Second quarter results review: Bank stocks are the brightest, technology stocks are very disappointed
(KUALA LUMPUR 30th) The corporate earnings report for the 2024 fiscal year has come to an end. CIMB surveyed 73 companies, and 23% completely exceeded expectations. Among them, bank stocks performed the most, and are expected to provide fuel for the Composite Index to rise.
The bank's analysts released a report stating that as of August 28, several companies had announced their latest performance, and of the 73 companies tracked, 23% completely exceeded expectations, 25% fell short of expectations, and the other 52% met expectations.
Looking at it so far, analysts have found that the performance of technology stocks is the most disappointing. The companies they have tracked have all fallen short of expectations, including Innerley Meichang $INARI (0166.BMS)$ , Pacific Malaysia $MPI (3867.BMS)$ , Weite Agency $VITROX (0097.BMS)$ , Unison $UNISEM (5005.BMS)$ and CTOS numbers $CTOS (5301.BMS)$ .
The performance of technology companies was not as good as expected, mainly due to lower capacity utilization and profit margins, which in turn dragged down performance.
“Profit recovery in the tech sector has been slower than expected, and the sharp strengthening of the ringgit against the US dollar has indirectly led to a recent adjustment in the technology index.”
Telecom cars aren't good either
In addition, 40% of companies in the telecommunications sector performed less than expected. Among them, Tianditong Digital Network $CDB (6947.BMS)$ Unsatisfactory, mainly because the cost was higher than expected.
Malaysia Telecom $TM (4863.BMS)$ On the other hand, this is because revenue fell short of expectations.
As for the automotive sector, the proportion of underperforming companies is 33%. Morinami $SIME (4197.BMS)$ It was lower than forecast, mainly because China's automobile business lost more than expected, while the contribution of Heshun (UMW) also declined.
The year-end target for the composite index is 1,728 points
Analysts said that 4 of the bank stocks currently being tracked have announced their results. Among them, Bank of Malaysia $MAYBANK (1155.BMS)$ , Societe Generale Bank $RHBBANK (1066.BMS)$, Public Bank $PBBANK (1295.BMS)$ and Bank of Malaysia $AMBANK (1015.BMS)$ , the performance all exceeded expectations.
Analysts said that the increase in net profit of bankers is mainly due to higher non-interest income, reduced provisions, and even beginning to make reimbursements for loan losses.
“Overall, we have raised our banking sector's profit forecast across the board, reflecting lower financing costs.”
Analysts pointed out that the next step will be to review the template drawn up earlier after the earnings season is over, which will take higher bank returns into account.
Currently, CIMB Research continues to target the annual composite index at 1,728 points.
Source: Nanyang Siang Pao
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