MY Morning Wrap | MRCB to Undertake Demolition Works of Shah Alam Stadium for RM35 Million

US stocks swung between gains and losses before ending the week's last trading day lower after the release of another data signaling hotter-than-expected inflation. The latest producer price index fueled concerns that the much-anticipated cuts in interest rates by the US Federal Reserve may come later than the market is pricing in. The $S&P 500 Index (.SPX.US)$ fell 0.5%, while the $Nasdaq Composite Index (.IXIC.US)$ slipped 0.8% and the $Dow Jones Industrial Average (.DJI.US)$ declined 0.4%. Four of the Magnificent Seven slipped, led by $Meta Platforms (META.US)$' 2% slide and $Alphabet-C (GOOG.US)$'s 1% loss. However, $NVIDIA (NVDA.US)$ remained the biggest gainer of the pack, rising 1.8% for the day. $Tesla (TSLA.US)$, which has been on a downward trajectory, managed to end Friday in the green, while $Amazon (AMZN.US)$ barely held on to gains.

$MRCB (1651.MY)$: Malaysian Resources Corp Bhd (MRCB) has confirmed its appointment by Menteri Besar Selangor Inc (Selangor MBI) to undertake the demolition works of the Shah Alam Stadium at a provisional contract value of RM35 million. The stadium is expected to be fully demolished by mid-2025. However, the group is still negotiating with MBI to finalize the terms of the definitive agreement for the stadium's redevelopment, which is separate from the demolition contract.

$MYEG (0138.MY)$: MyEG Services Bhd's joint venture company MYEG Philippines Inc (MYEG PH) has partnered with the Social Security System of Philippines (SSS PH) to facilitate online payment of loans and contributions. SSS PH members will have access to payment options via the platform www.myeg.ph, such as e-wallets, credit/debit cards, bank transfers, and cash payments via over-the-counter channels. Members will also be able to generate their Payment Reference Number on the same platform, streamlining the payment process. The partnership is expected to improve the payment experience for SSS PH members and enhance the efficiency of SSS PH's operations.

$KNM (7164.MY)$: KNM Bhd has received binding and irrevocable offers to acquire the entire stake in its Italian unit FBM Hudson Italiana SpA for a total amount of 16.5 million euros (approximately RM84.99 million). Milan-based BM Carpenterie Oil & Gas SRL is offering to acquire 60% of the stake in FBM Hudson for 9.9 million euros, while Verona-based Officine Piccoli SpA seeks to acquire the remaining 40% stake for 6.6 million euros. The offers came after the Italian government rejected KNM Europa BV's proposed disposal of its entire stake in FBM Hudson to the United Arab Emirates' Petro MAT FZCO. The new offers would value FBM Hudson lower than Petro MAT's previous offer of 22 million euros.

$KPJ (5878.MY)$: KPJ Healthcare Bhd's net profit rose nearly 16% in the fourth quarter ended Dec 31, 2023 from a year earlier thanks to higher patient numbers and tax writeback. Net profit for the quarter was RM73.39 million compared with RM63.41 million. Revenue rose 19% year-on-year to RM911.5 million from RM765.8 million as patient numbers gained 4%. The company declared a single-tier interim dividend of 1 sen per share. For the full year, net profit surged 57.75% to RM263.4 million from RM166.98 million in FY2022 as revenue increased to RM3.42 billion from RM2.87 billion. At a press conference, president and managing director Chin Keat Chyuan said the group's major shareholder Johor Corp has set a 40% revenue contribution target for its health tourism segment within the next four years, from 8.5% currently.

$SNS (0259.MY)$: SNS Network Technology Bhd (SNS Network) has secured a contract from Esri Malaysia Sdn Bhd to offer geographical information system (GIS) solutions for an undisclosed value. SNS Network will mainly market, distribute, and sell the GIS solutions to Esri's existing and potential customers from small and medium enterprises, public companies, and government agencies in Malaysia. The contract is expected to strengthen SNS Network's presence in the GIS market and expand its customer base in Malaysia.

$BHIC (8133.MY)$: The proposed disposal of BHIC's 20.77% stake in BNS to the Ministry of Finance (Inc) for RM1 has been extended for the fifth time, to March 31. The original deadline for the fulfilment of conditions precedent under the deal was Oct 3, 2023, which was subsequently extended to Jan 31, 2024. The extension has been agreed upon by both parties as additional time is needed to fulfill the conditions precedent for the RM1 deal. BHIC's disposal of shares in BNS is part of the government's plan to assume full control of the RM9.13 billion LCS project, which BNS failed to deliver on time.

$ICTZONE (03038.MY)$: ICT Zone Asia Bhd is considering transferring from the LEAP Market to the ACE Market on Bursa Malaysia, following a letter of request from its 72.85%-shareholder ICT Zone Holding Bhd. Pursuant to the proposal letter, ICT Zone Holding proposed to undertake a cash exit offer together with Datuk Seri Ng Thien Phing, which will be extended through a pre-conditional voluntary general offer for all the remaining ordinary shares and irredeemable convertible preference shares in ICT Zone Asia. The board, excluding interested directors, will deliberate on the matter.