MY Morning Wrap | YTL Power Responds to MACC Inquiry on 1BestariNet Project

Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ traded down just 0.16%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.09%, and the $Nasdaq Composite Index (.IXIC.US)$ fell 0.30%.

$IHH (5225.BMS)$ announced its acquisition of the 600-bed Island Hospital in Penang, purchasing it for RM3.92 billion in cash from Comprehensive Care Sdn Bhd. The deal also includes adjacent vacant land, valued at RM223 million, with approvals already in place for future development. The purchase, funded through internal resources and external borrowings, is anticipated to positively impact earnings and return on equity starting in 2026. IHH Group CFO Dilip Kadambi expects the hospital to boost the group's total annual revenue by "upwards of 15%", potentially adding over RM3.13 billion annually based on FY2023's revenue figures.

$YTLPOWR (6742.BMS)$ confirmed that its subsidiary, YTL Communications Sdn Bhd (YTL Comms), is under scrutiny by the Malaysian Anti-Corruption Commission (MACC) regarding the Ministry of Education's 1BestariNet project, valued at RM4 billion. "We wish to confirm that MACC has recently requested information from YTL Comms in respect of the 1Bestarinet project," stated YTL Power. Bernama reports that MACC is investigating alleged false details in RM2.7 billion worth of payment claims and other potential criminal activities under the MACC Act 2009.

$CGB (8052.BMS)$ secured a RM616.4 million contract to upgrade a section of the Pan Borneo Highway in Sabah. The contract, awarded to its subsidiary RYRT International Sdn Bhd by Pembinaan Urusmesra Sdn Bhd, covers improvements from the Lahad Datu Bypass to Kampung Sandau under Work Package 22. Set to commence on September 30, 2024, and complete by March 29, 2028, this project is expected to significantly bolster the company's order book and ensure steady revenue for the next three and a half years.

$JSB (5673.BMS)$ has received official notification from the Energy Commission of Sabah (ECOS) concerning Project Oriole, a 162MW run-of-river hydropower plant. The notification details commercial and technical terms, including deadlines for a 40-year power purchase agreement and financial commitments. "The project is scheduled to reach its commercial operation date no later than Dec 31, 2028," according to Jentayu.

$OVH (0220.BMS)$ reported a significant change in its shareholder structure following the sale of a 23.32% collective stake by executive directors Martin Philip King Ik Piau, Yau Kah Tak, and another party. The new major shareholders, all based in Kuching, include Majuco Motor Sdn Bhd, Pertanian Teguh Jaya Sdn Bhd, and Resources Hub Logistics Sdn Bhd, now among the largest stakeholders in the company.

$VTC (0319.BMS)$, a newly listed enterprise software company, saw volatile trading with its stock peaking at 63.5 sen and dipping to 53 sen before settling at 58.5 sen. This closing price gives the company a market capitalization of RM229.3 million, with trading volume reaching an impressive 111.42 million shares. This activity reflects a significant interest in Vetece, with its share price already surpassing the initial fair value estimates provided by financial analysts.

Shares of $UWC (5292.BMS)$ tumbled over 15%, leading Bursa Malaysia to halt the counter's intraday short-selling. The share price fell from RM2.43 to RM2.04, marking a significant drop and bringing its market capitalisation down to RM2.25 billion. The exact reasons for the decline remain unclear, though the company has underperformed compared to the previous financial year.

$TCHONG (4405.BMS)$ saw its shares drop to a 20-year low of 70.5 sen due to larger-than-expected quarterly losses and continued weak sales. At this price, the market capitalization stood at RM473.76 million, with minimal trading activity. Analysts, including those from Hong Leong Investment Bank Research,