MY Morning Wrap | Maybank Reports 8.2% Increase in Q2 Net Profit for FY2024Q2

The market fell Wednesday ahead of $NVIDIA (NVDA.US)$ earnings, and Nvidia fell after hours despite beating estimates: The firm's forward projections were below the highest of estimates. Traders are waking up to a more complicated market on Thursday.Index prices reflected traders holding their breath. Just before 4 pm ET, the $S&P 500 Index (.SPX.US)$ traded -0.60%, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.39%, and the $NASDAQ 100 Index (.NDX.US)$ shed 1.12%.

$MAYBANK (1155.MY)$ reported an 8.2% increase in net profit for the second quarter ending June 30, 2024 (2QFY2024), reaching RM2.53 billion, up from RM2.34 billion in the corresponding period last year. This improvement was attributed to reduced provisions and tax expenses. Additionally, the bank announced an interim cash dividend of 29 sen per share, totaling RM3.5 billion, with the payment date yet to be determined.

$KLCC (5235SS.MY)$ disclosed a 5.67% rise in its 2QFY2024 net profit, which stood at RM191.06 million compared to RM180.8 million a year earlier. This increase stemmed from robust performances across all business sectors, particularly in retail and hotel operations. The group, which includes KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust, reported a revenue increase of 4.72% to RM413.25 million from RM394.63 million. A dividend of 9.2 sen per stapled security was declared—2.46 sen for KLCC Property and 6.74 sen (taxable) for KLCC REIT—scheduled for payment on September 30.

$SUNWAY (5211.MY)$ reported a significant increase in net profit for the second quarter of FY2024, totaling RM270.47 million, a surge of 80.4% from RM149.43 million in the previous year. This growth was driven by robust performance across all business divisions and included gains from investment redemptions and earnings from recently acquired investment properties of an associate. Revenue rose by 7.6% to RM1.58 billion, up from RM1.47 billion, with all segments showing improvement except construction. Sunway announced an interim dividend of two sen per share for FY2024, payable on October 10, and a preferential dividend of 5.25% annually for irredeemable convertible preference shares for the period from January 1 to June 30, 2024.

$AXIATA (6888.MY)$ returned to profitability in the same quarter, posting a net profit of RM134.9 million after a net loss of RM576.22 million the previous year. This turnaround was attributed to strong contributions from all operating companies, except Link Net and Dialog, and was supported by higher associate earnings and reduced foreign exchange losses, despite an increase in finance costs and taxes. The group’s revenue increased by 2.9% to RM5.76 billion. A dividend of five sen per share was declared, with the entitlement and payment dates to be announced later.

$MALAKOF (5264.MY)$ also reported a positive shift, recording a net profit of RM93.6 million compared to a net loss of RM318.7 million a year ago. This improvement stemmed from higher earnings from two Johor-based power plants and compensation for compulsory land acquisition, despite a 2.4% drop in revenue to RM2.31 billion due to lower energy payments aligned with decreased coal prices. Malakoff declared an increased interim dividend of 2.23 sen per share, payable on October 25.

$DRBHCOM (1619.MY)$ faced challenges, posting a net loss of RM17.08 million compared to a net profit of RM33.71 million in the prior year. This downturn was primarily due to weaker performances by Proton Holdings Bhd and losses from Pos Malaysia Bhd. The company's revenue decreased by 5.6% to RM3.76 billion.

$AAX (5238.MY)$ experienced a 13% decline in net profit to RM4.82 million from RM5.54 million, attributed to the seasonally low travel demand. However, revenue increased by 30.5% to RM669.14 million from RM512.91 million, buoyed by higher ticket sales and ancillary revenue.

$SUPERMX (7106.MY)$ recorded its largest-ever quarterly net loss of RM127.93 million for the fourth quarter ending June 30, 2024 (4QFY2024), primarily due to a significant write-down of RM72.85 million in high-priced inventory at an overseas subsidiary. The company's quarterly revenue declined by 19.3% to RM179.64 million from RM222.6 million, influenced by low selling prices and a market still adjusting to a previous oversupply of gloves.

$FFB (5306.MY)$ net profit soared fourfold to nearly RM26 million in the first quarter ending June 30, 2024 (1QFY2025), up from RM6.37 million or 0.34 sen per share the previous year. This increase was driven by significantly higher sales, reduced costs, and strong performances at its Inside Scoop and Sin Wah ice cream outlets. Additionally, improved profit margins from its Australian operations contributed to the growth. Revenue for the quarter rose 30% to RM241.7 million from RM185.46 million.

$QL (7084.MY)$ reported a 16% rise in net profit to RM107.43 million for 1QFY2025, compared to RM92.81 million a year earlier, primarily fueled by its convenience store chain operations. The company's revenue for the quarter modestly increased by 1.3% year-on-year to RM1.62 billion from RM1.6 billion.

$IJM (3336.MY)$ net profit for 1QFY2025 decreased by 13.68% to RM86.88 million from RM100.64 million a year earlier, mainly due to unrealized foreign exchange and fair value losses. However, the company’s quarterly revenue saw a rise of 14.56% to RM1.4 billion from RM1.23 billion.

$CITAGLB (7245.MY)$ announced plans to collaborate with Tree Technologies Sdn Bhd to develop a leasehold industrial land in Gebeng Industrial Estate, Pahang, into a green-themed industrial park. The partnership agreement, based on a 65% equity shareholding for Citaglobal and 35% for Tree Technologies, has been formalized through a binding term sheet. The projected gross development value of the industrial park has not been disclosed.

$AXREIT (5106.MY)$ has outlined plans to acquire two adjoining pieces of land with buildings in Pulau Indah Industrial Park near Port Klang for RM158.64 million. The purchase will be financed through existing bank facilities. RHB Trustees Bhd, the REIT's trustee, has signed agreements to acquire the properties from Malconrep Depot (M) Sdn Bhd and Dayang Mewah Sdn Bhd.

$DNEX (4456.MY)$ has secured a one-year extension from the government to manage the National Single Window (NSW) for Trade Facilitation system. Through its subsidiary, Dagang Net Technologies Sdn Bhd, DNeX will continue operating the system until August 31, 2025, a role it has maintained since 2009.

$PERTAMA (8532.MY)$ is in the process of acquiring Kridentia Tech Sdn Bhd, a system integration and technical consultancy firm, through an all-shares transaction. The details of the deal's value remain undisclosed. Pertama Digital has signed a memorandum of understanding with Kridentia Holdings Sdn Bhd to acquire a 59% stake in Kridentia Tech, which is partly owned by Datuk Abdul Rashid Mohd Ghani and Kwek Keng Chye who collectively own the remaining 41%.

$SNTORIA (5213.MY)$ announced the resignation of its CEO, Datuk Loh Yuen Tuck, amid disputes over claims of constructive dismissal, which the company has rejected. Sentoria stated that Loh "considers himself to have been terminated due to constructive dismissal which we do not accept and take issue" with. This development follows a report in The Edge Malaysia weekly titled "Sentoria CEO departs on constructive dismissal, adding new twist to feud", published between August 19-25, quoting Loh on his resignation.

$SKYWLD (5315.MY)$ has agreed to pay Perbadanan PR1MA Malaysia (PR1MA) RM32.17 million for the rights to develop 491 affordable housing units in Brickfields. SkyWorld's subsidiary, Aspirasi Cekap Sdn Bhd (ACSB), received a letter of acceptance from PR1MA and will sign a joint development agreement within 60 days from the LOA or on a mutually agreed upon date.