ASIAFLE 1Q24’s core net profit came in at RM16.0m (+70.8% QoQ and +97.1% YoY). The results were significantly above ours and consensus expectations at 41% and 49%, respectively. The key deviations were due to the stronger-than-expected profits from the filing division due to favourable exchange rates and better margins for the segment during the quarter review. There was no dividend paid during the quarter.

In-line with our expectation. OSK registered core PATAMI of RM131.0m in 2Q23, increasing by 13.9% QoQ and 23.3% YoY, respectively, bringing the sum of 1H23’s core earnings to RM246.1m (+27.9% YoY). The results came in within our expectation at 50.8% of RM484.1m, but it was above the consensus estimates at 56.3%.

The FBM KLCI experienced a stronger trading activity accompanied by positive catalysts emerging from the domestic scene and higher trading value and volume overall. Also, with the positive performance on Wall Street overnight, we think the buying interest may spillover to the stocks on the local front, specifically within the technology sector. Meanwhile, the consumer sentiment index that was below consensus expectation could be pointing towards a cooling economy and the market hopes for the Fed to shift their stance towards a less hawkish tone.

Below expectations. OMH has released its results and its core net profit stood at USD19.1m for the 1H23 and it is below our estimation, accounting to only 27% of our forecast of USD70.7m. However, it is within consensus estimate of 48%. Key deviations were due to (i) lower than expected ASP of ore and alloys in 1H23.

The FBM KLCI traded in a narrow range for the past two trading days, while investors were focusing on the small cap stocks. Meanwhile, we believe the buying interest may spillover to our stock markets given the positive performance on Wall Street overnight. Also, with the special financial hub news being announced last week, we expect the trading interest to stay vibrant at least for the near term. Nevertheless, traders should take note of the several key economic data this week that may shape the tone of the Federal Reserve going forward.

The stocks on the local front were relatively stronger as compared to the regional benchmark indices. Given the positive trading tone from Wall Street overnight, we expect the buying interest to spillover towards stock on the local front within the technology stocks. Meanwhile, with the announcement of a special financial zone to be created in Forest City last Friday after market hours, it should provide further catalysts on the stock markets, providing trading opportunities to the broader market. Also, since the market is focusing on the brighter economic outlook in the US, brushing off the interest rate hike concerns, downside risk may be limited.

Econpile Holdings Bhd's (ECONBHD) long-term prospects appear to be on the recovery trend after experiencing a year to forget in FY22f. Recall that in 3QFY23 net loss narrowed to -RM0.2m vs. net loss of -RM1.3m recorded in 2QFY23. After 7 consecutive quarters in the red, we reckon that the group is poised to return to the black moving into FY24.

Within expectations. OPTIMAX’s core net profit came in at RM3.8m (+25.3% QoQ, -16.6% YoY), bringing the 6MFY23 core net profit to RM6.9m (-4.2% YoY). Despite the results only accounting to 44% and 38% of ours and consensus estimates, respectively, we deemed it is within our expectations as 1H is likely to be weaker due to lesser business days coupled with festive season, which may result in lower surgeries done.