MY Morning Wrap | Inari Amertron Bhd's Q2 Net Profit Falls 7.26% YoY Due to Set-Up Costs and Higher Electricity Costs
Good morning mooers! Here are things you need to know about today's market:
●US Stocks Dip as Investors Await Busy Data Week
●Securities Commission and Bursa Malaysia Commit to Three-Month Approval Period for IPOs
●Foreign Investors Stay Net Buyers on Bursa Malaysia for Fifth Consecutive Week
●Stocks to watch: Inari Amertron, PetChem, AMMB
-moomoo News MY
Wall Street Summary
US stocks saw a slowdown on Monday as investors anticipated a busy data week and searched for more catalysts to boost the market after a boost from $NVIDIA (NVDA.US)$ last week. Gross Domestic Product (GDP) and Personal Consumption Expenditures (PCE) data are expected later in the week, providing a chance to analyze the Federal Open Market Committee's (FOMC) January meeting minutes with real inflation and growth data. The $Dow Jones Industrial Average (.DJI.US)$ fell 0.16% to 39,069, while the $S&P 500 Index (.SPX.US)$ dropped 0.38% to 5,084. The $Nasdaq Composite Index (.IXIC.US)$ also declined 0.13% to 15,976.
Breaking News
Securities Commission and Bursa Malaysia Commit to Three-Month Approval Period for IPOs
The Securities Commission and Bursa Malaysia have jointly committed to a three-month approval period for IPOs on both the Main Market and the ACE Market. The commitment will apply to new IPO applications received from 1 March 2024, and will be premised on principal advisers/sponsors satisfying regulators' queries and comments on IPO applications within five market days. The move is intended to enhance the regulators' current practice since 2021 of issuing queries and comments within 10 market days following a complete IPO application, as well as issuing subsequent queries and comments within five market days to each response round. The Malaysian equity capital market raised MYR3.6bn ($870m) in 2023, and the commitment is expected to enhance the overall credibility and transparency of the capital market.
Foreign Investors Stay Net Buyers on Bursa Malaysia for Fifth Consecutive Week
Foreign investors continued to be net buyers of equities on Bursa Malaysia, marking the fifth consecutive week of net purchases with a net inflow of MYR786.1m ($190m). This amount was 2.2 times higher than the net inflow amount of MYR352.9m the previous week. Meanwhile, local institutions sold domestic equities for the fifth consecutive week, with a net outflow of MYR596.6m, which is 2.1 times higher than the previous week. The FTSE Bursa Malaysia KLCI rose 1.01% to 1,549.11, driven by optimism from artificial intelligence, despite lacklustre excitement from the ongoing Q4CY23 corporate earnings.
Stocks to Watch
$INARI (0166.BMS)$: Inari Amertron Bhd's net profit for the second quarter ended December 31, 2023, fell 7.26% YoY to MYR86.81m ($21m) from MYR93.61m, due to set-up costs for new products and higher electricity costs. This decline was more significant than the impact of higher revenue, which rose 2.89% to MYR414.08m from MYR402.46m a year ago, due to a high loading volume in radio frequency and optoelectronics segments. For 1HFY2024, Inari's net profit fell 14.05% to MYR171.79m from MYR199.86m a year ago, while revenue rose 2.38% to MYR798m from MYR779.46m on higher RF segment growth. Inari declared a dividend of 2.2 sen per share, bringing its 1HFY2024 payout to 4.4 sen per share, down from 4.8 sen per share a year ago.
$AMBANK (1015.BMS)$: AMMB Holdings Bhd reported a 22% YoY increase in net profit for the third quarter ended December 31, 2023, as tax credits helped offset provisions for bad loans. Net profit for the quarter was MYR543.41m ($131m), compared to MYR444.21m in the same period a year earlier. The company recorded a one-off tax credit of MYR537.6m and MYR435.29m in allowances for impairment on loans, advances, and financing. For the 9 months ended December 31 (9MFY2024), AMMB's net profit rose 8.59% to MYR1.39bn from MYR1.28bn, while allowances for impairment on loans, advances, and financing rose to MYR657.34m from RM337.46m a year ago.
$PCHEM (5183.BMS)$: Petronas Chemicals Group Bhd's net profit for the financial year ended December 31, 2023, slumped 73% to MYR1.69bn ($410m), from MYR6.32bn, due to a volatile chemicals market and interruptions at its plants. Revenue for the year decreased to MYR28.67bn from MYR28.95bn. For the fourth quarter, PetChem's net profit fell 76% to MYR112m from MYR481m, with revenue at MYR7.21bn versus MYR8.70bn. The company declared a dividend of five sen per share amounting to MYR400m, payable on March 26. Total dividends for FY2023 amounted to 41 sen per share, totalling MYR1bn.
$PETDAG (5681.BMS)$: Petronas Dagangan Bhd (PetDag) reported a 25% YoY increase in net profit for the fourth quarter ended December 31, 2023, due to high volume growth from increased demand. Net profit for the quarter was MYR180.81m ($44m) compared to MYR144.46m in the same period the previous year. Revenue increased 6% YoY to MYR10.08bn from MYR9.5bn. PetDag declared a dividend of 27 sen per share for the quarter, bringing the total dividend for the year to 80 sen per share, a slight increase from the 76 sen per share declared in FY2022. For the full year, PetDag's net profit rose 21.4% to MYR943.08m from MYR776.60m the previous year, while revenue increased 2.2% to MYR37.55bn from MYR36.75bn.
$LPI (8621.BMS)$: LPI Capital Bhd reported a 44% YoY increase in net profit for the fourth quarter ended December 31, 2023, with a net profit of MYR78.6m ($19m), compared to MYR54.6m the previous year, primarily due to the absence of the one-off prosperity tax that was imposed in FY2022. Revenue rose 26.5% to MYR481.4m from MYR380.5m in 4QFY2022, mainly boosted by its general insurance segment. The group declared a second interim dividend of 40 sen per share, up from 35 sen per share in FY2022, payable on March 20. For the full FY2023, the group's net profit increased by 24.4% to MYR313.7m compared to MYR252.2m in FY2022, as revenue rose 16.5% to MYR1.91bn from MYR1.63bn, due to higher insurance revenue as well as increased interest and dividend income.
$FGV (5222.BMS)$: FGV Holdings Bhd reported a 12-fold decrease in net profit for the financial year ended December 31, 2023, with net profit at MYR103m ($25m) compared to MYR1.33bn in 2022, due to lower average crude palm oil (CPO) prices impacting the group's plantation business earnings. Revenue for FY2023 dropped 24.26% to MYR19.36bn from MYR25.56bn the previous year. FGV has agreed to declare a final dividend of three sen per share, involving a payout of MYR109.44m, for FY2023. In the fourth quarter of FY2023, FGV recorded a four-fold decrease in net profit to MYR71.83m from MYR344.3m the previous year, as average CPO prices fell to MYR3,789 per tonne compared to MYR4,432 previously. Quarterly revenue decreased 12.03% YoY to MYR5.36bn from MYR6.1bn.
$TAKAFUL (6139.BMS)$: Syarikat Takaful Malaysia Keluarga Bhd reported a 4.76% YoY increase in net profit for the fourth quarter ended December 31, 2023, thanks to higher contribution from its group and general takaful segment. Net profit for the quarter increased to MYR70.32m ($17m) or 8.4 sen per share, from MYR67.12m or 8.02 sen per share the previous year. Revenue for the quarter also increased by 4.81% YoY to MYR1.13bn, from MYR1.08bn, driven by higher overall contributions of the group takaful segment. For the full year, Takaful Malaysia's net profit jumped 22.64% to MYR346.91m or 41.42 sen per share, from MYR282.86m or 33.82 sen per share in FY2022. Full-year revenue also rose 15.09% to MYR3.46bn, from MYR3bn in the preceding year's corresponding period.
$ALLIANZ (1163.BMS)$: Allianz Malaysia Bhd reported an 11.69% YoY increase in net profit for the fourth quarter ended December 31, 2023, with net profit at MYR193.69m ($47m) compared to MYR173.46m the previous year, due to better contributions from its life insurance segment. Revenue for the quarter increased by 13.43% YoY to MYR1.31bn from MYR1.15bn. For the full FY2023, Allianz Malaysia's net profit grew 19.1% to MYR730.91m from MYR613.67m the previous year, as revenue expanded 11.83% to MYR4.94bn from MYR4.42bn. The company paid MYR1.005 sen per share in dividends for the year, up from 85 sen for FY2022.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
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