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.

AME Elite Consortium Bhd's 1QFY24 core net profit surged 282.4% YoY to RM23.3m, driven by the higher contributions from property development, engineering services, property investment and management services segment, as well as stronger recognition from the share of profit from the equity accounted joint ventures.

Overall, the sentiment on the local front was positive with the rebound on the FBM KLCI, FBM Small cap and FBM ACE on the back of bargain hunting activities. However, with the Wall Street pulling back despite a stronger-than-expected Nvidia’s result, there might be spillover of selling interest towards stocks on the local front. Also, traders will be observing Jerome Powell’s tone during the Jackson Hole Symposium as it may provide clues for the future monetary policies, which may affect the trading environment.

Below expectations. In 1Q24, ELKDESA registered a core net profit RM8.5m (+11.9% QoQ, -51.4% YoY). The core net profit is only accounted for 20-21% of ours and consensus estimates, we think it is below expectation and the conditions may stay soft amid the elevated inflationary pressure over the next 3 quarters.

The FBM KLCI ended lower for the session as profit taking activities emerged without any fresh catalysts in the market. In view of the strong overnight performance on Wall Street, coupled with a surge in Nvidia’s share price post-market following the good set of results, where the earnings came in at $6.74bn vs. the estimate of $5.20bn, we believe the buying interest may spillover to stocks on the local front.

OCK Group Bhd (OCK) near term outlook remain upbeat, supported by the strong long-term recurring income from owning and managing over 5,300 telco sites across Vietnam, Myanmar, and Malaysia. Meanwhile, the group is also beefing up the renewable energy segment through the participation of Net Energy Metering (NEM) programme.

Local stock markets ended slightly higher, after a two-day pullback as bargain hunting activities emerged on the utilities and telco sectors. Meanwhile, the rebound in technology stocks from on Wall Street may spillover towards the technology sector on the local front. Nevertheless, investors will be watching closely on the results from Nvidia as it may provide more clarity on the market directions going forward. Meanwhile, back on the local front, we expect the lower liners to extend its rebound move amid the on-going corporate earnings releases.

Supercomnet Technologies Bhd’s (SCOMNET) 2QFY23 net profit fell 22.4% YoY to RM7.3m, impacted by the decline in demand across all 3 segments. Revenue for the quarter contracted 16.4% YoY to RM33.3m.