significant drop of 1.67%. This downturn suggests a shift in investor sentiment or reaction to various economic factors, even amidst the proximity to record equity levels.
Breaking News
Malaysia Secures RM8 Billion in Potential Trade Deals During Prime Minister Anwar's India Visit
Malaysia's inflation, measured by the CPI, is expected to stay low at around 2.3% in 2024 due to government incentives. July's CPI rose by 2%, and despite some pressures from diesel subsidies, economists predict these will be mitigated by targeted measures. RHB Investment Bank revised its inflation forecast down to 2.1%, while UOB estimates a steady 2% rate. Future inflation hinges on fuel subsidy adjustments and other economic factors. Bank Negara Malaysia is likely to keep interest rates at 3%. RON95 fuel subsidy cuts are expected to start in Q4 but will be gradual to minimize inflation impact.
Malaysia to Spearhead Asean-India FTA Review
Malaysia is set to lead the coordination of the review process for the free trade agreement (FTA) between Asean countries and India. Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia's Investment, Trade and Industry Minister, announced that a Malaysian delegation will visit New Delhi in November for FTA consultations. As the future Asean chair in 2025, Malaysia aims to not only finalize but enhance the existing FTA with India. This announcement follows the successful visit of Malaysia's Prime Minister to India, where both leaders expressed the desire to complete the FTA review on time. Negotiations for revising the Asean-India Trade in Goods Agreement (AITIGA) started in May 2023.
Malaysia Anticipated to Receive Credit Rating Upgrade
The Malaysian Institute of Economic Research (MIER) predicts a credit rating upgrade for Malaysia next year due to fiscal improvements, economic strength, and solid public finances. MIER expects an upgrade from Fitch to "A-" from "BBB+" and from S&P to "A" from "A-". The positive outlook is supported by political stability, policy reforms, and foreign investor interest. Malaysia's GDP growth could surpass 5%, and inflation is expected to stay manageable despite potential rises. The overnight policy rate (OPR) is likely to remain at 3%.
Stocks to Watch
$CAPITALA (5099.MY)$: Capital A Bhd has secured a US$443 million revenue bond to address AirAsia Bhd's financial needs, including refinancing lease liabilities, maintenance costs, and working capital support. The bond will be issued in two parts, with US$200 million provided by Ares Management Corp and Indies Capital Partners for the reactivation of aircraft sidelined during the pandemic. The remaining US$243 million comes from current aircraft lessors to refinance leases. The bonds, issued by AirAsia RB 1 Ltd, a subsidiary, mature in September 2026 and August 2028.
$ARMADA (5210.MY)$: Bumi Armada Bhd reported a net profit of RM265.96 million in the second quarter of fiscal year 2024, a significant increase from RM118.77 million a year earlier. The growth is attributed to higher margins and the performance of its FPSO vessels, Armada Kraken and Armada Olombendo. Revenue climbed 31% to RM578.86 million. No dividend was declared for the quarter.
$MATRIX (5236.MY)$: Matrix Concepts Holdings Bhd reported a 6% decline in net profit for the first quarter of fiscal year 2025, recording RM60.7 million, compared to RM64.6 million the previous year. This was due to a decrease in revenue, which fell by nearly 16% to RM279.7 million from RM331.4 million. The drop in revenue was mainly because of a reduction in revenue recognition from the Sendayan Developments. The company announced a first interim dividend of 2.5 sen per share, set to be paid on October 10.
$SIMEPROP (5288.MY)$: Sime Darby Property Bhd's net profit for the second quarter of fiscal year 2024 soared to RM161.96 million, more than doubling from RM71.07 million in the same quarter of the previous year. The growth was fueled by robust land sales and higher sales in industrial and high-rise residential units. Quarterly revenue also jumped to RM1.2 billion from RM688.92 million year-on-year. The company has declared a first dividend of 1.5 sen per share for FY2024, which will be paid on November 6. Encouraged by its first-half performance, the group has revised its sales target upwards for the year.
$EUPE (6815.MY)$: Eupe Corp Bhd, the Kedah-based property developer, has projected a gross development value (GDV) of RM300 million from its new acquisition—a 2.46-acre parcel of land in the prime location of Bangsar, Kuala Lumpur. The company plans to develop a high-rise residential project on this site, with a launch slated for 2026 and an ambitious completion target of three years, one year ahead of the typical four-year timeline. The land was acquired in May for a total of RM69.18 million.
$SEM (5250.MY)$: 7-Eleven Malaysia Holdings Bhd experienced a net profit increase of 5.9% in the second quarter of fiscal year 2024, reaching RM20.49 million, up from RM19.35 million in the same quarter the previous year. The profit gain was attributed to an uptick in revenue combined with a reduction in administrative and operating expenses. Revenue for the quarter climbed by 3.3% to RM751.79 million from RM727.98 million, with the growth propelled by the opening of 94 new stores and increased spending during the Hari Raya Aidilfitri festive period. The company did not declare a dividend for this quarter.
$FOCUSP (0157.MY)$: Focus Point Holdings Bhd recorded a 16.5% increase in net profit for the second quarter of fiscal year 2024, with profits rising to RM8.43 million from RM7.24 million in the corresponding quarter of the previous year. This performance boost was primarily due to increased revenue in the company's optical business and a return to profitability in its food & beverage segment. The company's revenue for the quarter increased by 12.1% to RM70.61 million compared to RM62.99 million a year earlier. The company did not announce a dividend payout for the quarter.
$TOMEI (7230.MY)$: Tomei Consolidated Bhd, a prominent gold and jewellery retailer, announced a net profit of RM19.9 million for the second quarter of fiscal year 2024, marking a 16.8% increase from the RM17 million reported in the same period the previous year. The company's revenue saw a substantial rise of 19.5% to RM266.9 million, up from RM223.4 million, largely driven by stronger performance in its retail operations. Despite the positive financial results, the company did not declare a dividend for the quarter.
$KOSSAN (7153.MY)$: Kossan Rubber Industries Bhd has made a notable recovery in the second quarter of fiscal year 2024, registering a net profit of RM31.34 million. This marks a significant improvement from the RM3.29 million net loss reported in the same quarter of the previous year. The profit was attributed to increased contributions from all business segments. However, the company did experience a slight dip in net profit from the previous quarter, which was due to reduced glove sales and rising costs. The company's revenue saw a year-on-year increase of 10.93%, reaching RM429.91 million. Despite the positive earnings, the company did not announce any dividend for this particular quarter.
$AEONCR (5139.MY)$: AEON Credit Service (M) Bhd has announced the launch of its sixth senior sukuk under its RM2 billion sukuk wakalah programme. The latest issuance totals RM350 million and is divided into two tranches—RM130 million with a five-year tenure and RM220 million with a six-year tenure. The proceeds from this sukuk issuance are earmarked for financing the company's operations and for refinancing existing loans or sukuk. This strategic financial maneuver is part of AEON Credit Service's broader efforts to manage its debt portfolio and secure funds for its business activities.
$MFCB (3069.MY)$: Mega First Corp Bhd has reported an impressive 18.9% increase in net profit for the second quarter of fiscal year 2024, with figures reaching RM150.36 million, up from RM88.61 million in the same period of the previous year. This significant growth in profitability has been supported by enhanced performances across all the company's operating segments. The company's revenue also saw a modest rise of 1.9%, amounting to RM331.95 million compared to RM325.65 million in the previous year. In light of these strong financial results, Mega First Corp Bhd has declared a dividend of 4.5 sen per share for the quarter, which is an increase from the four sen per share dividend declared a year earlier.
$MSM (5202.MY)$: MSM Malaysia Holdings Bhd has experienced a downturn, reporting an increased net loss of RM32.40 million for the second quarter ended June 30, 2024. This result marks a shift from the profits achieved in the two preceding quarters and represents a 55.6% larger loss compared to the RM20.82 million loss seen in the same period last year. The company attributed the increased loss to a combination of factors including escalated raw sugar prices, rising operating expenses, and a decrease in non-operational gains.
Despite the setback in profitability, the company did witness an 11.6% increase in revenue, which rose to RM833.08 million from RM746.23 million in the previous year. This increase in revenue was driven by higher average selling prices and incentives that offset the impact of a reduction in sales volume. However, in light of the net loss, MSM Malaysia Holdings Bhd did not declare any dividend for the quarter.
$UEMS (5148.MY)$: UEM Sunrise Bhd saw a 23.71% reduction in net profit for 2QFY2024, with earnings of RM18.84 million compared to RM24.7 million a year earlier, due to increased operating costs and reduced profits from joint ventures and associates. Revenue declined by 43.61% to RM205.22 million from RM363.96 million in the previous year, and no dividend was announced for the quarter.
$SUNCON (5263.MY)$: Sunway Construction Group Bhd reported a 17.8% increase in net profit to RM38.87 million for 2QFY2024, up from RM33 million the previous year, driven by stronger contributions from all segments. Revenue for the quarter grew by 7.8% to RM651.25 million, compared to RM604.1 million, bolstered by the construction segment's performance. The group declared a first interim dividend of 3.5 sen per share for FY2024, to be paid on September 26.
$DAYANG (5141.MY)$: Dayang Enterprise Holdings Bhd's net profit surged to RM131.44 million in 2QFY2024, more than doubling from RM64.69 million the previous year, thanks to increased vessel utilisation rates and improved daily charter rates. The company's quarterly revenue jumped 49.1% to RM455.84 million from RM305.73 million, with vessel utilisation rates reaching 91%. A first interim dividend of three sen per share has been declared, with payment scheduled for September 18.
$LBS (5789.MY)$: LBS Bina Group Bhd reported a 4.9% increase in its second-quarter net profit for FY2024, with earnings of RM34.64 million compared to RM33.01 million a year prior, driven by contributions from major property development projects. The company's revenue for the quarter also rose by 16.5% to RM431.85 million from RM370.75 million, due to heightened development activities in ongoing projects. No dividends have been declared by the group for the year thus far.
$GREATEC (0208.MY)$: Greatech Technology Bhd saw a 26.3% rise in net profit for 2QFY2024, with earnings of RM48.39 million up from RM38.3 million in the same period last year. Revenue increased by 24.3% to RM205.88 million from RM165.61 million, attributed to cost-optimisation and timely project execution. No dividend was recommended for the quarter.
$TSH (9059.MY)$: TSH Resources Bhd experienced a substantial increase in net profit for 2QFY2024, with earnings nearly doubling to RM20.63 million from RM10.56 million the previous year. This growth was primarily driven by enhanced profitability in its palm products segment, reductions in corporate expenses and finance costs, and greater profit contributions from its associate and joint venture operations. Despite these gains, revenue saw a slight decline of 1.6% to RM252.52 million from RM256.57 million, attributed to lower sales volumes of fresh fruit bunches and crude palm oil, which was somewhat offset by higher average prices for CPO and palm kernel. The company did not announce any dividends for the quarter.
$MAGNUM (3859.MY)$: Magnum Bhd saw its second-quarter revenue for FY2024 grow by 12.1% to RM601.89 million, up from RM537.09 million in the same quarter of the previous year, primarily due to an increase in gaming revenue. Net profit, however, saw a modest rise of 4.1% to RM45.44 million from RM43.64 million. This was attributed to losses in the investment holdings division, increased operating expenses, and a decrease in fair value gains. Despite these factors affecting net profit, the group has declared a dividend of two sen per share, which is scheduled to be paid on September 20.
$WCEHB (3565.MY)$: WCE Holdings Bhd reported its fifth consecutive quarterly net loss, mainly due to the interest expenses associated with project financing for the completed sections of the West Coast Expressway (WCE) project. Nonetheless, the company's net loss for 1QFY2025 showed a slight improvement, narrowing to RM25.86 million from RM26.41 million in the same quarter the previous year. However, the group's revenue for the quarter experienced a significant decline, dropping by 34.9% to RM75.57 million from RM116.04 million. This indicates that while the company may be managing losses to a certain extent, it is still facing challenges in terms of revenue generation.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
IKRAMJDT87 :
Goodjobguys : Indonesia and Malaysia are emerging as standout markets in Asia this month as global investors reduce their stakes in other regional markets. Foreign investors have poured $684 million into Indonesian stocks and $241 million into Malaysian stocks in August, marking the second consecutive month of inflows for both countries. In contrast, India has seen a significant outflow of $1.8 billion. Analysts attribute Indonesia’s success to its fiscal discipline and economic growth, while Malaysia benefits from a surge in data center investments driven by the artificial intelligence boom. Both countries’ currencies are also outperforming others in the emerging markets.
印度尼西亚和马来西亚在本月亚洲市场中表现突出，全球投资者减少了对其他地区市场的投资。外国投资者在8月份向印度尼西亚股票投入了6.84亿美元，向马来西亚股票投入了2.41亿美元，连续第二个月实现资金流入。相比之下，印度则出现了18亿美元的显著资金外流。分析人士将印度尼西亚的成功归因于其财政纪律和经济增长，而马来西亚则受益于人工智能热潮推动的数据中心投资激增。这两个国家的货币在新兴市场中表现优异。
Ernestine : k