Analysts bullish on energy, tech and finance sector after August results season

Analysts bullish on energy, tech and finance sector after August results season
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KUALA LUMPUR (Sept 20): Analysts covering stocks listed on Bursa Malaysia are most bullish on energy, technology and finance sectors, following the quarterly result seasons in August, according to Bursa Malaysia, using Bloomberg data as reference.

Based on Bloomberg data tracking all the analyst coverages of companies listed on Bursa Malaysia, 94% of analysts recommended a “buy” call on the energy sector. No analysts assign a “sell” call on the sector, reflecting the robustness of the energy sector, stated Bursa Malaysia in an Analyst Consensus: Overall Market report released on Tuesday (Sept 20).

“Most recommended-buy stocks with 100% buy calls are energy infrastructure and technology company Yinson Holdings Bhd, and integrated oil and gas service provider Dayang Enterprise Holdings Bhd,” Bursa stated in the report.

These companies were covered by at least three analysts during the period. For example, Yinson was covered by 11 analysts for the period and received 100% buy call. All analysts recommended a “buy” call”, said Bursa.

Yinson recorded RM120 million in net profit for the first quarter ended April 30, 2022 (1QFY23), rose 7.14% year-on-year (y-o-y) from RM112 million, helped by stronger oil prices and the US dollar.

The floating production storage offloading (FPSO) operator, which recently raised RM1.19 billion through a two-for-five rights issue, saw its quarterly earnings per share rise to 5.6 sen, from 5.1 sen, its bourse filing showed.

Dayang returned to the black in the second quarter ended June 30, 2022 (2QFY22), with a net profit of RM42.02 million versus a net loss of RM21.89 million a year earlier.

For the technology sector, 71% of the total analyst recommendations were a “buy” call, with most recommended to “buy” stocks in IT service management company MY EG Services Bhd (MyEG).

MyEG, which builds, operates and owns the electronic channel to deliver services from various government agencies to Malaysian citizens and businesses, is covered by nine analysts and received a 100% “buy” call.

The company’s net profit rose 10.38% to RM88.64 million or 1.2 sen per share in the second quarter ended June 30 (2QFY22), from RM80.68 million or 1.1 sen per share a year earlier.

This was due to the resumption of full operations of its e-service centres nationwide, said the electronic government solutions and services provider.

In the finance sector, 68% of analysts recommended “buy” calls in the sector, with Hong Leong Financial Group Bhd being the company with the most recommended “buy” stocks with a 100% “buy” call.

The financial group’s net profit grew 18% to RM674.68 million for the fourth quarter ended June 30, 2022 (4QFY22) from RM573.37 million a year ago, driven by its commercial banking division Hong Leong Bank Bhd, whose earnings were lifted by lower provisions and higher net income.

Meanwhile, sectors such as the utilities received the least “buy” call recommendation with only 39% analysts recommending such call, while 39% recommended a “hold” call on the sector.

Kamarul Azhar