MY Morning Wrap | KLK Acquires Over 90% Stake in Two Oil Palm Companies for RM276.55 Million

The $Dow Jones Industrial Average (.DJI.US)$ advanced 158 points, or 0.43%, to 37,248, after touching a record intraday high of 37,287.50. The $S&P 500 Index (.SPX.US)$ edged up 12 points, to 4,719. The $Nasdaq Composite Index (.IXIC.US)$ rose 27 points to 14,761.

$KLK (2445.MY)$: Kuala Lumpur Kepong Bhd (KLK) and its Singapore subsidiary, KLK Plantations and Trading Pte Ltd have proposed to acquire more than 90% stakes in two Indonesian palm oil companies for RM276.55 million in a related party transaction, from Whitmore Holdings Sdn Bhd, a unit of Batu Kawan Bhd. Batu Kawan owns 47.72% in KLK.

$YINSON (7293.MY)$: Yinson Holdings Bhd posted a record net profit of RM248 million or 7.3 sen per share for the third quarter ended Oct 31, 2023 (3QFY2024), up 60% from RM155 million or 4.2 sen per share a year earlier as revenue grew 62% to RM2.81 billion from RM1.74 billion. For the first nine months of FY2024, net profit rose 64.11% to RM686 million from RM418 million, mainly due to a doubling of revenue to RM8.94 billion from RM4.36 billion, thanks to an increase in engineering, procurement, construction, installation and commissioning (EPCIC) revenue.

$SCIENTX (4731.MY)$: Scientex Bhd net profit for the first financial quarter ended Oct 31, 2023 (1QFY2024) rose 28.6% to RM137.84 million from RM107.18 million a year earlier, driven by its property division. Quarterly revenue rose 7.4% to RM1.11 billion in 1QFY2024 from RM1.03 billion a year earlier. The property developer's share of results from its Malaysian joint ventures included contributions from Eco Grandeur, Eco Business Park V, Eco Ardence, Bukit Bintang City Centre (BBCC) and Eco Horizon.

$ASTRO (6399.MY)$: Astro Malaysia Holdings Bhd posted its maiden net loss of RM47.05 million for its third quarter ended Oct 31, 2023 (3QFY2024) compared with a net profit of RM5.8 million in 3QFY2023. This is largely due to the voluntary separation scheme (VSS) exercise to reduce its headcount by 20% that cost the group RM52 million. Quarterly revenue fell 10.54% to RM828.55 million from RM926.18 million a year prior, as the group exited its home-shopping business. For the nine months ended Oct 31 (9MFY2024), Astro booked a net loss of RM7.51 million against a net profit of RM204.29 million as the VSS cost added to higher operating costs and forex losses. Revenue dipped 5.62% to RM2.52 billion from RM2.67 billion.

$ECOWLD (8206.MY)$: Eco World Development Group Bhd (EcoWorld) net profit for the fourth quarter ended Oct 31, 2023 (4QFY2023) nearly doubled to RM3.29 million from RM1.77 million a year ago, with quarterly revenue up 50.98% to RM844.45 million from RM559.28 million driven by the completion of a 92-acre land sale in Eco Business Park II. For FY2023, the group's net profit increased by 20.4% to RM189.3 million from RM157.2 million in FY2022, with revenue reaching RM22.26 billion. It declared a final dividend of two sen per share in 4QFY2023, bringing total dividends declared for FY2023 to six sen per share.

$RANHILL (5272.MY)$: Ranhill Utilities Bhd is undertaking a project under a related party transaction to reduce non-revenue water (NRW) in Johor for RM283.89 million. The project was awarded by Ranhill’s 80%-owned unit Ranhill SAJ Sdn Bhd to another indirect wholly-owned unit Ranhill Technologies Sdn Bhd — the latter’s seventh NRW project in Johor — following a competitive tender process.

$HIAPTEK (5072.MY)$: Hiap Teck Venture Bhd slipped back into the red with a net loss of RM9.43 million or 0.54 sen per share for its first quarter ended Oct 31, 2023 (1QFY2024), dragged by its losses from a joint venture entity. Revenue shrank quarter-on-quarter to RM407.5 million due to sluggish market demand, from the RM453.79 million it recorded in 4QFY2023 when the group made a net profit of RM42.6 million. The group said it is exercising caution amid fluctuations in steel prices, uncertainties in financial markets and geopolitical tensions.

$PESTEC (5219.MY)$: Pestech International Bhd said its 60%-owned joint venture has secured an electrical substation construction project in Entinggan, Kuching, Sarawak from Syarikat SESCO Bhd for RM109.98 million. The award “signifies that Pestech remains active and competitive in the procurement of new projects”, Pestech said. It added that the project should contribute to the group in stages in the financial year ending Sept 30, 2024 (FY2024) and FY2025.

$CRESBLD (8591.MY)$: Crest Builder Holdings Bhd has secured a RM314.5 million contract from UEM Land Bhd to construct 1,334 units of serviced apartments in two 53-storey blocks in Cheras, Kuala Lumpur. The project also comprises a level of sub-basement car park, elevated podium car parks, commercial retail and office spaces and a level of recreation facilities. Construction would take approximately 39 months beginning from its scheduled site possession date of June 1, 2024.