MY Morning Wrap | IJM Clinches RM561 Million in Contracts for Data Centres and Manufacturing Facility

Moomoo News MY joined discussion · Aug 20, 2024 08:29

Good morning mooers! Here are things you need to know about today's market:

●Stock Markets Rally in Anticipation of Fed Chair Powell's Jackson Hole Address

●Malaysia's PM Calls for Support to Join Top AI Nations

●Malaysia Sets Ambitious RM300 Billion Green Investment Goal by 2030

●Malaysia Poised to Hit 4-5% GDP Growth Target in 2024, Minister Zafrul Confirms

●Stocks to watch: IJM, Hextar, MAHB

-moomoo News MY

MY Morning Wrap | IJM Clinches RM561 Million in Contracts for Data Centres and Manufacturing Facility

Wall Street Summary

U.S. stock markets extended their winning streak to five days as the Democratic National Convention kicked off, with investors setting their sights on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium on Friday, rather than the Harris campaign's market-related updates. Market optimism is high in anticipation of potential hints from Powell about future rate cuts. The $S&P 500 Index (.SPX.US)$, $Dow Jones Industrial Average (.DJI.US)$, and $NASDAQ 100 Index (.NDX.US)$ all saw significant gains, posting increases of 6-8% over the past ten sessions and bouncing back from a downtrend in July, fueled by expectations that the Fed may signal a dovish turn in monetary policy soon. As the markets closed at 4 pm ET, the S&P 500 had risen by 0.97%, the Dow Jones by 0.58%, and the Nasdaq by 1.32%.

Breaking News

Malaysia's PM Calls for Support to Join Top AI Nations

Prime Minister Datuk Seri Anwar Ibrahim urges a joint effort among Malaysia's experts and policymakers to advance the country's position in AI technology, aiming to rank among the top 20 AI nations. He stressed the need for ethical development and adoption of AI, highlighting initiatives like a national AI ecosystem and a Malaysian AI cloud system. Anwar also pointed out ongoing efforts to mitigate AI risks, including the Cyber Security Bill 2024 and revisions to data protection laws.

Malaysia Sets Ambitious RM300 Billion Green Investment Goal by 2030

Malaysia has set an ambitious target to secure RM300 billion in green investments by the year 2030, as announced by the Ministry of Investment, Trade and Industry (Miti). Tengku Datuk Seri Zafrul Abdul Aziz, the Miti Minister, acknowledged the target as aggressive given that the country has attracted around RM40 billion from 2017 to 2023. This green investment initiative, primarily fueled by the renewable energy and electric vehicle sectors, is crucial for Malaysia's aspirations to achieve net-zero emissions by 2050. To support this transition, Minister Zafrul indicated that the upcoming Budget 2025 will seek allocations to incentivize local businesses and SMEs to adopt greener practices, acknowledging the additional costs involved in this shift. The Ministry of Finance has also committed to promoting energy transition through policies that balance investment stimulation with public interest protection.

Malaysia Poised to Hit 4-5% GDP Growth Target in 2024, Minister Zafrul Confirms

Malaysia's Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz has expressed confidence that Malaysia is on course to meet its GDP growth target of 4-5% for 2024, buoyed by a robust 5.9% GDP increase in Q2. Factors contributing to this optimistic outlook include a surge in private investment, with a 12% rise in Q2, and strong growth in the manufacturing sector. The country's New Industrial Master Plan (NIMP) 2030 has started to yield results, with the E&E sector experiencing a boom in exports due to heightened global demand, particularly for semiconductors, which are expected to see a 16% jump in demand. Zafrul underscored the government's commitment to the National Semiconductor Strategy, aiming to maintain Malaysia's significant role in the global market. The Ministry of Investment, Trade and Industry (Miti) is set to continue promoting local industry development, increasing trade, and garnering quality investments to generate high-paying jobs in Malaysia.

Stocks to Watch

$IJM (3336.MY)$: IJM Corp Bhd has announced the acquisition of two lucrative contracts, totaling RM561 million, for the construction of data centres in Johor and an industrial manufacturing facility in Penang. The Johor data centre project, a joint venture with Woh Hup Malaysia, is valued at RM508 million. Meanwhile, the RM307 million project in Penang involves building an electrical and electronics manufacturing facility for an American company. These new contracts elevate IJM Construction's total annual secured jobs to RM1.9 billion and swell its order book to RM7.9 billion.

$HEXTAR (5151.MY)$: Hextar Global Bhd has announced a substantial increase in its second quarter net profit for the financial year 2024, reaching RM19.16 million, a significant rise from RM8.67 million in the previous year. The company's revenue also witnessed a sharp surge of 59.5% to RM213 million, primarily due to its expanding specialty chemicals segment and new contracts in durian trading. Additionally, Hextar Global declared an interim dividend of 0.5 sen per share, which is slated for distribution on October 4.

$AIRPORT(Delisted) (5014.MY)$: Malaysia Airports Holdings Bhd experienced a record-breaking month in July, with passenger movements climbing to 12.4 million, marking a 7.3% increase from June. Local airports contributed 8.5 million passengers, with international traffic growing by 11% and domestic traffic by 5%.

$LAGENDA (7179.MY)$: Lagenda Properties Bhd has announced a robust increase of 45.8% in its net profit for the second quarter ended June 30, 2024, reaching RM48.4 million up from RM33.2 million in the corresponding period last year. This substantial profit growth has been attributed to enhanced contributions from the company's property development and construction sectors. Additionally, the firm's revenue saw a significant rise of 25.2%, amounting to RM245.8 million compared to RM196.4 million previously. In line with this positive financial performance, Lagenda Properties has declared a three sen interim dividend, which is slated for payment on October 25.

$PERDANA (7108.MY)$: Perdana Petroleum Bhd has recorded a significant surge in its net profit for the second quarter ended June 30, 2024, achieving a fourfold increase to RM34.7 million, compared to RM8.65 million in the same quarter of the previous year. This marks the company's highest quarterly profit in 16 years, propelled by increased vessel utilisation rates, improved margins, and a modest net foreign exchange gain. The company's revenue also experienced a substantial boost, rising by 52.6% to RM124.59 million from RM81.64 million. Despite the strong financial performance, Perdana Petroleum has opted not to declare a dividend for the quarter.

$ECOFIRS (3557.MY)$: EcoFirst Consolidated Bhd is set to expand its property development portfolio with the acquisition of a 4.51-acre freehold land in Kajang for RM35 million. The company has announced plans for a mixed-use development on this site, projected to have a gross development value of RM380.9 million. The land purchase will be financed through a combination of internal funds and bank borrowings. With the aim of commencing the project in early 2025, EcoFirst anticipates that the development will span three to four years, potentially enhancing the group's growth and revenue in the property market.

$KOTRA (0002.MY)$: Kotra Industries Bhd has reported a modest decline in net profit for the fourth quarter ended June 30, 2024, with a 4.5% decrease to RM12.49 million from RM13.09 million in the corresponding quarter of the previous year. The reduction in net income has been mainly attributed to an increase in tax expenses. However, the company saw its quarterly revenue grow by 7.2% to RM59.82 million, up from RM55.8 million, thanks to robust sales performance of its supplement products across both domestic and international markets. This growth helped to counterbalance a fall in local pharmaceutical sales. Despite the minor decrease in net profit, Kotra Industries has announced a second interim dividend payout of 13 sen per share, amounting to RM19.28 million, which is slated for payment on October 10.

$KLK (2445.MY)$: Batu Kawan Bhd and its significant subsidiary, Kuala Lumpur Kepong Bhd (KLK), have both posted notable earnings increases for the third quarter ended June 30, 2024. KLK's net profit soared by 185.6% to RM240.2 million, up from RM84.1 million in the previous year, with revenue also rising by 7.6% to RM5.5 billion. Batu Kawan saw a 58.2% jump in net profit to RM131 million, with its revenue climbing 6.2% to RM5.7 billion. The impressive performance of both companies is largely due to the strong results from the plantation segment, particularly the higher selling prices and volumes of palm oil products, coupled with lower production costs and a decrease in the fair value loss on unharvested fruit. Despite the positive financial outcomes, neither company has declared a dividend for the quarter.

$CARLSBG (2836.MY)$: Carlsberg Brewery Malaysia Bhd has experienced a 10% fall in net profit for the second quarter ending June 30, 2024, recording a profit of RM79.40 million, down from RM88.24 million in the previous year. The decline has been attributed to increased marketing spend, inflationary pressures on costs, and adjustments in trade purchases before a hike in product prices. Revenue for the quarter was relatively stable at RM507.48 million. Reflecting the lower profit, Carlsberg Brewery Malaysia also announced a second interim dividend of 20 sen per share, a slight decrease from the 22 sen per share distributed during the same period last year.

$SUNMOW (03050.MY)$: Sunmow Holding Bhd, through its joint venture (JV) where it holds a 70% stake, has been awarded a RM1.02 billion contract for a section of the Sarawak-Sabah Link Road. The project, specifically for the Bukit Pagon to Long Luping stretch, is expected to be completed within 48 months and includes a 24-month defects liability period. Kemena Holding Sdn Bhd holds the remaining 30% of the JV.

$KERJAYA (7161.MY)$: Kerjaya Prospek Group Bhd has been awarded a RM275.29 million contract through its subsidiary, Kerjaya Prospek (M) Sdn Bhd, by Persada Mentari Sdn Bhd for a new development in Bandar Tanjung Pinang, Penang. The project involves the construction of a 50-storey structure comprising 261 serviced apartment units, along with parking and other facilities. The expected completion timeline for this development is 38 months.

$PLINTAS (5320.MY)$: Prolintas Infra Business Trust recorded a Q2 net profit of RM4.03 million, a decrease from RM14.64 million the previous year, attributed to increased finance and tax costs. However, revenue saw a significant rise, more than doubling to RM79.33 million, thanks to heightened toll collections from rising traffic. Despite the profit dip, the trust declared a first interim distribution of 3.18 sen per unit, amounting to RM35 million, set for payment on September 18.

Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE