MY Morning Wrap | Yinson Holdings' FY2024 Net Profit Jumps 63% to RM964 Million
Good morning mooers! Here are things you need to know about today's market:
●Nvidia Drives Nasdaq to Record High as Other Major Indices Take a Breather
●Food Operators Coping with Pricier Raw Materials by Maintaining Sales Volume
●Rising Costs of Operations and Coffee Beans Lead to Price Hike in Malaysia's Coffee Shops
●Stocks to watch: Yinson, DXN
-moomoo News MY
Wall Street Summary
Nvidia continued to drive the Nasdaq to another record closing high on last Friday, even as other major indices took a breather. The $Nasdaq Composite Index (.IXIC.US)$ gained 0.2% to 16,428.82, while the $S&P 500 Index (.SPX.US)$ slipped 0.1% to 5,234.18. The $Dow Jones Industrial Average (.DJI.US)$ slid 0.8% to 39,475.90. Nvidia advanced 3.1% to $942.89 in New York, making it the biggest gainer on the Nasdaq. Google rebounded 2.1%.
Breaking News
Food Operators Coping with Pricier Raw Materials by Maintaining Sales Volume
Food operators in Malaysia are coping with pricier raw cooking materials by maintaining a reasonable volume of sales to avoid extra overhead costs, according to the Petty Traders and Hawkers Association president, Datuk Rosli Sulaiman. The price of most cooking ingredients has increased between 50 sen and RM1, forcing traders to increase the price of the food they sell to generate a small profit margin. To adapt to the price change, Rosli has advised the public to control their spending and buy only what they need, especially during the fasting month. The increasing cost of operating businesses, comprising logistics, electricity and water, supply disruptions due to global uncertainties, higher rent, and the revised minimum wage order, are factors contributing to the price hikes in food, which can reach up to 10%, according to the Petaling Jaya Coffeeshop Association.
Rising Costs of Operations and Coffee Beans Lead to Price Hike in Malaysia's Coffee Shops
The price of a standard cup of coffee in Malaysia has increased by about 70% in the past three years, from around RM1.50 to about RM2.60 currently. Many coffee shop operators blame the hike on the rising cost of coffee beans, coffee powder, and sugar. However, Johor Baru Coffee, Restaurant and Bar Operators Association deputy chairman Yong Wa Kong said that the rising cost of operations and the shrinking value of the ringgit are also factors contributing to the price increase. The challenge of hiring workers, particularly due to many locals leaving for Singapore to earn in dollars, is another factor. Indian-Muslim restaurants are also facing high operating costs due to rental rates and are considering "shrinkflation," but worry about receiving a bad reputation and getting in trouble with authorities.
Stocks to Watch
$YINSON (7293.MY)$: Yinson Holdings Bhd has reported a 63% jump in net profit for the financial year ended Jan 31, 2024, to RM964 million from RM589 million a year earlier. The surge in revenue to RM11.65 billion versus RM6.32 billion was the main driver of the profit increase. For 4QFY2024, net profit rose 62.5% to RM278 million from RM171 million, mainly due to the effect of charter day rate escalation, partially offset by lower contributions from engineering, procurement, construction, installation and commissioning business activities, and an increase in finance costs. Revenue for the quarter increased to RM2.70 billion from RM1.96 billion a year earlier.
$ASTINO (7162.MY)$: Astino Bhd, a flat steel product manufacturer, has reported a fourfold surge in net profit for the second quarter ended Jan 31, 2024, from a year earlier, primarily due to stronger sales and profit margin. Net profit for the quarter rose to RM11.78 million from RM2.95 million previously, while revenue grew 18% to RM169.22 million from RM143.29 million. Astino is cautiously optimistic about achieving a more sustainable performance in the future as market demand for its product remains firm, but it flagged escalating input costs and the weakening ringgit versus the US dollar as potential challenges.
$DXN (5318.MY)$: DXN Holdings Bhd, a health supplement firm, expects its Brazil operations to turn profitable by 2025, with the potential to become its main market by revenue in the next five years. The company said Brazil's large population and the size of its economy make it competitive when compared to other markets in South America. DXN added that it is committed to its dividend policy and aims to distribute at least 50% of its annual net profit, noting that it has a strong cash generation from operating activities that can support the payment of dividends.
$NTPM (5066.MY)$: NTPM Holdings Bhd, a paper and personal care product manufacturer, has reported a turnaround in net profit for the third quarter ended Jan 31, 2024, from a year earlier, driven by higher sales and decreased materials cost. Net profit stood at RM6.3 million or 0.56 sen per share, compared to a net loss of RM7.32 million or 0.65 sen per share in 3QFY2023. Quarterly revenue rose 11.75% to RM241.06 million from RM215.72 million. NTPM aims to remain profitable in the coming quarter, amid the positive results recorded, driven by the adjustment in its market strategy.
$ECOFIRS (3557.MY)$& $KERJAYA (7161.MY)$: EcoFirst Consolidated Bhd is alleging that its former directors conspired with Kerjaya Prospek Group Bhd in the award of a RM404.35 million residential development project in June last year, which was subsequently terminated in November. After the termination, Kerjaya Prospek filed a lawsuit against EcoFirst's wholly-owned unit, BCM Holdings Sdn Bhd, claiming RM20 million in termination damages. BCM subsequently filed a counterclaim against Kerjaya Prospek, while including its former chief executive officer and executive director Datuk Tiong Kwing Hee, as well as substantial shareholder Tan You Tiong as defendants.
$VELESTO (5243.MY)$: Velesto Energy Bhd has secured a two-year contract extension for the provision of three jack-up rigs to Petronas Carigali Sdn Bhd, worth US$265 million (about RM1.26 billion). The extension includes the continuation from the current drilling campaign and began on Feb 7, 2024, and will continue until Feb 6, 2026. The contract value for each of the three jack-up rigs, Naga 2, Naga 4, and Naga 6, is US$73.04 million, US$94.88 million, and US$97.08 million, respectively.
$NESTCON (0235.MY)$: Nestcon Bhd, a construction and renewable energy firm, has secured a RM79.5 million contract under phase one of the Wawari township development in Johor Bahru. The contract involves earthworks and main infrastructure works at the proposed township development located in the Pulai district. It is expected to begin on March 28 and be completed by Nov 27, 2025, with a 24-month defect liability period after the certificate of practical completion has been issued.
$TELADAN (0230.MY)$: Teladan Group Bhd, a Melaka-based property developer, has partnered with Melaka Corp (MCorp), the Melaka state government development agency, to develop a 341.2-acre German Technology Park in Ayer Panas, Jasin. The two companies have entered into a memorandum of understanding to collaborate on feasibility studies and development planning for the proposed project. Teladan will provide its construction expertise and landbank located along Jalan Gapam, Melaka, while MCorp will lead the development and sales of the project.
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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