MY Morning Wrap | Ecobuilt Holdings Secures RM190 Million Contract Amid Financial Turmoil
Good morning mooers! Here are things you need to know about today's market:
● Stock Markets Rise Amid Anticipation of Rate Cuts Despite Higher Inflation
● Malaysia's Q2 Retail Sales Growth Falters Amid Rising Prices and Weaker Consumer Sentiment
● Malaysia Advocates for Leadership in Affordable Green Technology Innovation
● Global Funds Surge into Malaysian and Southeast Asian Stocks Amid Anticipation of Fed Policy Shift
● Stocks to Watch: CCK, Ecobuilt, RHB Bank, etc.
- Moomoo News MY
Wall Street Summary
The stock market continued its upward trajectory on Thursday, following a positive turn on Wednesday. It was a relatively quiet day for stock news, but the market reacted optimistically despite the release of higher month-over-month Producer Price Index (PPI) inflation data. Investors are keenly anticipating potential rate cuts by the Federal Open Market Committee (FOMC) scheduled for next Wednesday. By the close of trading at 4 pm ET, the $S&P 500 Index (.SPX.US)$ saw a gain of 0.75%, the $Dow Jones Industrial Average (.DJI.US)$ increased by 0.58%, and the $Nasdaq Composite Index (.IXIC.US)$ rose by 1%.
Breaking News
Malaysia's Q2 Retail Sales Growth Falters Amid Rising Prices and Weaker Consumer Sentiment
KUALA LUMPUR (Sept 12, 2024) - Retail sales in Malaysia grew by a tepid 0.6% in the second quarter of 2024, falling significantly short of the anticipated 1.7% growth, as reported by Retail Group Malaysia (RGM). Factors such as rising retail prices and the ongoing Israel-Palestine conflict impacted consumer spending, despite increased tourist arrivals from visa exemptions for Chinese and Indian visitors. While the overall retail growth for the first half of the year stood at 4.6%, retailers remain hopeful, projecting a stronger growth rate of 3.6% for the upcoming third quarter, driven by expected recoveries in department stores and supermarkets.
Malaysia Advocates for Leadership in Affordable Green Technology Innovation
Deputy Investment, Trade and Industry Minister Liew Chin Tong urged Malaysia to lead in innovating affordable green technologies during his keynote at the National Climate Governance Summit 2024. He emphasized the importance of agrotechnology and a restructured carbon pricing mechanism to promote sustainable growth and revenue from conservation efforts, drawing parallels with the Netherlands' success in agricultural exports despite limited natural resources. Liew called for significant shifts in pricing structures and federal-state incentives to support sustainable practices and investments that provide domestic benefits and mitigate climate impact.
Global Funds Surge into Malaysian and Southeast Asian Stocks Amid Anticipation of Fed Policy Shift
As global investors anticipate a policy pivot by the US Federal Reserve, Southeast Asian equities are becoming increasingly popular, with the MSCI Asean Index nearing its highest level since April 2022. This month, four out of the top five performing Asian equity benchmarks originate from Southeast Asia, with Thailand leading the surge. The region's attractiveness is bolstered by light foreign investor positioning, supportive local policies, and appealing valuations. Investment opportunities across various sectors, from Indonesian commodities to Malaysian tech, are drawing attention. Positive regional policies and the potential for interest rate cuts are further fueling investor optimism, suggesting the rally could continue well into 2025.
Stocks to Watch
$CCK (7035.MY)$: Creador Sdn Bhd has finalized an agreement to invest RM163.1 million for a 40% stake in PT Adilmart, the Indonesian subsidiary of CCK Consolidated Holdings Bhd. This investment is slightly lower than the initial RM170.3 million proposed in May. The investment will be carried out in three tranches, starting with an acquisition of a 26.5% stake for RM88.1 million, followed by two subsequent share subscriptions totaling RM75 million.
$ECOHLDS (0059.MY)$: Ecobuilt Holdings Bhd, currently managed by an interim liquidator, has obtained a RM190 million construction contract through its subsidiary, Rexallent Construction. While specific project details were not disclosed, the three-year contract is anticipated to significantly improve the company's financial outlook in 2024. Concurrently, Rexallent Construction is dealing with a winding-up petition filed by Strong Force (M) Sdn Bhd, stemming from a RM2.01 million payment dispute. Rexallent has yet to respond to the petition since notification in March 2024.
$RHBBANK (1066.MY)$: RHB Bank is currently embroiled in a legal dispute with Tokio Marine Life Insurance concerning their existing bancassurance deal, which is set to expire in December 2024. Tokio Marine has initiated a lawsuit asserting that it still holds the right of first refusal under the terms of their agreement. RHB, however, contends that Tokio Marine has already exercised this right but chose not to accept the subsequent offer. While analysts express concerns about the potential duration of this legal battle, they remain optimistic about RHB's capacity to secure an alternative insurance partner if needed.
$GPACKET (0082.MY)$: Green Packet Bhd has announced the withdrawal of four investors from its planned private placement of over 598 million shares. The four investors, Dr Prem Kumar, Roberto Guiati, Chan Yok Peng, and Ler Pei Fen, were set to purchase 490 million shares but mutually terminated their agreements on September 12, 2024. Despite these withdrawals, Green Packet confirmed that the subscription agreements with the remaining two investors, Chow Dai Ying and Tay Guat Eng, are still active.
$CHINHIN (5273.MY)$: Datuk Seri Chiau Beng Teik, founder of Chin Hin Group Bhd, has sold a 3.58% stake (59 million shares) in NCT Alliance Bhd through an off-market transaction, lowering his shareholding to 4.48%. This sale drops his interest below the 5% threshold required to be considered a substantial shareholder. While the transaction price was not disclosed, the estimated value of the sale, based on the closing price of 49.5 sen per share on September 9, is approximately RM29.65 million.
$FIAMMA (6939.MY)$: Fiamma Holdings Bhd has signed a memorandum of understanding with Zhuhai Samyou Environmental Technology Co Ltd to set up an air conditioning production plant in Malaysia, marking Samyou's first international manufacturing site. The facility is slated to begin operations by mid-2025, aiming to reach international sales of US$100 million (RM434.2 million) within the next three years.
$BNASTRA (7195.MY)$: Binastra Corp Bhd, a prominent construction firm, has reported a significant increase in net profit for the second quarter ended July 31, 2024. The net profit soared by 171.4% to RM22.86 million, up from RM8.4 million during the same period in the previous year. This remarkable growth was primarily driven by heightened construction activities and the launch of five new projects.
Revenue for the quarter also saw a substantial rise, increasing by 157.5% to RM230.9 million compared to RM89.6 million in the corresponding period in 2023. Despite the impressive financial performance, the company did not declare a dividend for the quarter.
$HIBISCS (5199.MY)$: Hibiscus Petroleum Bhd, an oil and gas exploration and production group, has announced an increase in its dividend for FY2024, proposing an additional one sen per share. This adjustment raises the total dividend payout to 8.5 sen per share, significantly up from the 3.25 sen per share in FY2023 and surpassing the initially forecasted 7.5 sen for FY2024. Looking ahead to FY2025, Hibiscus Petroleum plans to maintain a minimum dividend of eight sen per share, provided that Brent crude oil prices average between US$70 and US$79 per barrel. Should prices exceed US$80 per barrel, the dividend could increase to as much as 10 sen per share, aligning shareholder returns closely with market conditions.
$IOIPG (5249.MY)$: IOI Properties Group Bhd has announced plans to launch the IOI Industrial Park in Banting, Selangor by the second quarter of 2024, with another industrial park slated for launch in Melaka in the following two quarters. By the end of 2025, the group aims to operate three industrial parks, including an existing one in Iskandar Malaysia, Johor. These developments are expected to significantly boost the group's revenues, potentially contributing up to 20% of annual revenue. Given the group's FY2024 revenue of RM2.06 billion, the industrial parks could generate up to RM400 million annually.
$ITMAX (5309.MY)$: ITMAX System Bhd, through its subsidiary Southmax Sdn Bhd, has been awarded a 15-year contract by the Tangkak District Council to manage 5,113 street parking bays. The agreement, which started on September 1, 2024, and will continue until August 31, 2039, utilizes a revenue-sharing model. Under this model, Southmax Sdn Bhd will retain 70% of the revenue generated from parking collections and fines. The financial specifics of the contract were not disclosed. This long-term contract signifies a substantial commitment to improving local infrastructure and service efficiency.
$MNHLDG (0245.MY)$: MN Holdings Bhd has entered into a memorandum of understanding (MOU) with Reservoir Link Energy Bhd to collaborate on renewable energy projects, including solar, biogas, and biomass initiatives. Under this agreement, MN Holdings' subsidiary MN Power Transmission Sdn Bhd and Reservoir Link's Founder Energy Sdn Bhd will work together to share information, propose actionable steps, and assess the effectiveness of their joint efforts in advancing renewable energy solutions. This partnership marks a significant step towards enhancing sustainable energy development within the region.
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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