MY Morning Wrap | Inari Faces Decline While MPI Surges in FY2024Q4 Earnings

The market fell back Tuesday morning but leveled off Tuesday afternoon, pulling the Dow Jones Industrial Average to hit a new record closing high, up nine points for the day. It is a low volume and news day, as the market awaits $NVIDIA (NVDA.US)$ earnings Wednesday night, the PCE report on Friday, and a long holiday weekend to celebrate or despair over the results of those two events.

Just past the close, the $S&P 500 Index (.SPX.US)$ traded up 0.16%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.02%, and the $NASDAQ 100 Index (.NDX.US)$ traded +0.16%.

$INARI (0166.MY)$ reported a 17.54% decrease in 4QFY2024 net profit to RM54.68 million, down from RM66.31 million, impacted by unfavorable forex conditions and higher operational costs during early stages of new product launches. Despite this, revenue grew by 11.5% to RM333.11 million, fueled by increased activity in the RF and optoelectronics sectors. The company declared a fourth interim dividend of 1.4 sen per share, payable on October 10, resulting in a total annual dividend of 7.7 sen per share, slightly below the 8.2 sen paid in FY2023. The annual net profit dropped by 7.21% to RM300.19 million, even as revenue increased by 9.21% to RM1.48 billion.

$MPI (3867.MY)$ 4QFY2024 net profit surged nearly 11 times to RM82.97 million, up from RM8.14 million, bolstered by strong sales in Asia and Europe and a reversal from its executive share scheme provision. The quarterly revenue also saw a 10.45% increase to RM532.84 million. For the entire FY2024, the company's net profit nearly tripled to RM164.40 million from RM61.33 million, with a modest revenue growth of 2.45% to RM2.09 billion.

$SPSETIA (8664.MY)$ has commenced legal proceedings against former senior executives and a past director due to alleged duty breaches concerning land acquisitions in Kota Kinabalu, Sabah, and unit sales in the Aeropod project. The lawsuit names eleven defendants, including the group's ex-deputy president and COO, Datuk Wong Tuck Wai, now CEO at IJM Land Bhd; former executive vice president, Datuk Kow Choong Ming; and past president and CEO, Datuk Khor Chap Jen.

$DIALOG (7277.MY)$ is divesting its 60% interest in Dialog Jubail Supply Base Company Ltd (DJSB), a Saudi Arabian joint venture, to Sedres Trading & Maritime Services Co Ltd for 47.5 million Saudi riyals (RM55 million). Sedres, holding the remaining 40%, focuses on logistics for a supply base and base oil trading in Saudi Arabia.

$MALAKOF (5264.MY)$ subsidiary, Prai Power Sdn Bhd, has been granted a one-year extension for its power purchase agreement (PPA) with $TENAGA (5347.MY)$. This extension is set to begin on September 1, 2024, and will conclude on August 31, 2025.

A consortium led by $ROHAS (9741.MY)$, specializing in utility construction and tower fabrication, has secured a RM123 million contract from $GAMUDA (5398.MY)$. This contract involves fabrication and installation services for Package 2 of the Sg Rasau water treatment plant project in Selangor. The consortium, which includes Rohas-Euco Industries Bhd (REI) and One Ocean Environment Sdn Bhd (OOESB), officially accepted the contract last Friday, awarded by Gamuda M&E Sdn Bhd, a subsidiary of Gamuda.

$VARIA (5006.MY)$, formerly known as Stella Holdings Bhd, has successfully obtained a RM410.3 million contract for a flood mitigation project in Segamat, Johor. The project, part of the Sungai Muar Phase 3 Package 1 plan, will be managed by Varia's subsidiary, Pembinaan Teguh Maju Sdn Bhd, under Kator Construction Sdn Bhd's appointment as a sub-contractor.

$RHBBANK (1066.MY)$ reported a net profit decrease of 11% in the second quarter of fiscal year 2024, totaling RM722.31 million, down from RM808.70 million in the same period last year, primarily due to increased provisions. The bank announced a cash dividend of 15 sen per share, with the payment date to be confirmed later.

$FGV (5222.MY)$ achieved a net profit of RM86.38 million in 2QFY2024, recovering from a net loss of RM12.9 million in the previous year. This improvement was largely attributed to higher earnings in the plantation, and logistics and support sectors, though gains were tempered by declines in the sugar, and oils and fats sectors. Revenue for the quarter increased by 22.7% to RM5.52 billion, up from RM4.49 billion in 2QFY2023, driven by elevated crude palm oil prices and increased sales volume.

$MBSB (1171.MY)$, encompassing MBSB Bank Bhd and Malaysian Industrial Development Finance Bhd (MIDF), witnessed a 34.5% decrease in net profit for 2QFY2024, amounting to RM54.83 million compared to RM83.7 million a year earlier, due to higher operating costs and impairment allowances. Despite this, quarterly revenue surged by 35% to RM960.85 million from RM711.53 million in 2QFY2023, fueled by rising financing income and contributions from MIDF integration.

$GASMSIA (5209.MY)$ saw its net profit for 2QFY2024 increase by 12.5% to RM110 million, up from RM97.8 million in the preceding year, bolstered by increased natural gas sales, tolling fees, and joint venture contributions. However, quarterly revenue slightly declined by 1.8% to RM1.98 billion from RM2.02 billion, impacted by lower average natural gas selling prices. The company proposed a first interim dividend of 6.31 sen per share, totaling RM81 million, scheduled for payment on October 25.

$SIME (4197.MY)$ concluded FY2024 on a robust note, with its net profit soaring to RM3.31 billion, a significant increase from RM1.46 billion the previous year. This surge was primarily attributed to a RM2 billion profit from the sale of Ramsay Sime Darby Health Care (RSDH) in December 2023. The company's revenue also climbed by 39% to RM67.13 billion. A second interim dividend of 10 sen per share, payable on September 30, brought the total FY2024 dividend to 13 sen per share, amounting to RM886 million. Despite these annual gains, Sime Darby's 4QFY2024 net profit plummeted by 85.7% to RM89 million, due to one-time impairments and losses in its motors division, particularly in China, alongside increased finance costs and deferred tax provisions. However, quarterly revenue rose by 41.4% to RM18.8 billion.

$BJFOOD (5196.MY)$ reported a significant shift to a RM38.2 million net loss in Q4 FY2024, down from a net profit of RM17.28 million in the previous year, attributed primarily to the "current sentiment in relation to the conflict in the Middle East." Revenue plummeted to RM130.57 million from RM271.75 million. Over the annual period, the company recorded a net loss of RM91.52 million, a stark reversal from the RM103.4 million net profit of the prior year, due to weaker consumer sentiment and a one-off loss from disposing of its entire stake in Jollibean Foods Pte Ltd.

$PADINI (7052.MY)$ saw its net profit for Q4 FY2024 fall by 54.09% to RM26.31 million from RM57.31 million, driven by a decrease in gross profit margin, rising staff costs, and a dip in revenue. Revenue dropped 4.44% to RM455.17 million from RM476.33 million in Q4 FY2023, mainly due to reduced outlet sales and a 10.7% decline in same-store sales. The company declared a first interim dividend of 2.5 sen per share for FY2025, payable on September 27, maintaining an annual dividend rate of 11.5 sen per share as in the past two fiscal years. The full-year net profit for FY2024 fell 34.17% to RM146.6 million, although revenue saw a 5.31% increase to RM1.92 billion. Additionally, Padini proposed a bonus issue of up to 328.95 million shares on a one-for-two basis.