MY Morning Wrap | RHB Research Unveils Top 20 Malaysian Small-cap 'Jewels' for 2024
Good morning mooers! Here are things you need to know about today's market:
●Nasdaq Index Reaches Record High Amid Meme Stock Volatility
●LME Aluminum Stocks Highest Since 2021 Due to Inflows from Malaysia
●RHB Research unveils top 20 Malaysian small-cap 'jewels' for 2024
●Malaysia's Property Market on the Road to Recovery
●Stocks to watch: Uzma, Heineken
-moomoo News MY
Wall Street Summary
Nasdaq Index Reaches Record High Amid Meme Stock Volatility
The $Nasdaq Composite Index(.IXIC.US$ Index reached a record closing high on Tuesday, rising about 0.75% to 16,511.18 due to a second day of meme stock volatility. The $S&P 500 Index(.SPX.US$ traded up 0.48%, while the $Dow Jones Industrial Average(.DJI.US$ fell about 0.32%. Overall, 8,700 equities climbed compared to 4,300 in the decline on Tuesday. The S&P 500 is within 1% of its own record high.
Breaking News
LME Aluminum Stocks Highest Since 2021 Due to Inflows from Malaysia
London Metal Exchange aluminum stocks rose to the highest level since November 2021 following a second big delivery into warehouses in Malaysia's Port Klang in a matter of days. The influx of aluminum into the LME in the past week is raising concerns about a new round of trading games and a potential queue if the metal is canceled and buyers look to withdraw it from the exchange. Exchange inventories rose by 131,075 tons, or 15%, to 1.03 million tons, according to data reported by the bourse on Tuesday. Meanwhile, copper prices ticked up but pared some gains after earlier trading at a two-year high of $10,255.50 per ton.
RHB Research unveils top 20 Malaysian small-cap 'jewels' for 2024
RHB Research has released its top 20 Malaysian small-cap 'jewels' for 2024, covering nine sectors, with 16 of the stocks listed on the main market. The list includes four technology companies - Oppstar, Cloudpoint Technology, QES Group, and TT Vision Holdings. Meanwhile, five stocks in the industrial products and services sector, three in consumer products and services, and construction firms Inta Bina Group, Kimlun Corp, and Muhibbah Engineering are on the list. The previous edition of the Top 20 Small-Cap Jewels for 2023 outperformed the broad market, delivering a holding period return of 46.4%.
Malaysia's Property Market on the Road to Recovery
According to Malaysia's Housing and Local Government Minister Nga Kor Ming, the country's property market is set to continue its recovery this year on the back of an improved economic outlook. Nga also noted that the rising number of expatriates entering the country will be a boost for the property market outlook. The property market had recorded more than 399,000 transactions last year with close to RM200bn in terms of value, which signifies a year-on-year increase of 2.5% and 9.9% growth respectively. Nga added that the next three years could see a further recovery and growth in the sector, following the rebound in property stocks on Bursa Malaysia.
Stocks to Watch
$UZMA(7250.MY$: Uzma has secured a three-year contract from ExxonMobil Exploration Production Malaysia for non-rig assisted electric wireline logging equipment and services in West Malaysian waters. The contract will be effective from May 3, 2024, to May 2, 2027, and was awarded to Uzma Engineering, a wholly-owned subsidiary of Uzma. The value of the contract was not disclosed, but Uzma stated that it is a call-off contract based on the agreed rates and work orders issued by ExxonMobil.
$HEIM(3255.MY$: Heineken Malaysia has reported an 11.42% increase in net profit for the first quarter ended March 31, 2024, driven by higher beer sales during the Chinese New Year and cost management. The company's net profit rose to RM122.48 million from RM109.93 million a year earlier. Revenue for the quarter increased by 6.61% to RM789.17 million from RM740.22 million in the same period last year. The company did not declare any dividends for the quarter.
$TALIWRK(8524.MY$: Taliworks has reported a 49.4% year-on-year increase in net profit for the first quarter, driven by an increase in the bulk water supply rate for its water treatment and supply division, a higher share of results from jointly controlled entity Grand Sepadu (NK) Sdn Bhd due to toll compensation by the government, cost optimization, higher traffic in the toll highway segment, higher sundry income, and lower finance costs. Net profit for the January-March period was RM15.03 million, compared to RM10.06 million in the same period last year, while revenue remained relatively flat at RM93.33 million, compared to RM93.53 million previously.
$TEOSENG(7252.MY$: Teo Seng Capital reported a 42.11% increase in net profit for the first quarter, rising to RM34 million from RM19.68 million a year ago. The increase was attributed to higher egg sales, improved raw material costs, and government subsidies that eased operational expenses. Revenue for the quarter rose 3.6% to RM190.1 million from RM183.4 million in the same period last year, mainly driven by improved revenue from the poultry farming segment. Teo Seng declared a first interim dividend of 2.5 sen per share, up half a sen from the same quarter last year, payable on June 3.
$AEMULUS(0181.MY$: Automated test equipment company Aemulus Holdings reported its sixth consecutive quarterly loss, although net losses narrowed in the second quarter from the previous year due to higher revenue and lower expenses. The company reported a net loss of RM2.04 million, or 0.31 sen per share, for the three months ended March 31, 2024, compared to a net loss of RM6.61 million, or 0.70 sen per share, in the same period a year earlier. Revenue rose 76% year-on-year to RM9.32 million from RM5.29 million due to increased demand.
$DELEUM(5132.MY$: Deleum's 60%-owned unit, Deleum Technology Solutions (formerly known as Deleum Primera), has entered into a settlement agreement with six of the 10 defendants in its RM19.88 million civil lawsuit. The lawsuit was filed against its own executives, Petronas Carigali executives, and sub-contractors over an alleged illegal scheme. As part of the agreement, DTS will discontinue the suit against the six defendants, pay a sum of RM834,225 to one of the defendants for outstanding invoices, and receive RM100,000 from another defendant who admits liability.
$JETSON(9083.MY$: The High Court has ruled that the requisition notice from 10 shareholders of Kumpulan Jetson seeking an extraordinary general meeting to remove the directors of the construction group is invalid. The group turned down the request on the grounds that the 10 shareholders did not collectively hold at least 10% of the group's shares on the day of the request, prompting legal action from Kumpulan Jetson last December. Judge Wan Muhammad Amin Wan Yahya ruled that any further action taken regarding the requisition notice is null and void.
$AGES(7145.MY$: Malaysia's engineering construction firm, Ageson, announced that consultant Virdos Lima Consultancy did not find any "material adverse findings from its independent assessment" after the company's external auditor Messrs Jamal, Amin & Partners raised concerns about certain audit issues in its financial statements for the 18-month financial period ended Dec 31, 2022. Ageson's external auditor raised concerns about its receivables as well as its subsidiaries' revenues and asset valuation.
$FBBHD(03026.MY$: Malaysia-based soil erosion control products manufacturer, Fibromat, has proposed to transfer its listing from the LEAP Market of Bursa Malaysia to the ACE Market, as it aims to raise more funds from the equity capital market. As part of the transfer, Fibromat plans to issue new shares to the public and a wider pool of selected investors to comply with the public shareholding spread requirement and raise new capital.
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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Snow Ling : why drop drastically
LEETAK Snow Ling: Interest payments will fall