MY Morning Wrap | Malaysia Airports Q1 Net Profit Rises More Than Threefold on Higher Passenger Volumes

On Thursday, the stock market saw a decline in indexes due to harsh earnings reactions. Although there was more green than red, the $S&P 500 Index(.SPX.US)$ Index traded -0.60%, the $Dow Jones Industrial Average(.DJI.US)$ fell about 0.86%, and the $Nasdaq Composite Index(.IXIC.US)$ fell 1.08%.

$AIRPORT(5014.MY)$: Malaysia Airports Holdings Bhd reported a more than threefold YoY increase in net profit for the first quarter ended March 31, 2024, to MYR 189.99 million ($44.8 million), fuelled by higher passenger volumes. Quarterly revenue increased 30.64% YoY to MYR 1.35 billion ($318.5 million), thanks to higher passenger numbers resulting from new airline operations, school holiday travel, the Chinese New Year festive season, and the implementation of a 30-day visa-free waiver for China and India travellers to Malaysia. The airports operator did not declare any dividend for the quarter.

$MAHSING(8583.MY)$: Malaysia's Mah Sing Group is partnering with Bridge Data Centres (BDC) to develop data centre facilities and infrastructure in Bangi, Selangor, as part of a plan to diversify its income stream. Mah Sing aims to establish a data centre hub with a capacity of up to 500 MW on its 150-acre land. Its subsidiary, Southville City, has entered into a collaboration with BDC Malaysia to develop data centre facilities and infrastructure on a 17.55-acre freehold land parcel within the Southville City township in Bangi. Mah Sing posted a net profit of MYR60.4m ($14.27m), up 20% YoY, for Q1 2024.

$AXIATA(6888.MY)$: Axiata Group Bhd has maintained its mid single-digit revenue growth target for the financial year ending Dec 31, 2024, according to group CEO and managing director Vivek Sood. While the operational performance for the first quarter of FY2024 is encouraging, the group recognises that the challenging macroeconomic environment persists. The group is committed to a dividend of 10 sen per share in FY2024, similar to FY2023. It did not propose any dividend for 1QFY2024. Axiata aims to complete the merger of its Indonesian mobile unit XL Axiata with Smartfren Telecom by the end of 2024 in a bid to boost the combined entity’s competitiveness in the Indonesian market and challenge existing leaders. Boost Bank, a 60:40 joint venture between Boost Holdings Sdn Bhd and RHB Bank Bhd, is set to launch by June 6, 2024, making it the third digital bank in Malaysia after GXBank and Aeon Bank.

$GENTING(3182.MY)$: Genting Bhd's net profit for Q1 2024 surged several folds, mainly contributed by its leisure and hospitality segment in Malaysia and Singapore. The diversified conglomerate's net profit leapt to MYR 588.87 million ($139.1 million) from MYR 98.04 million ($23.1 million), while quarterly revenue jumped 27.6% to MYR 7.43 billion ($1.75 billion) from MYR 5.82 billion ($1.37 billion). However, Genting did not declare any dividend for the quarter under review.

$GENM(4715.MY)$: Genting Bhd's 49%-owned Genting Malaysia Bhd posted a net profit of MYR 57.78 million ($13.6 million) for the first quarter, compared to a net loss of MYR 27.38 million ($6.5 million) a year earlier, on the back of higher revenue from its leisure and hospitality business. Quarterly revenue rose 21.08% to MYR 2.76 billion ($651.4 million) from MYR 2.28 billion ($538.6 million). However, it did not declare any dividend for the quarter under review.

$HLBANK(5819.MY)$: Hong Leong Bank, the banking arm of tycoon Tan Sri Quek Leng Chan, reported a 12% YoY increase in net profit for the third quarter ended March 31, 2024, thanks to higher interest income and provision writeback. Net profit for the quarter was MYR 1.04 billion ($245.4 million) compared to MYR 929.96 million ($219.3 million) in the same period a year earlier. Net interest income rose 15% YoY to MYR 1.22 billion ($287.9 million), while non-interest income fell 38% to MYR 212.1 million ($50 million). Hong Leong Bank booked a writeback of impairment losses on loans, advances, and financing totalling MYR 26.3 million ($6.2 million) in 3QFY2024. The bank did not declare any dividend for the quarter.

$MISC(3816.MY)$: MISC Bhd reported a 24% YoY increase in net profit for the first quarter ended March 31, 2024, to MYR 759.90 million ($179.2 million), from MYR 612.90 million ($144.6 million) a year earlier, on the back of higher earnings from most of its divisions. The shipping group said revenue for the quarter rose to MYR 3.64 billion ($859.8 million), from MYR 3.08 billion ($727.6 million) a year ago, mainly due to the weaker ringgit. MISC declared a dividend of eight sen per share, to be paid on June 27.

$TM(4863.MY)$: Telekom Malaysia, Malaysia's state-owned fixed-line operator, reported a 29% YoY increase in net profit for the first quarter ended March 31, 2024, to MYR 424.81 million ($100.1 million), mainly due to lower operating costs. Revenue for the quarter edged up 1.8% YoY to MYR 2.84 billion ($669.3 million) from MYR 2.79 billion ($658.6 million). The company did not declare any dividend for the quarter.

$QL(7084.MY)$: QL Resources Bhd reported a nearly 35% YoY surge in net profit for the fourth quarter ended March 31, 2024, to MYR 98.72 million ($23.3 million), on the back of improved sales from most business segments, which helped offset flat sales for palm oil and clean energy. Quarterly revenue increased 13.7% YoY to MYR 1.68 billion ($396.2 million), compared to MYR 1.47 billion ($346.3 million) a year ago. QL Resources proposed a final dividend of 3.5 sen per share, bringing total dividend payout to 6.5 sen per share for FY2024, compared to seven sen for FY2023.

$LHI(6633.MY)$: Leong Hup International Bhd reported a more than doubled YoY increase in net profit for the first quarter ended March 31, 2024, to MYR 56.58 million ($13.3 million), mainly due to a turnaround in its Indonesian operations on better margins for chicks and chickens. Quarterly revenue increased 9.8% YoY to MYR 2.41 billion ($568.6 million) from MYR 2.2 billion ($518.2 million) a year ago. The company did not declare a dividend for 1QFY2024.

$AMBANK(1015.MY)$: Australia & New Zealand Banking Group Ltd (ANZ) is inviting bids to sell its remaining 5.17% stake in AMMB Holdings Bhd for up to MYR 701.16 million ($165.4 million). The sale would mark the exit of the Australia-based banking group from Malaysia’s sixth-largest lender by assets. ANZ's wholly owned subsidiary ANZ Fund Pty Ltd is putting up its remaining 171.02 million shares in AMMB for sale at an offer price of MYR 4.05 to MYR 4.10. The offer price range represents a 2.84% to 4.03% discount to AMMB's closing price on Thursday of MYR 4.22.

$RGB(0037.MY)$: Electronic gaming machine maker RGB International Bhd has secured a contract worth $81.33 million ($382.97 million) from the Philippines’ state-owned casino regulator, Philippine Amusement and Gaming Corp (Pagcor). The contract was awarded to its unit RGB (Macau) Ltd to supply and deliver slot machine equipment for Casino Filipino Branches. RGB International also announced its net profit more than doubled to MYR 22.18 million ($5.2 million) in the first quarter ended March 31, 2024, from MYR 10.54 million ($2.5 million) a year earlier. Quarterly revenue also doubled to MYR 210.11 million ($49.5 million) from MYR 95.16 million ($22.4 million). The group declared an interim dividend of six sen per share, with June 27 as the ex-date and July 12 as the payment date.