MY Morning Wrap | Hibiscus Petroleum Set to Acquire Gas-Producing Assets in Brunei
Good morning mooers! Here are things you need to know about today's market:
●Nasdaq reaches fifth closing high as S&P 500 and Dow Jones experience pullback
●Penang's technology industry and construction sector predicted to flourish, says CIMB Group
●Stocks to watch: Hibiscus Petroleum, Genting, PPB
-moomoo News MY
Wall Street Summary
On Friday, major stock indexes experienced a pullback, but the Nasdaq still managed to climb to a fifth closing high. Throughout the week, the $S&P 500 Index (.SPX.US)$ advanced 1.58%, while the $Dow Jones Industrial Average (.DJI.US)$ fell 0.54%. The $Nasdaq Composite Index (.IXIC.US)$, which is heavily focused on technology stocks, climbed 3.24%. By Thursday, the Nasdaq and S&P had already reached four closing highs, and they hit all-time trading highs on that day as well.
Breaking News
Penang's technology industry and construction sector predicted to flourish, says CIMB Group
Penang, Malaysia, is recognized as a leading center of the country's electronic and electrical industry, earning it the nickname "Oriental Silicon Valley." With over 350 multinational companies, 4,000 small and medium-sized enterprises, and 200 Malaysian digital companies, investment bank CIMB Group predicts a bright future for Penang's technology industry. The US-China trade friction has resulted in trade diversions that benefit Penang's electronics and electrical industry, making it a crucial manufacturing center for the global value chain. Additionally, Penang's strong semiconductor ecosystem, excellent infrastructure support, and broad talent resources make it a promising destination for companies adopting the "China+1" strategy. The construction and property industries are also expected to benefit, with projects such as the Penang LRT and Silicon Island reclamation project predicted to accelerate in the coming years.
Stocks to Watch
$HIBISCS (5199.MY)$: Hibiscus Petroleum Bhd, a Malaysian oil and gas company, is acquiring gas-producing assets in Brunei through its unit Simpor Hibiscus Sdn Bhd. The unit has entered into a conditional share purchase agreement (SPA) with TotalEnergies Holdings International BV to acquire a 100% interest in TotalEnergies EP (Brunei) BV for US$259.4 million in cash. The acquisition is for TotalEnergies Brunei's 37.5% operated interest in the Block B Maharajalela Jamalulalam field, a high-quality gas asset located offshore Brunei. This acquisition will increase the gas production share of Hibiscus Petroleum's portfolio to almost 50% in line with the group's energy transition strategy of acquiring gas-weighted assets in stable regulatory jurisdictions. The SPA is subject to the approval of Hibiscus Petroleum's shareholders.
$GENTING (3182.MY)$: Genting Bhd, a Malaysian conglomerate, is still interested in listing in the US as a means of unlocking shareholder value, according to its president and chief operating officer, Datuk Seri Tan Kong Han. The timing of the listing will depend on finding the right opportunity. Genting's US operations include Resorts World Las Vegas, Resorts World New York City, Resorts World Catskills, and Resorts World Hudson Valley, all of which are owned by subsidiary Genting Malaysia Bhd. Tan also confirmed that the company is interested in exploring possible integrated resort developments in emerging jurisdictions, such as Thailand and the United Arab Emirates. In other news, a fire broke out at SkyAvenue, Resorts World Genting, on Friday, but the rest of the resort was unaffected, and there were no casualties reported.
$PPB (4065.MY)$: PPB Group Bhd, a Malaysian diversified conglomerate, has acquired a 15% stake in Techbond Group Bhd, a specialty chemicals manufacturer, making it a substantial shareholder in the company. PPB acquired over 82.9 million shares and over 34 million unexercised warrants in Techbond from Sonicbond Sdn Bhd in a direct business transaction for RM37.67 million. If PPB exercises all its warrants and all other warrants are also exercised, the shareholding will remain the same, but the total consideration for the acquisition will increase to RM48.9 million. After the disposal of the shares to PPB, Sonicbond's shareholding will reduce to 54.39%, down from its previous holding of 69.39%. Sonicbond is the private vehicle of Techbond's managing director, Lee Seng Thye.
$FITTERS (9318.MY)$: Fitters Diversified Bhd, a Malaysian fire protection equipment supplier, has announced that Cita Realiti Sdn Bhd is no longer its largest shareholder after selling a 6.26% stake in the company on Friday. Cita Realiti sold the stake comprising 147.47 million shares via the open market, reducing its shareholding from 10.73% to 4.47%, according to Fitters Diversified. Bloomberg data shows that the largest shareholder of Fitters Diversified is now Ho Jien Shiung, an executive director of PDZ Holdings Bhd.
$PIE (7095.MY)$: PIE Industrial Bhd, a Malaysian industrial automation solutions provider, has announced that it is not aware of any corporate development, rumour, or report that could have caused the significant rise in its share price on Friday. PIE Industrial's share price surged by 18% or RM1.09 to an all-time high of RM7.28 in morning trade, before closing the day at RM7.08, up 89 sen or 14%. The counter saw 2.58 million shares traded during the day, almost triple its four-week average. PIE Industrial has a market capitalization of RM2.72 billion at RM7.08. The company is 51.42%-owned by Taiwan's Pan International Industrial Corp, which is 27.33%-held by iPhone assembler Foxconn or Hon Hai Precision Industry Co Ltd.
$DESTINI (7212.MY)$: Destini Bhd, a Malaysian engineering and construction company, has announced that its indirect subsidiary, Destini Shipbuilding and Engineering Sdn Bhd, has been served with a winding-up petition for allegedly failing to pay RM18.55 million owed to the Inland Revenue Board. The tax authority is seeking for the subsidiary to be wound up and for the Official Receiver of Malaysia to be appointed as the official liquidator, according to Destini. However, the subsidiary is not a major subsidiary of Destini. The subsidiary is seeking legal advice, and case management for e-review has been fixed for July 9, with a hearing date set for September 12 this year.
$TRIVE (0118.MY)$: Trive Property Group Bhd, a Malaysian property group, has proposed a bonus issue of warrants to reward its shareholders and strengthen its financial position and capital base. The proposed bonus issue will be on the basis of two warrants for every five existing shares. As of May 31, 2024, Trive Property's total issued share capital is RM196.04 million, comprising 1.26 billion issued shares. The company may issue up to 505.46 million warrants under exercise, with a tenure of five years and no cost to the entitled shareholders. The exercise price of the warrants will be determined at a later date. Assuming full exercise of the warrants, Trive Property could raise up to RM25.27 million in gross proceeds based on an illustrative price of five sen for each warrant.
$GUH (3247.MY)$: GUH Holdings Bhd, an electronic circuit board maker based in Malaysia, has announced that it will no longer move forward with plans to develop a lithium battery assembly plant in the country. GUH Holdings and its joint venture partner, Chinese battery manufacturer Shenzhen Xixin Electronic Technology Co Ltd, have agreed to terminate the agreement signed in November 2020. The companies did not establish a battery assembly plant, purchase any equipment, or transfer any shares in the joint venture to Xixin as per the cooperation agreement. GUH Holdings stated that the termination of the agreement will not have any financial impact on the company and its subsidiaries.
$KYM (8362.MY)$: KYM Holdings Bhd, a multi-wall industrial paper bag maker based in Malaysia, reported a significant decline of 94.8% in net profit for the first quarter ended April 30, 2024 (1QFY2025). The company attributed the decline to the absence of a one-off gain from the sale of a piece of land and building, which amounted to RM15.29 million during the same period last year. KYM Holdings' net profit for 1QFY2025 was reported at RM585,000 or 0.38 sen per share, compared to RM11.27 million or 7.42 sen per share recorded in the same period a year earlier. The company's revenue also dropped slightly by 0.8% to RM22.72 million in 1QFY2025, mainly due to lower sales in the carbon box division, partially offset by increased revenue from the multi-wall industrial paper sacks division. The company did not declare any dividend for the quarter.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
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104741793 : I haven't received my dividend yet. What happened? TQ