MY Morning Wrap | FGV Upsizes Sukuk Program to RM3 Billion, Extends Tenure to Perpetual

The $Dow Jones Industrial Average (.DJI.US)$ rose 56 points Friday and 2.93% for the week to an all-time high of 37,305. The $S&P 500 Index (.SPX.US)$ fell just 0.01% Friday but finished up 2.49% for the week, within a hundred points of it's all-time high at 4,719. The $Nasdaq Composite Index (.IXIC.US)$ rose by 52 points Friday and 2.85% for the week to 14,813. The small-cap $Russell 2000 Index (.RUT.US)$ was up more than 5.55% for the week early Friday but settled below 2,000.

$FGV (5222.MY)$: FGV Holdings Bhd has increased the size of its sukuk murabahah programme to RM3 billion in nominal value, up from the original RM500 million two years ago. Furthermore, the tenure of the sukuk programme has been extended from eight years to perpetual, with each tranche having a minimum tenure of one year. The sukuk issued under the augmented limit of the programme may be either rated, unrated or a combination of both. Additionally, FGV has obtained preliminary confirmation of receiving a AA-IS rating from MARC Ratings Bhd on Dec 11.

$HEXIND (0161.MY)$: Agrochemical tycoon Datuk Eddie Ong Choo Meng, who has been highly active in the domestic corporate realm, has injected Hextar Mitai Sdn Bhd (HMT) - an engineering solutions firm controlled by his family - into ACE Market-listed Hextar Industries Bhd via a related party transaction (RPT). Hextar Industries revealed that it is broadening its presence in the industrial products segment by procuring a 70% interest in Klang-based HMT from its main shareholder, Hextar Holdings Sdn Bhd, for RM4.55 million in cash.

$APOLLO (6432.MY)$: Confectionery manufacturer Apollo Food Holdings Bhd, whose shares have soared by 40% since the beginning of this year, has made a request to suspend trading of its shares. The request has been accepted and will take effect from next Monday, pending the dissemination of "a material announcement". Apollo released its financial result, which showed that its net profit increased by 5.15% to RM9.95 million for the second quarter ended October 31, 2023 (2QFY2024), compared to RM9.46 million a year ago, driven by higher gross profit margin. However, quarterly revenue declined by 6.13% to RM65.99 million from RM70.30 million due to reduced export sales. On a quarter-on-quarter basis, the company's net profit rose by 30% from RM7.64 million in 1QFY2024, while revenue grew by 13% from RM58.34 million.

$PENERGY (5133.MY)$: Petra Energy Bhd's subsidiary, Petra Marine Sdn Bhd, is selling an accommodation work barge named Petra Lyra to Great Sky Investments Corp for US$3.95 million (RM18.45 million). Petra Energy stated that Star Chance is a Seychelles-based company primarily engaged in vessel ownership and chartering services for the oil and gas sector. The company also announced a special dividend of four sen per share for its FY2023, payable on Feb 14 next year.

$M&G (5078.MY)$: Marine & General Bhd's net profit dropped by 50.68% to RM8.22 million for the second quarter ended Oct 31, 2023 (2QFY2024), compared with RM16.67 million a year ago, after a non-recurring depreciation adjustment. Despite this, quarterly revenue increased by 11.9% to RM91.82 million from RM82.09 million in 2QFY2023, driven by higher fleet utilization and charter rates for both offshore supply vessels (OSVs) and tankers, following the continuous growth in oil drilling activities and the general economic recovery across the region, the group stated.

$BINTAI (6998.MY)$: Bintai Kinden Corp Bhd has lodged a police report against IFZ Oil & Gas (M) Sdn Bhd after it denied receiving an initial advance payment of RM4.5 million for a project in May 2022. The payment was made through Kejuruteraan Bintai Kindenko Sdn Bhd, and Bintai Kinden has commenced legal proceedings against IFZ to recover the amount. The payment was made as an advance to IFZ, acting as a facilitator to enable Bintai Kinden to procure or tender for projects.