Capital markets news summary for Thu 9 Mar 2023

Capital markets news summary for Thu 9 Mar 2023

Astro share price up 22% on privatisation talks

Its share price added 13.5 sen to hit an intraday high of 74.5 sen, and later closed at 73 sen. It was the 4th most active counter with trading volume of 72.04m or 12 times its 2-month average trading volume of 6m shares. Investors are speculating that the controlling shareholders will attempt to privatise the company again after the privatisation exercise in 2010. Then, it was privatised at RM4.30 and was later relisted without the overseas operations at RM3 per share. Ananda Krishnan has 41.29% shareholding while Khazanah has 20.67%. Some investors say that its high borrowings of RM3.55b and earnings erosion from high content cost and piracy make it unattractive for privatisation. During the past year, the stock has fallen 22% from 93.5 sen. Earnings have been slipping since 2018. For 9M2022, the company posted net profit of RM204.29m, down 39% from RM334.29m in 2021. Revenues fell 10.64% from RM3.14b to RM2.81b due to lower merchandise sale and subscription revenue.

Sunview partners Kulim Technology Park to promote solar PV

The strategic business alliance agreement is for rooftop and large-scale solar photovoltaic (PV) projects in Kulim Hi-Tech Park for 2 years. The company will also be putting up 2 electric vehicle charging stations at KHTP Business Car Park. Sunview will act as technical partner in the installation of the solar panels and related mechanical and electrical fittings, and will provide operations and management services. The company will also be the liaison with the authorities. The counter closed at 85 sen.

Ducati Malaysia targets 30% sales growth in 2023

Next Bike Sdn Bhd – the exclusive distributor of Ducati motorcycles in Malaysia – is projecting the growth despite economic uncertainties. Its sales were up 49% in 2022 making it the brand’s best exclusive distributor in Asia Pacific. In comparison, global Ducati sales only grew 10%. In Oct 2022, it won three awards – Global Distributor of the Year, Best Marketing Team Asia Pacific and Best Commercial After Sales Team Asia Pacific – at the Global Ducati Distributor Conference in Sardinia, Italy. The growth target for 2023 is supported by the launch of 8 new models plus a pipeline of lifestyle experience programmes. The brand has 200 new bookings and outstanding orders from 2022, and expects to expand market share from 5% to 6%-7%. 2022’s financial performance was contributed by the Scrambler at 30% of sales and Panigale also 30%.

SHEIN raises USD2b enroute to IPO in 2H2023

The current funding round receives support from UAE’s Mubadala, General Atlantic, Sequoia Capital and Tiger Global Management. The company’s valuation is cut one-third from a funding round a year ago to USD64b. It held initial talks to find lead bookrunners for the US IPO in Feb. SHEIN was founded by Chinese entrepreneur Chris Xu and launched in Nanjing in 2008. It has grown into one of the world’s largest online fashion marketplaces producing cheap clothing in China to sell in the US, Europe and Asia. Its 2020 plan to IPO was shelved due to the unpredictable markets and worsening US-China tensions.

Dutch obey US in stopping chip exports to China

The Dutch government will introduce export restrictions on technology to make computer chips in line with the US’ restrictions against China’s access to the technology. The home of ASML – the only company in the world that makes advanced chipmaking machines that use deep ultraviolet lithography – have been pushed by its ally to impose similar curbs introduced by the US in 2022. The Dutch government gave the reason that export controls are needed to protect international and national security by limiting access to potential military-use technology and safeguard the Netherlands’ leadership in the technology. ASML’s extreme ultraviolet lithography machines are already subject to export control under a pact on dual civilian-military technology signed by 40 countries including the US and the Netherlands.