MY Morning Wrap | SCIB Bags Revised Contract of RM162m for PR1MA Housing Project

Moomoo News MY wrote a column · Apr 9, 2024 08:30

Good morning mooers! Here are things you need to know about today's market:

●US Stocks Close Flat as Investors Await Inflation Data

●BNM Affirms Ringgit Strength Amid Coordinated Efforts, Denies Capital Control Plans

●Stocks to watch: SCIB, Sunzen Biotech

-moomoo News MY

MY Morning Wrap | SCIB Bags Revised Contract of RM162m for PR1MA Housing Project

Wall Street Summary

The US stock market closed relatively unchanged on Monday as investors awaited key inflation data to be released later in the week, which could provide insight into the Federal Reserve's future interest rate policy. The $Dow Jones Industrial Average (.DJI.US)$ fell 11.24 points (0.03%) to close at 38,892.8, while the $S&P 500 Index (.SPX.US)$ dipped 1.95 points (0.04%) to finish at 5,202.39. However, the $Nasdaq Composite Index (.IXIC.US)$ bucked the trend, adding 5.43 points (0.03%) to close at 16,253.95.

Breaking News

BNM Affirms Ringgit Strength Amid Coordinated Efforts, Denies Capital Control Plans

On April 8th, 2024, Bank Negara Malaysia (BNM) announced that coordinated efforts by government-linked companies (GLCs), government-linked investment companies (GLICs), Malaysian corporates, and businesses have strengthened the ringgit, making it the only regional currency to gain against the US dollar since February 26th, 2024. The Financial Markets Committee (FMC) discussed this development in their meeting today, while BNM denied any plans for capital control. Meanwhile, the South Korean won, Thai baht, Indonesian rupiah, Chinese yuan, and Singapore dollar have all declined against USD. BNM also reported an increase in the daily foreign exchange (FX) volume to US$17.6 billion from US$15.5 billion in 2023.

Stocks to Watch

$SCIB (9237.MY)$: Sarawak Consolidated Industries Bhd (SCIB) has agreed to a revised contract worth RM162 million to construct high-rise residential units in Kota Bharu, Kelantan, under the PR1MA Corp Malaysia affordable homes scheme. The agreement was made following SCIB Properties Sdn Bhd's novation agreement with AUEI Teras Holding Sdn Bhd on April 5th, appointing SCIB Industrialised Building System Sdn Bhd (SIBS) as the main contractor. SCIB expects a positive impact on future earnings from this contract revision.

$SUNZEN (0148.MY)$: Sunzen Biotech Bhd has announced plans to shutter its loss-making animal health division, citing challenging market conditions and persistent losses. The move is part of the company's efforts to reduce costs and focus on its human health and loan financing segments, which are more profitable. Despite generating RM4.78 million in revenue, the animal health division suffered a loss before tax of RM4.76 million in the 12-month financial period ended Dec 31, 2023 (12MFY2024). The group believes that discontinuing the division is necessary for its financial health and in the best interest of shareholders.

$NATGATE (0270.MY)$: NationGate Holdings Bhd, an electronic manufacturing services company listed on the ACE Market since January 2023, has announced its intention to transfer its listing status to the Main Market of Bursa Malaysia. The company has met Securities Commission Malaysia requirements for equity and public shareholdings, as well as demonstrating a healthy financial performance. NationGate aims to enhance its prestige and reputation by transferring to the Main Market, gaining greater recognition and acceptance among investors, particularly institutional ones.

$AWANTEC (5204.MY)$: Prestaring Skin Sdn Bhd (PSKIN), a wholly-owned unit of AwanBiru Technology Bhd (Awantec), has filed an appeal against the High Court's decision after winning RM231.55 million in a lawsuit against the government over the termination of the RM3.5 billion National Immigration Control System (SKIN) project. This latest appeal is contrary to Awantec's previous stance of closure on the matter after the court win in March. When approached for comment, the group declined to provide further information beyond the official announcement, citing limitations on disclosure.

$INTA (0192.MY)$: Inta Bina Group Bhd has announced the award of a RM348.92 million contract for the Maya Integrated Development, a mixed development project in Shah Alam, Selangor. Inta Bina Sdn Bhd, a wholly-owned subsidiary of the company, will undertake the project. The first phase of the project will include the construction of commercial shop lots, an office tower, a podium car park, and facilities deck for Tower A. The second phase will involve the construction of serviced apartments in Towers A and B, along with facilities deck for Tower B. The company plans to finance the project through a combination of internally generated funds and external borrowings.

$AEON (6599.MY)$: Aeon Credit Service (M) Bhd has reported a 24.7% increase in net profit to RM118.92 million for the fourth quarter ended Feb 29, 2024 (4QFY2024), driven by higher revenue from stronger loan and financing growth. Revenue rose 15.9% to RM501.58 million, with earnings per share reaching 22.32 sen. A final dividend of 14 sen was declared, bringing the total dividend payout for FY2024 to 42.5 sen. However, the full-year net profit showed only a marginal growth of 1.5%, reaching RM424.02 million, while revenue increased by 16.6% to RM1.91 billion.

$MERIDIAN (5040.MY)$: Meridian Bhd has been designated as a Practice Note 17 (PN17) affected listed issuer following a disclaimer of opinion expressed by its external auditor, Jamal, Amin & Partners, in the audited financial statements for the period ending Sept 30, 2023. The disclaimer indicated that the auditor cannot form an opinion on the company's financials due to insufficient evidence in the cash flow projections made by Meridian's management regarding its ability to continue operating. This development marks Meridian's inclusion in the PN17 list.

$EDUSPEC (0107.MY)$: Datuk Kang Pang Kiang, CEO of EG Industries Bhd, has acquired a 12.11% stake in Eduspec Holdings Bhd, making him a substantial shareholder. Kang purchased 24 million shares in Eduspec, valued at approximately RM2.88 million. This acquisition brings Kang's total shares in Eduspec to 142.26 million. Currently, Datuk Seri Gan Chow Tee is the only other substantial shareholder in Eduspec, with a 7.65% stake.

Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE

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