MY Morning Wrap | LPI Capital Records Net Profit of RM97.37mil in 3Q, Up 23% YoY

The three major stock indexes opened in the green and didn't look back. The $Dow Jones Industrial Average(.DJI.US)$ edged higher 0.6%, about 200 points. The $S&P 500 Index(.SPX.US)$ climbed 0.7% while the tech-heavy $Nasdaq Composite Index(.IXIC.US)$ rose 0.9%.

The transportation sector is expected to sustain favourable prospects, going forward, underpinned by the increase in demand for the transportation of goods via air and land. MIDF Research's top picks among logistics companies are $SWIFT(5303.MY)$ and $TASCO(5140.MY)$. MIDF Research added that the expected rise in demand for goods could partially stabilise market freight rates, especially as more vessel capacity is expected to come onstream.

$FRONTKN(0128.MY)$ : Surface engineering service provider Frontken Corp Bhd's net profit fell 23% to RM26.75 million in the third quarter ended Sept 30, 2023 (3QFY2023) from RM34.73 million a year before amid higher tax payments and lower foreign exchange gains. It recorded an increase in withholding tax amounting to RM5.6 million in the current quarter as compared with RM1.9 million paid last year. The withholding tax is in relation to dividends the group received from its Taiwan subsidiary.

$LPI(8621.MY)$ : LPI Capital Bhd's net profit in the third quarter ended Sept 30, 2023 (3QFY2023) climbed 22.96% to RM97.37 million from RM79.18 million in the previous corresponding quarter, partly due to the absence of the one-off Prosperity Tax that was imposed last year. Quarterly revenue increased by 14.8% to RM498.4 million against RM434.05 million, driven by performance of its general insurance segment.

$DPHARMA(7148.MY)$ : Duopharma Biotech Bhd has secured another six-month contract extension for the new approved products list (APPL) to supply pharmaceutical and non-pharmaceutical products to government hospitals and clinics. The group’s wholly-owned Duopharma (M) Sdn Bhd received the letter of extension from Pharmaniaga Logistics Sdn Bhd (PLSB). PLSB is a wholly-owned subsidiary of Pharmaniaga Bhd, which is under Practice Note 17 (PN17) status. Duopharma first secured the APPL contract in 2017, which initially covered three years till Nov 30, 2019. It was then extended three times till June 30, 2023. The contract contributes approximately 20% of Duopharma’s annual revenue.

$GTRONIC(7022.MY)$ : Globetronics Technology Bhd said it expects a decline in profitability for the financial year ending Dec 31, 2023 (FY2023), after net profit slipped 25.43% to RM9.53 million or 1.42 sen per share for the third quarter ended Sept 30, 2023 (3QFY2023) from RM12.78 million or 1.91 sen per share a year prior. Quarterly revenue also declined by 25.23% to RM34.63 million for 3QFY2023 from RM46.32 million last year, mainly due to lower volume loadings from certain groups of customers and lower foreign exhange gain of RM400,000 recognised in the quarter under review.

$AAX(5238.MY)$ : AirAsia X Bhd (AAX) achieved a passenger load factor of 80% for the third quarter of 2023 (3Q2023), up 7% year-on-year (y-o-y) while seat capacity surged over nine times, hitting 1.01 million seats flown. The performance was attributed to a 10 times y-o-y increase in the number of passengers with over 807,000 passengers carried in 3Q2023 compared with nearly 80,500 passengers in the same period last year.

$WASCO(5142.MY)$ : Wasco Bhd's (formerly known as Wah Seong Corp Bhd) wholly-owned W S Engineering & Fabrication Pte Ltd has secured a US$33.89 million (RM161.86 million) contract for the supply of prefabricated buildings for a project in Africa. The group said it secured the 17-month contract from Schneider Electric France. The scope of work involves engineering, procurement and construction of prefabricated buildings.

$TDM(2054.MY)$ : Plantation and healthcare outfit TDM Bhd is acquiring an entire stake in Hospital Bersalin Razif Sdn Bhd for RM15 million, cash. TDM said its wholly-owned Kumpulan Medic Iman Sdn Bhd (KMI) has inked a share sale agreement with the joint-owners of the private maternity hospital — Datuk Dr Mohd Razif Abdul Aziz and Datin Dr Norana Yacob — for the proposed acquisition. KMI is principally in the business of investment holdings and provision of consultancy and management services for private healthcare facilities.

$K1(0111.MY)$ : K-One Technology Bhd has been appointed the distributor of Norwegian fish oil products in Malaysia by Norwegian Fish Oil AS. The products include Omega-3 Forte, Omega-3 Liquid, Omega-3 High Concentrated, Omega-3 Chewable, Krill & Omega-3 Oil, Salmon Oil and Cod Liver Oil. The group said its wholly-owned subsidiary K-One Wellness Sdn Bhd had entered into an agreement with Norwegian Fish Oil AS to distribute the latter's products.

$PRIVA(0123.MY)$: Privasia Technology Bhd has clinched a RM42.09 million contract to provide information and communications technology (ICT) equipment rental services in school computer labs in Perlis, Kedah and Penang. The group said its wholly-owned Privasia Sdn Bhd accepted the contract from the Ministry of Education on Tuesday. The services are expected to comply with green requirements, and will be provided on a lease-to-use basis. The contract is for 65 months, with the commencement date of Oct 26.