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Macquarie Equity Research has identified Malaysia as a leading market for data centre growth in Asean, emphasizing the country’s strong potential due to an upcoming, improved renewable energy scheme. The new Corporate Renewable Energy Supply Scheme (CRESS), expected in September, aims to resolve bottlenecks in solar power supply, enhancing Malaysia's attractiveness for data centre investments. Key Takeaways: Malaysia's Position in Asean Data Centre Market : Malaysia is poised for significant growth in data centre demand, with a forecast of 5.6 Gigawatts (GW) over the next 10 years, placing it just behind India. This growth is driven by expanding digital infrastructure needs and renewable energy initiatives, despite alternative forecasts by DC Bytes placing Malaysia third behind India and Japan. Top Picks for Data Centre Investments : Macquarie has named Tenaga Nasional Bhd and YTL Power International Bhd as top picks to benefit from the data centre boom. Tenaga is set to capita...

  Here’s a brief overview of notable corporate developments: Malayan Banking Bhd (Maybank) : Maybank reported an 8.2% increase in net profit for 2QFY2024, reaching RM2.53 billion, driven by lower provisions and tax expenses. The bank declared an interim dividend of 29 sen per share, totaling RM3.5 billion. KLCCP Stapled Group Bhd : The group saw its 2QFY2024 net profit rise by 5.67% to RM191.06 million, supported by strong performances across its retail and hotel segments. A dividend of 9.2 sen per stapled security was declared. Sunway Bhd : Sunway posted a significant 80.4% increase in net profit for 2QFY2024, totaling RM270.47 million. This growth was bolstered by gains from investment redemptions and better performance across most business segments. A first interim dividend of two sen per share was announced. Axiata Group Bhd : Axiata returned to profitability in 2QFY2024, reporting a net profit of RM134.9 million, reversing from a loss of RM576.22 million a year earlier. The co...

CIMB Securities, one of the few research houses covering Genetec, issued a warning on Friday about a potential 30% decline in the company’s earnings for the fiscal year ending June 30, 2025 (FY2025). This projection stems from delays in securing new orders from a key automotive manufacturer that has adopted a more cautious approach to capacity expansion. As a result, CIMB Securities downgraded Genetec's stock from 'buy' to 'hold' and significantly lowered its target price from RM3.70 to RM1.60. The firm cited concerns over Genetec’s business outlook, highlighting uncertainties ahead of the U.S. presidential election and a moderating growth outlook in the global electric vehicle (EV) market as key factors. Market speculation points to Tesla’s order deferments as a significant reason for this downgrade. There are also concerns that Genetec’s upcoming quarterly results, expected by the end of this month, could fall below consensus estimates. Genetec is largely owned by...

Kuala Lumpur Kepong Bhd (KL) is anticipated to post a stronger performance in the final quarter ending September 30, 2024 (4QFY2024), driven by seasonal production increases, following third-quarter results that met market expectations. Key Highlights: Seasonal Production Boost: Public Investment Bank Research projects that KLK will "catch up" in the final quarter, supported by a seasonally stronger production period. The research house has maintained a "neutral" rating on KLK with an unchanged sum-of-parts (SOP)-based target price (TP) of RM21.33. Plantation Segment Outlook: The plantation segment is forecast to perform better in FY24, aided by cost-saving measures and modest yield improvements. The strong final quarter is expected to significantly contribute to KLK’s overall performance for the year. Manufacturing Segment Variance: The manufacturing segment presents a mixed outlook, with Europe’s oleochemical market recovering due to higher demand and better ma...

  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 enhan...

  Positive Momentum: Paragon Globe Bhd (KL ): Shares rose by 2.5 sen or 7.04%, closing at 38 sen. The stock is experiencing a build-up in trading volume and price, indicating positive momentum. Xin Hwa Holdings Bhd (KL ): The stock remained unchanged at 21 sen, but is showing signs of positive momentum due to higher-than-normal trading volume. Barakah Offshore Petroleum Bhd (KL ): Shares remained unchanged at 7.5 sen, yet the trading activity suggests positive momentum. Negative Momentum: Mikro MSC Bhd (KL ): The stock closed unchanged at 30 sen, but is experiencing negative momentum due to a decline in trading volume and potential price weakening. Vestland Bhd (KL ): Despite rising by 2.5 sen or 4.90% to close at 54 sen, the stock shows signs of negative momentum, indicating potential short-term price pressure. Malakoff Corp Bhd (KL ): Shares fell by 4.5 sen or 4.52%, closing at 95 sen, signaling negative momentum with declining volume and price. Note: The list of stocks wi...

Shares of Pekat Group Bhd (KL) surged to their highest level in over a month on Tuesday following the announcement of a new contract for earthing and lightning protection at a data centre. The stock rose by as much as 4.7% to RM1.01, its highest since July 17, 2024, before settling at 99.5 sen by 10:30 AM, giving the company a market capitalisation of RM642 million. Trading volume also exceeded the 200-day moving average, with over 3.36 million shares changing hands. Key Highlights: Contract Win: Pekat Group secured a RM21.78 million contract to install earthing and lightning protection systems for a data centre facility, believed to be related to the hyperscale data centre in Elmina Business Park. Market Reaction: The stock's rise reflects investor confidence in Pekat’s ability to capitalize on the growing demand for data centres. Analysts, such as those at Apex Securities, view this contract as reinforcing Pekat’s strong track record and positioning it to benefit from the incre...