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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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Elders Reports FY2024 Revenue, Earnings Decline; Launches $246M Equity Raising for Delta Agribusiness Acquisition

Key Takeaway: Elders Ltd faces profit and revenue declines for FY2024 but aims to bolster its business through the acquisition of Delta Agribusiness.

Financial Highlights

  • Earnings Per Share (EPS):
    • Declined to AU$0.286, down from AU$0.644 in FY2023.
    • Below analyst expectations of AU$0.391 (Visible Alpha).
  • Net Profit:
    • Dropped 55% to AU$45.1 million from AU$100.8 million.
  • Revenue:
    • Fell 6% YoY to AU$3.13 billion, but beat analyst estimates of AU$3.01 billion.
  • Dividend:
    • Declared AU$0.18 per share, down from AU$0.23 last year. Payable Jan. 24, 2025 to shareholders on record as of Dec. 18.

Delta Agribusiness Acquisition

  • Deal Value: AU$475 million.
  • Consideration:
    • Includes AU$190 million in new Elders shares issued at AU$8.52 per share to Delta shareholders.
  • Delta's Stake in Elders:
    • Post-acquisition, Delta shareholders will own 10.5% of Elders.

Funding Plan

  1. Equity Raising:
    • AU$246 million through a fully underwritten 1-for-5.1 entitlement offer.
    • New shares priced at AU$7.85, a 9.2% discount to the Nov. 15 closing price.
  2. Loan Facility:
    • AU$110 million new revolving loan facility.

Outlook

  • Elders expressed optimism for the 2024 summer crop, citing:
    • Favorable moisture profiles in dry land areas.
    • Average seasonal conditions in irrigated regions.

The Delta Agribusiness acquisition aims to strengthen Elders’ market position and expand its agribusiness operations, despite the current financial challenges. Investors will closely monitor the integration of Delta and Elders’ ability to leverage the acquisition for future growth.

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