MY Morning Wrap | Nestle 3Q Net Profit at RM133.7mil, Declares 70 Sen Dividend
Good morning mooers! Here are things you need to know about today's market:
●The US stocks extended losses Thursday
●Malaysia's PPI up 0.2% in September
●MIDF retains Malaysia's 2023 GDP growth forecast at 4.2%
●Govt will not abolish palm oil industry's windfall profit levy - MoF
●Stocks to watch: Nestle, Vitrox, Unisem
-moomoo News MY
Wall Street Summary
US stocks extended losses Thursday, with tech stocks leading the Nasdaq into correction territory after "Magnificent Seven' earnings disappointed. GDP growth numbers for the third quarter came in exceptionally hot at nearly 5%, after dropping to 2% over the summer. Oil fluctuated as the market grappled with an unclear Israel-Hamas conflict.
The $Dow Jones Industrial Average(.DJI.US$, $S&P 500 Index(.SPX.US$, and $Nasdaq Composite Index(.IXIC.US$ all fell, the $Nasdaq Composite Index(.IXIC.US$ dropping over 2% intraday.
Breaking News
Malaysia's PPI up 0.2% in September
Malaysia’s producer price index (PPI) rose 0.2% in September compared with the negative 2.2% in August, according to the Statistics Department. This is the first increase after seven consecutive months of decline since February 2023, due to the base effect and higher prices of primary commodities. Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said yesterday the marginal increase was contributed by all sectors except the manufacturing sector.
MIDF retains Malaysia's 2023 GDP growth forecast at 4.2%
MIDF Research has reiterated its forecast that Malaysia’s gross domestic product (GDP) will grow 4.2% in 2023 before picking up to 4.7% next year following the narrower contraction in the leading index (LI) recorded in August 2023. Data released by the Statistics Department yesterday showed the contraction of the LI – a tool utilised for predicting economic trends four to six months ahead – which narrowed by 0.5% to 109.7 points in August from a decline of 1% (108.9 points) in July.
Govt will not abolish palm oil industry's windfall profit levy - MoF
The government does not intend to abolish the windfall profit levy (WPL) on the palm oil industry at the moment, said the Ministry of Finance (MoF). However, the ministry said the government is always open to studying the method of imposing this levy, including the levy rate and profit threshold level to take into account the industry's survival and the cost of palm oil production from time to time. MoF said the WPL on the palm oil industry had been implemented since 1999 using the same calculation formula as it is today, except for the levy rate and threshold value which have been amended several times.
Stocks to Watch
$NESTLE(4707.MY$: Nestle (M) Bhd net profit in the third quarter ended Sept 30, 2023 rose 18.7% to RM133.7 million from RM112.65 million on the back of a 5.3% increase in revenue to RM1.77 billion from RM1.68 billion. The food and drink processing group said the earnings were supported by sales growth and continuous focus on internal efficiencies and saving initiatives to offset the impact of volatile commodity prices and unfavourable exchange rates.Nestle declared an interim dividend of 70 sen per share to be paid on Dec 14, 2023.
$VITROX(0097.MY$: Vitrox Bhd's net profit for the third quarter ended Sept 30, 2023 (3QFY2023) dropped by 34.6% to RM33.25 million compared with RM50.84 million in the corresponding quarter the year before (3QFY2022) due to softer customer demand and unfavourable product mix. Quarterly revenue declined by 19.2% to RM149.97 million from RM185.58 million in 3QFY2022, underpinned by softer demand from Automated Board Inspection.
$UNISEM(5005.MY$: Unisem (M) Bhd's net profit in the third quarter ended Sept 30, 2023 slumped 70% to RM18.01 million from RM61.73 million a year earlier, on the back of lower revenue of RM356.19 million versus RM439.69 million. The semiconductor assembly and test services provider said the decrease in revenue and net profit was primarily attributable to lower sales volume in line with softer market demand. Unisem declared a third interim dividend of two sen per share to be paid on Nov 24.
$LCTITAN(5284.MY$: Lotte Chemical Titan Holding Bhd (LCT) narrowed its net loss to RM55.58 million or 2.44 sen per share for the third quarter ended Sept 30, 2023 (3QFY2023) due to reversal of inventory write-down as well as improved margin spreads resulting from lower feedstock costs. In comparison, LCT posted a huge net loss of RM355.5 million or 15.61 sen per share in 3QFY2022. It has been loss making for six straight quarters. Quarterly revenue fell 17.42% to RM1.96 billion in 3QFY2023 from RM2.37 billion a year earlier amid lower average product selling price.
$DRBHCOM(1619.MY$: DRB-Hicom Bhd's wholly-owned subsidiary, Edaran Otomobil Nasional Bhd (EON), has made an investment in Genie Malaysia, a subsidiary of Carro, Southeast Asia’s largest online used-car platform. The investment is aligned to the group’s move to enhance its automotive distribution ecosystem.
$SWKPLNT(5135.MY$: Oil palm player Sarawak Plantation Bhd has secured a RM40 million Islamic facility to partly finance the development costs of its oil palm plantations throughout Sarawak. More specifically, the facility will be used to partly finance the development cost of oil palm plantations and replanting cost on lands located in Sarikei, Mukah, Sibu, Niah and Miri, upgrading the Niah Palm Oil Mill and Mukah Palm Oil Mill, as well as for the construction of estate building(s) and infrastructure in the oil palm plantations.
$CITAGLB(7245.MY$: Citaglobal Bhd has acquired a 30% stake in submarine cable systems company iFACTORS Sdn Bhd for RM25.2 million. The stake acquisition comes with a two-year profit guarantee of RM21 million and to date, iFACTORS has an order book of RM528 million. Meanwhile, the group also highlighted that it has an option to purchase another 21% stake in iFACTORS once the profit guarantee of RM21 million has been met.
$LUXCHEM(5143.MY$: Luxchem Corp Bhd's net profit for the third quarter ended Sept 30, 2023 (3QFY2023) rose 3.3% to RM9.07 million from RM8.78 million a year ago, due to the manufacturing segment. However, the plastic materials and resin manufacturer's revenue slipped 2.8% to RM165.78 million from RM170.55 million, attributable to the trading segment, said the group in a filing with Bursa Malaysia on Thursday. No dividends were declared for the current quarter under review.
$FITTERS(9318.MY$: Fire protection equipment supplier Fitters Diversified Bhd is disposing of an 8.05-hectare piece of freehold land in Cameron Highlands for RM15 million, with an estimated gain on disposal of RM12.35 million. The disposal of the land to Cameron Highlands Floriculture Sdn Bhd is part of Fitters’ ongoing initiative to rationalise its assets and focus its resources on more promising areas of its operations.
$PAVREIT(5212.MY$: Pavilion Real Estate Investment Trust's (Pavilion REIT) net property income (NPI) for the third quarter ended Sept 30, 2023 (3QFY2023) rose 34.5% to RM121.35 million from RM90.22 million a year earlier, following the inclusion of income from newly-acquired Pavilion Bukit Jalil. Quarterly revenue gained 43.4% to RM199.21 million from RM138.94 million, mainly due to income from Pavilion Bukit Jalil. Distributable income for 3QFY2023 stood at RM78.31 million, up 23.4% from RM63.46 million a year ago while distribution per unit (DPU) grew to 2.15 sen from 2.08 sen.
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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