MY Morning Wrap | United Plantations Reports 18.54% YoY Growth in Q1 FY2024 Net Profit
Good morning mooers! Here are things you need to know about today's market:
●Indexes Mixed, $S&P 500 Flat, $Tesla Climbs 12.1% Despite Earnings Miss
●Brighter Macroeconomic Prospects Boost Outlook for Malaysia Risk Assets
●Stocks to watch: United Plantations, Hibiscus Petroleum
-moomoo News MY
Wall Street Summary
Indexes climbed, fell, and finished flat before yet another massive day of after-hours earnings on Wednesday. The $S&P 500 Index (.SPX.US)$ traded flat, up 0.02% on preliminary closing figures. The $Dow Jones Industrial Average (.DJI.US)$ fell slightly, down 0.11%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.1%. The S&P 500 and Nasdaq rose in part due to the strength of Tesla, which gained 12.1% as investors ignored an earnings miss that the EV giant revealed on Tuesday after the bell. Wall Street instead focused on the company saying it plans to soon release its "robotaxi" and lower-priced car models.
Breaking News
Brighter Macroeconomic Prospects Boost Outlook for Malaysia Risk Assets
The outlook for Malaysia's risk assets remained positive on brighter macroeconomic prospects, with corporate earnings having turned the corner, according to an equity strategy report by RHB Investment Bank. The report cited improvements in the global macroeconomic outlook, the peaking in the monetary tightening cycle, the potential reversal of the USD easing, the reversal of portfolio flows into emerging markets, the nascent China recovery story, ameliorating domestic political risks, and the anticipated gradual implementation of the fiscal reform agenda as reasons for its optimism. The report also noted that Malaysia's growth momentum is expected to gather pace into 2024, underpinned by the revival in the external sector and improved regional economic landscape.
Stocks to Watch
$UTDPLT (2089.MY)$: United Plantations Bhd has reported a year-on-year net profit growth of 18.54% to RM132.87 million for the first quarter ended March 31, 2024 (Q1 FY2024), mainly due to a sharp drop in finance cost. Its revenue grew 3.64% to RM476.75 million, from RM459.99 million a year earlier, due to an increase in revenue for the plantation and refinery segments, as a result of higher crude palm oil and palm kernel prices. The company is closely monitoring the impact of weather conditions on total palm oil production for its Malaysian operations.
$HIBISCS (5199.MY)$: Hibiscus Petroleum Bhd's wholly-owned subsidiary, Hibiscus Oil & Gas Malaysia Limited, has completed the drilling of the Bunga Aster-1 exploration well and is expecting its first oil production to begin in May. The well has approximately 17.5 metres of oil-bearing sandstone with up to 46 metres of potential oil column, according to the group. The unit will proceed with a thorough evaluation and appraisal of the discovery to further define the size of the discovery.
$KLCC (5235SS.MY)$: KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (REIT), is still on the lookout for foreign assets as part of its portfolio expansion mandate. The group is seeking matured assets "with good yield," according to CEO Datuk Md Shah Mahmood. Meanwhile, Suria KLCC's occupancy rate jumped to 98% in December 2023, while footfall rose by 30% from 2022. Md Shah said he did not see the new mall openings having a significant impact on Suria KLCC and that the initial risk had now stabilized.
$SURIA (6521.MY)$: Suria Capital Holdings Bhd's wholly-owned Sabah Ports Sdn Bhd has partnered with DP World, an Emirati multinational logistics company based in Dubai, to manage the Sapangar Bay Container Port (SBCP) and cement its position as a regional trade hub for the East ASEAN growth area spanning Brunei, Indonesia, Malaysia, and the Philippines (BIMP-EAGA). Under the collaboration, DP World will facilitate the growth of the port's container handling capacity to 1.25 million TEUs by 2025.
$CHINHIN (5273.MY)$: Chin Hin Group Property Bhd has signed two agreements to develop two separate residential projects in Kuala Lumpur worth RM1.08 billion in combined gross development value (GDV). The first project involves the development of 2,434 units of serviced apartments in Segambut worth RM685.1 million in GDV. It is expected to begin in July 2025 and be completed in June 2030. The second project involves the development of 974 units of serviced apartments valued at RM395.51 million in Dutamas. It is expected to start in May 2025 and run until April 2030.
$OCR (7071.MY)$: OCR Group Bhd has entered into a joint venture agreement with landowner Lecca Properties (M) Sdn Bhd to develop a residential project on 18.37 acres of freehold land in Templer, Rawang, with an estimated gross development value of RM313 million. The project will comprise 118 semi-detached houses, 37 bungalow lots, and five shoplots. Under the JV agreement, Lecca Properties will receive RM45 million for partnering with OCR. The project is expected to be launched in 2025.
$FAJAR (7047.MY)$: Fajarbaru Builder Group Bhd has been awarded a RM252.26 million contract by WCT Holdings Bhd to undertake the first phase of a two-phased development for two blocks of serviced apartments in Johor Bahru. The construction works for phase one will include eight towers with 2,048 units and 69 units of commercial lots. The contract, which commenced on May 6, 2021, has a duration of 36 months and is expected to be completed on May 5, 2027.
$AMEREIT (5307.MY)$: AME Real Estate Investment Trust (AME REIT) has reported an 11.9% year-on-year growth in net property income for the fourth quarter ended March 31, 2024 (4QFY2024) to RM11.4 million, driven by a 15.9% increase in rental income. The REIT registered RM12.48 million in rental income during the quarter, compared with RM10.77 million in the previous quarter (3QFY2024). However, AME REIT's distributable income for the quarter grew by only 2.65% to RM9.77 million. The industrial properties REIT declared a distribution of 1.87 sen per unit for the quarter.
$MYEG (0138.MY)$: MyEG Services Bhd and Zetrix Foundation have signed a memorandum of understanding with Hong Kong licensed virtual asset manager MaiCapital to collaborate on the launch of a Securities and Futures Commission of Hong Kong (SFC)-approved ETF consisting of a basket of cryptocurrencies, including bitcoin and Zetrix. MaiCapital has received SFC approval to manage funds that may comprise up to 100% virtual assets.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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