MY Morning Wrap | Bursa Malaysia Opens Lower on Friday

The $Dow Jones Industrial Average(.DJI.US)$'s run of gains was the longest since 1987 and the second-longest on record. The blue-chip index fell 237 points on Thursday, or 0.7%. The $S&P 500 Index(.SPX.US)$fell 0.6%, while the tech-heavy $Nasdaq Composite Index(.IXIC.US)$ dropped 0.5%. Stocks were in the green for much of the session, losing steam in the afternoon.

$TENAGA(5347)$: National utility company Tenaga Nasional Bhd (TNB) expects to invest around RM2 billion in floating solar photovoltaic (PV) projects, said its CEO Datuk Baharin Din at the launch of the National Energy Transition Roadmap. He said TNB is working on two floating solar projects near its hydro dam sites, namely the 650MW Sungai Perak power station, and the 400MW Kenyir power station in Terengganu.

$NESTLE(4707)$: Nestlé (Malaysia) Bhd saw its net profit grow 6.64% to RM180.91 million in the second quarter ended June 30, 2023 (2QFY2023), up from from RM169.65 million a year ago. The strong earnings performance was mainly attributed to the group's higher sales and its continuous focus on internal efficiencies amidst sustained pressure on commodity prices. Nestlé (Malaysia) said its revenue rose 6.83% to RM1.75 billion, as compared to RM1.64 billion a year earlier, thanks to stronger domestic sales driven by robust consumer demand. The group declared an interim dividend of 70 sen per share, which will be paid on Oct 5, 2023.

$WPRTS(5246)$: Westports Holdings Bhd reported a 20% increase in net profit for the second quarter of 2023, reaching RM194.76 million due to lower fuel costs. Revenue rose to RM542.64 million, driven by increased container revenue. The company declared a first interim dividend of 8.19 sen per share, to be paid on Aug 22.

$VITROX(0097)$ : Penang-based automated test equipment maker ViTrox Corp Bhd's net profit dropped 26.7% to RM37.66 million for the second quarter ended June 30, 2023 (2QFY2023), from RM51.35 million in the corresponding quarter a year ago, as revenue shrank amid still languishing customer demand. Revenue dropped 21% to RM149.39 million from RM189.39 million, largely affected by the subdued demand in its Machine Vision System (MVS) as a result of temporary grim outlook in the semiconductor industry.

$MBSB(1171)$: MBSB has received shareholders'approval to buy Malaysian Industrial Development Finance Berhad (MIDF) from Permodalan Nasional Bhd (PNB) for RM1.01 billion that will be satisfied via the issuance of 1.05 billion MBSB shares at 96.52 sen per share. Following the proposed acquisition — which is expected to be completed in August this year — MIDF will become a wholly owned subsidiary of MBSB, and PNB will emerge as a substantial shareholder of MBSB with an equity stake of 12.78%. Meanwhile, the Employees Provident Fund's (EPF) shareholdings in MBSB will be reduced from 65.87% to 57.45%.

$UNISEM(5005)$: Unisem (M) Bhd saw its net profit plunge 88.4% to RM23.93 million for the second quarter ended June 30, 2023 (2QFY2023), as compared with RM205.86 million a year earlier, due to lower sales volume on softer market demand. Quarterly revenue also fell 18.4% to RM378.66 million in 2QFY2023, down from RM464.06 million a year ago. It declared a second interim dividend of two sen per share for the financial year ending Dec 31, 2023 (FY2023). The dividend will be paid on Aug 25.

$CAPITALA(5099)$: Bursa Malaysia Securities Bhd has granted Capital A Bhd a three-month extension until October 7, 2023, to submit its regularisation plan to the regulatory authorities. However, Bursa Securities retains the right to suspend the trading of Capital A's listed securities and potentially de-list the company if it fails to submit the regularisation plan by the specified date. The suspension of trading will occur if the company does not obtain regulatory approvals or fails to implement the plan within the set timeframe.

$KOSSAN(7153)$: Kossan Rubber Industries Bhd posted a net loss of RM3.3 million for the second quarter ended June 30, 2023 (2QFY2023), versus a net profit of RM45.99 million a year ago, as its gloves division made losses. Quarterly revenue dropped 34.3% to RM387.54 million from RM589.85 million in 2QFY2022, amid lower contributions from its gloves and clean-room divisions.

$CTOS(5301)$: CTOS Digital Bhd's net profit fell 6% to RM21.13 million for the second quarter ended June 30, 2023 (2QFY2023) from RM22.48 million a year ago, despite a higher revenue. The group attributed the lower earnings to higher selling and marketing expenses, higher administrative expenses, higher finance costs and higher tax expense as well as lower other income. Revenue for the quarter increased 33.82% to RM62.24 million from RM46.51 million a year ago, on improved performance for the group's Malaysia and international operations.

$CITAGLB-PA(7245PA)$: Citaglobal Bhd and Abu Dhabi Future Energy Company PJSC (Masdar) have signed a memorandum of understanding (MoU) to jointly develop renewable energy projects in Malaysia. The agreement includes exploring solar, battery energy storage system (BESS), wind, and other renewable energy technologies in Pahang. Malaysia aims to achieve net-zero emissions by 2050.

$LCTITAN(5284)$: Lotte Chemical Titan Holding Bhd reported a widened net loss of RM313.47 million for its second quarter ended June 30, 2023 (2QFY2023), compared to a net loss of RM145.92 million in the same quarter a year ago, as it recorded lower margin spread amid weakened market demand due to the volatile external demand and higher cost of operation. Revenue dropped 34.04% to RM1.86 billion from RM2.82 billion due to lower product selling prices and sales volume. No dividends were declared.

$YBS(0025)$: The Nasdaq-listed advanced silicon battery company, Enovix Corp, announced it has entered into a master service agreement (MSA) with ACE Market-listed YBS International Bhd. According to a statement, the agreement secures US$70 million (RM318.22 million) of non-dilutive funding to support Enovix’s Fab2 site at the Penang Science Park and its first Gen2 high-volume manufacturing line.

$TEXCHEM(8702)$: Texchem Resources Bhd has reported its third straight quarterly loss as its core business units continued to be impacted by the global market uncertainties and higher inflation, as well as higher tax expenses. The Sushi King owner saw its net loss widening to RM6.26 million for the second quarter ended June 30, 2023 (2QFY2023), from RM242,000 in 1QFY2023, and RM264,000 in 4QFY2022. Revenue for 2QFY2023 dropped 20.24% to RM240.46 million, against RM301.46 million in the same quarter a year earlier.

$TOPBLDS(5268)$: Shares of piling and engineering firm Top Builders Capital Bhd will be delisted from the Main Market of Bursa Malaysia on Aug 8. Nevertheless, the Practice Note 17 (PN17) company has until Aug 3 to request an appeal of the delisting to Bursa Securities. The latest announcement follows Top Builders' failure to submit its regularisation plan to the Securities Commission Malaysia or Bursa Securities for approval within the extended timeframe of June 29 this year. The company's application for a further extension of time to submit its regularisation plan had also been rejected.

$IQZAN(7183)$: Iqzan Holding Bhd and its wholly-owned subsidiary, Jumbo Universe Sdn Bhd, have recently entered into a subscription agreement with Million Saint Consultancy Sdn Bhd for the subscription of redeemable convertible preference shares (RCPS) issued by Jumbo Universe. The subscription agreement entails the issuance of up to 14.66 million RCPS at an issue price of RM1.00 per RCPS share, totaling RM14.66 million in subscription consideration.