KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Shares of SFP Tech Holdings Bhd (KL) soared on Monday to their highest level in nearly a month, as analysts forecast a record year for the engineering support services company following its robust second-quarter results.
Key Highlights:
Share Price Surge: SFP Tech’s stock climbed by as much as nine sen, or 14%, to 75.5 sen, marking its highest level since July 23, 2024. The stock paused at 72.5 sen during the noon trading break, valuing the company at RM1.74 billion. Trading volume was strong, with over 10.22 million shares changing hands, nearly three times the 200-day moving average.
Analysts' Optimism: Analysts are optimistic about SFP Tech’s growth prospects, with Hong Leong Investment Bank projecting that the company is "on track to register back-to-back record high profits annually" through 2026. This growth is expected to be driven by the recent acquisition of ST Exhibit Automation Sdn Bhd, the completion of a new manufacturing plant, and new equipment to enhance earnings.
Stock Upgrade: Hong Leong Investment Bank upgraded SFP Tech’s stock to ‘buy’ from ‘neutral,’ maintaining a target price of 81 sen. The bank is forecasting a core net profit of RM41.2 million, or 1.7 sen per share, for 2024.
Year-to-Date Performance: Monday’s gains helped reduce the year-to-date decline in SFP Tech shares to 25%, following weaker-than-expected quarterly results earlier in the year.
UOB Kay Hian's Perspective: UOB Kay Hian also rates the stock a ‘buy’ with a higher target price of 98 sen. The research house believes SFP Tech is “on the brink of a new dawn,” driven by a semiconductor upcycle that is spurring front-end semiconductor demand. UOB Kay Hian is forecasting a net profit of RM45.1 million for 2024.
Company Performance: SFP Tech, which specializes in factory automation and assembly services for the semiconductor, solar, and electronics industries, reported a net profit of RM12.89 million for the three months ended June 30, 2024 (2QFY2024), up from RM10.63 million a year earlier. Revenue rose 24.56% to RM45.39 million from RM36.44 million.
First Half Results: For the first half of 2024, SFP Tech’s net profit increased by 5.97% to RM21.97 million, while revenue grew by 11.31% to RM79.09 million compared to the same period in the previous year.
Outlook: With strong financial performance in the second quarter and positive forecasts from analysts, SFP Tech appears well-positioned for continued growth, driven by strategic acquisitions, new investments in manufacturing, and favorable industry trends
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