MY Morning Wrap | F&N Posts 22.4% Net Profit Increase Despite Revenue Dip Amidst Global Challenges
Good morning mooers! Here are things you need to know about today's market:
●US Markets Suffer Losses as Investor Sentiment Dampens Despite Meta's Earnings Beat
●Malaysia's Ringgit Poised for Strengthening on Back of Economic Growth and Government Efforts
●Malaysia's Manufacturing Sector Set for 2H2024 Recovery Amid Export Growth and Technological Demand
●Miti to Deliver Budget 2025 Proposals, Aiming for Inclusive Economic Growth and Enhanced Governance
●Stocks to watch: F&N, Pentamaster, CTOS, YTL REIT
-moomoo News MY
Wall Street Summary
US stock markets closed in the red as morning earnings calls overshadowed the initial optimism from Meta's earnings beat. The $S&P 500 Index(.SPX.US$ dropped by 1.37%, the $Dow Jones Industrial Average(.DJI.US$ declined by 1.21%, and the tech-heavy $NASDAQ 100 Index(.NDX.US$ took a steeper fall of 2.30%. The downturn affected a wide range of equities, including the most popular stocks among moomoo platform users from the previous week. Investor sentiment turned negative, leading to a broadly bearish day on the market.
Breaking News
Malaysia's Ringgit Poised for Strengthening on Back of Economic Growth and Government Efforts
Malaysia's Finance Minister II, Datuk Seri Amir Hamzah Azizan, anticipates the ringgit to gain strength driven by the country's positive economic growth and government initiatives aimed at drawing investments. The minister expressed confidence in meeting the economic growth target of 4% to 5% for 2024, with potential for even higher levels. Factors such as US interest rates will influence the ringgit's trajectory. Government strategies, including fiscal reforms, inflation management, and high-level investment approvals, are expected to bolster the economy and currency stability. Moreover, Amir Hamzah highlighted Japan's significant role in Malaysia's industrialization and the presence of over 1,500 Japanese businesses in the country, reinforcing Malaysia's status as an attractive investment hub. With Malaysia set to chair Asean in 2025, he foresees increased opportunities for economic collaboration within the East Asian region.
Malaysia's Manufacturing Sector Set for 2H2024 Recovery Amid Export Growth and Technological Demand
Economists remain hopeful for a rebound in Malaysia's manufacturing sector in the second half of 2024, especially for export-oriented industries, despite a dip in July's PMI. Growth prospects are buoyed by increased demand in technology and China's economic stimulus, with Kenanga Research forecasting a 4.5%-5% GDP growth. BIMB Securities also expects a recovery, citing robust domestic demand and a global semiconductor upswing. However, geopolitical risks and supply chain issues could pose challenges. S&P Global's recent PMI data suggests a marginal sector contraction, yet continued overall manufacturing growth is anticipated.
Miti to Deliver Budget 2025 Proposals, Aiming for Inclusive Economic Growth and Enhanced Governance
Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz announced that the Ministry of Investment, Trade and Industry (Miti) will submit its Budget 2025 proposals to the Ministry of Finance on August 12, following stakeholder meetings on August 5 and 6 to incorporate industry feedback. The budget, set to be presented on October 18, aligns with Prime Minister Anwar Ibrahim's directive for stakeholder engagement and aims to fulfill the Madani Economy's short-term priorities of economic restructuring for competitiveness, improving quality of life, and bolstering governance and public service delivery.
Stocks to Watch
$F&N(3689.MY$: Fraser & Neave Holdings Bhd reported a 22.4% increase in net profit to RM121.63 million for Q3 2024, up from RM99.37 million the previous year. Despite this profit rise, the company experienced a slight revenue decline of 2.08% to RM1.3 billion, attributed to geopolitical tensions impacting Malaysian exports and the depreciation of the Thai baht. No dividend was distributed for the quarter.
$PENTA(7160.MY$: Pentamaster Corp Bhd experienced a 15.87% drop in net profit to RM19.9 million in the second quarter of 2024, compared to RM23.65 million in the same period last year, due to decreased sales in its main Automated Test Equipment (ATE) segment, alongside increased employee costs, provisions for slow-moving inventory, and investment in research and development. Revenue also fell slightly by 3.11% to RM171.37 million. The company has not announced any dividend for this quarter.
$CTOS(5301.MY$: CTOS Digital Bhd reported a 20.7% increase in net profit to RM25.5 million for Q2 2024, up from RM21.13 million in the same period the previous year. This profit boost is attributed to growth across all customer segments, including key accounts, commercial, and direct-to-consumer. The company also saw revenue rise by 23.1% to RM76.64 million. Reflecting this positive performance, CTOS Digital declared a higher second interim dividend of 0.78 sen per share, which is due for payment on September 27.
$YTLREIT(5109.MY$: YTL Hospitality Real Estate Investment Trust registered a 9.7% rise in net property income to RM65.8 million for the fourth quarter ending June 30, 2024, compared to RM59.9 million in the corresponding period last year. The growth was fueled by increased earnings from both its hotel operations and property rental divisions. Revenue for the quarter also saw a 10.7% increase, reaching RM130.2 million. In line with the positive financial results, the group announced a final income distribution of 4.09 sen per unit, scheduled for payment on August 30.
$NOVAMSC(0026.MY$: Nova MSC Bhd has entered into share subscription agreements with Jostar Investment VCC and Mark Investment Group VCC, both based in Singapore, for a combined investment of RM81.1 million in two subsidiaries. Jostar and Mark Investment are set to invest RM34.6 million in Dex-Lab Pte Ltd, where Nova MSC holds a 60% stake, and RM46.5 million in EyRIS Pte Ltd, in which Nova MSC has an indirect 42% ownership. These investments mark significant financial injections into Nova MSC's subsidiary ventures.
$PEKAT(0233.MY$: Pekat Group Bhd, known for its expertise in solar power, is set to acquire a 60% share in Apex Power Industry Sdn Bhd for RM96 million. Apex Power, along with its fully-owned subsidiary EPE Switchgear Sdn Bhd, ranks as one of Malaysia's leading producers of medium voltage electrical switchgears. They also participate in manufacturing, engineering, and various project activities in the power industry, indicating Pekat Group's strategic expansion into these sectors.
$MNHLDG(0245.MY$: MN Holdings Bhd has been awarded an RM86 million contract by Tenaga Nasional Bhd to construct a gas-insulated substation in Kg Awah, Pahang. The project involves developing a 132/11 kilovolt substation with additional remote end substation works. This contract win boosts MN Holdings Bhd's existing order book to a robust RM654.5 million, reflecting a significant infusion of work and revenue potential for the company.
$MITRA(9571.MY$: Pembinaan Mitrajaya Sdn Bhd, a fully owned subsidiary of Mitrajaya Holdings Bhd, has secured a RM37.91 million contract to construct a four-story building, which will include a single-level sub-basement car park, in Kuala Lumpur. The contract, which was awarded by a local company, is set to be completed within a 21-month timeframe. This project represents an addition to Mitrajaya Holdings Bhd's portfolio of construction projects.
$ASDION(0068.MY$: Asdion Bhd, a software development firm listed on the Kuala Lumpur Stock Exchange, has been designated as a Guidance Note 3 (GN3) company. This classification often indicates that a company is facing financial difficulties or issues that raise significant doubts about its ability to continue as a going concern. This action follows a warning from its external auditors, CAS Malaysia PLT, regarding material uncertainties about the company's ongoing viability. Asdion Bhd is now obligated to formulate and submit a regularisation plan to the regulatory authority, Bursa Malaysia, and must secure approval for this plan within a 12-month period starting from the recent Thursday when the GN3 status was assigned.
$GHLSYS(0021.MY$: GHL Systems Bhd, a payment service provider listed on Bursa Malaysia, is scheduled to be delisted following a successful acquisition by NTT Data Japan Corp (NTTD Japan). The delisting comes after a tenure of 21 years on the Malaysian stock exchange. GHL Systems Bhd has been officially notified by Bursa Securities that its shares will be withdrawn from the official list at 9 am on August 6. This marks the end of the company's public trading era as it transitions to private ownership under NTTD Japan.
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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