MY Morning Wrap | Dialog Acquires Tarpon Platform Systems and Tarpon Systems Assets for RM5.5M

U.S. stocks rose Wednesday after a big day of gains sparked by low CPI data bolstered hopes for a soft landing.The $Dow Jones Industrial Average (.DJI.US)$ rose 163 points, or 0.47%, the $S&P 500 Index (.SPX.US)$ or 0.16%, and the $Nasdaq Composite Index (.IXIC.US)$ was up 9.45 points, or 0.07%.

$DIALOG (7277.MY)$: Dialog Group Bhd has acquired the entire stake in Tarpon Platform Systems Malaysia Sdn Bhd (Tarpon Malaysia) and all assets of Tarpon Systems International II, LLC for a total cash consideration of US$1.19 million (approximately RM5.5 million). According to Dialog, Tarpon Malaysia provides engineering, construction, installation and maintenance services to upstream energy companies that use the Tarpon platform system (Business).

$MPI (3867.MY)$: Malaysian Pacific Industries Bhd's (MPI) net profit in the first quarter ended September 30, 2023 (1QFY2024) declined by 68.65% to RM16.52 million from RM52.70 million in the same period last year, partly due to lower revenue and appreciation of the US dollar against the ringgit. Earnings per share fell to 8.31 sen from 26.50 sen. MPI cautioned that the current Middle East conflict could further dampen the recovery of the semiconductor industry in the near future. The group said its quarterly revenue dropped by 9.01% to RM513.21 million compared to RM564.02 million on the back of softer global semiconductor demand.

$KOSSAN (7153.MY)$: Kossan Rubber Industries Bhd reported a net profit of RM40.97 million for its third quarter ended Sept 30, 2023, up 76.14% from RM23.26 million in the corresponding quarter a year ago, thanks to better cost controls and lower raw material costs in its glove business, as well as the sale of higher margin infrastructure products at its technical rubber products division. The stronger earnings came despite revenue being 28% lower at RM403.48 million, versus RM560.52 million previously, as contribution dropped from all divisions.

$UEMS (5148.MY)$: UEM Sunrise Bhd's net profit dropped 59.04% to RM8.34 million for the third quarter ended Sept 30, 2023 (3QFY2023) compared to RM20.35 million a year earlier, on lower operating profit margins. The property developer said profit margins decreased to 14% from 16% previously, due to higher selling and distribution expenses incurred by new project launches. Additionally, there was no recognition of fair value adjustment from investment in unquoted shares for the quarter. Its quarterly revenue fell 12.2% to RM312.35 million from RM355.76 million in 3QFY2022 amid lower revenue contribution from Residensi Solaris Parq in Mont Kiara, which was at the advanced stage of completion, as well as Serene Heights in Semenyih, Residensi Astrea in Mont Kiara, as well as Estuari Gardens and Aspira ParkHomes in Iskandar Puteri, Johor.

$BJCORP (3395.MY)$: Berjaya Corp Bhd has disposed of a 4.89% stake or 37.8 million shares in Redtone Digital Bhd via a direct business transaction, raising some RM27.59 million or 73 sen per share. Following the disposal, Berjaya Corp told Bursa Malaysia on Wednesday that the group and its subsidiaries’ shareholdings in Redtone now stands at 42.57% or 329.06 million shares. Berjaya Corp said the disposal, which took place on Tuesday, was done by its wholly-owned subsidiary Juara Sejati Sdn Bhd. It did not disclose the buyer.

$PLYTEC (0289.MY)$: Newly-listed ACE Market counter Plytec Holding Bhd ended its maiden trading day at an intraday low of 32.5 sen on Wednesday, down 7.14% against its initial public offering (IPO) price of 35 sen, despite opening one sen up on its debut in the morning. The counter's intraday high was 36 sen, while its intraday low was 32.5 sen. Plytec was the fourth worst-performing IPO so far this year after Radium Development Bhd, which fell 23% from its IPO price of 50 sen, Synergy House Bhd (down 18.6% from its IPO price of 43 sen) and SkyWorld Development Bhd (down 7.5% from its IPO price of 80 sen).

$AMWAY (6351.MY)$: Amway (Malaysia) Holdings Bhd posted record earnings in the third quarter ended Sept 30, 2023 (3QFY2023) despite lower revenue, with net profit more than doubling year-on-year, as the group paid significantly lower incentives to its “Amway Business Owners”, in line with lower sales recorded. The improved profitability came after Amway issued a profit warning in August, after taking into consideration that inflation would squeeze consumers’ purchasing power and appetite to spend. Net profit for 3QFY2023 jumped 146% to RM46.21 million or 28.11 sen per share, from RM18.75 million or 11.41 sen per share a year ago (3QFY2022), despite revenue falling 10.3% to RM333.47 million from RM371.79 million.

$BJFOOD (5196.MY)$: Berjaya Food Bhd's net profit for the first quarter ended Sept 30, 2023 (1QFY2024) fell by 45.16% to RM19.03 million from RM34.7 million reported in the same quarter last year, as inflationary cost pressures squeezed its margins. As a result, earnings per share dropped to 1.08 sen from 1.96 sen, its bourse filing showed. Revenue dipped 1.6% to RM278.53 million from RM283.05 million, mainly due to lower sales from its Kenny Rogers Roasters’ restaurants in Malaysia. The group declared a first interim share dividend of one treasury share for every 100 ordinary shares held, which is equivalent to a 0.44 sen per share distribution or a total of RM7.72 million, in respect of FY2024, to be paid on Dec 29 — with Dec 14 being the entitlement date.

$VSTECS (5162.MY)$: VSTECS Bhd's net profit in the third quarter ended September 30, 2023 (3QFY2023) dropped 23.02% to RM12.73 million, from RM16.54 million last year, on higher distribution expenses, as it recorded lower sales revenue in the period. Also contributing to the weaker performance was higher impairments of financial instruments and lower forex gains, the ICT products, software and IT services provider said. Quarterly earnings per share declined slightly to 3.60 sen from 4.60 sen in 3QFY2022.The group declared a first interim dividend of 2.50 sen per share — unchanged from last year — to be paid on Jan 12, 2024.

$CRESNDO (6718.MY)$: Property developer Crescendo Corp Bhd (CCB) is stepping up land sales in Pulai, Johor. It plans to sell nine parcels of freehold vacant land in Pulai, measuring 82,496.4 sq m for RM111 million cash, following an announcement a week ago that it would divest seven parcels of adjoining lands, also in Pulai, for RM117.02 million cash. CCB said it is expected to record a consolidated gain after taxation of approximately RM68.33 million from the latest disposal.