MONEY MASTER

Following a sharp 5% decline in the FBM KLCI due to a global stock selloff on Monday, analysts from TA Securities and Rakuten are suggesting that the current market conditions might present a buying opportunity for investors. Current Market Conditions FBM KLCI Performance: The FBM KLCI fell 5% , influenced by fears of a US recession and escalating geopolitical tensions, particularly in the Middle East. The index closed at 1,536.48 , after dropping 78.81 points to 1,532.24 during the trading session. Global Influences: Concerns about a potential full-scale war between Israel and Iran have heightened market anxiety, alongside fears of a US recession triggered by weak nonfarm payroll data. The unwinding of yen carry trades further exacerbated market volatility. Analyst Recommendations TA Securities: Market Valuation: The current CY25 Price-to-Earnings Ratio (PER) of 13.1x is considered undemanding compared to the historical average of 16x . Buying Opportunity: Analysts suggest that f...

  Datasonic Group Bhd (KL) has been awarded a RM30 million contract to supply smart cards to Perum Percetakan Negara Republik Indonesia (PNRI), a unit of the Indonesian Ministry of State-Owned Enterprises. Key Points: Contract Details: The contract was signed by Datasonic’s subsidiary, PT Datasonic Teknologi Indonesia (DTI), and will span a period of one to three years. Strategic Collaboration: Azwan Omar, president director of DTI, emphasized that this partnership positions Datasonic as a strategic partner to PNRI, benefiting both parties in Indonesia’s growing smart card industry. Economic Impact: Sharing expertise in security printing and smart cards is vital for economic recovery and growth post-Covid-19. Corporate Background: Datasonic's largest shareholder is Urusharta Jamaah Sdn Bhd, a wholly owned entity of Malaysia's Minister of Finance Inc. Market Performance: As of Friday, Datasonic shares were trading at 49 sen, down 0.5 sen or 1.01%, with a market capitalizati...

Shares of Cape EMS Bhd (KL), an electronics manufacturing services firm, fell to a new record low on Friday, prompting a suspension of intraday short-selling activities due to the sharp decline. Key Points: Stock Performance: Cape EMS shares dropped by 19 sen or 22% to 69 sen, pausing at 74 sen after the midday trading break, down 16%. This marks the biggest single-day decline in five years. Trading Volume: The trading volume reached 86.89 million shares, nearly seven times the 20-day moving average. Short-Selling Suspension: Intraday short-selling is suspended when a stock's last price drops more than 15% or five sen from the previous day's price. Short-selling of Cape EMS shares will resume on Monday. The significant decline in Cape EMS's stock price has raised concerns among investors, leading to increased scrutiny and temporary trading restrictions.

  IGB Real Estate Investment Trust (IGB REIT) reported a 6.5% increase in net property income (NPI) for the second quarter ended June 30, 2024 (2QFY2024), reaching RM109.48 million, compared to RM102.79 million in the same period last year. The increase was attributed to higher rental income. Key Financial Highlights: Revenue and Profit: Revenue: Increased by 5.95% to RM149.97 million from RM141.54 million. Net Profit: Rose 0.71% to RM81.55 million from RM80.97 million. Earnings per Unit: Improved slightly to 2.26 sen from 2.25 sen. Distributable Income and Distribution: Distributable Income: Increased to RM94.69 million from RM87.25 million. Distribution Per Unit (DPU): Declared at 2.56 sen for 2QFY2024, up from 2.37 sen in the same period last year. Year-to-date DPU stands at 5.52 sen, compared to 5.17 sen previously. The distribution is payable on Aug 30, 2024. First Half of FY2024 (1HFY2024): NPI: Increased by 5.59% to RM233.72 million from RM221.35 million. Revenue: Exp...

  IGB Commercial Real Estate Investment Trust (IGB Commercial REIT) reported a 10.8% increase in net property income (NPI) to RM34.45 million for the second quarter ended June 30, 2024 (2QFY2024), up from RM31.11 million in the same period last year, driven by higher rental income. Financial Highlights: Net Profit: The REIT saw a 2.7% increase in net profit to RM16.51 million compared to RM16.1 million a year earlier. Earnings Per Share: EPS rose to 0.70 sen for 2QFY2024 from 0.69 sen for 2QFY2023. Revenue: Quarterly revenue grew 8.2% to RM57.29 million from RM52.95 million in 2QFY2023. Distribution: IGB Commercial REIT declared a distribution of 0.97 sen per unit for 2QFY2024, payable on Aug 30. For the cumulative six months ended June 30, 2024 (1HFY2024): NPI: Improved by 8.2% to RM68.7 million from RM63.5 million a year earlier. Revenue: Came in at RM113.25 million, up 7.5% from RM105.32 million in 1HFY2023. Net Profit: Amounted to RM35.41 million, a 5.7% increase from RM...

  Apex Securities has maintained its 'hold' call on Axiata Group Bhd (KL) but lowered the target price to RM2.55 from RM2.94. The adjustment is based on a discounted cash flow valuation, incorporating a weighted average cost of capital of 7% and a long-term growth rate of 0.5%, accounting for increased macroeconomic risks and weaker investor sentiment. Key Points for Investors: Target Price Adjustment: New TP: RM2.55, down from RM2.94. Valuation Basis: Discounted cash flow with a 7% WACC and 0.5% long-term growth rate. Impact of Bangladesh Unrest: Minimal Impact on Edotco: Apex Securities anticipates minimal impact on Edotco, Axiata's 63%-owned tower asset company. Impact on Robi: The nationwide curfew and shutdown of mobile and broadband internet services in Bangladesh are expected to impact Robi, which relies heavily on the prepaid mobile sector. Robi contributes 18% of Axiata's EBITDA. Macroeconomic and Geopolitical Risks: Risks: Axiata faces geopolitical, macro...

  CGS International has maintained its “add” rating on British American Tobacco (Malaysia) Bhd (KL) at RM8.37, with an unchanged Gordon Growth Model (GGM)-based target price of RM9.77. The research house highlighted that BAT's valuations are undemanding, with a projected price-to-earnings ratio (P/E) of 10.6x for FY2026F, supported by yields of 8%-9% from FY2024F to FY2026F. Key Points for Investors: Valuation Metrics: Current P/E Ratio: 10.6x for FY2026F. Dividend Yields: 8%-9% forecasted for FY2024F-FY2026F. Target Price: RM9.77 based on the Gordon Growth Model. Financial Performance: 2QFY2024 Core Net Profit: RM36.2 million. 1HFY2024 Core Net Profit: Below expectations, at 35% of CGS/Bloomberg consensus estimates. Economic and Market Drivers: Economic Activity: Improved economic activity is expected to support BAT’s earnings. Consumer Sentiment and Spending: Driven by flexible EPF Account 3 withdrawals, monthly cash handouts to lower-income households, and a projected 13%...

  On Wednesday, the FBM KLCI experienced a decline, closing 0.52% lower at 1,621.14. Below is a summary of the performance of key Bursa Malaysia indices and the ringgit: Key Highlights FBM KLCI Performance : The benchmark index fell by 0.52%, closing at 1,621.14 points. Other Bursa Malaysia Indices : Detailed performance of other indices was not provided in the summary. However, it is indicative of a broader market trend given the decline in the FBM KLCI. Ringgit Performance : Specific details on the ringgit's performance against other currencies were not included in the summary. The overall market performance may influence the currency's valuation. Market Context The decline in the FBM KLCI aligns with the broader regional market sentiment, reflecting global economic uncertainties and investor reactions to corporate earnings reports and macroeconomic data.

Analysts have expressed differing views on the impact of IOI Properties Group Bhd’s (KL) acquisition of Tropicana Gardens Mall on the group's gearing level. Both MIDF Research and Hong Leong Investment Bank (HLIB) maintained their earnings forecasts for the developer but offered contrasting perspectives on the acquisition’s implications. MIDF Research's Perspective Rating and Target Price : MIDF Research maintained a “neutral” rating on IOI Properties at RM2.17 but lowered its target price (TP) to RM2.25 from RM2.40. Higher Net Gearing : The research house highlighted that the series of asset acquisitions, including Tropicana Gardens Mall, is expected to increase IOI Properties' net gearing. It projected net gearing to rise to 0.78x from 0.74x as of 3QFY2024. RNAV Discount : MIDF revised its RNAV (realisable net asset value) discount to 56% from 53% due to the higher net gearing. The research house remains neutral on the acquisitions, citing limited near-term catalysts for ...

  IOI Properties Acquires Tropicana Gardens Mall IOI Properties Group Bhd (KL ): Acquired Tropicana Gardens Mall in Petaling Jaya from Tropicana Corp Bhd (KL ) for RM680 million in cash. Impact: This acquisition is expected to provide strong recurring income by leveraging IOI’s successful mall model. Tropicana’s divestment will help reduce debt and improve cash flow. YTL Cement Expands IBS Business YTL Cement Bhd: Plans to buy an 81.34% stake in Singapore-listed NSL Ltd for RM792.32 million in cash. Impact: This acquisition will expand YTL Cement’s industrialized building systems (IBS) business, adding significant value to its portfolio. Axis REIT Reports Higher Income Axis Real Estate Investment Trust (KL ): Reported a 12.86% increase in net property income (NPI) to RM65.95 million for Q2 2024. Dividend: Declared a second interim income distribution of 2.25 sen per unit, payable on Aug 30. GHL Systems Trading Suspension GHL Systems Bhd (KL ): Trading of shares will be suspe...

The FTSE Bursa Malaysia KLCI (FBM KLCI) experienced a positive trading session on Tuesday, closing up by 0.47% at 1629.68 points. Here is a summary of how key Bursa Malaysia indices and the Malaysian ringgit performed: Key Index Performances: FBM KLCI: Rose by 0.47% to close at 1629.68 points, indicating a positive market sentiment and investor confidence. FBM Mid 70 Index: Performance details were not provided, but it typically includes mid-cap stocks that may have seen varied performance. FBM Small Cap Index: Performance details were not provided, but this index includes smaller capitalization stocks, which may have experienced different levels of volatility. Sectoral Performances: Financial Services: This sector often includes major banks and financial institutions, which can have a significant impact on the overall index performance. Consumer Products & Services: Includes companies providing consumer goods and services, which might have shown resilience or growth. Industri...

The FTSE Bursa Malaysia KLCI (FBM KLCI) experienced a notable decline on Monday, dropping by 0.88% to close at 1,622.07. Here’s a summary of how key Bursa Malaysia indices and the ringgit performed: Key Performance Highlights FBM KLCI : The benchmark index fell by 0.88%, reflecting investor concerns and market volatility. The decline brings the index to 1,622.07 points. Market Sentiment : The overall market sentiment was bearish, influenced by various factors including global economic conditions and regional market performances. Broader Market Impact Sector Performance : Different sectors displayed mixed performance. Financials and consumer goods sectors were among the laggards, while some defensive sectors saw marginal gains. Trading Volume : Trading volume was moderate, with cautious trading observed among investors. Currency Update Ringgit Performance : The ringgit showed slight fluctuations against major currencies, impacted by external economic factors and domestic market sentimen...

Pavilion Real Estate Investment Trust's (KL) earnings and dividends are projected to rise in the seasonally stronger second half, prompting analysts to recommend continued accumulation of the stock. Key Takeaways: Earnings Outlook: Net profit for January-June 2024 reached RM150 million, accounting for 44% of the consensus full-year estimate. Analysts expect earnings to align with forecasts due to higher tourist arrivals, the year-end shopping season, and improved occupancy rates. UOB Kay Hian increased the dividend forecast to 9.1 sen from 8.9 sen, representing a yield of 6.5%, citing stronger retail sales in the second half. Valuation: The current valuation is considered appealing, with a forward yield spread against Malaysian Government Securities at 2.7 percentage points above its five-year historical mean. Pavilion REIT’s units have gained about 17% year-to-date, driven by higher shopper footfalls at key malls and growth in rental reversions. Portfolio and Performance: Pavilion...

Gamuda Bhd (KL) announced on Thursday that its joint venture (JV) with French rail engineer Alstom SA has secured a contract worth A$1.6 billion (RM5 billion) in Australia. Key Details: Scope of Work: The contract includes the design, supply, installation, testing, commissioning, and maintenance of a new automatic train control system to replace the existing signalling and train control systems on Perth’s suburban rail networks. JV Stake: Gamuda holds a 46% stake in the JV, while Alstom holds the remaining 54%. Project Award: The Metronet High-Capacity Signalling Project was awarded by the Public Transport Authority of Western Australia to an alliance comprising Gamuda's wholly owned subsidiary in Australia, DT Infrastructure Pty Ltd, and Alstom Transport Australia Pty Ltd. Revenue Projection: Gamuda expects to earn up to A$737 million from the project, which will span over 10 years. Implementation: The upgrades will be delivered in multiple line-by-line stages to minimize dis...

Kenanga Investment Bank Bhd has reaffirmed its 'outperform' rating on Aeon Credit Service (M) Bhd (KL), setting a target share price of RM8.55. The decision follows an optimistic outlook on Aeon Bank's digital banking progress, despite encountering several challenges. Key Takeaways: Infrastructure Challenges: Kenanga Investment highlighted infrastructure as a limiting factor for Aeon Bank’s digital operations. Digital banks aim to enhance financial inclusion for underserved communities, leveraging mobile-centric approaches. However, basic infrastructure issues, such as outdated customer devices and limited access to banking facilities, pose significant hurdles. Digital Framework Development: Despite these challenges, digital banks have created robust frameworks for customer onboarding, including facial recognition and electronic know-your-customer (e-KYC) processes. The incompatibility of older devices with new mobile applications remains a barrier. Bank Transfer Issues: ...

Semiconductor and chip-related stocks on Bursa Malaysia declined early on Thursday, mirroring Wall Street's drop. The semiconductor index lost over US$500 billion (RM2.33 trillion) due to potential US export restrictions on advanced semiconductor technology to China. Key Takeaways: Market Reaction: The Bursa Malaysia Technology Index, covering 48 stocks, dropped by 1.89 points or 2.39% to 77.34 as of 10.36am. Top Decliners: Malaysian Pacific Industries Bhd (MPI): Leading the fall, MPI’s share price dropped by RM1.78 or 4.4% to RM38.60. It later stood at RM38.64, down RM1.74 or 4.31%, with a market cap of RM8.1 billion. Approximately 55,800 shares were traded. MPI hit a two-year high of RM41.02 on June 12 and has risen over 37% this year. Analysts' ratings include five 'buy', one 'hold', and two 'sell' calls, with a 12-month target price of RM43.18. ViTrox Corp Bhd: Among the top 20 losers, ViTrox fell 14 sen or 3.21% to RM4.22, later paring losses to ...

Pavilion REIT : Pavilion Real Estate Investment Trust (Pavilion REIT) reported an 18.8% year-on-year increase in net property income (NPI) for the second quarter ended June 30, 2024, amounting to RM120.3 million. The REIT’s quarterly rental income rose by 27.4% to RM185.29 million, driven by Pavilion Bukit Jalil and Pavilion Kuala Lumpur. A distribution of 4.53 sen per unit was declared. ILB Group Bhd : ILB Group Bhd is set to acquire Armani Sinar Sdn Bhd and a solar photovoltaic (PV) system from Armani Energy Sdn Bhd for a total of RM98 million. This acquisition aims to optimize the operations of Armani Sinar and maximize the utilization of its solar assets. PGF Capital Bhd : PGF Capital Bhd’s subsidiary, PGF Global Distribution Sdn Bhd, signed a five-year agreement with Centria Building Material Manufacturing (Shanghai) Co Ltd to distribute mineral wool sandwich panels in Malaysia, targeting data center facades. PTT Synergy Group Bhd : PTT Synergy Group Bhd announced the acquisition ...