MY Morning Wrap | CIMB Reports 31% Increase in 3Q Net Profit, Driven by Higher Operating Income and Lower Provisions

The $Dow Jones Industrial Average(.DJI.US)$ raised 520 points, or 1.47% to end the month on a high note. Though wavering to just a 0.38% gain Thursday, the $S&P 500 Index(.SPX.US)$ rose 8.9% in November. The $Nasdaq Composite Index(.IXIC.US)$ fell 0.23%, and 32 points.

$CIMB(1023.MY)$: CIMB Group Holdings Bhd announced a 31.3% increase in net profit to RM1.85 billion for the third quarter (3QFY2023) ended on Sept 30, 2023, compared to RM1.41 billion last year. The group attributed this growth to a robust improvement in non-interest income, which was partially offset by weaker net interest income due to higher costs of deposits leading to net interest margin compression. CIMB's quarterly revenue increased slightly by 6.2%, rising to RM5.31 billion from RM4.99 billion in the previous year.

$IHH(5225.MY)$: IHH Healthcare Bhd reported a more than doubled net profit of RM532.07 million for the third quarter ended Sept 30, 2023 (3QFY2023), compared to RM251.76 million in the same period last year. This growth was attributed to increased patient volumes and revenue from higher acuity treatment. The healthcare company's quarterly revenue grew by 26.74% to RM5.83 billion from RM4.6 billion, supported by higher revenue contributions from its hospital and healthcare segment.

$HLBANK(5819.MY)$: Hong Leong Bank Bhd (HLB) announced a 4.93% increase in net profit to RM1.03 billion for the first quarter ended on Sept 30, 2023 (1QFY2024), compared to RM981.41 million in the previous year. The growth was attributed to higher contributions from the bank's associates and a reversal of impairment losses. However, HLB's quarterly revenue decreased by 7.05% to RM1.39 billion from RM1.5 billion previously. During the quarter, HLB recorded a net written back of allowance for impairment losses on loans, advances, and financing of RM88.7 million, and a higher share of profit from the associated company of RM89.5 million.

$HLFG(1082.MY)$: Hong Leong Financial Group Bhd announced a net profit of RM741.64 million for the first quarter ending on Sept 30, 2023 (1QFY2024), reflecting an increase of 10.78% from RM669.47 million in the corresponding period last year. The group registered an improvement across all operating companies and reported a reversal of impairment losses. However, the revenue for this quarter slipped by 2.38% to RM1.56 billion from RM1.6 billion in the previous year.

$SIME(4197.MY)$: Sime Darby, Malaysia's industrial and automotive conglomerate, is looking to set up a luxury car retail business in India and expand in Indonesia to tap into the growth potential of both economies, its top executive has told Reuters.

$ABMB(2488.MY)$: Alliance Bank Malaysia Bhd reported a 16.98% increase in net profit to RM185.33 million for the second quarter ended on Sept 30, 2023 (2QFY2024) compared to RM158.42 million in the previous year due to higher revenue and lower expected credit losses. The bank's quarterly revenue was up by 9.89%, reaching RM528.1 million from RM480.57 million a year ago. Additionally, the bank announced a first interim single-tier dividend of 10.85 sen per share with a total dividend payout ratio of 50%, payable on Dec 28.

$IJM(3336.MY)$: IJM Corp Bhd recorded a net profit of RM93.69 million for the second quarter ended on Sept 30, 2023 (2QFY2024), surging over threefold from RM27.03 million in the previous year, driven by exceptional performances in its property development and infrastructure segments. The group's quarterly revenue increased significantly by 36.05% to RM1.46 billion from RM1.07 billion previously, due to improvements across all its segments. These segments consist of construction, property development, manufacturing and quarrying, infrastructure, as well as investment and others.

$CAPITALA(5099.MY)$: Capital A Bhd is currently in the "last stretch" of completing its Practice Note 17 regularisation plan and intends to submit it in full to Bursa Malaysia in "the near future". The group is committed to ensuring that the restructuring reviews and discussions are thorough, reflecting its dedication to long-term stability and strategic adaptability. Capital A CEO projects a significant upswing in 2024. Although having three consecutive profitable quarters, Capital A reported a net loss of RM178.82 million in 3QFY2023 due to the previous quarter's gain from the consolidation of Asia Aviation Public Company Ltd Group of RM1.37 billion. However, the group narrowed its net loss year-on-year, indicating continued improvement in its aviation business as revenue doubled to RM4.23 billion from RM1.96 billion.

$DSONIC(5216.MY)$: Datasonic Group Bhd reported a net profit of RM18.15 million for its second quarter ending on Sept 30, 2023 (2QFY2024), which is down by 27.13% compared to the corresponding quarter last year when earnings rose over 20 times due to a surge in passport and MyKad applications, including first-time applications and renewals following the reopening of international borders on April 1, 2022. The security-based ICT solutions provider declared a second interim dividend of 0.6 sen per share for FY2024 payable on Dec 29, bringing total dividends declared year-to-date to 1.2 sen, an increase compared to 0.75 sen in the corresponding period in FY2023.

$SENHENG(5305.MY)$: Senheng New Retail Bhd reported a 64.56% decline in net profit to RM5.16 million in the third quarter ended on Sept 30, 2023 (3QFY2023), compared to RM14.55 million in the corresponding quarter of the previous year. The company experienced a decrease in revenue while recording higher operating and administrative expenses due to its expansion plan. This is the lowest quarterly profit for the group since it was listed in January 2022.

$MAXIM(4022.MY)$: Bursa Malaysia has raised queries with Maxim Global Bhd on the scant details regarding its “privatisation agreement” to decommission and upgrade several sewerage treatment plants in Cheras. One of the six queries made by Bursa was about the value of the land that would be transferred to the developer upon completion of the decommissioning and upgrading works, along with the amenities and utilities provided by Maxim's subsidiary. However, Maxim responded to Bursa that the details of the land swap and capital for the project are confidential under the privatisation agreement, pending government approval.

$SERBADK(5279.MY)$: Serba Dinamik Holdings Bhd has announced that it was unable to release its financial report for the first quarter ended on Sept 30, 2023 (1QFY2024) by Nov 30, as required under listing requirements. Though the troubled oil and gas company did not provide any clarification about why it failed to meet the deadline, in a filing with Bursa Malaysia on Thursday, it informed that it plans to submit the quarterly report by Dec 7. This is the fourth consecutive quarter that Serba Dinamik has delayed issuing its financial reports within the stipulated time frame.