Wes t Wi ng, Level 13,

Berja ya Ti mes Square,

No 1, Ja l an Imbi,
55100 Kua l a Lumpur TUESDAY
THURSDAY
Tel : (03) 2117 1888 1 SEPTEMBER 2020
4 MARCH 2021
Fa x: (03) 2142 7678

Bulletin Today
BURSA MALAYSIA HIGHLIGHTS
Closing Pts Chg % Chg
FBM-KLCI 1,588.45 18.58 1.18
Volume: Total (mil): 10,780.43 (2110.03) (16.37)
Total Value (RM' mil): 6,180.37 (242.84) (3.78)
 The Dow Industrial Average (-121.43 points, 31,270.09) and the
Gainers 631 Nasdaq Composite (-361.04 points, 12,997.75) closed at intra-day
Losers 559 low, albeit losses were somewhat cushioned by gains in financials-
Unchanged 416
related stocks.
TRADE STATISTICS  Japan Services PMI Improves To 46.3 In February – Jibun
Participation Bought Sold Net  China Services Sector Slows In February – Caixin
43.66 Institution 2,620 2,777 (157)  Eurozone Private Sector Contracts At Slower Pace In February
38.69 Retail 2,412 2,370 42
17.65 Foreign 1,149 1,033 115  UK Service Sector Downturn Slows In February
100.00 6,180 6,180  Eurozone Producer Prices Remain Stable In January
 U.S. Service Sector Growth Unexpectedly Slows In February
FTSE-BURSA MALAYSIA  DATASONIC GROUP BHD – Datasonic partners with Vietnam co to
Index Closing Pts Chg % Chg
bid for passport and ICT projects in Vietnam: TRADING BUY, TP:
FBM 70 15,499.35 (36.49) (0.23)
FBM 100 11,365.85 91.13 0.81 RM0.60
FBM Palm Oil - NC 12,118.49 33.21 0.27  SERBA DINAMIK HOLDINGS BHD - Serba Dinamik to collaborate with
FBM Smallcap 16,310.26 156.36 0.97 MYSA to drive new space economy: BUY, TP: RM2.48
FBM Emas 11,671.44 94.92 0.82
FBM Fledgling 20,608.10 47.31 0.23  MyEG 4QCY20 net profit up 6.7% Q-o-Q to RM75.5m, helped by
revenue from Covid-19 screenings
WORLD  Genting Malaysia’s senior management takes temporary voluntary
Index Closing Pts Chg % Chg 20% salary cut, asks staff to consider variation in employment
Dow Jones 31,270 (121) (0.39) contract based on rank
Nasdaq 12,998 (361) (2.70)
FTSE 100 6,675 62 0.93  Vivocom to raise up to RM99.4m via private placement, proposes
Nikkei 225 29,559 151 0.51 one-for-three bonus warrants
Hang Seng 29,880 785 2.70  Nexgram proposes RM143m share capital reduction
Korea Kospi 3,083 39 1.29
Singapore STI 3,000 27 0.89  Greatech to centralise Kedah manufacturing operations in Penang
Thailand SET 1,543 40 2.66  Yinson’s unit bags RM1.5b solar PV power project in India
Jakarta 6,377 18 0.28  Minetech is now a solar PV investor with SEDA
Shanghai 3,577 68 1.95
Shenzen 2,363 30 1.30
THE SLANT
KLCI FUTURES
Index Closing Pts Chg % Chg Volume
FBM-KLCI 1,588.45 18.58 1.18 321m  Malaysian equities made a strong comeback yesterday, much of it on
FKLI – Mar 21 1,576.00 12.00 0.77 9,836 the recovery of glovemaker stocks on mild bargain hunting actions
FKLI – Apr 21 1,571.00 10.50 0.67 663
FKLI – Jun 21 1,567.00 9.00 0.58 69 following their recent selldown. Selected heavyweights like gaming
FKLI – Sep 21 1,555.50 6.00 0.39 39 giant Genting also saw gains on optimism over its resort and casino
reopening, but Ambank was among the top losers after it was fined
FOREX & COMMODITIES
for its role in the 1MDB saga. Many of the lower liners and broader
Closing Pts Chg % Chg
market shares also regained some traction, even though market
CPO Futures (May) 3,678.00 36.00 0.99
Brent (USD/b) 64.07 1.37 2.19 interest was thinner.
Gold (USD/Ounce) 1,711.23 (27.13) (1.56)
USD/RM 4.0510 (0.0060) (0.15)  Further gains could still be hard to come by as we think that the
SGD/RM 3.0453 0.0020 0.07
JPY/RM 3.7852 (0.0174) (0.46)
measure of tentativeness is prevalent, especially after the overnight
weakness in global equities due to the rising bond yi elds. In addition,
we see sentiments remaining largely on the cautious side and this
could prompt quick profit taking actions. As such, we think that
follow-through buying interest may remain elusive for the time being
BURSA MALAYSIA
Closing Pts Chg % Chg
FBM-KLCI 1,569.87 2.73 0.17 Page 1 of 5
Volume: Total (mil): 12,890.46 2200.63 20.59
Total Value (RM' mil): 6,423.21 330.16 5.42
 THURSDAY
4 MARCH 2021

as the profit taking actions could lead to renewed market weakness

in the day ahead. However, we think any pullback may be mild for
now and could leave the key index still above the 1,580 level for the
time being. Below that, the supports are at 1,568 and 1,557 points
respectively. On the other hand, the hurdles are pegged at 1,590
points and the psychological 1,600 level.

 Despite many of the lower liners and broader market shares

regaining some of its recent losses, we are in the view that these
stocks are seeing lower following, due in part to the lack of catalysts
and their already toppish conditions after a near one-year runup.
Therefore, we see many of these stocks remaining largely
rangebound for now, subdued by the continuing lack of sustainable
buying interest.

COMPANY UPDATES

 DATASONIC GROUP BHD – Datasonic partners with Vietnam co to

bid for passport and ICT projects in Vietnam: TRADING BUY, TP:
RM0.60
Datasonic Group Bhd (DGB) announced that it has teamed up with
Vietnamese firm, Pham Gia Ecocon Plus Vietnam Co Ltd (PEPV), to
bid for e-passport and other ICT projects. PEPV will be DGB’s
exclusive partner in providing support for handling accounts,
contract management, marketing, and business development. DGB
will handle the technical expertise to the potential projects.

We view the move positively as it could be a large potential driver to

DGB’s future earnings and a step in the right direction, to diversify
its geographic presence as well as increase the utilisation of its
current facilities that has more than enough capacity to cope with
the current market demands in Malaysia. We leave our valuation for
DGB at RM0.60 with a TRADING BUY pending more tangible
developments.

 SERBA DINAMIK HOLDINGS BHD - Serba Dinamik to collaborate

with MYSA to drive new space economy: BUY, TP: RM2.48
Serba Dinamik Holdings Bhd (SDHB) and MYSA held a collaboration
ceremony to develop Malaysia’s new space economy in line with the
National Space Policy 2030 adopted in 2017 by the country.
Emphasis is placed on the development of space technology,
infrastructure and application with economic and social benefits.
Additionally, SDHB has signed an MoU with SWISSto12, a
Switzerland-based provider of 3D-printed telecommunications
equipment for the satellite communications a nd aerospace
industries. The Swiss-company is a spin-off of École polytechnique
fédérale de Lausanne (EPFL), also know as the Swiss Federal Institute
of Technology Lausanne.

While we note the growth potential for SDHB delving into the sector
over the following years, the sector remains immature and still in

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4 MARCH 2021

early stages. For now, we remain neutral on this news but keep to
our BUY call with a target value of RM2.48.

GLOBAL AND ECONOMICS UPDATE

 Wall Street endured back-to-back sessions’ of selldown on

Wednesday as investors continued to take profit on major tech
names underscoring the rising bond yields and the rotation into
value stocks. The Dow Industrial Average (-121.43 points, 31,270.09)
and the Nasdaq Composite (-361.04 points, 12,997.75) clos ed at
intra-day lows, albeit losses were somewhat cushioned by gains in
financials-related stocks.

 Japan Services PMI Improves To 46.3 In February – Jibun

The services sector in Japan continued to contract in February, albeit
at a slower pace with a servi ces PMI score of 46.3, up from 46.1 in
January. Business optimism hit its highest mark since 2018 as firms
cited hopes that the pandemic would recede and trigger a broad
recovery in demand from the domestic and foreign markets. The
composite index also rose from 47.1 to 48.2 in February. RTT News

 China Services Sector Slows In February – Caixin

The services sector in China continued to expand in February, albeit
at a slower pace, with a services PMI score of 51.5 (from 52.0 in
January). The composite index also fell from 52.2 in January to 51.7
in February. RTT News

 Eurozone Private Sector Contracts At Slower Pace In February

The euro area private sector continued to contract in February, albeit
at a slower than previously estimated pace; the final composi te
output index rose to 48.8 in February from 47.8 in January. The
reading was above the flash 48.1. The services Purchasing Managers'
Index rose marginally to 45.7 from 45.4 in the previous month -
mainly driven by the fall in new orders. The flash score was 44.7. RTT
News

 UK Service Sector Downturn Slows In February

The UK service sector output declined only moderately in February
after a sharp downturn at the start of 2021, as the third national
lockdown has caused limited damage to the economy. The
Purchasing Managers' Index rose to 49.5 in February from an eight-
month low of 39.5 in January. The flash score was 49.7. The
composite output index, meanwhile, advanced to 49.6 in February
from 41.2 in January but was below the preliminary score of 49.8.
RTT News

 Eurozone Producer Prices Remain Stable In January

Eurozone producer prices remained stable in January; the producer
prices index remained unchanged Y-o-Y in January, after a 1.1% Y-o-
Y fall in December. Economists had forecast a fall of 0.4% Y-o-Y.
Excluding energy, producer prices increased 0.7% Y-o-Y in January,
after a 0.1% Y-o-Y rise in the previous month. On a M-o-M basis,

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4 MARCH 2021

producer prices gained 1.4% Y-o-Y in January, following a 0.9% Y-o-Y

rise in the preceding month. Economists had forecast a growth of
1.2% Y-o-Y. In the EU27, producer prices gained 1.4% Y-o-Y monthly
in January and increased 0.2% Y-o-Y. RTT News

 U.S. Service Sector Growth Unexpectedly Slows In February

The services PMI dropped to 55.3 in February from 58.7 in January;
economists had expected the index to come in unchanged. The
decrease by the headline index was partly due to a slowdown in the
pace of growth in new orders. RTT News

CORPORATE NEWS

 MyEG 4QCY20 net profit up 6.7% Q-o-Q to RM75.5m, helped by

revenue from Covid-19 screenings
MyEG Services Bhd‘s net profit rose 6.7% Q-o-Q to RM75.5m in the
fourth quarter ended Dec 31, 2021, from RM70.7m in the preceding
quarter, boosted by revenue from Covid-19 health screenings, and
online motorcycle insurance and road tax renewal service. Quarterly
revenue increased 10.1% Q-o-Q to RM149.9m, from RM136.1m
previously, as the group witnessed increased revenue contribution
from its screening and accommodation arrangement service for
inbound travellers. MyEG declared a final dividend of 1.7 sen per
share. The Edge Markets

 Genting Malaysia’s senior management takes temporary voluntary

20% salary cut, asks staff to consider variation in employment
contract based on rank
Genting Malaysia Bhd’s senior management team has taken a
temporary voluntary 20% salary cut for three months, and the
company has written to staff for them to consider a variation in their
employment contract, with a suggested variation staggered
depending on job grade, from 15% to 20% reduction in salary or one
day no pay leave per week. The Edge Markets

 Vivocom to raise up to RM99.4m via private placement, proposes

one-for-three bonus warrants
Vivocom Intl Holdings Bhd has proposed a private placement to
raise gross proceeds of up to RM99.4m, paired with one-for-three
bonus warrants. The group said the placement size represents 10%
of its total issued shares, and will be offered to third party investors
to be identified later. It said the placement shares may be issued
based on a discount of up to 10% to the five-day volume-weighted
average market price of Vivocom shares immediately preceding the
price-fixing date. The Edge Markets

 Nexgram proposes RM143m share capital reduction

Nexgram Holdings Bhd has proposed to cancel RM142.6m of its
issued share capital, in a move to reduce the group’s accumulated
losses. The group said the exercise will enable it to reduce its
accumulated losses via cancellation of the share capital which is lost
or unpresented by available assets of the group. The Edge Markets

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4 MARCH 2021

 Greatech to centralise Kedah manufacturing operations in Penang

Greatech Technology Bhd is erecting a second factory building at
Batu Kawan Industrial Park to relocate its Kedah manufacturing and
assembly operations to a single location at Batu Kawan Industrial
Park in Penang. The Edge Markets

 Yinson’s unit bags RM1.5b solar PV power project in India

Yinson Holdings Bhd’s unit has bagged a contract worth an
estimated 27.5b rupees (RM1.50b) to develop a 190MW grid-
connected solar photovoltaic power project in the Nokh Solar Park
in India’s Rajasthan state. The contract awarded to the group’s
indirect 80%-owned subsidiary, Rising Sun Energy (K) Pvt Ltd (RSEK)
by NTPC Ltd has an estimated aggregate value based on a fixed tariff
of 2.25 rupees per kWh,. The Edge Markets

 Minetech is now a solar PV investor with SEDA

Minetech Resources Bhd has registered as a solar photovoltaic (PV)
investor with Sustainable Energy Development Authority Malaysia
under the Net-Energy Metering (NEM 3.0) Programme. The group
said as a registered PV investor, the group is now allowed to sell
electricity via the renewable power purchase agreement under the
NEM 3.0 programme to government agencies, businesses and
individuals. The Edge Markets

IMPORTANT: This report has been prepared from sources that are believed to be reliable but we do not hold ourselves responsible for it s completeness and accuracy. All opinions and
estimates in this report are subject to change without notice. We do not accept any liability that may arise from the use of information in this report. Inter-Pacific Research Sdn Bhd and
or its associates may from time to time have interest and/or underwriting commitments in the company being reported. This rep ort is for internal circulation only and the contents or
any part thereof cannot be reproduced in any manner whatsoever except with the prior written consent of Inter-Pacific Research Sdn Bhd.

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199701033506 (449005-X)
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