MY Morning Wrap | Bursa Malaysia Opens Lower on Wednesday

The $S&P 500 Index(.SPX.US)$ fell 0.3%. The tech-heavy $Nasdaq Composite Index(.IXIC.US)$ fell 0.4%. The $Dow Jones Industrial Average(.DJI.US)$ rose 0.2%, or 71 points.

$MAYBANK(1155)$ : Malayan Banking Bhd's (Maybank) 98.54%-owned PT Bank Maybank Indonesia Tbk's net profit for the first half ended June 30, 2023 jumped 44.5% to 960 billion rupiah (RM286.54 million), from 663 billion rupiah (RM197.89 million), on the back of a decrease in provisions following improved asset quality and well-managed overhead costs. The banking group’s net interest income grew 6.7% due to an increase in loans and better earning assets composition. The group said the economy in Indonesia had resumed its growth phase in the first half of the year, with a stable business climate leading to higher loan demand and a steady market outlook. The bank was also able to book higher earnings from its loan portfolio and a significant increase in fee-based income as treasury-related transactions improved.

$DUFU(7233)$: Dufu Technology Corp Bhd posted a net profit of RM3.32 million in the second quarter ended June 30, 2023 (2QFY2023), compared with RM29.26 million a year earlier, on lower revenue given the decrease in revenue in hard disk drive (HDD) components as well as higher operating costs incurred. The precision machining parts and components manufacturer’s quarterly revenue fell 48.1% to RM47.65 million — its weakest in nearly six years since 3QFY2017 when it posted a revenue of RM43.53 million. Dufu declared an interim dividend of 1.5 sen per share, payable on Sept 22. Dufu expects its financial performance for the full year to be "considerably lower" compared with FY2022, given reduced demand from customers, challenging operating conditions and uncertain market circumstances.

$FRONTKN(0128)$: Frontken Corp Bhd saw its net profit for the second quarter ended June 30, 2023 slip marginally by 0.89% to RM31.91 million from RM32.2 million a year earlier, on lower revenue from its Taiwan and Singapore units which was caused partly by weaker demand from its semiconductor customers flowing on from the first quarter. Frontken’s revenue dropped 5.5% to RM121.15 million from RM128.2 million posted in the preceding year's corresponding quarter.

$PHARMA(7081)$ : Pharmaniaga Bhd is appealing against Bursa Malaysia Securities' decision to reject the company's plan to undertake a second private placement on a stand-alone basis. The plan involves the placement of up to 144.12 million new shares, representing 10% of the company's total issued shares, to the Armed Forces Fund Board (LTAT) to raise gross proceeds of up to RM50 million. The money was meant to be used as interim measures to bridge the company's working capital requirements while it is formulating a plan to regularise its financial condition to address its Practice Note 17 status. Last week, Bursa Securities informed Pharmaniaga that it was "unable to consider" the second private placement proposal as a fund-raising exercise on a stand-alone basis, as such efforts should be a part of the company's proposed regularisation plan.

$LFECORP(7170)$: LFE Corp Bhd’s unit has accepted three letters of award worth a combined sum of RM97.84 million, as the subcontractor for the works related to the completion of a factory in Penang. LFE Corp said its wholly owned LFE Engineering Sdn Bhd accepted the awards from Circuitry Electrical Engineering Sdn Bhd, and all three contracts will take up to 24 months to be completed.

$EPMB(7773)$: EP Manufacturing Bhd (EPMB) has partnered with China-based automobile group BAIC Motor Corp Ltd to develop local production of BAIC-branded vehicles in Malaysia. EPMB signed a memorandum of understanding (MOU) with BAIC’s unit, BAIC International Development Co Ltd, to develop the BJ40P and X55II sport utility vehicles and right hand drive (RHD) electric vehicles to cater to Malaysia and other Southeast Asian RHD markets. BAIC is part of Beijing Automotive Group Co Ltd, a Fortune Global 500 company and one of China’s largest carmakers.

$RL(0219)$: A unit of Reservoir Link Energy Bhd has secured an award from Petronas Carigali Sdn Bhd for the provision of annulus wash and cement assurance equipment and services for the M1 and Anding fields. The company said its wholly-owned subsidiary Reservoir Link Sdn Bhd commenced the work on the effective date of the award which was July 11, and expects to complete the work within 18 months. Under the contract, Reservoir Link will provide annulus wash and cement assurance services that includes creating a circulation tunnel or window across casing in the well and washing or removing defective cement in the annulus behind the casing

$CYPARK(5184)$: Cypark Resources Bhd is planning to form an incorporated joint venture company with RGFC Ventures Sdn Bhd, the business and investment arm of Selangor FC, to explore opportunities relating to the development of renewable energy (RE) power plants. The JV is envisioned to be a special-purpose vehicle with Cypark having an 80% interest, and RGFC 20%. Cypark said it has signed a memorandum of business exploration with RGFC to participate in and explore opportunities relating to the development of RE power plants and initiatives for solar energy homes, particularly the Net-Energy-Metering programmes — including residential installations — in Selangor.