MY Morning Wrap | LPI Capital Q1 Net Profit Up 37%, Driven by Lower Costs and Higher Investments

Moomoo News MY wrote a column · Apr 30, 2024 08:22

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

●US Stock Indexes Climb as Tesla and Royal Philips Rally Ahead of Federal Reserve's Interest Rate Decision

●ACWA Plans $10 Billion Investment in Malaysia

●Foreign Funds Make RM292.2 Million Net Buy in Bursa

●Minister Aims to Ramp Up R&D for Productivity on Par with Developed Countries

●Stocks to watch: IHH, Nestle, LPI Capital, Ajiya, YTL Hospitality REIT, Tex Cycle Technology

-moomoo News MY

MY Morning Wrap | LPI Capital Q1 Net Profit Up 37%, Driven by Lower Costs and Higher Investments

Wall Street Summary

On Monday, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experienced gains, buoyed by rallies in $Tesla (TSLA.US)$ and $Royal Philips (PHG.US)$, with investors anticipating the Federal Reserve's impending interest rate decision later in the week. The $S&P 500 Index (.SPX.US)$ saw an increase of 0.32%, the $Dow Jones Industrial Average (.DJI.US)$ added 0.38%, and the $Nasdaq Composite Index (.IXIC.US)$ advanced by 0.35%.

Breaking News

ACWA Plans $10 Billion Investment in Malaysia

Saudi Arabia's renewable energy leader ACWA Power plans to channel over US$10 billion into Malaysia within the next decade. Cypark Resources Bhd's executive chair, Datuk Ami Moris, indicated that final discussions are underway for a collaboration on a renewable energy initiative, with expectations to seal the deal by the end of the year. ACWA Power intends to bring its expertise in clean energy and technology to facilitate the development of green data centres in the industrial areas of Jasin, Melaka, and Kerian, Perak, as shared by Ami Moris with the press post-conference.

Foreign Funds Make RM292.2 Million Net Buy in Bursa

Last week, foreign investors made a comeback to Bursa Malaysia, buying a net RM292.2 million worth of shares, especially in blue chip stocks, signaling renewed interest in the market. The FBM KLCI benchmark soared to a two-year peak, mirroring a global uptrend driven by strong earnings from major US tech firms, and marking the end of an eight-week net foreign outflow. Local institutions continued their buying streak for the ninth week, with net purchases totaling RM143.3 million, while local retail investors sold off RM435.5 million for the seventh consecutive week. MIDF's weekly fund flow report highlighted that the average daily trading volume for retail and foreign investors decreased by 10.9% and 15.5%, respectively, but local institutions experienced a marginal increase of 0.2%.

Minister Aims to Ramp Up R&D for Productivity on Par with Developed Countries

Malaysia aims to boost research and development (R&D) investment to match the competitive edge of developed countries that effectively leverage R&D. The Minister of Science, Technology, and Innovation, Chang Lih Kang, noted that the country's investment in R&D still trails behind advanced nations like South Korea, Japan, and Singapore. He stated that to bridge this gap, the Prosperous Economic Agenda has set a target for Malaysia's Gross Expenditure on R&D (GERD) to reach 3.5% of the Gross Domestic Product (GDP) by 2030, ensuring sustained economic growth."By increasing investment in R&D, Malaysia aspires to elevate its status to that of developed nations that have successfully used R&D to enhance their global competitiveness."

Stocks to Watch

$IHH (5225.MY)$: IHH Healthcare Bhd has teamed up with Ditrolic Energy Holdings Sdn Bhd to deploy a wide-ranging solar energy program throughout its collection of medical facilities. The transition to solar energy at all of IHH's Malaysian hospitals is anticipated to reach completion by the year 2025. "Our broader goal is to cap carbon growth by 2025 and achieve net-zero emissions by 2050," IHH chief executive officer Jean-François Naa shared.

$NESTLE (4707.MY)$: 1QFY2024 net profit fell slightly by 0.8% to RM195.51 million from RM197.15 million, with a 3.2% dip in revenue to RM1.78 billion due to lower sales, mitigated by cost-saving measures and favorable commodity costs. The company faces a tough 2024, with persistent inflation and forex volatility affecting consumer spending and intensifying competition.

$LPI (8621.MY)$: This company experienced a significant 37% increase in net profit, reaching RM101.29 million in the first quarter of fiscal year 2024 (1QFY2024), up from RM73.83 million in the same period last year. This profit boost was driven by reduced net expenses from held reinsurance contracts and an uptick in investment income. The company's revenue saw a year-on-year increase of 1.4%, rising to RM469.8 million from RM463.3 million, supported by an increase in gross written premiums.

$AJIYA (7609.MY)$: Ajiya reported a consecutive quarterly loss of RM12.71 million in 1QFY2024, reversing from a net profit of RM46.11 million in the previous year, even as it registered an increase in revenue. The shift to a loss was driven by elevated operating costs, a RM9.65 million hit from asset disposals, and a RM6 million fair value loss on investments. This is in stark contrast to the RM43.31 million fair value gain on investments it reported a year earlier.

$YTLREIT (5109.MY)$: YTL Hospitality REIT is developing a RM199 million Moxy-branded hotel in Niseko, Hokkaido, through its subsidiary Starhill REIT Niseko GK. The five-story hotel with a two-story basement is expected to complete by Q4 2026.

$TEXCYCL (0089.MY)$: This company is collaborating with Evolusi Bersatu Sdn Bhd to pour RM100 million into Sabah's inaugural comprehensive scheduled waste management center. Set to begin construction in the second half of 2024, the facility aims to be operational by the fourth quarter of 2025, supplementing the services of current scheduled waste management operators.

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

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