Analysts bullish on energy, technology and financials after August earnings season

KUALA LUMPUR (September 20): Analysts covering Bursa Malaysia-listed stocks are the most bullish on the energy, technology and financials sectors, following quarterly earnings seasons in August, according to Bursa Malaysia, in using Bloomberg given as a reference.

Based on Bloomberg data tracking all analyst coverage of companies listed on Bursa Malaysia, 94% of analysts recommended a “buy” call on the energy sector. No analyst assigns a “sell” call to the sector, reflecting the strength of the energy sector, Bursa Malaysia said in a statement. Analyst consensus: overall market report released Tuesday, September 20.

“Most of the stocks recommended for purchase with 100% buy calls are energy infrastructure and technology company Yinson Holdings Bhd, and integrated oil and gas services provider Dayang Enterprise Holdings Bhd,” said Bursa 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 a 100% buy call. All analysts recommended a ‘buy’ call,” Bursa said.

Yinson reported net profit of RM120 million for the first quarter ended April 30, 2022 (1QFY23), increased 7.14% year-on-year (YOY) from RM112 million, helped by the rise in oil prices and the US dollar.

The floating production storage offload operator (FPSO), 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, according to its stock market record.

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

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

MyEG, which builds, operates and owns the e-channel to provide 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 is due to the resumption of full operations of its e-service centers nationwide, the e-government solutions and services provider said.

In the financials 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 rose 18% to RM674.68 million in 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 profits were boosted by fewer provisions and higher net income.

Meanwhile, sectors such as Utilities received the fewest “buy” buy recommendations with just 39% of analysts recommending such a call, while 39% recommended a “hold” call on the sector.

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