MY Morning Wrap | Tenaga Nasional to Launch Malaysia's First Utility-Scale Battery Storage Project

The US stock market took a breather on Friday, with the $S&P 500 Index (.SPX.US)$ falling slightly and the $Nasdaq Composite Index (.IXIC.US)$ slipping 0.4%. Disappointing financial results from Intel dragged down the semiconductor sector, muting gains in financial stocks. The $Dow Jones Industrial Average (.DJI.US)$ gained 0.2% on the day. Overall, market analysts noted that the slight dip in the market was not unexpected, given the recent surge in stock prices. Investors will be closely watching upcoming earnings reports from major companies for further insight into the health of the US economy and the broader stock market.

$TENAGA (5347.MY)$: Tenaga Nasional Bhd is set to launch Malaysia's first utility-scale battery energy storage system (BESS) pilot project in this quarter, aimed at addressing intermittency issues of renewable energy (RE). The 400 MWh project will be executed by the national utility outfit, operated by Grid System Operator (GSO), and overseen by the Energy Commission. Battery storage is seen as an expensive but necessary new component of the electricity supply infrastructure, as more power suppliers and consumers opt for renewable energy such as solar.

$SCIB (9237.MY)$: Sarawak Consolidated Industries Bhd (SCIB) is acquiring five leasehold plots in Demak Laut Industrial Park in Kuching from the Land and Survey Department of Sarawak, measuring 8.85ha, for RM21.62 million cash. The acquisition follows an earlier filing by SCIB clarifying its talks with the Sarawak state government to acquire the land plots for expanding its production capacity. The land plots are located around 15km from Kuching City Centre.

$PJBUMI (7163.MY)$: PJBumi Bhd has entered into a teaming agreement with Nutra Rich Energy Sdn Bhd (NRESB) to engage in collaborative efforts in the oil and gas sector in Malaysia and Indonesia. The agreement involves PJBumi Heavy Engineering & Services Sdn Bhd, a unit of PJBumi, which will prepare the resources, licenses, and premises to perform business development, marketing, and bidding exercises for technology-based solutions in relation to drilling equipment and solutions. NRESB specializes in subsea activities and the supply of offshore jack-up rigs.

$NYLEX(Delisted) (4944.MY)$: Nylex (Malaysia) Bhd is submitting an appeal against Bursa Securities' decision to suspend and delist its shares due to the company's failure to submit a regularisation plan to address its Practice Note 17 status by the extended deadline of Friday. The company risks suspension followed by delisting upon the expiry of two market days from the suspension date. Nylex said it is submitting the appeal on Friday and, subject to the appeal being considered favorably by Bursa Securities, it will seek a further extension of time to submit the regularisation plan.

$L&PBHD (0268.MY)$: Bursa Malaysia has approved the transfer of L&P Global Bhd's listing status from the ACE Market to the Main Market, under the Industrial Products & Services sector. L&P Global made an application for the transfer in June 2023, six months after debuting on the ACE Market, stating that it had fulfilled all requirements for the proposed transfer. It also proposed to amend its constitution to facilitate the transfer. L&P Global was listed on the ACE Market on Jan 3 last year and opened at 42 sen above its initial public offering price of 30 sen, closing higher at 53 sen, giving it a premium of 82%.

$MRCB (1651.MY)$, $BJLAND (4219.MY)$: Malaysian Resources Corp Bhd (MRCB), Berjaya Land Bhd (BJLand), and IJM Construction Sdn Bhd (IJM) have confirmed that they are part of a consortium with Keretapi Tanah Melayu Bhd (KTMB) to bid for the Kuala Lumpur-Singapore high-speed rail (HSR) project. MRCB signed a teaming agreement with Berjaya Rail Sdn Bhd, a subsidiary of Berjaya Land Bhd, on Dec 15, 2023, to be part of the Berjaya HSR Consortium. The purpose of the agreement is to submit a non-binding conceptual proposal to MyHSR Corp Sdn Bhd, pursuant to the request for information (RFI) conceptual proposal for the HSR project.

$NOVA (0201.MY)$: Nova MSC Bhd has secured an automation project from a Singaporean firm valued at RM20.8 million. The project involves the supply, delivery, installation, testing, and commissioning of a fully operational automated administration, labelling, and sample processing system. Nova MSC's unit, novaCITYNETS Pte Ltd (NCN), has received a letter of award from Sys-Mac Automation Engineering Pte Ltd in Singapore to engage the company as a contractor for the project. The contract also includes an option to purchase optional items and services and extend the maintenance by another five years, totaling approximately RM14.6 million.

$AZRB (7078.MY)$: Ahmad Zaki Sdn Bhd (AZSB), a wholly-owned subsidiary of Ahmad Zaki Resources Bhd (AZRB), has been served with a winding-up petition by Sukiada Engineering Sdn Bhd (SESB) over an alleged outstanding amount of RM168,115.25 as at June 30, 2023. AZRB clarified that AZSB is not a major subsidiary of the company and that it does not anticipate any financial and operational impact due to the filing of the petition. The company also stated that ongoing negotiations were taking place between the group and SESB to reach a mutually acceptable resolution at the time the petition was served.

$KLCC (5235SS.MY)$: KLCC Property Holdings Bhd (KLCCP) has announced that it will acquire the remaining 40% equity interest in Suria KLCC Sdn Bhd, which owns and manages Suria KLCC Mall, for RM1.95 billion. KLCCP has entered into a share purchase agreement with Ocmador (Malaysia) City Retail Centre Sdn Bhd, Port Moresby Investments Ltd, and Bold Peak Sdn Bhd for the proposed acquisition. The purchase will be funded by external borrowings and is expected to be completed by the second quarter of 2024. Suria KLCC will become a wholly owned subsidiary of KLCCP upon completion of the proposed transaction. KLCCP and KLCC Real Estate Investment Trust (KLCC REIT) collectively form the KLCCP Stapled Group, which already owns a diverse property portfolio largely located within the Kuala Lumpur City Centre. This includes Petronas Twin Towers, Menara ExxonMobil, and Menara 3 PETRONAS under KLCC REIT. KLCCP also owns non-wholly owned assets and assets with development and redevelopment potential, including Suria KLCC, the Mandarin Oriental Kuala Lumpur hotel, and vacant land (Lot D1). The company also has a 33% stake in Menara Maxis.