MY Morning Wrap | S P Setia Claims RM70 Million from Putrajaya Holdings for Contract Breach
Good morning mooers! Here are things you need to know about today's market:
●Dow Jones Surges Over 500 Points, Nasdaq Up 2% as Economic Data Calms Market Fears
●Malaysia Pushes for Greater Intra-Asean Trade, Targets Expansion by 2025
●Johor Advocates Sustainable Water Use for Booming Data Centre Industry
●Malaysia Eyes Investment Influx in Energy Sector from Singapore and Vietnam
●Stocks to watch: IJM, Pestech, Samchem, S P Setia
-moomoo News MY
Wall Street Summary
Wall Street experienced a significant boost with the Dow Jones Industrial Average climbing over 500 points and the Nasdaq Composite increasing by more than 2%. This surge came as recent economic reports provided a "Goldilocks" scenario, alleviating concerns of a looming recession or persistently high inflation. The $Dow Jones Industrial Average (.DJI.US)$ closed up by 554.67 points, a 1.4% increase, settling at 40,563.06. The $NASDAQ 100 Index (.NDX.US)$ saw a 2.3% rise, gaining 401.89 points to finish at 17,594.5. Similarly, the $S&P 500 Index (.SPX.US)$ rose by 88 points or 1.6%, closing at 5,543.21.
Breaking News
Malaysia Pushes for Greater Intra-Asean Trade, Targets Expansion by 2025
Malaysia plans to boost intra-Asean trade as it gears up for the Asean chairmanship in 2025, according to Tengku Datuk Seri Zafrul Aziz, the Investment, Trade and Industry Minister. The trade volume within Asean currently stands at 23-25%, which presents an opportunity for growth. Malaysia's trade mission to Thailand underscores the commitment to enhancing regional economic ties, with both nations looking to build on their complementary industries. Despite a slight decline in trade between Malaysia and Thailand in the first half of 2024, prospects for increased cooperation and broader trade look promising.
Johor Advocates Sustainable Water Use for Booming Data Centre Industry
The Johor government has proposed conditions for data centre developments in the state to use recycled water and rainwater, aiming to safeguard domestic water supplies. These measures are a part of the Johor state data centre development planning guidelines established since April this year. The state's water operator, Ranhill SAJ, is in talks with the Ministry of Energy Transition and Water Transformation to ensure that the rapid growth of data centres, which has seen over 50 new facilities in the past two years, does not impact residential water usage. The initiative reflects a response to the high water demands of data centres, exemplified by Google's average 100-megawatt data centre consuming about 4.2 million litres of water daily.
Malaysia Eyes Investment Influx in Energy Sector from Singapore and Vietnam
Malaysia anticipates attracting significant investments in its energy sector from regional partners Singapore and Vietnam, according to Deputy Prime Minister Datuk Seri Fadillah Yusof. The discussions, set to take place during meetings with Singapore's and Vietnam's respective ministers, will include potential extensions of renewable energy agreements and new investment opportunities. Malaysia is also prepared to increase power exports to Singapore by 100 megawatts if needed. Fadillah is advocating for the Asean Power Grid initiative to enhance regional energy security and connectivity. Additionally, with Petronas and Tenaga Nasional expressing interest in Vietnam's wind energy potential, plans for an undersea power cable connecting Vietnam to Malaysia, with the potential to extend power supply to Singapore and beyond, are on the agenda. Fadillah's meetings with Asean counterparts and other officials will further explore these energy collaborations.
Stocks to Watch
$IJM (3336.MY)$: IJM Corp’s (KL:IJM) planned RM124 million purchase of a 44.83% stake in Pestech International (KL:PESTECH) has been terminated due to unmet conditions in the contract. However, the joint venture between Pestech and IJM for the KLIA aerotrain project remains intact. Pestech is now seeking alternative funding methods amid financial difficulties.
$SAPRES (4596.MY)$: Datuk Shahriman Shamsudin, managing director of Sapura Resources Bhd (KL:SAPRES), has been directed to refrain from overseeing the group's aviation operations to avoid a conflict of interest, as he is also affiliated with another aviation firm, Explorer Group Sdn Bhd. Consequently, Sapura Resources has established a Board Aviation Management Committee to assume his responsibilities.
$RCECAP (9296.MY)$: Consumer financing firm RCE Capital Bhd (KL:RCECAP) saw a 17.8% decrease in net profit to RM30.3 million in 1QFY2025 from RM36.9 million the previous year, primarily due to increased impairment losses on receivables. Revenue fell 5.8% to RM79.1 million from RM84 million in 1QFY2024, despite a slight rise in profit income. No dividend was declared for the quarter.
$SAMCHEM (5147.MY)$: Integrated chemicals and lubricants distributor Samchem Holdings Bhd's (KL:SAMCHEM) net profit for 2QFY2024 decreased by 6.3% to RM5.06 million from RM5.4 million a year earlier due to reduced gross profit margins. Revenue increased by 8% to RM298.43 million from RM276.24 million a year ago, driven by higher sales volume. The group declared a second interim dividend of 0.5 sen per share for the quarter.
$SPSETIA (8664.MY)$: S P Setia Bhd (KL:SPSETIA) has begun arbitration proceedings against Putrajaya Holdings Sdn Bhd, seeking RM69.53 million in damages for a breach of contract. The dispute stems from a 2002 development agreement involving lands in Putrajaya, where Setia Putrajaya Development Sdn Bhd, a 60% joint venture, alleges losses due to PJH's breach.
$DIALOG (7277.MY)$: Dialog Group Bhd (KL:DIALOG) reported a 9% rise in net profit to RM138.4 million for 4QFY2024, up from RM126.8 million a year earlier, spurred by increased upstream production. Quarterly revenue climbed 17.4% year-on-year to RM810.1 million from RM690 million. The group declared a final dividend of 2.8 sen, bringing the total FY2024 payout to 4.3 sen.
$KEYFIELD (5321.MY)$: Keyfield International Bhd (KL:KEYFIELD) more than doubled its net profit to RM70.04 million in 2QFY2024, compared to RM30.16 million in the same period last year. Excluding non-cash and non-recurring expenses, the adjusted net profit would be RM77.1 million. Revenue soared 87% year-on-year to RM198.98 million from RM106.56 million. The company declared a second interim dividend of three sen per share, payable on Sept 13, 2024.
$DPHARMA (7148.MY)$: Duopharma Biotech Bhd (KL:DPHARMA) reported a 33.1% rise in net profit to RM16.69 million in 2QFY2024, up from RM12.54 million a year earlier. Revenue increased by 30.3% to a record RM218.32 million from RM167.52 million in 2QFY2023, driven by strong performance in the prescription market. The company declared a first interim dividend of one sen per share for FY2024, up from 0.5 sen in 2QFY2023, payable on September 12.
$SUNREIT (5176.MY)$: Sunway Real Estate Investment Trust (KL:SUNREIT) experienced an 11.3% rise in net property income (NPI) to RM129.3 million in the second quarter of the fiscal year 2024, up from RM116.2 million in the same period last year. This growth was largely fueled by an enlarged property portfolio and enhanced performance in the retail and hotel segments. The REIT's quarterly revenue increased by 5.4% to RM175.6 million. Notably, net profit more than doubled to RM145.1 million, primarily due to a fair value gain from the acquisition of six hypermarkets. For the first half of FY2024, NPI rose by 2.1% to RM259.8 million. Additionally, the REIT declared a distribution per unit of 4.66 sen, up slightly from 4.62 sen last year.
$BHIC (8133.MY)$: Boustead Heavy Industries Corp Bhd (KL:BHIC) stated that its 51%-owned joint venture, BHIC AeroServices Sdn Bhd (BHICAS), has secured a RM378 million contract from the Malaysian Ministry of Defence. This contract covers the support and maintenance of the Royal Malaysian Air Force's EC725 helicopters and will be effective from the date of LOA acceptance and signing, spanning five years. The formal contract will be finalized at a later date.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
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