MY Morning Wrap | MyEG Services and HeiTech Padu Partner for IT Projects in Malaysia

Indexes traded unevenly on Tuesday. Treasuries rose after Powell said rates would have to stay in place longer, leading to a drop in stocks.The $S&P 500 Index(.SPX.US)$ traded -0.21% at the time of writing. The $Dow Jones Industrial Average(.DJI.US)$ climbed about 0.17%, and the $Nasdaq Composite Index(.IXIC.US)$ fell about 0.12%.

$MYEG(0138.MY)$ & $HTPADU(5028.MY)$: MyEG Services and HeiTech Padu have entered a partnership to collaborate on information technology (IT) projects in Malaysia. The e-government services providers have signed a teaming agreement aimed at outlining their roles and responsibilities, focusing on marketing activities, sharing know-hows, and system integration for identified projects to potential customers.

$APEX(5088.MY)$: Pharmaceutical company Apex Healthcare has pledged to allocate 5% of its total manufacturing revenue towards research and development (R&D) of new products. In 2023, the company invested RM8.5 million in R&D, marking an 18% increase from the previous year, representing 3.2% of its manufacturing revenue. The group aims to capitalise on patent cliffs by swiftly introducing generic options for expiring or off-patent molecules, aiming for revenue growth in the generic drugs market.

$KOSSAN(7153.MY)$: Kossan Rubber Industries has proposed a final dividend of two sen per share for the financial year ended Dec 31, 2023. This dividend will be paid on July 18, with June 20 as the ex-date and June 21 as the entitlement date, pending approval by shareholders at the upcoming annual general meeting. If approved, this would increase the dividend payout for FY2023 to four sen per share, compared to 2.5 sen per share for FY2022.

$TOMEI(7230.MY)$: Tomei Consolidated has declared a first and final dividend of four sen per share for the financial year ended Dec 31, 2023, totalling RM5.54 million. This dividend will be paid on June 6. The group anticipates achieving a "reasonable level of profitability" in FY2024, despite facing an uncertain business outlook due to global conflicts. The group said it will closely monitor risks such as fluctuations in gold prices and the US dollar, to safeguard its performance from any adverse effects.

$GDEX(0078.MY)$: GDEX is diversifying into the IT services sector to augment its revenue streams. The group has acquired equity stakes in three IT companies in 2022, gaining access to e-commerce, website development, business software solutions, and cybersecurity consulting. While the IT segment contributed RM33.4 million in revenue for FY2023, it reported a net loss of RM1 million due to heightened staff costs. Despite this, GDEX anticipates substantial growth in the segment, aiming for it to contribute over 25% of its net profit in the future. The company plans to pursue additional ventures, such as investments, acquisitions, and collaborations with potential IT firms, to solidify its foothold in the IT services and solutions sector.

$SERBADK(5279.MY)$: Serba Dinamik Holdings has been granted an extension until May 15 by Bursa Malaysia to submit its regularisation plan, marking the second extension after missing the initial deadline on July 5, 2023. The PN17 company did not disclose reasons for its inability to meet the earlier deadline. Originally, the plan was due in January 2023, but was granted a six-month extension. Bursa stated that failure to submit the plan by May 15 would result in the delisting of Serba Dinamik from the stock market. Additionally, delisting may occur if approval for the plan's implementation is not obtained, if further appeals fail, or if the plan is not implemented within the specified timeframe.

$COMFORT(2127.MY)$: Two subsidiaries of Comfort Gloves, CRGI, and GQ, have commenced legal action against the Inland Revenue Board (IRB) over an additional tax demand of RM99.3 million. This demand stems from the IRB's adjustment of the tax basis period following Comfort Gloves' change in its financial year end to Dec 31, 2021, despite prior approvals. GQ obtained an interim stay from the court pending disposal of the judicial review leave application, while CRGI was granted leave by the court to challenge the decision and penalties.