MY Morning Wrap | Telekom Malaysia Set to Partner with Singtel to Establish Greenfield Data Centre Facilities in Johor

The $S&P 500 Index(.SPX.US)$ continued its record rally, rising 0.3% to 5487.03, while the $Nasdaq Composite Index(.IXIC.US)$ swung between gains and losses, before closing just above positive territory at 17862.23. The $Dow Jones Industrial Average(.DJI.US)$ gained 0.15% to 38834.86. The benchmark received a boost from Nvidia, which displaced Microsoft as the world's most valuable company.

$TM(4863.MY)$: Telekom Malaysia is partnering with Singapore Telecommunications (Singtel) to establish greenfield data centre facilities in Iskandar Puteri, Johor. The joint venture entity, named ST Dynamo DC, is acquiring a freehold land from Khazanah Nasional's indirect unit for RM178.23 million. The announcement confirms earlier reports that Singtel had been in discussions with Malaysian authorities to establish a data centre in Iskandar Puteri. TM's wholly-owned subsidiary, TM DC Educity, has entered into the joint venture agreement with Singtel's indirect subsidiary, Nxera My Pte Ltd.

$BURSA(1818.MY)$: Bursa Malaysia has confirmed that it is in the final stages of negotiations with the developer of The Exchange 106 at Tun Razak Exchange (TRX) to move its headquarters to TRX. The exchange operator currently occupies a 16-storey office building in Bukit Kewangan in Kuala Lumpur. Bursa Malaysia is expected to occupy two storeys of the Exchange 106 building if discussions with Mulia Property Development Sdn Bhd materialise. Mulia Property is majority-owned by the Minister of Finance (Inc).

$BJCORP(3395.MY)$: Berjaya Corp has signed separate agreements with two Chinese firms to explore sales collaborations in Malaysia and Southeast Asia. The company will work with home appliance maker Skyworth Group to boost its reach in Malaysia using Berjaya's distribution network. The collaboration may also lead to the implementation of residential, commercial, and industrial photovoltaic systems. Berjaya Corp has also agreed to work with electric vehicle maker Skywell New Energy Automobile Group to establish its brand in Malaysia and Southeast Asia. The collaborations with Skyworth and Skywell are expected to revolutionise various sectors across Malaysia and Southeast Asia, according to Berjaya Corp founder and controlling shareholder Tan Sri Vincent Tan Chee Yioun.

$UEMS(5148.MY)$: UEM Sunrise has sold its remaining 40% stake in Aura Muhibah Sdn Bhd (AMSB) to Kuala Lumpur Kepong as the latter exercised its call option. The sales proceeds of RM386.2 million will be used to reduce UEM Sunrise's outstanding debt upon maturity by year-end, which will also reduce the group's gross gearing from 0.61 times to 0.55 times. UEM Sunrise is expected to recognise a net disposal gain of RM32 million from the deal. KLK will now wholly own the joint venture that owns 2,500 acres of land in Kulai, southern Johor. The joint venture was formed a decade ago in February 2014 and had plans to develop residential, commercial, and industrial developments on the land.

$MUIIND(3891.MY)$: Malayan United Industries (MUI) has secured a term loan facility of up to £152.5 million (RM912.16 million) from CF Hyde Park LP to refinance the existing term loan facility of its Corus Hyde Park Hotel in London, UK. The facility will also be used to finance the renovation and refurbishment of the hotel into an upper-scale four-star international hotel brand. The loan was secured by MUI's unit London Vista Hotel Ltd.

$NOTION(0083.MY)$: Notion VTec has attributed the surge in its share price to its strong financial performance recovery, industry turnaround, and heightened investor interest following a report in The Edge Malaysia weekly. In response to an unusual market activity (UMA) query from Bursa Malaysia Securities, the company reported positive returns for the first two quarters of the current financial year ending Sept 30, 2024, leading to favourable responses from both retail and institutional investors, indicating confidence in its future prospects. Notion also said its shares benefited from a broader industry turnaround in technology stocks, particularly in the hard disk drive and electronics manufacturing services sectors. The stock hit an intraday high of RM1.98, the highest level since April 22, 2010, and closed the day at RM1.96, up 15 sen or 8.29%, with over 34 million shares changing hands. The stock has gained over 500% year-to-date.

$NESTCON(0235.MY)$: Construction engineering company Nestcon has been awarded two high-rise building projects in the Klang Valley worth a total of RM165.56 million. The company announced that it had received a contract worth RM103.5 million from Sunrise Charm to build a 45-storey mixed commercial development comprising strata offices and serviced apartments on Jalan Mayang in Kuala Lumpur. The project is expected to be completed within 44 months. Nestcon also secured a contract worth RM62.06 million from Taipanika Development to construct 12-storey apartments in Subang Murni, Shah Alam. The project is expected to be completed within 20 months from July 8.

$BMGREEN(0168.MY)$: BM Greentech, formerly known as Boilermech Holdings, has signed a term sheet for the full acquisition of Plus Xnergy Holding for RM110 million in shares as it aims to become the preferred partner for clean energy and water solutions in the region. The acquisition will be settled through the issuance of 81.48 million new shares at RM1.35 apiece. The company and Plus Xnergy owners plan to sign a definitive share sale agreement within the next 30 days. BM Greentech will also undertake a special issuance of new shares to its parent company, QL Green Resources, to maintain QL's majority ownership after the acquisition. As of June 30, 2023, QL had a 52.6% stake in BM Greentech.

$SUNVIEW(0262.MY)$: Sunview Group has secured a €15.6 million (RM79.46 million) contract for the engineering, procurement, construction, and commissioning of a 20MW solar power plant in Bulgaria. The renewable energy solutions provider announced that its subsidiary, Sunview Builders Pte Ltd, had signed an agreement with OKOP Solar EOOD, a Bulgarian company focused on generating and selling electricity from renewable resources.

$POHKONG(5080.MY)$: Poh Kong Holdings has announced a net profit of RM47.6 million for the third quarter ended April 30, 2024, marking a 51.6% increase from RM31.4 million in the same period last year. The company attributed the growth to higher revenue and an overall uptrend in gold prices. Revenue rose 36.5% to RM519.6 million, driven by increased demand for gold jewellery and gold investment products. Earnings per share also grew from 7.66 sen to 11.61 sen. The company did not declare any dividends for the quarter under review.

$LBS(5789.MY)$: LBS Bina Group has requested the suspension of trading in its shares and structured warrants on Wednesday, pending a material announcement. The suspension will take effect from 9am to 5pm, according to the property developer.