Top 10 Performing Stocks in Malaysia 2023
In a showcase of market resilience, select Malaysian stocks have recorded stellar performances in 2023, with a couple of them witnessing triple-digit percentage gains. This article will highlight the top 10 stocks that have dominated the Malaysian market this year, underscoring the dynamic shifts and strategic movements within the Malaysian stock exchange.
This year, $YTLPOWR(6742.MY)$ and $YTL(4677.MY)$ have delivered remarkable results, with annual gains exceeding 200%, making it the best-performing company with a market capitalization exceeding MYR 5 billion. $MCEMENT(3794.MY)$ closely follows them, with a 101.43 % gain YTD.
YTL Power purchased an 18.9% stake in $RANHILL(5272.MY)$ on November 1, driving up the hydropower utility company's stock. Ranhill's stock price has risen by 56% after the announcement. The improvement in the company's profitability has also boosted YTL Corp, which derives more than half of its revenue from the power sector.
Below are the best-performing Malaysian stocks in 2023
See more information:2023 Recap | YTL Power Take the Lead in the Malaysian Stock Market
1. YTL Power
Market Cap:20.26B MYR
Dividend TTM:0.050
Div Yield TTM: 2.000%
Brief Introduction:
YTL Power International Bhd stands out as a major electric utility player in Southeast Asia, focusing on the generation and distribution of electrical power. The company harnesses a diverse energy mix through its subsidiary utilities, managing a suite of power plants that include combined-cycle, gas-fired, steam, and co-generation facilities. A significant portion of YTL Power's energy output is concentrated in Singapore, which remains a key contributor to its revenue stream. Beyond energy, YTL Power has expanded its reach into the UK with a water and sewage services venture and into Malaysia's communication sector through YTL Communications.
The sale of electricity, especially in Singapore, is the primary revenue driver for the company, while its UK-based water and sewage operations also deliver a substantial income. most significant business division is Utilities, which encompasses the company's core electricity production and water management ventures. YTL Corp predominantly earns its revenue through the sale of electricity and water, supplemented by income from cement production and property sales. The company's operations are primarily concentrated in Malaysia, with significant interests in the United Kingdom and Singapore.
Performance in this year:
According to Bloomberg sources, YTL Power International Bhd's meteoric ascent this year may extend further as the company's stellar overseas asset performance casts a promising glow on its earnings prospects.
The company's stock has seen a dramatic surge, tripling in value in 2023 and positioning it as the top performer among Malaysian firms boasting a market cap exceeding 1 billion ringgit ($213 million). The bullish sentiment is echoed by analysts who endorse the stock as a 'buy' and forecast a potential increase of up to 61% in the coming year.
Recently, YTL Power and its parent conglomerate were inducted into the esteemed FBM KLCI Index. Spearheaded by Malaysian magnate Francis Yeoh and his family, YTL Corp has witnessed a staggering 220% growth this year. Despite a slight dip on Monday, with YTL Power and YTL Corp. closing 1.6% and 2.6% lower respectively.
2. YTL
Market Cap:20.61B MYR
Dividend TTM: 0.030
Div Yield TTM: 1.600%
Brief Introduction:
YTL Corporation Berhad is a multifaceted global holding company with a robust presence in infrastructure development, achieved through its diverse subsidiaries. The company's operations span an impressive array of sectors including construction, power generation, power transmission, water treatment, sewage management, telecommunications, cement production, as well as the development and investment in properties. Additionally, YTL Corp is actively involved in hotel development, management, e-commerce initiatives, and providing internet-based educational services. Its most significant business division is Utilities, which encompasses the company's core electricity production and water management ventures. YTL Corp predominantly earns its revenue through the sale of electricity and water, supplemented by income from cement production and property sales. The company's operations are primarily concentrated in Malaysia, with significant interests in the United Kingdom and Singapore.
Performance in this year:
According to Bloomberg sources, YTL Corp, under the stewardship of Tan Sri Francis Yeoh and his siblings, has charted a formidable course in 2023, with its share price skyrocketing approximately 230%. The conglomerate, a recent addition to the FBM KLCI Index, has witnessed its valuation climb, buoyed by profitability in its power division and potential in its diverse operations. Despite a fluctuation in early trading, YTL Corp's revenue strength is reinforced by its expansive portfolio, which includes construction, cement, and hospitality businesses.
Looking ahead, the company's strategic initiatives, such as possible involvement in the Singapore-Malaysia high-speed rail project, position it to potentially tap into new growth avenues. As YTL Corp continues to evaluate opportunities within Malaysia's infrastructure landscape, its ability to adapt and innovate remains a key indicator of its enduring market performance.
3. Mcement
Market Cap: 5.53B MYR
Dividend TTM: /
Div Yield TTM: 1.420%
Brief Introduction:
Now operating under the name Malayan Cement Bhd, the company previously known as Lafarge Malaysia Bhd is a key player in the manufacturing of cement, concrete, and aggregates. Catering to a diverse range of construction needs, Malayan Cement's products are pivotal in both residential and commercial construction, with a reach extending into the infrastructure and oil and gas sectors. Geographically, the firm has a strong revenue presence in the Middle East, Africa, and North America, with a primary focus on its robust cement division. This segment not only produces traditional Portland and specialty cements for various building and infrastructure projects but also offers innovative low-carbon cement options, mortar varieties, and engages in extensive cement trading operations.
Performance in this year:
According to Global Cement, During the 2023 financial year, Malayan Cement achieved a remarkable increase in consolidated sales, reaching US$808 million—a 39% rise compared to US$583 million in the previous year. The company's net profit soared by 90% to US$34.2 million from US$18 million, partly thanks to the strategic acquisition of YTL Cement on 21 September 2021, which boosted both sales volumes and prices.
As the company looks ahead to the 2024 financial year, it anticipates that non-residential construction will gain momentum from heightened investment in manufacturing facilities, in response to global supply chain shifts. However, Malayan Cement approaches this forecast with measured optimism, acknowledging that prevailing inflation and rising interest rates could potentially dampen cement demand. The company remains confident in its ability to provide customers with streamlined solutions, an approach that promises to contribute positively to both the group's growth and the wider industry's prospects.
Others
Other noteworthy performances include IOI Properties Group (IOIPG) with a 63.54% surge, Hartalega Holdings (HARTA) with a commendable 54.71% rise in share value, and UMW Holdings (UMW) with a solid 47.46% gain. These companies reflect the dynamic nature of the Malaysian market, each excelling in their respective sectors.
KPJ Healthcare (KPJ) and Fraser & Neave Holdings (F&N) also made the top 10 list, showcasing gains of 45.55% and 33.87%, respectively, indicating a strong year for the healthcare and consumer goods sectors.
Meanwhile, Malaysia Building Society (MBSB) and United Plantations (UTDPLT) rounded off the list with respectable increases of 31.29% and 30.92%. Their performance underscores the broader market's resilience and the potential for growth across various industries.
As of December 20th, 2023, these top 10 Malaysian stocks not only outperformed broader market indices but also demonstrated the potential for significant returns, justifying their status as market cap giants exceeding RM 5 billion.
Notes: The chart features the top 10 Malaysia stocks with year-to-date gains and a market cap exceeding RM 5 billion.
Source: Bursa Malaysia, moomoo,the Edge Malaysia, bloomberg