MY Morning Wrap | Datasonic Secures RM21 Million Contract to Support Income Initiative with Vending Machines

On Monday, the stock market saw a slight recovery from last week's 2% one-day pullback, with the $S&P 500 Index (.SPX.US)$ inching up by 0.08%, while the $Dow Jones Industrial Average (.DJI.US)$ dipped slightly by 0.12%, and the $Nasdaq Composite Index (.IXIC.US)$ rose by a modest 0.07%. Investors are gearing up for a pivotal week of earnings reports from some of the world's largest companies, often referred to as the "magnificent seven." Microsoft is set to release its earnings on Tuesday, followed by Meta Platforms on Wednesday, and both Apple and Amazon on Thursday. These announcements are eagerly anticipated alongside earnings from other substantial market cap firms such as Paypal, Pinterest, AMD, BP, Pfizer, and Starbucks, which are also reporting on Tuesday.

$IHH (5225.MY)$: IHH Healthcare Bhd, Malaysia's largest hospital operator, is considering the adoption of outcome-based payment models following the promising results of its value-driven outcomes initiatives. These initiatives involve meticulous tracking of the patient journey to measure performance, pinpoint inefficiencies, and enhance clinical processes. Notably, the group's approach to colonoscopy procedures has led to polyp detection rates that surpass benchmark standards, potentially preventing the development of colon cancer. This success has prompted IHH Healthcare to explore new payment models that align healthcare costs with patient outcomes.

$GENP (2291.MY)$: Genting Plantations Bhd’s subsidiary, Benih Restu Bhd, has initiated the issuance of RM1.2 billion in Islamic medium-term notes, known as sukuk wakalah, as part of a larger RM2 billion sukuk wakalah program. The ten-year notes issued will carry an annual profit rate of 4.08%, adhering to the shariah principle of Wakalah Bi Al-Istithmar. This move marks a significant step in the company’s efforts to raise funds in compliance with Islamic finance principles.

$DSONIC (5216.MY)$: Datasonic Group Bhd, through its subsidiary Datasonic Technologies Sdn Bhd (DTSB), has been awarded a contract exceeding RM21 million from the Ministry of Economy to provide 818 vending machines for the People's Income Initiative (IPR) programme. This programme, particularly under the Food Entrepreneur Initiative (Insan) category, is designed to aid impoverished Malaysians by giving them the opportunity to earn an income through the sale of cooked food via vending machines sponsored by the government. This initiative reflects the government's commitment to social entrepreneurship and the support of low-income citizens in becoming self-sufficient.

$DIALOG (7277.MY)$: Malaysian-based Dialog Group Bhd is enhancing its storage facilities at Terminal Langsat 3 (DTL3) in Tanjung Langsat, Johor, by adding an additional 150,000 cubic metres capacity for both renewable and petroleum products. Of this expansion, 100,000 cubic metres will be allocated to EcoCeres Ltd, which is a subsidiary of the international firm EcoCeres Inc. The remaining 50,000 cubic metres are anticipated to be leased to a variety of third-party clients, including multinational corporations and trading companies. This strategic move is set to bolster Dialog Group's position as a key player in the storage market, accommodating the growing demand for renewable product storage alongside traditional petroleum products.

$KGB (0151.MY)$: Kelington Group Bhd, an integrated engineering solutions provider listed on the Kuala Lumpur Stock Exchange, has announced the acquisition of the remaining 9.29% stake in Ace Gases Sdn Bhd for RM35.69 million. Prior to this transaction, Kelington already held a significant majority of 90.71% in the subsidiary. Ace Gases is a key player in the industrial gas sector, focusing on the manufacture, supply, import, trade, and provision of industrial gas solutions. By securing full ownership, Kelington aims to gain enhanced operational flexibility, allowing for more effective long-term strategic planning and potentially boosting the growth trajectory of its business and services within the industrial gas market.

$PMBTECH (7172.MY)$: PMB Technology Bhd, a company known for producing silicon metal and engaging in metal fabrication, has revealed plans for a significant fundraising exercise through a renounceable rights issue. The proposed issue could see up to 266.78 million new ordinary shares offered at a ratio of six rights shares for every existing share held by current shareholders, with the aim of raising approximately RM300 million. The company is securing solid backing for the move by obtaining irrevocable commitments from its major shareholders to subscribe to their portion of the shares, accounting for RM144.6 million of the total. To assure full subscription, PMB Technology is also arranging for the Koon family, or their assignees, to take up any unsubscribed rights shares, covering the remaining RM155.4 million. This rights issue represents a strategic step to bolster the company's financial position and potentially fund future growth or debt repayment initiatives.

$EKOVEST (8877.MY)$: Ekovest Bhd, an infrastructure and construction firm, is set to sell four parcels of land totaling 2,286 square meters located along Jalan Pahang in Kuala Lumpur. The land is being sold to Airman Sdn Bhd for RM9.82 million, a wholly owned subsidiary of Lim Seong Hai Holdings Sdn Bhd (LSHHSB), in a transaction that constitutes a related party deal. This is due to Ekovest's director Tan Sri Lim Keng Cheng's significant role as a major shareholder and director of LSHHSB, holding a 25% stake. The sale is expected to result in a gain of RM3.51 million for Ekovest.

$PGLOBE (3611.MY)$: Paragon Globe Bhd, a Johor-based property developer, is set to bolster its presence in the state with a RM34.96 million cash purchase of additional land in Plentong, Johor Bahru. Through its subsidiary Paragon Business Hub Sdn Bhd, the company is acquiring two freehold land parcels from EKL Holdings Sdn Bhd, totaling approximately 19.33 acres. The land acquisition is part of Paragon Globe's strategic growth plan, with the development projected to have an estimated gross value of RM293.52 million.

$TUNEPRO (5230.MY)$: Tune Protect Group Bhd has officially appointed How Kim Lian as the new Group Chief Executive Officer, effective starting Monday. How takes over from Rohit Nambiar, who resigned in May 2024. Tasked with expanding the company's reach in the lifestyle ecosystem and collaborating with major regional entities, How aims to position Tune Protect as a dominant insurance player in the travel sector across the region.

$HBGLOB (5187.MY)$: HB Global Ltd, a key player in the frozen food industry, has announced the appointment of Datuk Johan Pahlawan Lela Perkasa Setiawan Datuk Muhammad Abdullah, the ruling chief (Undang Luak Johol) of Johol, as its new independent non-executive chairman. Holding a crucial role within the Johol community in Negeri Sembilan, Muhammad is responsible for overseeing land management, customary laws, and the preservation of cultural heritage. His diverse background spans education and financial services, bringing a wealth of experience to the HB Global Ltd board.

$M&G (5078.MY)$: Marine & General Bhd's Executive Chairman, Tan Sri Mohammed Azlan Hashim, and his son have exercised a call option to buy 3.2 million preference shares in Jasa Merin (Malaysia) Sdn Bhd (JMM) for RM3.52 million. These shares, purchased from three banks at RM1.10 each, are convertible into 32 million ordinary shares in M&G, where JMM is a 70% owned subsidiary.

$CHINTEK (1929.MY)$: Chin Teck Plantations Bhd's Q3 net profit soared to RM22.69 million, nearly doubling from RM11.44 million a year earlier, on a 41.7% revenue jump to RM66.6 million. Higher fresh fruit bunch, crude palm oil, and palm kernel sales drove growth. Shareholders will receive an eight sen interim dividend and a 20 sen special dividend.

$ECOFIRS (3557.MY)$: EcoFirst Consolidated Bhd, a prominent property developer on the Kuala Lumpur Stock Exchange, has reported a substantial increase in its net profit for the fourth quarter ending May 31, 2024. The company's net profit has more than doubled to RM41.51 million, a significant rise from RM17 million recorded during the corresponding quarter of the previous year. This impressive growth in profitability is primarily attributed to a higher sales conversion rate for the company's KL-48 project. Additionally, EcoFirst's revenue for the quarter saw an almost fivefold increase, surging to RM87.86 million from RM17.84 million year-on-year. The substantial jump in both profit and revenue highlights the strong market demand for EcoFirst's developments and the company's ability to capitalize on this opportunity to enhance shareholder value.