MY Morning Wrap | Mr DIY's Second Quarter Net Profit Increases by 3.3%

Moomoo News MY wrote a column · Aug 14, 2024 08:42

Good morning mooers! Here are things you need to know about today's market:

●US Stock Markets Rally on Positive Inflation Data; Nasdaq and DJIA Surge

●Malaysia's Budget 2025 to Focus on Digital Incentives and Talent Development

●Malaysia's EV Push: Ambitions and Roadblocks

●Stocks to watch: Mr DIY, UZMA and Axiata

-moomoo News MY

MY Morning Wrap | Mr DIY's Second Quarter Net Profit Increases by 3.3%

Wall Street Summary

US stocks surged on Tuesday, with the Nasdaq and Dow Jones both climbing over 400 points after Producer Price Index data suggested easing inflation, raising hopes for potential Fed rate cuts. The $NASDAQ 100 Index (.NDX.US)$ closed up 2.4%, the $Dow Jones Industrial Average (.DJI.US)$ rose 1%, and the $S&P 500 Index (.SPX.US)$ gained 1.7%.

Breaking News

Malaysia's Budget 2025 to Focus on Digital Incentives and Talent Development

The Digital Ministry of Malaysia is prioritizing the enhancement of the digital economy and the development of skilled talent in the upcoming Budget 2025. Digital Minister Gobind Singh Deo emphasized the importance of supporting SMEs to leverage technology for business growth. He plans to discuss potential incentives with the Ministry of Finance and Prime Minister Anwar Ibrahim, focusing on tax-related or other forms of incentives. The ministry's stakeholder engagement outcomes, including discussions with the Federation of Malaysian Manufacturers (FMM) and the National Tech Association of Malaysia (Pikom), will be presented to the MOF on August 23. Budget 2025, which will include these considerations, is set to be unveiled by Anwar on October 18.

Malaysia's EV Push: Ambitions and Roadblocks

Malaysia's push for electric vehicles aims to meet environmental goals and stimulate the manufacturing sector, but is challenged by slow progress in infrastructure, like the shortage of charging stations, and the need for advanced technology. The government targets 10,000 charging stations by 2025 yet has installed only 2,288. Experts suggest focusing on niches such as software and cybersecurity, fostering local innovation, and improving policy-making with better data. Incentives like tax exemptions have been introduced to encourage EV adoption.

Stocks to Watch

$SENFONG (5308.MY)$: Seng Fong Holdings posted a substantial rise in net profit to RM16.5 million for 4QFY2024, up from RM2.98 million in the previous year, driven by increased sales volume and reduced diesel expenses from operating biomass systems. Revenue climbed 38.7% to RM331.3 million from RM238.8 million, with the processing segment's sales volume up 18.7%. The company declared a fourth interim dividend of 1.5 sen per share, culminating in a total FY2024 dividend of 5.50 sen per share.

$MRDIY (5296.MY)$: Mr DIY Group reported a 3.3% rise in second-quarter net profit to RM155.21 million, up from RM150.32 million a year earlier, driven by higher revenue offset by increased expansion costs. Revenue for the quarter grew 8.8% year-over-year to RM1.19 billion from RM1.1 billion, primarily due to positive contributions from new stores. The company declared a second interim dividend of 1.2 sen per share, payable on September 13.

$UZMA (7250.MY)$: Uzma is poised to commence its 50MW large-scale solar 4 (LSS4) project in Sungai Petani, Kedah, within the next fortnight after securing clearance from Tenaga Nasional Bhd (KL:TENAGA). The company is in the final stages of obtaining its licence from the Energy Commission, expected within one to two weeks.

$LBS (5789.MY)$: LBS Bina Group's subsidiary, Gerbang Mekar Sdn Bhd (GMSB), is confronted with a RM43.03 million claim initiated by Mega Planner Jaya Sdn Bhd, now in liquidation. The claim pertains to an alleged outstanding amount from a 2014 sales and purchase agreement for retail property in Setapak, Kuala Lumpur. GMSB has filed a memorandum of appearance in response to the writ at the Kuala Lumpur High Court.

$FGV (5222.MY)$: Felda's 81.9%-owned FGV Holdings Bhd (KL:FGV) has reaffirmed its intention to execute a bonus issue aimed at reducing Felda’s stake in FGV to satisfy public shareholding spread requirements. Initially scheduled for completion in 4Q2023, the plan will be re-submitted for Bursa Securities' listing and quotation approval once the necessary governmental consent is acquired.

$ENEST (03025.MY)$: Enest Group Bhd (KL:ENEST), a bird's nest supplier listed on the LEAP Market since August 2019, seeks to transfer to the ACE Market on Bursa Malaysia. This strategic move is intended to support its growth by accessing a broader platform. As part of the transfer, Enest will conduct an IPO offering 131.3 million shares, representing up to 22.59% of its enlarged share capital, with the final IPO price yet to be determined.

$AIZO (7219.MY)$: Minetech Resources has secured a RM36.79 million contract to enhance the sewage system in Terengganu. Awarded by Puncak Utara Sdn Bhd, the project encompasses the Ketengah Jaya, Bukit Besi, and Seri Bandi areas, and is expected to be completed by June 23, 2027.

$SIGN (7246.MY)$: Signature International is divesting two parcels of freehold land in Negeri Sembilan's Techpark @ Enstek Phase 2 for RM25.7 million. The sale proceeds will be utilized to repay intercompany loans and bank borrowings, resulting in an estimated gain of RM3.71 million.

$AXIATA (6888.MY)$: Axiata Group's 63%-owned tower company, Edotco Group Sdn Bhd, has entered MOUs with Malaysia Digital Economy Corporation (MDEC) and Boost Holdings Sdn Bhd to advance Malaysia's digital infrastructure. The MOU with MDEC includes providing advisory services and preferential rates for advanced digital infrastructure, encompassing 4G and 5G connectivity, low-orbit satellites, and smart city solutions.

Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE