Driven by technology, Glostrext will utilise the IPO proceeds to purchase the required instruments and equipment to expand its structural and ground instrumentation and monitoring business into Singapore. We expect the net profit to grow by 36.5-37.9% to RM5.6-7.7m for FY24-25f underpinned by the (i) current unbilled orderbook of RM8.9m as well as the growth in the construction sector which is on a recovery path after Covid-19. Glostrext is valued by ascribing a P/E of 17x (a premium to KL Construction forward P/E of 14.5x given the superior margins as compared to the peers) tagged to the mid-FY25 EPS of 1.64 sen, leading to a fair value of RM0.28.

We expect a slower growth on NOVA’s performance as the group navigates the challenging post-Covid-19 landscape and global economic uncertainties and we believe NOVA’s target outlets of 1,200 may be tough to achieve in CY23. Nonetheless, NOVA remains committed to expand on the product portfolio and its market presence while striving for enhanced production efficiencies. Additionally, the group is working on introducing new programmes for its partners.

Given the outcome of the Malaysia state elections was within expectations, the local bourse did not see further significant selling pressure and ended flat; we expect the overall sentiment will be able to trade higher over the near to mid-term. Also, with the positive performance on Wall Street, we think the investors may look into the technology stocks on the local front. On a brighter note, we have observed buying interest shifting towards the small and mid-cap stocks. Looking ahead, investors may keep a close tab on a slew of China economic data (retail sales, industrial production, and unemployment rate) to gauge the health of the second world largest economy.

Crowdstrike Holdings Inc (CRWD) is known as a global cybersecurity leader with an advanced cloud-native platform for protecting endpoints, cloud workloads, identities and data. Over the years, the group has established itself as a prominent player within the cybersecurity realm due to its innovative technology solutions designed to counter evolving cyber threats.

The FBM KLCI was left marginally in red as investors took a cautious stance ahead of the weekend state elections. However, with the state election concluded with a “3-3” status quo outcome, we reckon that the FBM KLCI may stage a relief rebound. The outcome is deemed positive to demonstrate the stability of Pakatan Harapan (PH)-Barisan Nasional (BN) pact government. We expect the lower liners to see improved trading sentiment with investors to re-position ahead of the barrage of corporate earnings releases. Still, gains are expected to remain choppy from the uncertainty surrounding the release of the US FOMC minutes meeting in mid-week.

With China slipping into the deflationary mode last month, the FBM KLCI was pressured lower before quick bargain hunting activities, which cushioned the downside move yesterday. As we approach the Malaysia state elections over the weekend, we expect trading activities to remain cautious. The lower liners may also set for a rangebound trading with the on-going corporate reporting season. Given that the US inflation has moderated, we reckon that Wall Street may head higher over the near term. Going forward, investors will be monitoring the outcome of Malaysia state elections as well as the US producer price index data to be released tonight.

Hartalega Holdings Bhd’s (HARTA) 1QFY24 net loss stood at -RM52.5m vs. a net profit of RM88.3m recorded in the previous corresponding quarter, owing to the lower sales volume, normalising of average selling price (ASP) and one-off provision amounting to RM47.0m for the severance pay due to the decommissioning of Bestari Jaya plant. Revenue for the quarter decreased 48.0% YoY to RM515.7m.

Expectedly, the key index remained on course over its upbeat tone yesterday as gains were evident amongst most of the index heavyweights. We expect buying momentum to remain stable, supported by the return of net buying position from the foreign funds. The lower liners, however, may tread cautiously as we enter the quarterly reporting season. Meanwhile, investors will be keeping a close watch on Malaysia’s unemployment rate as well as the US inflation rate today; the latter may provide additional clues over the US Federal Reserve interest rate direction, moving forward.