MY Morning Wrap | Higher Orders and Improved Cost Control Help Top Glove Narrow Its 1Q Net Loss to RM57.71 Million
Good morning mooers! Here are things you need to know about today's market:
●Dow snaps five-day string of record closes
●Malaysian economy to grow 4.5% to 5.5% in 2024
●Construction sector to see more government contract flows in 2024
●Stocks to watch: Top Glove, VS Industry
-moomoo News MY
Wall Street Summary
U.S. stocks ended sharply lower after a strong year-end rally lost momentum on Wednesday, putting an end to a string of record finishes for the Dow Jones Industrial Average and a pause on the S&P 500's push toward an all-time closing high.
$Dow Jones Industrial Average(.DJI.US$ ended down by more than 470 points, or 1.3%, at around 37,082, based on preliminary figures. $S&P 500 Index(.SPX.US$ closed lower by 1.5% at around 4,698. $Nasdaq Composite Index(.IXIC.US$ finished down by 1.5% at around 14,778.
Breaking News
Malaysian economy to grow 4.5% to 5.5% in 2024
Malaysia's economic momentum is expected to steadily improve heading into next year, with gross domestic product (GDP) set to grow by 4.5%-5.5% in 2024 from an estimated 4% this year, according to RAM Rating Services Bhd (RAM Ratings). The economy is expected to benefit from a potential turnaround in external demand, the credit rating agency said in a statement in conjunction with its Economic Outlook 2024 report released yesterday. "Resilient domestic demand, supported by benign inflation and interest rates, would also propel growth momentum," it said.
Construction sector to see more government contract flows in 2024
Hong Leong Investment Bank (HLIB) Research is bullish on the construction sector in 2024 in anticipation of public project contract flows that could boost contract awards beyond current contract levels. Based on Budget 2024, the government intends to roll out several big ticket projects like Pan Borneo Sabah Phase 1B (RM15.7bil), flood mitigation packages worth RM11.8bil, Penang LRT (RM10bil), Sabah-Sarawak Link Road (RM7.4bil) and LRT3 reinstatement (RM4.7bil). HLIB noted that these projects form part of the 2024 budgeted development expenditure of RM90bil, a 7.9% increase year-on-year after stripping out the 1MDB bond. In a recent update, the research firm upgraded the construction sector to "overweight", with Gamuda Bhd and Sunway Construction Bhd as its top picks.
Stocks to Watch
$TOPGLOV(7113.MY$: Top Glove Corp Bhd reported a narrower net loss of RM57.71 million for the first quarter ended on November 30, 2023 (1QFY2024) compared to a net loss of RM157.62 million in the same period last year (1QFY2023), due to improved operational efficiencies, enhanced quality, and cost optimization measures. The world's largest glove maker recorded revenue of RM493.56 million in the quarter, down from RM632.53 million. However, the company's net loss in 1QFY2024 improved by RM47 million compared to the previous quarter, indicating a 90% reduction from the 4QFY2023 net loss, which included a one-off impairment of RM392 million. No dividend was declared by Top Glove during this period.
$VS(6963.MY$: VS Industry Bhd reported a 19.31% decline in net profit to RM48.98 million for the first quarter ended on October 31, 2023 (1QFY2024) compared to RM60.71 million in the same period last year, mainly due to decreased orders from significant customers in Malaysia, China, and Indonesia. This had an adverse effect on the overall utilization rate of production capacity for the electronics manufacturing services (EMS) provider, as indicated by a 10.91% drop in revenue for the quarter to RM1.15 billion from RM1.29 billion. Despite lower quarterly earnings, VS Industry declared a first interim dividend of 0.3 sen per share, payable on March 8, 2024.
$TECGUAN(7439.MY$: Teck Guan Perdana Berhad recorded an 84% decline in net profit for the third quarter ended on October 31, 2023 (3QFY2024) to RM3.64 million from RM22.54 million in the same period last year, mainly due to a decrease in operating margin. The group's quarterly revenue also dropped by 33%, reaching RM91.25 million compared to RM136.24 million in the corresponding quarter of the previous year, primarily attributed to a decrease in selling prices. Additionally, no dividend was declared for the quarter under review.
$LKL(0182.MY$: LKL International Bhd has announced that its wholly-owned subsidiary, LKL Advance Metaltech Sdn Bhd (LKLAM), has entered into a sale and purchase agreement with 8 Food Avenue Sdn Bhd (Avenue) to sell a piece of freehold land in Seri Kembangan, Selangor for RM6.9 million. The medical and healthcare bed manufacturer stated that the net proceeds from the proposed disposal, after deducting all fees and expenses related to the transaction, will be used to finance working capital and/or investments. The funds will be utilized within 12 months from the completion of the sale.
$MLAB(0085.MY$: Mlabs Systems Bhd has signed a master sales agreement with LG Electronics (M) Sdn Bhd to distribute LG's products in Malaysia. The new agreement replaces the previous memorandum of understanding (MOU) and outlines the responsibilities and obligations of both parties in the distribution of LG products in the country. Mlabs Systems Bhd provides video conferencing and mobile application solutions. Despite an increase in revenue from RM4.51 million to RM5.28 million, the company reported a higher net loss of RM3.52 million for the first quarter ended on September 30, 2023 compared to RM2.41 million in the corresponding quarter of the previous year. This was primarily due to higher asset depreciation and a fair value loss on quoted shares.
$JTGROUP(0292.MY$: Jati Tinggi Group Bhd, an infrastructure utilities engineering services provider, made its debut on the Bursa Malaysia ACE market on Wednesday at a price of 30.5 sen per share. This is a 12.96% or 3.5 sen premium to its issue price of 27 sen. Jati Tinggi Group is primarily involved in providing underground and overhead utility engineering services and solutions, engineering, procurement, construction, and commissioning of electricity substations (EPCC), as well as trading substation equipment and street lighting.
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The EDGE
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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