MY Morning Wrap | VS Industry Reports 107% Jump in Q4 Net Profit
Good morning mooers! Here are things you need to know about today's market:
● U.S. Stock Markets Show Mixed Results, S&P 500 and Dow Jones Hit New Highs
● Penang Attracts RM411.8 Million in Chinese Manufacturing Investments in H1 2024
● BIMB Securities Maintains "Overweight" on Consumer Sector Amid Sarawak's Economic Initiatives
● Stocks to Watch: VS Industry, Petronas, Magma, etc.
- Moomoo News MY
Wall Street Summary
On Tuesday, the stock market experienced a volatile trading session, ultimately closing on a positive note for major indices. The market opened lower but reversed direction later in the day. The S&P 500 (.SPX) and the Dow Jones Industrial Average (.DJI) both reached new trading and closing highs, marking a significant rebound. The $S&P 500 Index (.SPX.US)$ rose by 0.25%, while the $Dow Jones Industrial Average (.DJI.US)$ increased by 0.20%. However, the $Nasdaq Composite Index (.IXIC.US)$ did not follow the upward trend and fell by 0.56%. This mixed performance highlights divergent forces at play in the current market environment.
Breaking News
Penang Attracts RM411.8 Million in Chinese Manufacturing Investments in H1 2024
Penang has secured RM411.8 million in approved manufacturing investments from China in the first half of 2024, according to Chief Minister Chow Kon Yeow. Speaking at a reception for the 75th anniversary of the People’s Republic of China, Chow highlighted the significant role of 53 Chinese companies in Penang’s manufacturing, global business services, and logistics sectors. Over the past decade, Penang has attracted RM13.2 billion in manufacturing investments from China, which represents 6.8% of its total foreign direct investments. The region also noted a surge in Chinese tourism, further strengthening bilateral economic and trade ties.
BIMB Securities Maintains "Overweight" on Consumer Sector Amid Sarawak's Economic Initiatives
BIMB Securities has reiterated its "overweight" stance on the consumer sector, focusing on the food and beverage segment and value retailers, in light of Sarawak's initiatives to boost household incomes. Following a meeting with the Department of Agriculture Sarawak (DOAS), BIMB highlighted the state's strategies aimed at increasing the mean household income, which currently stands at RM6,457, ranking it 10th among Malaysian states. These initiatives are part of the broader Sarawak Post Covid-19 Development Strategy (PCDS) 2030, which seeks to enhance the agriculture sector and rural economy through high-impact projects like smart farming and aquaculture zones. BIMB's top picks in the consumer sector include MR DIY Group (M) Bhd, Farm Fresh Bhd, and Spritzer Bhd, all carrying a "buy" rating with respective target prices set to reflect anticipated growth driven by these developmental efforts.
Stocks to Watch
$VS (6963.MY)$: VS Industry Bhd (KL:VS) has announced a significant 107% increase in its net profit for the fourth quarter, reaching RM126.66 million, up from RM60.96 million in the same period last year. This substantial rise in profit is attributed to a one-off gain of RM46.7 million from the partial disposal of its equity interest in a subsidiary, coupled with an increase in orders. Additionally, the company's revenue grew by 5.6% to RM1.21 billion. In light of these results, VS Industry has declared a fourth interim dividend of 0.6 sen per share, scheduled for payment on October 26.
$PCHEM (5183.MY)$: Petroliam Nasional Bhd (Petronas) has clarified that it is not pursuing legal action against the Sarawak government or Petroleum Sarawak Bhd (Petros) regarding gas distribution issues. A joint statement from the Sarawak premier's office highlighted that recent discussions among the parties were constructive and are expected to reach a resolution soon. The statement also emphasized mutual respect for both federal and state laws, suggesting a collaborative approach to resolving the matter.
$MAGMA (7243.MY)$: Magma Group Bhd has finalized the purchase of a 2.26-acre plot in Kuala Lumpur for RM80 million from Skyload Express Sdn Bhd, linked to its executive chairman, Datuk Seri Lee Hock Seng. The deal, considered a related-party transaction, involves Magma's subsidiary Magma Kiara Sdn Bhd and will be funded through RM8 million in cash, the issuance of new shares, and redeemable non-convertible preference shares. This acquisition will increase Hock Seng’s stake in Magma to 28.35% and make former badminton player Datuk Wira Lee Chong Wei a substantial shareholder with a 14.37% stake.
$MYNEWS (5275.MY)$: MyNews Holdings Bhd (KL:MYNEWS), a leading retail convenience store chain operator, reported a net profit of RM2.63 million for the third quarter ended July 31, 2024, marking a significant turnaround from a net loss of RM2.16 million in the corresponding period last year. The recovery in profitability was supported by improved profit margins and a higher share of profit from its jointly controlled entity. Revenue for the quarter increased by 11.67% to RM207.47 million, up from RM185.79 million previously. Additionally, the company declared an interim dividend of 0.5 sen per share, totaling RM3.75 million for the quarter.
$POHKONG (5080.MY)$: Poh Kong Holdings Bhd (KL:POHKONG), a prominent jewellery maker, concluded FY2024 with exceptional earnings, posting a net profit of RM116.9 million, a 49% increase from RM78.4 million in FY2023. This significant growth was propelled by the rising gold prices. The company's annual revenue also saw an 11.7% increase, reaching RM1.64 billion compared to RM1.47 billion in the prior year. In the fourth quarter of FY2024, the net profit surged over fourfold to RM22 million from RM4.98 million, fueled by robust demand for gold jewellery and investment products, while quarterly revenue rose 8.5% to RM342.5 million. Additionally, Poh Kong has proposed a final dividend of three sen per share, reflecting its strong financial performance.
$HARNLEN (7501.MY)$: Harn Len Corp Bhd (KL:HARNLEN) has entered into an agreement to sell a land parcel in Johor Bahru for RM55 million to Starsea Resources Sdn Bhd. The transaction is set to result in a net gain of RM33.6 million for Harn Len, as the land's net book value stands at RM16.8 million. The proceeds from the sale will be allocated by Harn Len with RM29.4 million earmarked for capital expenditures, such as improvements to plantation and infrastructure, and RM20 million designated for operational costs.
$SIMEPROP (5288.MY)$: Pesona Metro Holdings Bhd (KL:PSONA) has secured a significant contract valued at RM321.09 million from Sime Darby Property (Golfhome) Sdn Bhd, a subsidiary of Sime Darby Property Bhd (KL:SIMEPROP), to execute superstructure works on three condominium blocks located on Jalan Bukit Kiara, Kuala Lumpur. The project is scheduled to commence on October 11 and is expected to be completed within a 27-month timeframe. This contract marks a substantial addition to Pesona Metro's portfolio, bolstering its presence in the Malaysian construction industry.
$SCIENTX (4731.MY)$: Scientex Bhd (KL:SCIENTX) has announced an 18% year-on-year rise in net profit for the fourth quarter of fiscal year 2024, reaching RM135.8 million, up from RM114.89 million, driven by robust performances in its packaging and property segments. Revenue for the quarter increased to RM651.3 million, partly due to strong demand for industrial packaging products. The company also raised its annual dividend to 12 sen per share for FY2024, up from 10 sen in the previous year, reflecting its strong financial health and commitment to shareholder value. The final dividend of six sen per share is scheduled for payment on January 17, 2025.
$ASIAPLY (0105.MY)$: Asia Poly Holdings Bhd (KL:ASIAPLY) has decreased its stake in Dolphin International Bhd (KL:DOLPHIN) to below substantial shareholder status after offloading 10 million shares on September 23. This sale, which represented a 7.47% stake, reduces Asia Poly's holdings to 4.09 million shares, or 3.05% of Dolphin International. Although the specific transaction price was not disclosed, the value of the shares sold is estimated at RM1.75 million, based on Dolphin's closing price of 17.5 sen on the transaction date.
$YINSON (7293.MY)$: Yinson Renewables, a subsidiary of Yinson Holdings Bhd (KL:YINSON), has fully launched the 97MWp Matarani Solar Plant in Peru, marking it as the second-largest solar energy producer in the country. Operational since July 2024, the plant generates 260GWh annually, sufficient to power 62,000 households and significantly reducing carbon emissions by over 56,000 tonnes each year. Spanning 750,000 square meters, the facility is equipped with nearly 150,000 solar panels, bolstering Peru's renewable energy capacity and Yinson's commitment to sustainable energy solutions.
$ECOHLDS (0059.MY)$: Trading in shares of Ecobuilt Holdings Bhd (KL:ECOHLDS) is set to resume on September 25, following a suspension that began on August 9. The suspension was due to a winding-up petition filed by S-Form System Formwork. The Court of Appeal has ruled in favor of Ecobuilt, allowing the company to settle the dispute by agreeing to pay RM670,596 plus interest. Consequently, the winding-up petition has been permanently set aside, clearing the way for the resumption of trading activities.
$EMETALL (7217.MY)$: Eonmetall Group Bhd (KL:EMETALL), a manufacturer of steel products, announced plans to raise RM8.64 million through a share placement of up to 10% of its total share base. This initiative aims to boost the company's working capital. According to a recent bourse filing, the group intends to issue up to 27.7 million shares to independent third parties, with the issue price yet to be determined. This strategic move is designed to strengthen Eonmetall’s financial position and support its ongoing operations.
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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