MY Morning Wrap | Malaysia's Economy Moderated 2.9% in 2Q

$Nasdaq Composite Index (.IXIC.US)$ packed with rate-sensitive technology stocks, fell 0.2% on Friday. $Dow Jones Industrial Average (.DJI.US)$ rose about 26 points, less than 0.1%, while the $S&P 500 Index (.SPX.US)$ declined less than 0.1%. Every segment of the S&P 500 ended the week lower.

$CDB (6947.MY)$ : CelcomDigi Bhd's net profit for the second quarter ended June 30, 2023 (2QFY2023) jumped 56.11% to RM343.52 million from RM220.04 million a year ago, as revenue doubled to RM3.12 billion from RM1.54 billion on higher device sales. The telco declared a second interim dividend of 3.2 sen per share, amounting to RM375 million, with an entitlement date of Sept 6 and a payment date of Sept 29. CelcomDigi booked a net gain on fixed assets written-off and disposed of RM15.94 million for 2QFY2023 versus a net loss of RM9.05 million in the same quarter last year. The group’s share of profit of an associate was RM2.87 million for 2QFY2023.

$TIMECOM (5031.MY)$ : TIME dotCom Bhd posted a near 20-fold jump in net profit to RM2.26 billion for 2QFY2023 from RM118.28 million a year earlier, thanks to a RM2.26 billion gain from the divestment of its stakes in AIMS Data Centre Holding Sdn Bhd (AIMS) and AIMS Data Centre (Thailand) Ltd (AIMS TH). The deal with the US digital infrastructure assets firm DigitalBridge Group Inc, which was announced in November last year, entailed the divestment by TIME of 49% of the ordinary shares and 100% of the irredeemable convertible preference shares in AIMS, as well as 21% of the shares in AIMS TH. Revenue for the quarter also increased by 10.74% to RM389.2 million from RM351.44 million previously. The group declared a special interim dividend of 16.25 sen per share, payable on Sept 15.

$YINSON (7293.MY)$ : Yinson Holdings Bhd has secured US$300 million (RM1.39 billion) from a private equity firm, RRJ Capital, to partly finance its floating, production, storage and offloading asset for the Agogo Integrated West Hub Development Project in Angola (FPSO Agogo). The group signed a collaboration agreement with RRJ on Friday to jointly develop energy infrastructure and technology projects globally, including through the provision of the US$300 million financing.

$UEMS (5148.MY)$ : UEM Sunrise Bhd posted a net profit of RM24.7 million in 2QFY2023 up 19.3% from RM20.7 million in 2QFY2022, due to higher share of results from joint ventures and associates. In contrast, the property developer’s revenue slipped marginally to RM363.96 million from RM365 million due to lower revenue contribution of Residensi Solaris Parq in Mont Kiara.

$KERJAYA (7161.MY)$ : Kerjaya Prospek Group Bhd saw a 10.6% increase in net profit to RM31.57 million for 2QFY2023 from RM28.54 million a year earlier, as the construction outfit posted a record quarterly revenue for 2QFY2023. The group said its revenue grew 11.7% to RM309.28 million compared with RM276.92 million a year ago, due to improved progress of construction work activities. It declared a second interim dividend of two sen per share, payable on Oct 6.

$TELADAN (0230.MY)$ : Teladan Group Bhd’s net profit sank 43.59% to RM8.03 million or 0.99 sen per share for 2QFY2023 from RM14.24 million or 1.77 sen per share in the previous year’s corresponding quarter. Earnings for the quarter were impacted by higher administrative expenses and lower gross profit margin, said the Melaka-based property developer. Teladan (formerly known as Teladan Setia Group Bhd), saw its quarterly revenue decrease 3.94% to RM72.62 million from RM75.6 million.

$KGB (0151.MY)$ : Kelington Group Bhd posted a net profit of RM19.07 million or 2.96 sen per share in the 2QFY2023 up 41% from RM13.56 million or 2.11 sen per share a year ago following significant growth in all its key operating markets. This is the engineering solutions provider's highest quarterly net profit in its history, Revenue rose 36% to RM424.91 million from RM312.4 million in 2QFY2023, with the ultra high purity division continuing to be KGB's primary revenue contributor, accounting for 68% of its total revenue. KGB declared a first interim dividend of 1.5 sen per share for FY2023, payable on Oct 2.

$PESTECH (5219.MY)$ : Pestech International Bhd claims the termination of its contract to undertake the aerotrain project at the Kuala Lumpur International Airport (KLIA) is “misconceived and invalid”. The group said it had informed Malaysia Airports Holdings Bhd's (MAHB) unit, Malaysia Airports (Sepang) Sdn Bhd (MASSB), of this through a formal letter on Friday. Pestech said it firmly disputes the termination as contemplated in the termination notice and will enforce its legal rights if necessary, but prefers to seek an amicable resolution with MASBB. In addition, the termination of the RM742.95 million contract was expected to "pose unfavourable effects" to its revenue and profit for the financial year ending June 30, 2024, said Pestech, without providing further details.