MY Morning Wrap | Malaysia's Producer Price Index Declines to -1.8% in August 2023

The $S&P 500 Index(.SPX.US)$ dropped 1.5%, extending its poor run since last week's Federal Reserve meeting, when officials raised their interest-rate forecasts for 2024. The tech-heavy $Nasdaq Composite Index(.IXIC.US)$ shed 1.6%, while the $Dow Jones Industrial Average(.DJI.US)$ slid 388 points, or 1.1%.

$TENAGA(5347.MY)$ : TNB has estimated a recovery of about RM7bil from the imbalance cost-pass-through (ICPT) mechanism in the first half of financial year 2024 (1H24), based on the current fuel price trends. The utility giant said in a statement the forward-looking perspective reflected TNB's proactive stance in managing its financial outlook and controlling fuel-related expenditures. President and chief executive officer Datuk Baharin Din said the development significantly enhances TNB’s working capital, boosting its cash flow and improving gearing levels in 2023.

$VS(6963.MY)$ : Electronic manufacturing services (EMS) provider VS Industry Bhd closed its financial year 2023 (FY2023) on a stronger note than FY2022, following an 85.7% jump in its net profit for the fourth quarter ended July 31 to RM66.08 million from RM35.59 million in the previous year's corresponding quarter, as it recorded a higher revenue on increased sales orders from existing customers. Quarterly revenue climbed 15.7% to RM1.16 billion from RM1 billion previously. Earnings per share (EPS) for the quarter rose to 1.72 sen, from 0.93 sen.

$AEONCR(5139.MY)$ : AEON Credit Service (M) Bhd’s net profit for the second quarter ended Aug 31, 2023 (2QFY2024) soared 59% to RM120.19 million from RM75.65 million reported in the same period last year, supported by higher transaction and financing volume.Quarterly revenue surged 18.2% to RM471.73 million compared to RM399.17 million, mainly attributable to stronger loan and financing growth.Meanwhile, the group also declared an interim dividend of 28.5 sen per share, to be paid on Nov 2.

$ASTRO(6399.MY)$ : Analysts covering Astro Malaysia Holdings Bhd have cut target prices (TPs) and earnings forecasts for the pay-TV provider, following disappointing results for the second quarter ended July 31, 2023 (2QFY2024). Astro shares hit an all-time low in the early session on Tuesday, after the results. The counter opened two sen lower at 49 sen and hit its all-time low of 46.5 sen, before paring losses to trade at 47.5 sen, still down 3.5 sen or 6.86% in the early session. It closed down 4.5 sen or 8.82% at 46.5 sen, with a market capitalisation of RM2.4 billion.

$BJCORP(3395.MY)$ : Berjaya Corp Bhd (BCorp) has disposed of a 2.24% stake in Berjaya Land Bhd (BLand), ahead of its end-September deadline to comply with a public shareholding spread requirement of 20%. BCorp disposed of 110 million shares in BLand held under Juara Sejati Sdn Bhd via a direct business transaction on Sept 22.

$TTVHB(0272.MY)$ : Khazanah Nasional Bhd has continued offloading its stake in Penang-based automated test equipment (ATE) maker TT Vision Holdings Bhd, this time selling a 1.92% stake for RM10.8 million. The sovereign fund via Malaysian Technology Development Corp Sdn Bhd offloaded six million shares or a 1.28% stake on Sept 22, and three million shares or a 0.64% stake a day prior.The disposals pared Khazanah Nasional’s stake in TT Vision to 16.94% or 79.26 million shares.

$SAMAIDEN(0223.MY)$ : Renewable energy specialist Samaiden Group Bhd is partnering with hospitality group Meta Bright Group Bhd (MBGB) to pursue business opportunities and accelerate the growth of renewable energy solutions, particularly for the mining sector, within the Asia-Pacific (APAC) region. The two companies have inked a partnership agreement for the collaboration that aims to establish a strategic relationship focused on mutual advancement in the clean energy sector.

$POHKONG(5080.MY)$ : Poh Kong Holdings Bhd’s net profit plummeted 83.3% to RM4.98 million or 1.21 sen per share in the fourth quarter ended July 31, 2023 (4QFY2023), from RM29.84 million or 7.27 sen per share a year ago, due to a fall in sales volume and increased operating expenses. Quarterly revenue fell 23.9% to RM315.66 million, compared to RM414.66 million posted a year earlier, mainly due to weak market sentiment and a decrease in demand for gold jewellery products.The board recommended a final single tier dividend of two sen, subject to shareholders' approval at the forthcoming annual general meeting.

$MYNEWS(5275.MY)$ : MyNews Holdings Bhd continued to bleed in the third quarter ended July 31, 2023 (3QFY2023) after it posted a wider net loss of RM2.16 million compared with RM1.45 million reported in the same period last year, mainly due to higher selling and distribution costs. Quarterly revenue, however, rose by 9.16% to RM185.79 million from RM170.2 million, fuelled by the increase in number of outlets and improvement in overall in-store sales.

$EIB(0255.MY)$ : Ecoscience International Bhd has secured a RM38.02 million contract for the construction of a building and substation in Kerling, Selangor.The company’s wholly-owned unit Ecoscience Manufacturing & Engineering Sdn Bhd has accepted the letter of award from Thens Architect, which issued the contract on behalf of non-governmental organisation Maitreya Moral Society Malaysia. Ecoscience said the construction comprises a six-storey building with a two-storey basement, an electrical substation and others.