MY Morning Wrap | CIMB Group Reports 18% Increase in Q1 Net Profit as Income Growth Outpaces Provisions and Costs
Good morning mooers! Here are things you need to know about today's market:
●Nasdaq, S&P 500 soared in final minutes despite selloff in tech megacaps last Friday
●Malaysia's official reserve assets at US$112.79bil as of end-April
●DOSM: Median monthly wages for formal sector up 4.9% y-o-y to RM2,900 in December 2023
●Stocks to watch: CIMB, TNB and Petronas
-moomoo News MY
Wall Street Summary
Stocks traded volatilely last Friday as Wall Street marked May's final market day, but the main indexes ended the session higher as investors moved their focus off of tech and into other sectors.
The $S&P 500 Index(.SPX.US)$ rose 0.8% for last Friday and 4.8% for May as a whole. Meanwhile, the blue-chip $Dow Jones Industrial Average(.DJI.US)$ ended higher by 574 points, or 1.5% -- its best day so far in 2024. Still, the technology-heavy $Nasdaq Composite Index(.IXIC.US)$ finished about flat.
Breaking News
Malaysia's official reserve assets at US$112.79bil as of end-April
As of the end of April 2024, Bank Negara Malaysia (BNM) reported that Malaysia's official reserve assets reached a total of US$112.79 billion (based on the exchange rate of US$1 = RM4.70), while other foreign currency assets amounted to US$403.7 million. BNM further disclosed that over the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which include among others, scheduled repayment of external borrowings by the Government and the maturity of foreign currency Bank Negara Interbank Bills, were estimated to total US$15.35 billion. Additionally, BNM stated that net short forward positions reached US$27.69 billion as of the end of April 2024, which reflected the management of ringgit liquidity in the money market.
DOSM: Median monthly wages for formal sector up 4.9% y-o-y to RM2,900 in December 2023
According to the Quarterly Employee Wages Statistics (Formal Sector) Report, Fourth Quarter 2023's Summary released by the Department of Statistics Malaysia (DOSM), the median monthly wages for the formal sector rose by 4.9% year-on-year to RM2,900 in December 2023. The report also revealed that the number of formal employees in Malaysia reached 6.67 million persons in December 2023, representing a 1.8% increase compared to the same month in the previous year.
Stocks to Watch
$CIMB (1023.MY)$: CIMB Group Holdings Bhd reported an 18% increase in net profit for the first quarter compared to the same period last year, driven by faster growth in both interest and non-interest income compared to costs and provisions. The bank recorded a net profit of RM1.94 billion for the three months ending March 31, 2024, up from RM1.64 billion in the same period in 2023. Net interest income experienced a 7.7% YoY growth, reaching RM3.79 billion, while non-interest income surged by 24.5% to RM1.84 billion. CIMB Group did not declare any dividends for the quarter.
$TENAGA (5347.MY)$: Tenaga Nasional Bhd reported a 28.6% decline in net profit for the first quarter ending March 31, 2024, from RM1 billion to RM715.7 million, primarily due to foreign exchange translation losses and increased tax expenses. Revenue grew by 8% to RM13.64 billion, up from RM12.63 billion. The company did not declare any dividends for the quarter.
$PETGAS (6033.MY)$: Petroliam Nasional Bhd (PETRONAS) reported a profit after tax (PAT) of RM21.3 billion for the first quarter of 2024, representing an 10.5% decline compared to RM23.8bil in the same quarter last year. This was attributed to higher operating costs and lower realised prices, although revenue remained stable at RM89.7 billion, slightly higher than RM89.3 billion in the previous year's same quarter.
$SDG (5285.MY)$: Sime Darby Plantation Bhd reported a tripled net profit for the first quarter ended March 31, 2024, compared to the same period in the previous year. This was due to lower taxes and robust downstream operations. The net profit for Q1 2024 was RM211 million, up from RM69 million in Q1 2023. The company's revenue also increased by 6.7% YoY to RM4.34 billion from RM4.07 billion. The company did not declare any dividends for the quarter.
$AME (5293.MY)$: AME Elite Consortium Bhd's wholly-owned subsidiary, Golden Symphony Sdn Bhd, has entered into a sale and purchase agreement with Dahlia Utama Sdn Bhd to acquire three parcels of freehold land measuring 37.5 acres in Kulai, Johor for RM106.17 million. The land will be used for the development of an industrial cluster. AME Elite sees this acquisition as a strategic investment opportunity to increase its land bank. The transaction is expected to be completed by the third quarter of 2024.
$BJCORP (3395.MY)$: Berjaya Corp Bhd reported a net profit of RM694.58 million for the third quarter ended March 31, 2024, representing a significant increase of over 200 times compared to the same period the previous year. This net profit figure is the highest the company has achieved in nine years. The increase was largely due to divestment and accounting gains. The company's revenue also rose by 11.24% YoY to RM2.78 billion from RM2.5 billion, driven by higher property and lottery sales. However, the company did not declare any dividends for the quarter.
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.
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