MY Morning Wrap | PLS Plantations and Guangzhou Jiangnan to Build One-Stop Wholesale Market in Johor for Malaysian Agricultural Produce

On Thursday, Federal Reserve Chair Jerome Powell testified before a Senate committee, stating that the FOMC was close to deciding on a rate cut and that there would likely be cuts this year. This led to stocks advancing, with the $S&P 500 Index(.SPX.US)$ reaching a new record close at 5,157. The $Dow Jones Industrial Average(.DJI.US)$ climbed 0.34%, while the $Nasdaq Composite Index(.IXIC.US)$ rose 1.51%. This followed gains in the previous day after Powell's comments. Meanwhile, the Japanese yen rallied against the dollar, and the Nikkei 225 fell, amid growing confidence that the Bank of Japan could soon tighten monetary policy.

$PLS(9695.MY)$: PLS Plantation Bhd has entered into an agreement with China-based Guangzhou Jiangnan Agriculture Development Co Ltd to build a regional one-stop wholesale market in Pasir Gudang, Johor for the processing and marketing of Malaysian agricultural produce. The centre will function as a hub for farmers and other food producers seeking support services, market access and logistical assistance. The two parties will also explore investments in farming and plantations, including factories for processing, packaging, and distribution of quality products to local and export markets, with a focus on durian upstream and downstream products.

$DNEX(4456.MY)$: Dagang NeXchange Bhd (DNeX) has signed a two-year memorandum of understanding with Korea Trade Network (KTNET) to collaborate on several initiatives, including port community systems, electronic customs, and IT consultancy services for trade facilitation. DNeX's Dagang Net Technologies Sdn Bhd will deploy home-grown technologies from DNT and global capabilities from KTNET to transform the trade facilitation industry, develop products and services through expertise sharing, and expand offerings for clients.

$STAR(6084.MY)$ & $JAKS(4723.MY)$: The legal dispute between Star Media Group Bhd and JAKS Resources Bhd over the development of a parcel of land in Petaling Jaya has been sent back to the High Court for trial. The Federal Court bench dismissed Star Media Group's appeal against the Court of Appeal's 2021 decision, which overturned a prior High Court summary judgement ordering JAKS to pay RM134.5 million for the land purchase and RM50.54 million in late payment interest. The appellate court's decision called for the matter to be retried in the Kuala Lumpur High Court.

$SAPNRG(5218.MY)$: Sapura Energy Bhd and its 22 subsidiaries have received new convening and restraining orders from the High Court to proceed with their debt restructuring plans. The orders will enable Sapura Energy to take crucial steps, including multi-currency financing of around RM10.8 billion and settling outstanding payments to trade creditors worth roughly RM1.5 billion. With the orders in place, Sapura Energy can hold meetings with creditors to discuss and approve a proposed scheme of arrangement and compromise without being hindered by the possibility of legal action.

$KESM(9334.MY)$: KESM Industries Bhd, an integrated circuits burn-in and test service provider, has reported a net profit of RM138,000 for its second quarter ended Jan 31, 2024, compared to a net loss of RM720,000 in the same quarter the previous year. The increase in profit is attributed to higher sales from processing automotive chips. The company's revenue for the quarter also rose 10.32% to RM61.77 million from RM55.99 million in 2QFY2023. KESM's half-year earnings also improved, with a net profit of RM1.05 million compared to a net loss of RM2.26 million in the previous August-January period. The company's revenue for the six months rose 15.21% to RM125.3 million from RM108.75 million, driven by higher sales.

$TEOSENG(7252.MY)$: Teo Seng Capital Bhd has declared a fourth interim dividend in the form of a non-cash dividend following its record-high earnings for the year ended Dec 31, 2023. The dividend will be in the form of treasury shares of the company and will be distributed based on one share dividend for every 67 Teo Seng shares held by shareholders. The ex-date for the dividend will be on March 27, while the entitlement date will be on March 29, the same date that the shares dividend will be transferred to shareholders. The shares will be credited on April 15.

$TEXCYCL(0089.MY)$: Tex Cycle Technology (M) Bhd has subscribed to a perpetual medium-term note (MTN) with a nominal value of RM10 million, offering a fixed return of 7.5% per annum. The perpetual MTN will provide Tex Cycle with a steady and predictable income stream through regular semi-annual interest payments until redemption. However, Tex Cycle did not disclose the issuers of the perpetual MTN. Chin Hin Group Bhd has also reported the third issuance of its perpetual MTN, with a nominal value of RM10 million, as part of its RM500 million perpetual MTN programme. It is worth noting that Tex Cycle subscribed to the second issuance of Chin Hin's perpetual MTN programme on Feb 9 with the same return of 7.5% per annum.

$PMHLDG(1287.MY)$: The Lim brothers, founders of property developer Exsim Group, are set to acquire a 65.9% stake in Pan Malaysia Holdings Bhd (PM Holdings) from three companies associated with businessman Tan Sri Khoo Kay Peng for RM36.73 million or six sen a share. The purchase price represents a 45% discount to PM Holdings' closing price of 11 sen on Thursday, valuing the group at RM102.17 million. Exsim Hospitality is obligated to extend an unconditional mandatory takeover offer to acquire all the remaining shares in PM Holdings and intends to maintain the company's listing status on Bursa Malaysia.