MY Morning Wrap | Public Bank's Net Profit for 3Q Increases by 7% to RM1.7 Billion

$Dow Jones Industrial Average (.DJI.US)$ rose just 0.04%, on pace for a 7.6% monthly gain, the best since October 2022. The $S&P 500 Index (.SPX.US)$ dropped nine pips but held a 8.9% advance in November. The 11.3% climb for the $Nasdaq Composite Index (.IXIC.US)$ faced a small 0.16% drawback, but still tracked as the best month since July 2022, per Dow Jones Market Data.

$PBBANK (1295.MY)$: Public Bank Bhd has reported a 7% increase in net profit for the third quarter ended September 30, 2023, rising from RM1.59 billion to RM1.70 billion compared to the previous year, driven by healthy loans and customer deposits growth. The banking group also saw an increase in revenue for the quarter, rising to RM6.48 billion from RM5.50 billion. While the bank did not declare any dividend, it posted a net profit of RM5.03 billion for the cumulative nine months ended September 30, compared to RM4.41 billion during the same period in the previous year, with revenue of RM18.87 billion versus RM15.36 billion previously.

$AXIATA (6888.MY)$: Axiata Group Bhd has reported a significant increase in its net loss for the third quarter ended September 30, 2023 (3QFY2023), with the figure widening from RM52.4 million to RM797.41 million compared to the previous year. The loss was primarily attributed to asset impairment and a lower share of results from subsidiary CelcomDigi Bhd. During the quarter, the company incurred an impairment of RM1.01 billion due to the reclassification of its Nepal unit Ncell as an asset held for sale. As a result, the discontinuing operations loss widened to RM824.5 million.

$PPB (4065.MY)$: PPB Group Bhd has reported a significant drop in net profit for 3QFY2023, falling by 52.52% from RM784.75 million to RM372.55 million compared to the corresponding quarter a year earlier. This was largely attributed to a lower contribution from its 18.8%-owned associate, the integrated agribusiness giant Wilmar International Ltd. The company's quarterly revenue also decreased by 11.63% to RM1.46 billion from RM1.65 billion a year ago, with the group's core grain and agribusiness segment recording a 13.82% decline in topline to RM1.06 billion versus RM1.23 billion previously.

$QL (7084.MY)$: QL Resources Bhd has announced its best quarterly net profit for the second quarter ended September 30, 2023 (2QFY2024), with a net profit of RM122.64 million. This represents a significant increase of 30.61% from RM93.9 million recorded during the same period last year. This marks the company's highest quarterly earnings in at least eight quarters since December 2021. The better operating profit more than offset a lower share of associate's profits and higher tax expense. Additionally, quarterly revenue increased by 4% to RM1.69 billion from RM1.64 billion.

$FGV (5222.MY)$: FGV Holdings Bhd has reported an 86.8% decrease in net profit for the third quarter ended September 30, 2023 (3QFY2023), with a net profit of RM31.98 million compared to RM241.67 million during the same period a year ago. The significant drop was attributed to a fall in profit contribution from its plantation segment. The company also reported a 20.6% decline in quarterly revenue to RM4.91 billion from RM6.18 billion previously, which was due to lower realised prices for crude palm oil. No dividends were declared for the quarter.

$MFCB (3069.MY)$: Mega First Corp Bhd has reported a 14.17% decrease in net profit for the third quarter ended September 30, 2023 (3QFY2023), with a net profit of RM102.53 million compared to RM119.46 million a year earlier. This decline was attributed to lower revenue and a lower share of results in equity accounted investment and other income. Other operating expenses and finance costs also rose during the period, leading to a reduction in the company's quarterly earnings. Quarterly revenue also decreased by 13.77% to RM320.38 million from RM371.53 million a year ago, mainly due to the deconsolidation of Serudong Power Sdn Bhd and lower sales contribution from the resources and packaging divisions.

$SOP (5126.MY)$: Sarawak Oil Palms Bhd has reported a 14.83% increase in net profit for the third quarter, rising from RM82.34 million to RM94.55 million compared to the same period last year. The increase was attributed to higher fresh fruit bunches (FFB) production and higher sales volume.

$SUPERMX (7106.MY)$: Supermax Corp Bhd has reported a net loss of RM2.05 million for the first quarter ended September 30, 2023 (1QFY2024), marking the group's fourth consecutive quarter with losses. The decline in revenue was attributed to weaker demand and persistent lower selling prices. However, the quarterly loss narrowed compared to the preceding three quarters.

$GENETEC (0104.MY)$: Genetec Technology Bhd, which recently transitioned to the Main Market of Bursa Malaysia, has reported a 26.35% decrease in net profit for the second quarter ended September 30, 2023 (2QFY2024), falling from RM25.06 million to RM18.45 million compared to the corresponding quarter a year ago. This was due to a loss on foreign exchange and lower margin in product mix, despite higher revenue. However, quarterly revenue increased by 2.57% to RM72.44 million from RM70.66 million a year earlier, driven by increased orders in the electric vehicle and energy storage segment. The group noted that it recorded a gross profit margin of 32% for 2QFY2024, down 12.4% from 2QFY2023.

$AHEALTH (7090.MY)$: Apex Healthcare Bhd has reported a 10.11% decrease in net profit for the third quarter ended September 30, 2023 (3QFY2023), with a net profit of RM24.16 million or 3.38 sen per share compared to RM26.88 million or 3.78 sen per share in the previous year's corresponding quarter. This was mainly due to a lower share of earnings from its associate Straits Apex Group Sdn Bhd (SAG). However, revenue remained flat at RM235.34 million in 3QFY2023 compared to RM232.08 million in 3QFY2022. The company noted that higher market demand driven by strong post-pandemic economic recovery helped fuel this revenue.

$BJCORP (3395.MY)$: Berjaya Corp Bhd has returned to profitability with a net profit of RM15.77 million for the first quarter ended September 30, 2023 (1QFY2024). This is a significant improvement from the net loss of RM79.33 million incurred in the immediate preceding quarter and the net loss of RM16.42 million in the year-ago first quarter. The company's revenue has also increased by 14% to RM2.57 billion from RM2.24 billion in 1QFY2023, driven by stronger contribution from its hospitality and property businesses, which benefited from higher residences sales and an increase in overall average room rates.

$CMSB (2852.MY)$: Cahya Mata Sarawak Bhd experienced a significant drop in net profit of 93.5% for 3QFY2023, with profits falling from RM154.36 million to RM9.98 million compared to the previous year. This decline was attributed to a lower share of profit from its associates and the absence of one-off gains recognised during the corresponding quarter in the previous year. However, quarterly revenue increased by 8.4% to RM301.90 million from RM278.39 million a year ago, primarily due to higher contributions from its cement and Oiltools divisions.

$MHB (5186.MY)$: Malaysia Marine and Heavy Engineering Holdings Bhd has announced that its wholly-owned subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd, has secured a RM1.2 billion subcontract for an offshore substation high voltage direct current platform from Petrofac International LLC. The scope of the subcontract includes construction engineering, fabrication, mechanical completion, load out and sea fastening, and architectural works on an engineering, procurement and construction basis.

$KSL (5038.MY)$: KSL Holdings Bhd has reported a 43.1% increase in net profit for the third quarter ended September 30, 2023 (3QFY2023), rising from RM59.12 million to RM84.58 million compared to the same period last year. This was mainly contributed by the group's flagship property projects in Johor Bahru, Kluang and Klang. Quarterly revenue also increased significantly by 40.5% to RM267.31 million from RM190.26 million in 3QFY2022.