The electronics manufacturing services (EMS) sector in Malaysia has seen mixed performance in 2024 despite being part of the broader tech upcycle, with rising costs, inflation, and supply chain disruptions offsetting growth from increased global demand and outsourcing trends. Key EMS Performances Winners : SKP Resources Bhd (+76% YTD) V.S. Industry Bhd (+47% YTD) NationGate Holdings Bhd (+51% YTD) P.I.E. Industrial Bhd (+29% YTD) Strugglers : ATA IMS Bhd (-8% YTD) JHM Consolidation Bhd (-36% YTD) Growth Drivers and Challenges Diversification Opportunities : The China+1 and Taiwan+1 strategies have positioned Malaysian EMS players to gain market share. However, reliance on major customers, such as Dyson, continues to be a concern. Cost Pressures : High inflation and production costs have affected profit margins. Company Highlights SKP Resources : Recorded a 27% y-o-y net profit increase , benefiting from a recovery in consumer demand. V.S. Indust...
Wall Street Recap
U.S. equities bounced back, recouping recent losses amid inflation relief:
- S&P 500: +1.09% to 5930.85
- Dow Jones: +1.18% to 42840.26
- Nasdaq: +1.03% to 19572.60
Key developments include:
- Berkshire Hathaway boosted its stake in Occidental Petroleum, acquiring $409.2 million worth of shares over three days.
- Trump Media & Technology (DJT.US) fell 6% after Donald Trump transferred 115 million DJT shares, valued at over $4 billion, to a revocable trust.
Bursa Market Insight
Malaysia’s FTSE Bursa Malaysia KLCI closed lower at 1591.41 (-0.54%):
- Top Gainer: PBBANK (1295.MY) up 2.19% to RM12.14
- Top Loser: PETDAG (5681.MY) down 4.23% to RM19.02
Corporate Highlights
1. Top Glove (TOPGLOV.MY)
- Swung to a net profit of RM5.47 million in 1QFY2025, reversing a loss of RM57.71 million a year ago.
- Revenue surged 79.5% to RM885.89 million, driven by glove sales projected to rise 60% in FY2025, benefiting from U.S. tariffs on Chinese gloves.
2. Kenergy (KENERGY.MY)
- FY2024 net profit surged 44.5% to RM19.22 million, with revenue up 15% to RM113.1 million.
- Strong 4QFY2024 performance included revenue growth of 23.1% q-o-q, attributed to increased industrial process plant sales.
3. Malaysia Airports Holdings Bhd (AIRPORT.MY)
- Khazanah Nasional Bhd and EPF's takeover offer of RM11 per share was deemed fair by Hong Leong Investment Bank.
- However, MAHB's non-interested directors recommended rejecting the bid as unfair and unreasonable.
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