MY Morning Wrap | Yinson Holdings' Major Shareholder Triggers Takeover Offer for Icon Offshore
Good morning mooers! Here are things you need to know about today's market:
●US Stock Market Sees Late-Day Volatility
●Property stocks rally on declining unsold units, new launches
●Malaysian Capital Market Remains Resilient, But Faces Challenges
●Stocks to watch: Yinson, Scientex
-moomoo News MY
Wall Street Summary
Freshly listed stocks traded higher on Tuesday, but in the final hour of trading, the entire US stock market experienced a pullback. Indexes swung from a 0.20% climb to a fall of the same amount. According to preliminary closing figures, the $S&P 500 Index(.SPX.US$ fell 0.28%, the $Dow Jones Industrial Average(.DJI.US$ fell 0.08%, and the $Nasdaq Composite Index(.IXIC.US$ fell 0.42%. Investors are closely watching the Federal Reserve's upcoming meeting to see if they will provide any insight on the current economic climate and future monetary policy decisions.
Breaking News
Malaysia's Property Market Continues to Rally
Malaysia's property market is experiencing a bull run as the Property Index of Bursa Malaysia surpassed the 1,000-point mark, a level that was last seen five and a half years ago. The property stock rally, which began in mid-2023, has yet to lose steam, with the Property Index rallying by 10% in the past three weeks alone, closing at 1,004.97 points yesterday. As unsold properties decline and developers continue to launch new projects, three out of the five largest property stocks have rallied by double-digits in the past three weeks. This has brought cheer to retail investors and government-linked entities that are substantial shareholders in property companies. However, some analysts remain cautious due to oversupply, high household debt, elevated interest rates, and weakened consumer sentiment.
Malaysian Capital Market Remains Resilient, But Faces Challenges
Despite the challenges and uncertainties of 2023, the Malaysian capital market has remained resilient. However, the Securities Commission (SC) notes that its recovery has been lagging since 2019, with small-cap counters driving most of the trading activities, particularly by retail investors. The SC also highlights the dwindling foreign investor interest in the Malaysian capital market, with foreign holdings of Malaysian equities standing at 19.54% in 2023, lower than its five-year average. The regulator emphasizes the need for the government to implement medium and long-term measures to stimulate trading activities and enhance the attractiveness of the capital market. Meanwhile, the SC urges companies to be aware of ESG-related matters, which is a pertinent issue among global investors these days.
Stocks to Watch
$YINSON(7293.MY$: Yinson Holdings Bhd's major shareholder, Lim Han Weng, has triggered an unconditional mandatory takeover offer for Icon Offshore after acquiring a 50.2% stake in the company for RM172.2 million cash. Following the acquisition, Lim Han Weng extended the offer to acquire the remaining shares he does not own, consisting of a cash offer of 63.5 sen for a 49.8% stake in Icon Offshore and 100% of its warrants or 130.9 million warrants for 0.1 sen. The stake was acquired from Ekuiti Nasional Bhd, also known as Ekuinas, the state-owned private equity firm. Ekuinas' shareholding in Icon Offshore is set to reduce to about 5.83% after the transaction. The new shareholder intends to maintain Icon Offshore's listing status.
$SCIENTX(4731.MY$: Malaysian property developer and packaging company Scientex Bhd reported a 33% year-on-year increase in net profit for the second quarter, thanks to higher progress in billings and sales from new launches. Net profit for the three months ended Jan 31, 2024, rose to RM141.01 million from RM106.29 million a year earlier. Revenue for the quarter increased by 12% to RM1.09 billion from RM978.39 million. The company remains optimistic about the demand for affordable homes in FY2024, with a goal of completing 50,000 affordable homes by 2028 across seven states. Scientex's implementation of solar photovoltaic systems across its factories will help offset high energy costs while advancing its sustainability efforts.
$UMC(0256.MY$: Plantation company United Malacca Bhd has reported a 49% year-on-year increase in net profit for the third financial quarter, boosted by an improvement in its Indonesian operations and lower investment losses. Net profit for the three months ended Jan 31, 2024, rose to RM18.97 million from RM12.71 million in the previous year as its Kalimantan operation posted a RM3.5 million profit against a RM1.7 million loss a year earlier. This was due to higher fresh fruit bunches production, average crude palm oil and palm kernel prices, and higher milling margin. Moving forward, the group expects FFB production to grow in the financial year ending April 30, 2024, due to better age profile improvement in its Indonesian operations in Kalimantan and Sulawesi.
$GLOMAC(5020.MY$: Glomac Bhd has reported an over 800% year-on-year increase in net profit for its third quarter ended Jan 31, 2024, driven by higher revenue from its property development and property investment business. Net profit rose to RM3.81 million from RM419,000 a year earlier, while quarterly revenue increased by 35.38% to RM89.35 million from RM66 million. Looking ahead, Glomac remains cautiously optimistic about improvement in the property market and will focus on the affordable and mid-market residential segments, where it has successfully built a strong brand with quality, innovative, and digital lifestyle concept products.
$SSF(0287.MY$: Furniture retailer SSF Home Group Bhd has announced its maiden dividend of half a sen per share or RM4 million as the group returned to profit in its third quarter ended Jan 31, 2024. Quarterly net profit came in at RM2 million, or 0.25 sen per share, on revenue of RM37.71 million, up 20% quarter-on-quarter from RM31.32 million in the previous quarter. The increase was due to higher sales during festive seasons. The latest quarter pushed SSF back to profit for the nine-month period ended Jan 31, with a bottom line of RM988,000 or 0.15 sen on revenue of RM108.34 million.
$MCEHLDG(7004.MY$: MCE Holdings Bhd's wholly-owned unit, Multi-Code Electronics Industries (M) Bhd, has secured contracts to supply electronic and mechatronics parts for a Proton car model. The supply of these parts is set to begin in the second quarter of the financial year ending July 31, 2025, spanning a duration of 84 months. The project is expected to generate a total revenue of RM55.19 million for the MCE Group throughout the 84-month period, with an estimated total investment cost of RM650,000.
$M&G(5078.MY$: Marine & General Bhd has sold its oil products tanker, JM Sutera 5, to Kalianda Permata Transport Pte Ltd for US$5.55 million (about RM26.21 million) to partly finance its fleet optimisation strategy. M&G owns 70% of vessel operator Jasa Merin (M) Sdn Bhd and said the cost of investment for the 16-year-old JM Sutera 5, built in 2008, was US$5.42 million, with the net carrying value recorded at US$4.36 million.
$TIMECOM(5031.MY$: TIME dotCom Bhd's chief financial officer (CFO), Shahnaz Farouque Jammal Ahmad, is resigning from the position effective May 15 to pursue other career opportunities, according to a statement from the internet services group. Shahnaz, who was appointed as CFO in October 2021, previously served as the CEO of CIMB group's wholesale banking and before that, as the banking group's CFO. TIME has appointed its deputy CFO, Karen Ding Ming Nyuk, as the acting CFO, effective May 15, to ensure continuity of the office.
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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