MY Morning Wrap | Top Glove Returns to Profit in Q3 Thanks to Land Sale and Forex Gain

$NVIDIA(NVDA.US)$ has become the world's most valuable public company, with a market cap of $3.34 trillion, surpassing Microsoft's $3.32 trillion valuation. Founded in 1991, Nvidia initially focused on gaming hardware but has seen its stock soar in recent years as its technology became crucial for AI development. This surge has elevated co-founder and CEO Jensen Huang's net worth to approximately $117 billion, making him the world's 11th wealthiest person. Earlier this month, Nvidia's market cap hit $3 trillion for the first time, overtaking Apple.

$TOPGLOV(7113.MY)$: Top Glove Corp has posted a net profit of RM50.67 million for the third quarter ended May 31, 2024, compared to a net loss of RM130.59 million a year earlier, thanks mostly to land sale and currency gain. Quarterly revenue rose 20% to RM636.88 million from RM530.62 million previously, as growing glove demand enabled the group to share out some of the cost increases with customers through upward revisions in average selling prices. The company did not declare any dividend for the quarter. For the first nine months of FY2024, its net loss narrowed to RM58.24 million from RM463.49 million. However, revenue slipped 5.6% to RM1.68 billion from RM1.78 billion previously.

$YINSON(7293.MY)$: Yinson Holdings Bhd posted a net profit of RM203 million for the first quarter ended April 30, 2024, a 2.3% year-on-year dip from RM208 million, due to lower revenue coupled with increased finance costs of RM171 million arising from higher drawdowns to support project execution. Revenue for the quarter dropped 26.6% to RM2.21 billion from RM3.02 billion in 1QFY2024, mainly attributed to lower earnings from the offshore production and marine segment.

$MATRIX(5236.MY)$: Matrix Concepts Holdings Bhd has signed a second joint venture with NS Corp to develop new prime land in Malaysia Vision Valley 2.0 into a sustainable township. The deal is worth RM435.6 million and Megah Sedaya Sdn Bhd, an 85:15 joint venture between Matrix Concepts and NS Corp, is the master developer of the land measuring 1,000 acres. Concurrently, NS Corp entered into a sales and purchase agreement with Sime Darby to acquire the land. Including the latest JV agreement, Matrix Concepts has secured 2,382 acres of land in the MVV2.0 area, with a combined gross development value of RM12 billion. The development will feature a balanced mix of residential and commercial elements over a 12-year period.

$SCIPACK(8125.MY)$: Scientex Packaging (Ayer Keroh) Bhd's net profit slipped marginally by 1.2% to RM10.02 million in the third quarter ended April 30, 2024, from RM10.14 million a year earlier, primarily due to increased tax expenses. Revenue for the quarter rose 3% to RM182.85 million from RM177.49 million, as the group recorded higher sales in its export market. It declared a single tier interim dividend of 2.5 sen per share, payable on July 5. For the first nine months of FY2024, its net profit declined by 28.1% to RM25.74 million from RM35.79 million, due to a decline in revenue and product mix. Revenue contracted by 9.8% to RM531.67 million from RM589.46 million, driven by reduced demand in both export and domestic markets.

$EWINT(5283.MY)$: Eco World International Bhd has widened its net loss to RM14.13 million for the second quarter ended April 30, 2024, compared to RM4.56 million a year earlier, due to a lower gross profit, an impairment loss of RM10.77 million on the amount owed by its joint venture company, EcoWorld London, as well as lower foreign exchange gains. Quarterly revenue dropped 99.33% to RM151,000 from RM22.7 million as there were no units sold and handed over to customers of projects in Australia following the sell-out of all residential units, leaving just two commercial units unsold. Nonetheless, the group declared a first interim single tier dividend of six sen per share, which translates to RM144 million, to be paid on July 24. For the first six months of FY2024, the group trimmed its net loss to RM13.95 million from RM35.38 million amid lower finance costs, higher forex gains, and lower losses from Eco World London. Revenue for the period fell by 29.39% to RM31.82 million compared to RM45.07 million as all residential units in West Village and Yarra One were sold during the period.

$VS(6963.MY)$: VS Industry Bhd's net profit more than doubled to RM54.42 million in the third quarter ended April 30, 2024, from RM26.77 million the year before, mainly due to higher orders as well as a favourable product sales mix in Malaysia. Revenue rose slightly to RM1.01 billion from RM996.78 million a year before. The company declared a third interim dividend of 0.4 sen per share, to be paid on July 26, taking its nine-month dividend payment to one sen per share, down from 1.2 sen per share in the previous year.

$LBS(5789.MY)$: LBS Bina Group Bhd has sold its stake in Lamdeal Investments Ltd, which owns a 60% stake in Chinese motor circuit company Zhuhai International Circuit Ltd (ZICL), for 192.18 million yuan (RM124.74 million) cash. The company's unit, Dragon Hill Corp Ltd, had signed an equity transfer and debt repayment agreement with Huafa Urban Operation (HK) Ltd for the proposed disposal. Huafa Urban Operation is principally involved in investment holding, asset management, and business management consulting. Besides the cash payment, Huafa will also pay off debts totalling 227.82 million yuan (RM147.88 million) owed by LIL and its subsidiaries to LBS Bina and its subsidiaries. The disposal would result in a pro-forma disposal gain of about RM80 million, improve its net asset by about 10%, and reduce its gearing from 0.42 times to 0.38 times.

$KLK(2445.MY)$: Kuala Lumpur Kepong Bhd's rubber glove subsidiary is no longer in any contractual relationship with its agent for workers from Nepal, Agensi Pekerjaaan UKHWAH Sdn Bhd, with immediate effect. This comes after allegations of unethical recruitment practices made against the sub-agents of Nepal-based recruitment agency, SOS Manpower Service (SOS), which was appointed by UKHWAH to recruit Nepalese workers for KLK's rubber glove subsidiary, KL-Kepong Rubber Products. KLK had been investigating the allegations since last month, after they were made by Sajha Sabal Media, a news portal in Nepal. KLK has now confirmed that its subsidiary is no longer affiliated with SOS or any of its sub-agents.

$BNASTRA(7195.MY)$: Binastra Corp Bhd has announced that its wholly owned subsidiary, Binastra Builders Sdn Bhd, has secured a RM313.7 million contract to construct a residential apartment complex in Kota Kinabalu, Sabah. The contract was awarded by FYT Land (KK) Sdn Bhd and is expected to commence on June 19, with a completion date of July 31, 2027. The contract is considered a related party transaction, as Binastra's managing director and major shareholder Datuk Tan Kak Seng has a substantial indirect interest in Pembinaan Serta Hebat.