MY Morning Wrap | PETRONAS' 3-Year Outlook Report Boosts Domestic Energy Stocks

The $Dow Jones Industrial Average(.DJI.US)$ was up around 320 points, or 0.9%, to finish near 37,403. The $S&P 500 Index(.SPX.US)$ was 48 points higher, or 1%, to end around 4,746. The $Nasdaq Composite Index(.IXIC.US)$ advanced 185 points, or 1.3%, ending near 14,963.

$AEONCR(5139.MY)$: AEON Credit Service (M) Bhd experienced a 2.3% increase in net profit year-on-year for the third quarter that ended on November 30, 2023 (3QFY2024), despite a 16.4% growth in revenue. However, higher impairment losses and an uptick in interest expenses were to blame for this outcome. Revenue went up to RM486.51 million from RM417.84 million due to stronger loan and financing growth, while net profit rose to RM85.55 million from RM83.63 million. Over the cumulative nine-month period (9MFY2024), the group's net profit declined by 5.4% to RM305.1 million, compared to RM322.35 million in the previous corresponding period, despite a 16.8% rise in revenue to RM1.41 billion from RM1.21 billion.

$DRBHCOM(1619.MY)$: DRB-Hicom units, Avis Malaysia, Automotive Corp Malaysia Sdn Bhd (ACM Isuzu), and DRB-Hicom Auto Solutions Sdn Bhd (DHAS), have formed a strategic collaboration aimed at delivering innovative solutions in the automotive industry. Avis Malaysia indicated in a statement that the three companies will leverage synergies to bolster DHAS' fleet capabilities by providing five state-of-the-art Isuzu trucks, thereby enhancing transportation efficiency.

$MYNEWS(5275.MY)$: In the fourth quarter ended October 31, 2023 (4QFY2023), MyNews Holdings Bhd reversed its situation and generated a net profit of RM947,000, compared to a net loss of RM82,000 in the previous year. This positive outcome was driven by a 3.08% increase in quarterly revenue to RM186.16 million from RM180.6 million due to higher in-store sales and an increase in the number of outlets. For the entire year, MyNews reduced its net loss from RM19.62 million in FY2022 to RM10.7 million, with revenue rising 15.67% to RM730.24 million from RM631.33 million. The group presently operates 460 myNEWS stores (including 26 Supervalue outlets), 131 CU outlets, and 19 WHSmith stores.

$RSAWIT(5113.MY)$: Rimbunan Sawit Bhd, a plantation group based in Sarawak, has suggested selling 9,935 hectares of oil palm land in Miri for RM165 million to Mahawangsa Sungai Bok Plantation Sdn Bhd. The plantation group aims to allocate RM86.11 million of the proceeds to ease its gearing level from 0.99 times to 0.61 times by repaying borrowings. Meanwhile, it plans to use RM19.1 million to replant and RM59.12 million for working capital.

$PTRB(0260.MY)$: PT Resources Holdings Bhd doubled its net profit to RM18.7 million for the second quarter ended October 31 (2QFY2024), compared to RM8.34 million a year earlier, despite lower revenue. This was due to the group securing supplies at competitive rates by purchasing in bulk. Quarterly revenue declined by 10.9% to RM111.7 million from RM125.4 million a year ago, primarily due to a drop in overseas sales. For 1HFY2024, net profit increased by 47.5% to RM23.39 million from RM15.86 million the previous year, while revenue slightly rose 1.1% to RM243.3 million from RM240.65 million as the increase in overseas sales led by China offset a decline in Malaysia.

$FPGROUP(5277.MY)$: Foundpac Group Bhd has proposed the acquisition of a leasehold industrial land in Bayan Lepas, Penang from Bluemetal Sdn Bhd for RM41.88 million. The precision engineering parts manufacturer, which presently operates in six factories spanning Penang and Kedah, intends to purchase this land to unify its production operations in Penang into one facility to improve efficiency and achieve potential cost savings.

$MCEHLDG(7004.MY)$: MCE Holdings Bhd, whose stock price has surged by 42% this month, reported a 39.4% increase in net profit to a historical high of RM4.88 million for the first quarter ended October 31, 2023 (1QFY2024) in comparison to RM3.49 million a year ago. The company experienced an 8.48% rise in revenue to RM41.27 million from RM38.56 million, primarily due to greater sales in the automotive parts sector, as local car manufacturers continued to display sustained demand for MCE's products.

$EPICON(4847.MY)$: Epicon Bhd, a stage and express bus service operator formerly known as Konsortium Transnasional Bhd, is forming a consortium with a unit of Permodalan Negeri Selangor Bhd (PNSB) to develop an affordable housing project in Rawang, Selangor. The project, named Rumah Idaman MBI, will comprise 2,251 housing units, according to Epicon. The company has also expressed its intent to explore future opportunities for collaborations of this sort.

$JETSON(9083.MY)$: Kumpulan Jetson Bhd has rejected a request from 10 shareholders to hold an extraordinary general meeting (EGM) aimed at removing five company directors. The group held only a 9.45% stake, which is less than the 10% required to call for the EGM, according to the company.

$SMISCOR(7132.MY)$: SMIS Corp Bhd, a supplier of automotive interior furnishing and components, has agreed to sell a 35% stake in its Indonesian subsidiary PT Grand Surya Techno Tbk (PTGST) to Japan-based Sugihara Co Ltd for US$1.37 million (RM6.4 million). This will decrease SMIS's stake in PTGST to 60%. SMIS stated that Sugihara plans to maintain its partnership with SMIS and have strategic involvement in the operations of PTGST in Indonesia through the proposed transaction.