MY Morning Wrap | MAHB Records Doubling of Net Profit in Q2FY2024 Amid Increased Passenger Traffic

The market finished Friday on the rise despite low holiday weekend volume. $NVIDIA (NVDA.US)$ was climbing again, at one point up 3% after a 6% drop on Thursday.Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ traded up 1.01%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.55%, and the $NASDAQ 100 Index (.NDX.US)$ climbed 1.13%.The month was positive for indexes overall, even considering a 4% in the first week. The S&P 500 finished up 1.88%, the Nasdaq climbed 0.22%, and the Dow rose 1.55%.

$CIMB (1023.BMS)$: CIMB, Malaysia's second-largest bank by assets, has reported an 11% increase in net profit for the second quarter of fiscal year 2024, with profits rising to RM1.96 billion from RM1.77 billion in the corresponding quarter of the previous year. This growth in profitability is primarily driven by an increase in both net interest income and non-interest income. Net interest income saw a year-on-year increase of 2%, reaching RM2.81 billion, while non-interest income also rose by 2% to RM1.56 billion. Additionally, CIMB has announced a cash dividend of 27 sen per share for the quarter, which includes a special dividend of seven sen per share and an interim dividend of 20 sen per share. This financial performance underscores CIMB's strong revenue generation capabilities amidst a dynamic banking environment.

$AIRPORT (5014.BMS)$: Malaysia Airports has announced a significant increase in its net profit for the second quarter of fiscal year 2024, with profits rising to RM205.80 million, up from RM102.53 million in the same quarter of the previous year. This 100% increase in net profit is primarily attributed to heightened contributions from associate and joint venture companies. Additionally, the company experienced an 11.93% increase in revenue, reaching RM1.38 billion compared to RM1.23 billion in 2QFY2023. The revenue growth was fueled by several factors, including higher passenger volumes resulting from new airline operations, the resumption of airline routes, the introduction of new services, and the implementation of a 30-day visa-free policy for Chinese and Indian travelers. Furthermore, the delivery of new aircraft and the haj season also contributed to the positive financial outcomes for the quarter.

$MRCB (1651.BMS)$: Malaysian Resources has reported a substantial increase in its net profit for the second quarter of fiscal year 2024, with figures rising more than fourfold to RM51.18 million from RM10.87 million in the same quarter of the previous year. This remarkable increase in profit is largely due to a doubling in contributions from its construction segment. However, the company saw a significant decline in revenue, which fell by 37.9% to RM372.16 million from RM599.35 million. This reduction in revenue was attributed to lower contributions from the property development and investment segment and decreased revenue from the engineering, construction, and environment division. Despite the revenue challenges, the substantial rise in net profit highlights a robust performance in key operational areas.

$IGBB (5606.BMS)$: IGB has experienced a 33% decrease in net profit for the second quarter of fiscal year 2024, reporting RM75.2 million compared to RM112 million in the corresponding quarter of the previous year. The decline in profitability is primarily attributed to lower earnings from the property development and construction segments, as well as a reduction in foreign exchange gains. Despite the downturn in net profit, the company did report a slight revenue increase of 4%, amounting to RM396.8 million up from RM382.2 million. This revenue growth was driven by enhanced contributions from IGB’s retail, commercial, and hotel segments, signaling strength in these areas despite the overall profit reduction.

$MAHSING (8583.BMS)$: Mah Sing has announced a rise in net profit for the second quarter of fiscal year 2024, reaching RM60.2 million, up from RM50.5 million recorded in the same quarter the previous year. This 19.2% increase in profit is attributed to improved profit margins and a reduction in net finance costs. However, the company faced a 10.2% year-over-year decline in quarterly revenue, which fell to RM578.4 million from RM644.2 million. Despite lower revenue, the improved profitability highlights Mah Sing's effective cost management and financial strategies during the period.

$TCHONG (4405.BMS)$: Tan Chong Motor Holdings Bhd (KL:TCHONG) has reported its seventh consecutive quarterly loss, with net losses widening significantly in the second quarter of fiscal year 2024. The company recorded losses of RM40.11 million compared to RM18.13 million in the same period the previous year. Revenue also saw a decline, dropping 12% to RM545.1 million from RM619.2 million, reflecting the intense competition both locally and internationally in the automotive sector. Tan Chong, a principal assembler of Nissan vehicles in Malaysia, is optimistic about upcoming vehicle launches planned for the next 24 months. These new introductions aim to reclaim some of the market share and improve the company's financial performance.

$EATECH (5259.BMS)$: EA Technique (M) Bhd (KL:EATECH) has reported a substantial increase in its second quarter profits for the fiscal year 2024, registering a net profit of RM94.65 million, or 7.14 sen per share. This represents a significant rise from the RM7.8 million, or 1.47 sen per share, recorded in the same quarter of the previous year. The notable increase in profit is primarily attributed to writebacks to other income related to the creditor scheme and one-off expenses linked to the company's Practice Note 17 (PN17) regularisation plan. This quarter marks the eighth consecutive quarter of profitability for EA Technique, which is on track to exit PN17 status by the first quarter of 2025.

$MSM (5202.BMS)$: MSM Malaysia Holdings Bhd (KL:MSM), a prominent player in the sugar refining sector, has announced a significant agreement to export grain sugar to China, with plans to deliver 45,000 tonnes by the end of this year. Although the financial details of the deal remain undisclosed, this agreement positions China as one of MSM's top five export markets, which also includes the Philippines, Singapore, Indonesia, and Vietnam. Looking ahead, MSM targets an annual export volume of 100,000 to 200,000 tonnes to China in the medium term. This ambitious goal is supported by the increased production capacity at the MSM Johor refinery, which is currently undergoing an expansion through a ramp-up program.

$ICON (5255.BMS)$: Icon Offshore Bhd (KL:ICON) has unveiled plans for a series of strategic acquisitions valued at RM437.5 million, aimed at significantly expanding its fleet. These acquisitions, which will be financed entirely through the issuance of shares, include the complete purchase of Yinson Holdings Bhd’s (KL:YINSON) offshore marine business for RM160 million. The successful completion of these transactions will increase Icon Offshore's fleet by an impressive 40 maritime assets. The acquisitions cover four entire companies, substantial stakes in two others, and full ownership of two companies already majorly owned by Icon Offshore. This move marks a significant expansion strategy for Icon Offshore in the maritime sector.

$PANSAR (8419.BMS)$: Pansar Bhd, listed on the Kuala Lumpur Stock Exchange under the ticker PANSAR, has successfully secured a RM804.7 million contract to undertake the Kuching Urban Transportation System (KUTS) Blue-Line Package 2. The contract, awarded to Pansar’s wholly-owned subsidiary Perbena Emas Sdn Bhd (PESB) in collaboration with China Road & Bridge Corporation (CBRC), was confirmed through a letter of acceptance from Sarawak Metro Sdn Bhd (SMSB), a subsidiary of the Sarawak Economic Development Corp. The project involves constructing infrastructure and associated works for the KUTS Blue Line, spanning the segment from Stutong to Hikmah Exchange in Sarawak. This significant development underscores Pansar Bhd’s expanding footprint in major infrastructure projects within the region.

$AXREIT (5106.BMS)$: Axis Real Estate Investment Trust (Axis REIT), listed on the Kuala Lumpur Stock Exchange under the ticker AXREIT, has unveiled plans for a substantial private placement aimed at raising approximately RM454.99 million. The proceeds from this placement, which will involve issuing up to 263 million new units or 15.05% of its current issued units, are intended primarily for the repayment of existing bank financing. This strategic move aligns with the board’s commitment to reducing the financing ratio of Axis REIT, thereby ensuring more robust capital management. Additionally, the funds will enable the trust to maintain financial flexibility for future property acquisitions and development projects, in keeping with its long-term growth and capital management strategies.