MY Morning Wrap | CelcomDigi 4Q Net Profit More Than Triples on Surge in Revenue

US stocks traded lower on Tuesday with the $S&P 500 Index (.SPX.US)$ down 0.60%, the $Dow Jones Industrial Average (.DJI.US)$ falling 0.17%, and the $Nasdaq Composite Index (.IXIC.US)$ down 0.92%. The dip in the Nasdaq Composite was attributed to a price pullback in Nvidia, leading to a fall in AI and semiconductor companies. Investors returned from a holiday weekend cautiously amid earnings reports, with crucial earnings from AI-darling Nvidia expected on Wednesday.

$MAYBANK (1155.MY)$: Maybank has announced several top management changes, including the appointment of Datuk Muzaffar Hisham as the group CEO of Islamic banking and CEO of Maybank Islamic Bhd, succeeding Datuk Mohamed Rafique who will assume the role of advisor from March 1 and retire from the Maybank Group on June 20. Muzaffar Hisham is currently Maybank's group CEO of global banking.

$CDB (6947.MY)$: CelcomDigi's net profit more than tripled in 4QFY2023 to RM435.11 million from RM127.36 million a year ago, as revenue surged 50% to RM3.27 billion from RM2.18 billion post-merger. For the full year, net profit rose 83% to RM1.55 billion from RM848.03 million in FY2022, while revenue climbed 87% to RM12.68 billion from RM6.77 billion. The company declared a dividend of 3.5 sen per share for the quarter. However, the group flagged "higher integration costs" as it embarked on a "transformative journey" for its operating models.

$KLK (2445.MY)$: Kuala Lumpur Kepong's net profit dropped 49% year-on-year to RM226.94 million or 21 sen per share in 1QFY2024, compared to RM443.04 million or 41.1 sen per share a year ago, due to losses incurred by its oleochemicals division and lower profit contribution from its refineries and kernel crushing operations. Its parent company Batu Kawan reported a bigger net profit drop of 53% to RM111.74 million for 1QFY2024, from RM235.3 million in the previous corresponding quarter, as revenue fell 17% to RM5.83 billion from RM6.99 billion. Both Batu Kawan and KLK did not declare any dividends for the quarter under review.

$SUPERMX (7106.MY)$: Supermax Corp reported a net loss of RM44.36 million in 2QFY2024, its fifth consecutive quarter of net loss, from RM108.07 million a year ago, as quarterly revenue shrank by 16.7% to RM145.55 million from RM174.79 million in 2QFY2023, due to continued weak demand post-pandemic and low selling prices due to stiff competition, particularly from Chinese manufacturers capitalising on low utility costs. For the first six months of FY2024, the group's net loss dropped 54.7% to RM46.41 million from RM102.36 million in 1HFY2023, while revenue dropped 23.5% to RM323.52 million from RM422.75 million. The company expects the rubber glove market to remain lacklustre with an unfavorable outlook for 2024 due to ongoing demand-supply dynamics post-pandemic.

$HIBISCS (5199.MY)$: Hibiscus Petroleum's net profit surged 45.22% to RM102.34 million for 2QFY2024 from RM70.47 million a year earlier, driven by higher average realised oil prices and lower operating costs. The company declared a dividend of two sen per share. Quarterly revenue slipped 12% to RM627.55 million from RM713.13 million a year ago due to lower sales volume and average realised gas prices. For 1HFY2024, net profit increased 24.74% to RM256.63 million from RM205.73 million, following a 4% growth in revenue to RM1.37 billion from RM1.32 billion.

$GASMSIA (5209.MY)$: Gas Malaysia's net profit rose 9.56% to RM104.33 million in 4QFY2023 from RM95.23 million a year ago, despite lower revenue, helped by a lower tax expense in the quarter. The group declared a dividend of 8.42 sen per share. Revenue fell 18.97% to RM1.8 billion from RM2.22 billion, on lower average natural gas selling prices offset by higher volume of natural gas sold. Full-year FY2023 net profit slipped 1.58% to RM383.4 million or 29.86 sen per share from RM389.54 million or 30.34 sen in FY2022, though cumulative revenue rose 5.62% to RM8.08 billion from RM7.65 billion.

$SUNCON (5263.MY)$: Sunway Construction Group reported a 7.93% rise in net profit for 4QFY23 to RM49.27 million or 3.82 sen per share from RM45.65 million or 3.54 sen per share, thanks to higher progress billings and output at its precast segment. Revenue surged 73.11% to RM871.5 million from RM503.43 million. For the full FY2023, net profit was RM145.11 million, up 7.34% from RM135.18 million a year ago while revenue rose 23.94% to RM2.67 billion from RM2.16 billion. The group declared a dividend of three sen per share for the quarter. It aims for a higher order book target of RM2.5 billion to RM3 billion for 2024, having secured RM2.505 billion last year to lift its outstanding order book to RM5.3 billion.

$GPACKET (0082.MY)$: Green Packet is partnering with Tass Tech International to develop a tourism digital platform for Sri Lanka, with an initial investment of up to RM13 million. Its subsidiary, Kiplepay, has signed a joint venture agreement with Tass Tech for the project that the latter secured from the Sri Lankan government in 2019. Kiplepay will provide a multi-currency e-wallet system for the platform.