MY Morning Wrap | S P Setia Records Highest Quarterly Net Profit in Six Years for Q2 2024

U.S. stocks ended higher on Wednesday as July's Consumer Price Index indicated a decrease in inflation, reviving investor optimism for potential rate cuts by the Federal Reserve. The $S&P 500 Index (.SPX.US)$ regained its footing after the early August slump, gaining 20.78 points, or 0.4%, to close at 5,455.21, surpassing its August 1st closing level. Similarly, the $Dow Jones Industrial Average (.DJI.US)$ rose 2242.75 points, or 0.6%, ending the session at 40,008.39, marking its first finish above 40,000 since the sell-off but still trailing its August 1st closing. The $NASDAQ 100 Index (.NDX.US)$ edged up marginally by 4.99 points, or 0.03%, to 17,192.6, signaling cautious optimism among tech investors.

$SPSETIA (8664.BMS)$: S P Setia Bhd has announced a significant increase in its quarterly net profit for the second quarter ending June 30, 2024. The company's net profit surged to RM295 million, nearly sevenfold compared to RM43.1 million in the same period last year, primarily driven by robust land sales. Revenue also saw a notable increase of 58.5% to RM1.5 billion from RM942.7 million year-on-year. Despite the strong financial performance, the company did not declare a dividend for the quarter.

$VSTECS (5162.BMS)$: VSTECS Bhd, a technology products distributor, reported a small dip in net profit for the second quarter ending June 30, 2024, with a 2.58% decrease to RM15.25 million from RM15.65 million the previous year. The decline is attributed to increased operating expenses and a reduction in fair value gains. Despite this, VSTECS has announced via Bursa Malaysia that it has obtained exclusive distribution rights for the Google Pixel 9 smartphones in Malaysia, potentially signaling new growth opportunities for the company.

$RANHILL (5272.BMS)$: In the second quarter ended June 30, 2024, Ranhill Utilities Bhd experienced a notable decline in its net profit by 45.8%, falling to RM6.53 million from RM12.06 million in the same period last year. The decrease was largely due to an RM8 million profit reversal in its oil and gas subsidiary, Ranhill Worley Sdn Bhd. The company's revenue also saw a decrease of 5.4% to RM561.44 million from RM593.67 million, affected by reduced earnings from the Bidor solar project and engineering services by Ranhill Worley. However, there was an increase in sales from its water operation, RanhillSAJ.

$SYNERGY (0279.BMS)$: Synergy House Bhd faced a net loss of RM4.77 million in the second quarter ending June 30, 2024, a stark contrast to the net profit of RM6.19 million reported the previous year. The loss, marking the first since its listing in June last year, was attributed to a substantial RM13.4 million provision for bad debts, currency exchange losses, increased operating expenses, and losses from inventory damage due to a warehouse fire. Despite these challenges, the company managed to increase its revenue by 32.1% to RM77.35 million, thanks to stronger sales in both B2B and B2C sectors in international markets, particularly the US and UK.

$PGLOBE (3611.BMS)$: Paragon Globe Bhd has made a significant stride in the real estate sector by securing a new serviced apartment development in Johor Bahru with an estimated gross development value (GDV) of RM1.49 billion. This venture comes to fruition through its subsidiary PGB Desa Heights Sdn Bhd, following the signing of an agreement with Tropicana Danga Bay Sdn Bhd. The deal involves the development of two freehold land parcels located in the prime area of Danga Bay. This project marks an important milestone for Paragon Globe Bhd as it expands its property development portfolio.

$VS (6963.BMS)$: VS Industry Bhd's Philippine branch secured a RM1.5 billion consumer electronics manufacturing contract for two years, requiring RM100 million in capital expenditure from internal funds. The client's identity is confidential.

$MAXIS (6012.BMS)$: Maxis Bhd has partnered with Singtel to launch Malaysia's inaugural all-in-one 5G platform that integrates 5G network, edge computing, cloud, and services orchestration, utilizing Singtel’s Paragon. This innovative platform is designed to facilitate Malaysian businesses' access to advanced 5G technology and multi-cloud computing, propelling digital transformation across key industries such as manufacturing, logistics, healthcare, and public services.

$SLVEST (0215.BMS)$: Solarvest Holdings Bhd, in collaboration with NCT Group, has launched the first phase of the NCT Smart Industrial Park in Sepang, pioneering the region's first solar-ready industrial park. This initial phase will feature more than 270 factories equipped to install solar photovoltaic (PV) systems. The anticipated total capacity of these installations is 36 MWp, which could reduce carbon emissions by approximately 25,515 tonnes each year.

$FRONTKN (0128.BMS)$: Frontken Corp Bhd has reported a 4.4% rise in net profit for the second quarter ending June 30, 2024, with profits increasing to RM33.33 million from RM31.91 million in the same period the previous year. This growth is largely attributed to the strong performance of its subsidiary in Taiwan. Additionally, the company saw an 11.37% increase in revenue, reaching RM134.93 million compared to RM121.15 million year-on-year. In light of these positive results, Frontken has declared a single-tier dividend of 1.7 sen per share for the quarter.

$VARIA (5006.BMS)$: Varia Bhd, through its subsidiary Pembinaan Teguh Maju Sdn Bhd, has been awarded a RM61.45 million construction subcontract for the Sultan Azlan Shah Campus project by Kemuncak Pesaka Sdn Bhd. The project will include main and external building works at the Sultan Idris Education University in Tanjong Malim, Perak. It is scheduled to commence on August 19, 2024, and is expected to be completed by March 31, 2027. It is noteworthy that Datuk Wira Roslan Ab Rahman, an independent non-executive director of Varia, is also a director of Kemuncak Pesaka.