KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Shares of Magni-Tech Industries Bhd (KL) reached a new all-time high on Wednesday, surging as much as 22 sen, or nearly 10%, to RM2.52 after the company reported record quarterly profits. At 9:10 am, the stock was trading at RM2.46, giving the company a market capitalization of over RM1 billion, with trading volume nearly tripling the 200-day moving average to 888,600 shares.
Key Highlights:
Record Quarterly Profits and Positive Outlook: Magni-Tech reported a core net profit of RM44.5 million for the first quarter ended July 31, 2024 (1QFY2025), exceeding expectations. PublicInvest Research remains optimistic about the company’s growth prospects, driven by rising consumer awareness of health and wellness, which is expected to boost apparel sales. The research house has maintained its ‘outperform’ call on the stock, with a target price of RM3.02.
Stock Performance and Market Position: Magni-Tech’s shares have gained approximately 35% this year, supported by robust earnings growth despite broader sector challenges from soft consumer sentiment and concerns over the rising cost of living. The company primarily manufactures and exports garments, supplying major global brands like Nike and Lacoste, and is also involved in plastic and corrugated packaging products.
Growth Drivers and Future Projections: PublicInvest Research projects that Magni-Tech will achieve a core net profit of RM142.6 million on revenue of RM1.45 billion for FY2025. The growth outlook is bolstered by increased consumer interest in health and wellness, and a shift toward casual and athleisure wear in workplaces and social settings. The company is expected to offer a steady dividend yield of 7.2% for FY2025, supported by these positive market trends.
Magni-Tech's strong performance reflects its ability to capitalize on changing consumer preferences and maintain growth momentum, positioning it well for future success amid evolving market dynamics.
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