MY Morning Wrap | CelcomDigi Posts Strong Q2 Profit Growth Amid Adjusted Earnings Expectations and Dividend Payout

Market sentiment has seen a notable improvement with US stock indices, the S&P 500 and the Nasdaq Composite, both climbing for the seventh straight day. Despite a lower opening on Friday, they rebounded to close higher, with the $S&P 500 Index (.SPX.US)$ up by 3.9% and the $NASDAQ 100 Index (.NDX.US)$ by 5.2% for the week, their strongest performance since the previous October and snapping a four-week losing streak. The $CBOE Volatility S&P 500 Index (.VIX.US)$, known as the "fear gauge," dipped below 15, hitting a three-week low. Encouraging retail sales and jobless claims data have alleviated fears of a US economic slowdown, while softer PPI and CPI figures have raised expectations for a potential interest rate cut in September. Additionally, the yen's stability has contributed positively to the market's outlook.

$CDB (6947.MY)$: CelcomDigi Bhd reported an 18% increase in net profit for the second quarter, reaching RM406.02 million up from RM342.52 million in the same period last year. The growth was attributed to reduced depreciation costs and tax incentives. Despite the profit rise, the company saw a slight revenue dip of 0.5% to RM3.11 billion, down from RM3.12 billion, due to lower performance in services and enterprise divisions. CelcomDigi announced a second interim dividend of 3.5 sen per share, totaling a dividend payout of seven sen for the year so far.

$GENTING (3182.MY)$: Genting Bhd is consulting legal counsel in response to claims from the Nevada gaming authority regarding the failure to prohibit criminals at its Resorts World Las Vegas property. The company has confirmed that its subsidiary, Resorts World Las Vegas LLC, is in discussions with the Nevada Gaming Control Board to address the concerns and is dedicated to adhering to all regulatory requirements.

$MNRB (6459.MY)$: MNRB Holdings Bhd reported a significant 32.6% increase in net profit for the first quarter ending June 30, 2024, achieving RM92.2 million, up from RM69.54 million in the previous year. This profit rise is attributed to the robust performance of its reinsurance and general takaful operations. However, revenue experienced a slight decline of 0.5% to RM941.05 million, compared to RM945.35 million the year before, primarily due to lower returns from the family takaful business. The company did not announce a dividend for the quarter.

$SFPTECH (0251.MY)$: SFP Tech Holdings Bhd, an engineering support services provider, has reported a 21.22% increase in net profit for the second quarter of the fiscal year 2024, rising to RM12.89 million from RM10.63 million in the same period last year. The growth is largely due to an uptick in orders within its Engineering Supporting Services (ESS) segment. The company's revenue also saw a significant boost, climbing by 24.56% to RM45.39 million from RM36.44 million. This quarter's performance sets a new record for SFP Tech Holdings, marking the highest net profit and revenue since its initial public offering on the ACE Market in June 2022. Despite these positive results, the company has not declared a dividend for the quarter.

$SBCCORP (5207.MY)$: SBC Corporation Bhd has announced the sale of a 2.2-acre plot of land in Kuala Lumpur for RM36.6 million to MEGX Holdings Sdn Bhd. The transaction, carried out by its subsidiary Kiara East Property Sdn Bhd, is part of the company's strategy to generate cash flow to finance its development projects. The group anticipates that this disposal will result in a consolidated gain of RM23.75 million for the financial year ending March 31, 2025.

$MI (5286.MY)$: Mi Technovation Bhd has experienced a substantial 21.3% rise in net profit for the second quarter ending June 30, 2024, reaching RM27.6 million compared to RM22.7 million in the corresponding period of the previous year. This increase is largely driven by an impressive 51.3% growth in revenue, which soared to RM127.2 million from RM84.1 million. The revenue boost is attributed to the company's robust semiconductor equipment business, which contributed 56.6%, and the semiconductor material business, accounting for 41.2% of the total revenue. In alignment with these positive results, Mi Technovation Bhd has announced a first interim dividend of 2.5 sen per share.

$ARMADA (5210.MY)$: Bumi Armada Bhd's subsidiary has obtained US$400 million (RM1.77 billion) in syndicated loans to refinance a RM1.5 billion sukuk from 2014. The facility comprises a US$135 million term loan and a US$265 million Islamic Murabahah facility, which will be used to redeem the sukuk and its associated liabilities.

$PCHEM (5183.MY)$: Petronas Chemicals Group Bhd has announced a 24% increase in net profit for the second quarter ended June 30, 2024, reaching RM777 million, up from RM628 million in the same period last year. The growth is attributed to an uptick in sales volume and finance income. Additionally, the company saw a revenue increase of 8.6%, with figures climbing to RM7.73 billion from RM7.11 billion year-on-year. In line with these positive financial results, Petronas Chemicals declared a first interim dividend of 10 sen per share, amounting to RM800 million, which is scheduled for payment on September 12.

$LKL (0182.MY)$: LKL International Bhd, a manufacturer of medical beds, has entered into a partnership with Karl Group to explore opportunities in hospital furniture manufacturing in the Philippines. The collaboration is formalized through a memorandum of understanding where LKL will contribute technical expertise, technology, and training, as well as aid in pinpointing potential investors and arranging financial support. This strategic move is aimed at growing LKL's operations and reinforcing its market footprint in the Philippines, tapping into the increasing demand for premium hospital furniture and healthcare solutions in the region.

$ITMAX (5309.MY)$: ITMAX System Bhd has been awarded a substantial contract valued at RM539.46 million by Kuala Lumpur City Hall (DBKL) for the installation of an additional 5,000 surveillance cameras and video signages across Kuala Lumpur. The contract covers a total duration of 120 months, which encompasses a 12-month installation period followed by a 108-month service subscription term. The commencement of the project will be scheduled according to a mutually agreed work plan. This contract signifies a significant step for ITMAX System Bhd in enhancing the security infrastructure of Malaysia's capital city.

$PARKSON (5657.MY)$: Parkson Retail Asia Ltd (PRA), majority-owned by Parkson Holdings Bhd, has filed to be removed from the Singapore Exchange (SGX) watch-list after its average daily market capitalization exceeded the S$40 million requirement. PRA, which found itself on the watch-list in December 2019 following successive years of financial losses, is now awaiting SGX approval to revoke its watch-list designation. The company has cautioned shareholders and investors to exercise prudence pending the decision.