MY Morning Wrap | Gamuda's Q3 Net Profit Rises 5.5% on Higher Contributions from Overseas Projects

Nvidia shares rebounded on Tuesday, lifting the $S&P 500 Index(.SPX.US)$ and $Nasdaq Composite Index(.IXIC.US)$, following a sell-off in the chipmaking giant the day before. The S&P 500 closed at 5,469.30, up 0.39%, while the Nasdaq Composite advanced 1.26%. Both indexes ended three days of declines. However, the $Dow Jones Industrial Average(.DJI.US)$ lagged, losing 0.76%.

$GAMUDA(5398.MY)$: Gamuda's net profit for the third quarter ended April 30, 2024, rose 5.5% to RM235.8 million from RM223.37 million a year earlier, driven by higher contributions from overseas projects. Quarterly revenue grew 20.46% to RM2.49 billion from RM2.07 billion, with wholly-owned Gamuda Engineering Sdn Bhd doubling its revenue from overseas projects to RM2.2 billion. The group announced a second interim dividend of 10 sen per share, bringing the year-to-date dividend for FY2024 to 16 sen per share. For the nine months of FY2024, Gamuda's net profit rose to RM639.64 million from RM562.98 million (continuing operations) a year earlier, as revenue jumped 79.07% to RM8.63 billion from RM4.82 billion.

$IOIPG(5249.MY)$: IOI Properties Group has received a proposal from its CEO and major shareholder, Lee Yeow Seng, to participate in the development of Shenton House, a commercial property in Singapore that his private vehicle has successfully tendered for at S$538 million (RM1.9 billion). Lee has proposed that IOIPG acquire all or part of his private vehicle, Shenton 101 Pte Ltd, which is planning to redevelop Shenton House, with works scheduled to start at the end of 2025. This is to mitigate the potential conflict of interest that will arise due to his role in the redevelopment of Shenton House through Shenton 101, in which he is the sole shareholder. Shenton 101 plans to hold the redeveloped property for investment upon its successful redevelopment.

$KENANGA(6483.MY)$: Kenanga Investment Bank has received approval from Bank Negara Malaysia to increase its stake in Merchantrade Asia, the country's largest money services business operator, by 15.2%. Upon completion of the acquisition, Kenanga's equity holding in Merchantrade will increase to 19.94% from 4.74%, making it the second-largest shareholder after managing director and founder Ramasamy K Veeran. The financial details of the deal were not disclosed.

$ASTRO(6399.MY)$: Astro Malaysia Holdings has reported a 7% rise in net profit to RM17.01 million for the first quarter ended March 31, 2024, up from RM15.9 million in the same period last year, due to lower net financing costs. However, the company's revenue declined 9.8% to RM772.53 million from RM856.94 million, attributed to lower subscription and advertising revenues. The company did not declare any dividend for the quarter under review.

$MAGNI(7087.MY)$: Magni-Tech Industries has reported a 33.6% rise in net profit to RM34.52 million for the fourth quarter ended April 30, 2024, up from RM25.84 million a year earlier, as revenue grew 36.6% to RM336.93 million from RM246.61 million on stronger contribution from its garment business. The company declared a fourth interim dividend of 3.3 sen per share, payable on July 23. Magni-Tech's net profit for the full FY2024 increased by 34.6% to RM138.41 million from RM128.41 million, as revenue rose 10.6% to a record high of RM1.34 billion from RM1.21 billion.

$KEYFIELD(5321.MY)$: Keyfield International has engaged two Chinese companies to build a 90m long Dynamic Positioning 2 (DP2) workboat at a cost of US$30.5 million. The workboat is expected to be delivered by Jingjiang Nanyang Shipbuilding and Nantong Shunyang Trade and Development by February 2026 and will be funded via a combination of internal cash and borrowings. The company has also entered into a memorandum of agreement to acquire a second-hand DP2 AWB named MV Belait Barakah for US$6 million from Belait Barakah. This vessel is expected to be ready for chartering operations by the fourth quarter of 2024 after rectification and activation.

$TRC(5054.MY)$: TRC Synergy has secured a RM125 million contract to perform scheduled and corrective maintenance work at the Royal Malaysian Navy submarine base in Kota Kinabalu, Sabah. The 60-month project was secured from BHIC Submarine Engineering Services, a wholly-owned unit of Boustead Heavy Industries Corp, via TRC Synergy's wholly-owned subsidiary, Trans Resources Corp.