MY Morning Wrap | SNS Network Technology Secures RM85.52m AI Super Server Order

On July 3rd, the short trading day ended with the Nasdaq Composite Index and the S&P 500 Index reaching fresh all-time highs. The $Nasdaq Composite Index(.IXIC.US)$ closed at 18,188.30, and the $S&P 500 Index(.SPX.US)$ closed at 5,537.02.

$SNS(0259.MY)$: SNS Network Technology has secured a RM85.52 million purchase order from a leading e-commerce platform in Southeast Asia and Taiwan for artificial intelligence (AI) super servers. The high-performance servers are capable of supporting intensive AI, machine learning, and deep learning applications and will be delivered to a data centre in Johor Bahru in August 2024. SNS Network Technology MD Ko Yun Hung said the latest purchase order was just the beginning for the company, which is on track to meet its AI hardware sales targets for the year. The company's 1Q25 results show a lower revenue of RM213.59 million, a 26.3% decline from a year ago, mainly due to fewer orders related to government projects from commercial channels compared to the corresponding financial quarter last year. Despite the weaker quarter, the board of directors approved a first interim single-tier dividend of 25 sen per share for FY25, to be paid out on Aug 28, 2024.

$MAHSING(8583.MY)$: Mah Sing Group is acquiring land in Taman Desa, Kuala Lumpur for RM108 million that will be developed into serviced apartments and affordable housing units. The planned development is estimated to have a gross development value of RM1.01 billion and will be developed in two phases. The first phase, M Aspira, will comprise 1,600 serviced apartments spread over 3.7 acres, while the second phase, Residensi Madani, will offer around 800 units under the affordable housing program on a 2.47-acre plot.

$SIAB(0241.MY)$: Siab Holdings has won a RM176.18 million contract from Exsim Noordin to build a heritage building and a 29-storey serviced apartment building in George Town, Penang. The 30-month project involves adding seven units to the existing four of a two-storey heritage building, converting two units from residential to commercial, and constructing a 29-storey serviced apartment building.

$NAIM(5073.MY)$: Naim Holdings is selling a mixed-zone vacant land in Samarahan, Sarawak, through its wholly-owned subsidiary, Naim Land, to Onlyee Flora for RM223.38 million. The transaction price represents a 4% premium over the current market value of RM215 million, as appraised by independent valuer VPC Alliance (Sarawak). Onlyee Flora is primarily engaged in holding companies and growing oil palm estates, with its base in Kuching, Sarawak.

$GREATEC(0208.MY)$: Greatech Technology has proposed a one-for-one bonus issue, which will involve the issuance of up to 1.25 billion new shares. The entitlement date will be determined after all relevant approvals for the bonus issue have been obtained. Based on the three-month volume-weighted average price of the shares up to June 21, which was RM4.42, the theoretical ex-bonus share price would be RM2.21.