MY Morning Wrap | Hotel Segment Bolsters SunREIT's Performance in 3Q
Good morning mooers! Here are things you need to know about today's market:
●US stocks slowed on oil decline
●IPOs gather momentum into 2024
●Positive outlook for Malaysia's property sector on strong demand
●Stocks to watch: United Plantations, Bumi Armada
-moomoo News MY
Wall Street Summary
U.S. stocks were taking a breather on Thursday following a rally that has carried the Nasdaq nearly 10% higher since the beginning of November, allowing both the tech-heavy index and the S&P 500 to exit correction territory. WTI Crude dropped more than 4.7%, pulling the market lower.
The $S&P 500 Index (.SPX.US)$ rises 0.12%, the $Dow Jones Industrial Average (.DJI.US)$ shed 45 points, or 0.13%, and the $Nasdaq Composite Index (.IXIC.US)$ closes to flat.
Breaking News
IPOs gather momentum into 2024
The overall positive business environment in the country is conducive for more initial public offerings (IPOs) heading into 2024, according to Deloitte Malaysia. The auditing and consultancy firm said the country has a generally healthy gross domestic product growth rate, and coupled with its relatively weak currency, should continue to attract foreign direct investments. The local bourse had seen 28 IPOs raising US$715mil in the first 10½ months of this year, which meant that Bursa had performed reasonably, considering its target of 31 listings for the whole of 2023.
Positive outlook for Malaysia's property sector on strong demand
The outlook for Malaysia's property sector remains positive, underpinned by healthy demand, as evidenced by increased loan applications for the purchase of property in the country. According to the latest data from Bank Negara, loan applications for purchases of property increased 0.9% month-on-month (m-o-m) in September 2023 after growing 4.8% m-o-m in the preceding month. On an annual basis, loan applications in September rose 15.6% year-on-year (y-o-y), bringing cumulative loan applications higher at RM457.9bil, up 2.6% y-o-y, for the first nine months of this year. MIDF Research said the data suggested buying interest in properties remained healthy following the reopening of the economy and country's borders post-Covid-19.
Stocks to Watch
$UTDPLT (2089.MY)$: United Plantations Bhd (UP) recorded a net profit of RM235.68 million for its third quarter ended Sept 30, 2023 (3QFY2023), up 19.8% from RM196.72 million in the previous year's corresponding period, despite lower revenue and share of results from its joint ventures, thanks largely to lower operating and income tax expenses. The group declared an 80 sen dividend for its financial year ending Dec 31, 2023 (FY2023), comprising an interim payout of 40 sen per share and an extraordinary dividend of 40 sen per share. Both dividends will be paid on Dec 14.
$ARMADA (5210.MY)$: Bumi Armada Bhd's net profit increased by 18.73% to RM177.77 million for the third quarter ended Sept 30, 2023 (3QFY2023) from RM149.72 million a year earlier, on higher operating income and lower finance cost. Revenue declined 19.64% to RM524.8 million from RM653.07 million in 3QFY2022 as cost of sales fell 24.07% to RM283.47 million from RM373.35 million. Net profit for the first nine months of FY2023 slipped 4.64% to RM497.55 million from RM521.73 million in the previous corresponding period, on lower contribution from its Armada Kraken floating, production, storage and offloading (FPSO) facility and foreign exchange losses.
$PECCA (5271.MY)$: Pecca Group Bhd has reported a 55.8% surge in net profit for its first financial quarter ended Sept 30, 2023 (1QFY2024) at RM13.01 million, from RM8.35 million a year earlier, thanks to higher sales of upholstery car seat covers and improved operational efficiency. This the automotive upholstery maker's highest-ever quarterly net profit. Pecca has posted record profit and revenue for the past three financial years, and 1QFY2024 is also the fifth consecutive quarter of record profit. The record net profit was on the back of a 16.7% growth in quarterly revenue to RM64.05 million, against RM54.86 million in 1QFY2023.
$ELKDESA (5228.MY)$: ELK-Desa Resources Bhd, a non-bank lender focused on the used-car sector, saw its net profit decline 23.3% to RM8.84 million in the second quarter ended Sept 30, 2023 (2QFY2024), from RM11.53 million a year earlier, on higher impairment allowances. Revenue rose 8.77% to RM39.2 million from RM36.04 million in 2QFY2023, primarily due to the expansion of the group's hire purchase portfolio. ELK-Desa declared an interim dividend of two sen per share, to be paid on Dec 18.
$FPI (9172.MY)$: Formosa Prosonic Industries Bhd's net profit rose 10.47% to RM48.87 million in the third quarter ended Sept 30, 2023 (3QFY2023) from RM44.24 million a year before, thanks to a gain on disposal of property plant and equipment amounting to RM7.3 million. On operations, Formosa's gross profit fell 4.57% to RM47.81 million from RM50.1 million. This was on the back of a 21.87% drop in revenue to RM234.46 million from RM300.1 million previously, due to lower sales volume.
$SUNREIT (5176.MY)$: Sunway Real Estate Investment Trust's (Sunway REIT) net property income (NPI) increased by 6.6% to RM136.75 million for the third quarter ended Sept 30, 2023 (3QFY2023), from RM128.24 million a year earlier in line with higher revenue driven by sharp increase in hotel segment's earnings. Furthermore, strong performance in both the domestic and international leisure sectors, coupled with full room occupancy at Sunway Resort Hotel since July this year are also other factors contributing to higher earnings for the quarter. The REIT said its revenue rose 5.8% to RM175.84 million from RM166.24 million. No income distribution was declared for 3QFY2023.
$SALUTE (0183.MY)$: Salutica Bhd, which is involved in a legal suit with Apple's unit in Malaysia for alleged patent infringement, on Thursday filed a similar suit against the US tech giant's Singapore-based subsidiary, Apple South Asia Pte Ltd. The new suit was filed at Singapore's High Court by Salutica's wholly-owned unit, Salutica Allied Solutions Sdn Bhd (SAS), which manufactures mobile communication products, wireless electronic and lifestyle devices and vertical integration processes covering design and development.
$MAA (1198.MY)$: MAA Group Bhd emerged as one of the top gainers, after announcing a plan to divest an 85% stake in its wholly-owned Philippine general insurance business — MAA General Assurance Philippines Inc — to Triple P Philippines Pte Ltd for US$49.3 million (RM234.86 million) cash.
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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