MY Morning Wrap | MN Holdings Wins RM136.24 Million Contract for Data Centre Power Infrastructure
Good morning mooers! Here are things you need to know about today's market:
●U.S. Stocks Dip Before Tesla, Alphabet Releases Earnings
●Malaysia Aims for RM1.2 Trillion in Semicon Exports by 2030 with Talent Development Focus
●Malaysia's Fintech Market Value Projected to Hit US$100 Billion in Five Years
●Malaysia Sees Surge in Data Centre Investments Amid Regional Demand
●Stocks to watch: MN Holdings, UEM Sunrise, Axteria
-moomoo News MY
Wall Street Summary
The US stock market faced a downturn as the so-called Magnificent Seven stocks led a broader market slide, with investors speculated to be shifting away from the year's top performers towards stocks with solid fundamentals yet overshadowed by the AI hype. The $S&P 500 Index(.SPX.US$ dropped 2.3%, and the $Nasdaq Composite Index(.IXIC.US$ tumbled 3.6%, marking their poorest daily results since 2022. The $Dow Jones Industrial Average(.DJI.US$ also fell by 1.3%. The sentiment was dampened after earnings from Alphabet and Tesla failed to meet investor expectations, despite the buzz around generative AI's potential to drive tech revenues.
Breaking News
Malaysia Aims for RM1.2 Trillion in Semicon Exports by 2030 with Talent Development Focus
The Malaysia Semiconductor Industry Association (MSIA) has announced an ambitious goal for the nation's semiconductor exports to reach RM1.2 trillion by 2030, which would maintain Malaysia's status as the world's sixth-largest exporter and represent a CAGR of 7.6%. MSIA president Datuk Seri Wong Siew Hai highlighted the need for Malaysia to enhance its semiconductor value chain capabilities and address talent shortages through government-industry collaboration. He emphasized the necessity of training and retaining 300,000 local talents, including 60,000 technical experts. The industry also plans to utilize foreign talents studying in Malaysia, particularly in science and engineering, to supplement the local workforce. Despite a 3% drop in semiconductor exports in 2023, the association is optimistic about the country's potential growth in this sector.
Malaysia's Fintech Market Value Projected to Hit US$100 Billion in Five Years
Malaysia is poised to see its fintech market value soar to US$100 billion within the next five years, a significant increase from the current US$50 billion valuation. This optimistic forecast was presented by Wilson Beh, the President of the Fintech Association of Malaysia, at the Tech in Asia Conference 2024. Key drivers of this growth include the widespread adoption of DuitNow, advancements in cross-border payment systems, and the successful execution of Project Nexus, which has enhanced payment integration with neighboring countries like Singapore and Thailand. The implementation of electronic Know Your Customer (eKYC) procedures and the introduction of digital banks have further stimulated the fintech sector. Malaysia's leading position in the global Islamic fintech index and the anticipated regulations from the Consumer Credit Oversight Board (CCOB) for innovative business models like buy now, pay later (BNPL) schemes are also contributing to the industry's momentum. The completion of Project Nexus phase three is expected to create more opportunities, particularly as Malaysia prepares to take on the role of ASEAN chair next year.
Malaysia Sees Surge in Data Centre Investments Amid Regional Demand
Malaysia is capitalizing on the increased demand for data centres, spurred by Singapore's halt on new facilities. Companies like Microsoft, Google, and Amazon are making significant investments in Malaysia's data centre infrastructure, with commitments reaching up to US$6 billion by 2037. Moody's Ratings projects that the Asia Pacific region's data centre capacity will more than double by 2028, with a compound annual growth rate of almost 20%, leading to over US$564 billion in investments. Emerging markets like Malaysia are poised for rapid growth due to their digital agendas and favorable investment climate.
Stocks to Watch
$MNHLDG(0245.MY$: MN Holdings Bhd has been awarded a RM136.24 million contract to work on power landing station infrastructure for an undisclosed data centre service provider, due to a non-disclosure agreement. Located in the southern region of Malaysia, this project boosts the underground utilities and substation engineering specialist's order book to RM568.5 million.
$AME(5293.MY$: AME Elite Consortium Bhd is streamlining its property portfolio by selling four industrial properties in Johor to its subsidiary, AME Real Estate Investment Trust (REIT), for RM119.5 million. The move aims to consolidate the company's real estate investments under the REIT structure. The sale agreements were signed by AME's Pentagon Land Sdn Bhd and Ipark Development Sdn Bhd, with AME REIT planning to fund the acquisition through financing facilities.
$NATGATE(0270.MY$: Nationgate Holdings Bhd announced its intention to issue 207.39 million new shares, equivalent to 10% of its enlarged share base, in a private placement aimed at raising RM429.3 million. The proposed issue price of RM2.07 per share is almost six times higher than its IPO price of 38 sen per share from 19 months earlier and offers a 9.61% discount on the recent five-day volume-weighted average price of RM2.29. The capital raised will be used as additional working capital for the company.
$SCBUILD(0109.MY$: SC Estate Builder Bhd has announced its strategic move to form a consortium aimed at bidding for large-scale solar projects totaling 2,000 megawatts as part of the fifth large-scale solar programme. To reinforce its venture into the renewable energy sector, SC Estate has entered into a joint venture agreement with Anjung Meriah Sdn Bhd, a Bumiputera company specializing in solar energy project services. The partnership will see SC Estate Builder Bhd securing a 40% stake in the joint venture, while Anjung Meriah will hold the majority 60% stake. This collaboration positions both companies to leverage their combined expertise and resources in securing and executing forthcoming solar energy projects.
$UEMS(5148.MY$: Malaysian property giant UEM Sunrise Bhd has encountered a setback as its attempt to sell an 80.4% share in Roc-Union Proprietary Ltd to Azishe Properties Proprietary Ltd has been unsuccessful. The deal fell through when Azishe Properties did not meet the payment deadlines. This marks the second failed attempt by UEM Sunrise to divest its majority stake in the South African company. The stake in question is owned by UEM Sunrise's indirectly held subsidiary, UEM Sunrise South Africa, which remains under the Malaysian developer's control following the unsuccessful transaction.
$AXTERIA(7120.MY$: Axteria Group Bhd, previously known as Acoustech Bhd, has announced the cancellation of its joint venture with Alpha Astral Properties Sdn Bhd for a mixed development project on an 83,037 square meter plot in Johor Bahru. The decision to mutually terminate the agreement comes after a failure to meet a condition precedent within the extended timeframe allotted. This development indicates a change in the company's strategy or a reassessment of the project's feasibility under the current terms.
$CLMT(5180.MY$: CapitaLand Malaysia Trust reported a notable 15.2% increase in net property income for the second quarter of the fiscal year 2024, with a total of RM65.47 million, up from RM56.83 million in the same quarter of the previous year. This improvement was largely driven by higher revenues across most of the trust's mall portfolio, which benefited from positive rental reversions and increased occupancies. Gross revenue also saw an uplift, rising 8.5% to RM113.65 million from RM104.76 million.
Alongside the financial results, an announcement was made for a distribution per unit (DPU) of 1.17 sen. Optimistic about the year ahead, CapitaLand Malaysia Trust cites the strong domestic market, a rise in tourist numbers, and improved occupancy rates as factors contributing to the positive outlook. The trust is also looking to expand its portfolio by acquiring more industrial and logistics assets in Johor, where robust demand and favorable economic sentiments are present.
$BAT(4162.MY$: British American Tobacco (Malaysia) Bhd experienced a 23.66% decrease in net profit for the second quarter of the fiscal year 2024, which the company attributes to the costs associated with expanding its vaping brand, Vuse, in the Malaysian market. The net profit for the quarter ended June 30, 2024, was recorded at RM36.28 million, down from RM47.53 million during the same period in the previous year. Revenue also saw a decline, falling by 5.55% to RM640.46 million from RM678.12 million. Despite the drop in profitability, the company announced a second interim dividend of 12 sen per share, amounting to a total payment of RM34.2 million, which will be distributed on August 22 to its shareholders.
$UTDPLT(2089.MY$: United Plantations Bhd reported a 17% rise in net profit to RM185.94 million for the second quarter of the fiscal year 2024, up from RM159.02 million in the same period the previous year. The growth in profit is attributed to stronger performances in the company's plantation and refinery segments. The quarterly revenue also saw a 16% increase, reaching RM546.08 million, compared to RM470.07 million a year earlier, bolstered by higher crude palm oil and palm kernel prices. Despite the positive financial outcomes, the company did not propose a dividend for the quarter.
$GADANG(9261.MY$: Gadang Holdings Bhd recorded an improved financial performance for the fourth quarter ended May 31, 2024, with its net loss decreasing to RM9.37 million from RM27.7 million in the corresponding period last year. This reduction in loss was largely due to an increase in revenue, which climbed by 32% to RM150.5 million, primarily driven by the construction division's strong performance. Despite the positive revenue growth, the company did not declare any dividend for the quarter
$AAX(5238.MY$: AirAsia X Bhd experienced a notable 42% increase in passenger traffic, reaching 880,265 in the second quarter of 2024, up from 621,984 in the same period the previous year. This surge is attributed to the high travel demand during the spring season and the Eid holiday. Additionally, the airline's capacity measured in available seat kilometres grew by 25% year-on-year to 4.4 billion. The passenger load factor also saw an improvement, rising by seven percentage points to 83%.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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