SLP Resources Bhd’s (SLP) long-term prospects remain lackluster owing to the absence of fresh leads, while we expect shipments to European countries to remain out of the picture. While commitment to adopt automation and digitalisation process are in progress, improvement in margins are expected to be negated by the upward revision of electricity tariff under the Imbalance Cost Pass Through (ICPT) mechanism over a 6-month period from January 2023 till June 2023 and higher labour cost.

The FBM KLCI marked the fourth session of losing streak as cautious sentiment continued to trigger profit taking activities prior to the Hari Raya break. Meanwhile, Wall Street ended mixed to kick off the new week as investors await more earnings reports this week, especially from several giant technology companies. Besides, key focus this week will include the US GDP and PCE data.

The FBM KLCI drifted south, marking the third session of decline along with the weaker regional markets’ sentiment ahead of the Hari Raya public holiday; foreign funds turned net sellers for the second session with 5-day cumulative net selling value standing at RM46.6m. Meanwhile, given the muted tone on Wall Street, we expect the regional markets and local bourse could continue to trade in a rangebound manner.

Malakoff Corporation Bhd (MALAKOF) engages as a multinational power, water and environmental solutions provider with core focus in thermal power generation, renewable energy, environmental solutions and water desalination. As of 1st January 2023 generates 5,930 MW of thermal power generation capacity, 39MW of renewable energy capacity, 472,975m³/day of water production capacity and 5,548 tonnes/day of total solid waste management volume.

The FBM KLCI extended its decline along with most of the regional markets as the sentiment remained weak despite positive China’s GDP growth. The local bourse may see further consolidation on the global front during the earnings season as the corporate results may be impacted from the interest rate hike environment. Meanwhile, we believe the mixed sentiment may persist on the local front as traders may be on the sidelines ahead of the special holiday on Friday.

Market leader for accounting software in Malaysia that raked in approximately 70,000 AutoCount software licenses sales to approximately 210,000 businesses and companies, primarily in Malaysia and Singapore. Core earnings may register sequential improvement to RM17.8m in FY24f, on the Malaysia government led initiatives to boost the adoption of business digitalisation and replicate their success in Malaysia and Singapore to the ASEAN market. ADB is valued through pegging 16.5x P/E to FY24f EPS of 3.2 sen, leading to a FV of RM0.53 (potential upside of 60.6% from IPO price).

The FBM KLCI saw a mild pullback as investors remained wary of the global economic outlook and trading softer ahead of the festive break, while the defensive sectors such as the telco and utilities were clear winners. Meanwhile, the global sentiment was positive as Wall Street could be hoping for more positive earnings report this week, and regional markets may head higher as traders may be upbeat on GDP growth in China.

Betamek Bhd (BETA) engages as a one-stop solution for developing and manufacturing electronic products, with comprehensive onsite R&D facilities, production engineering and manufacturing. Over the years, BETA has diversified and established a strong foothold in Malaysia, Japan and Indonesia.