Latest news with #MercurySecurities
New Straits Times
22-07-2025
- Business
- New Straits Times
Express Powerr eyes ACE Market debut in Q3
KUALA LUMPUR: Generator rental firm Express Powerr Solutions (M) Bhd has signed an underwriting agreement with Mercury Securities Sdn Bhd for its planned listing on the ACE Market of Bursa Malaysia, targeted for the third quarter. The initial public offering (IPO) involves a public issue of 180 million new shares or 19.3 per cent of its enlarged issued share capital, as well as an offer for sale of 65.4 million existing shares, representing 7.0 per cent of its enlarged share capital. Of the 180 million new shares, 46.7 million shares will be made available to the Malaysian public via balloting, while 18.7 million shares to its eligible directors, employees and persons who have contributed to the company's success. Meanwhile, 63.2 million new shares are allocated for private placement to selected investors and 51.4 million shares through private placement to Bumiputera investors approved by the Investment, Trade and Industry Ministry. Additionally, all 65.4 million offer shares to be offered for sale will be made available to Bumiputera investors approved by the ministry through private placement. Pursuant to the underwriting agreement, Mercury Securities has agreed to underwrite a total of 65.4 million new shares made available to the Malaysian public and pink form allocations. Mercury Securities serves as the principal adviser, sponsor, sole underwriter and sole placement agent for the IPO. Managing director Lim Cheng Ten said the listing will accelerate the company's expansion into new end-user markets, including the oil and gas industry, and broaden its geographical coverage. "With this in mind, we see great potential in the oil and gas sector. The industry typically operates in remote and challenging environments, where generators are required as temporary power solutions during exploration, drilling and production operations," he said. Lim said in the first nine months of 2024 alone, 27 oil and gas projects worth RM4.46 billion were approved, presenting strong prospects for the industry. He added that in the utility sector, Tenaga Nasional Bhd (TNB) has invested RM21 billion in its Grid of the Future programme to enhance its transmission and distribution network. "As generator sets are widely used in the engineering, procurement, and construction of power grids as well as other generation and transmission projects, these developments reinforce the continued relevance of the generator rental business," Lim said. Express Powerr is mainly involved in the provision of generator rental services, which are used in critical emergency situations such as power outages, planned maintenance and serve as standby power for events and special occasions, providing a reliable power source when needed most. It also supplies ancillary items such as distribution boards, generator synchronisation panels, transformers, switchgears, load banks and cables to meet the varied requirements of its customers. With a 20-year track record, the company owns a fleet of 111 generator units across various capacities from low and high voltage systems with over 70 per cent of the fleet comprises mobile generator units mounted on a truck, designed for easy transportation and deployment to various locations. In addition to its core business, Express Powerr is also a solar photovoltaics investor under the Net Energy Metering programme and a PV service provider by Sustainable Energy Development Authority Malaysia. The company became an approved vendor of TNB in 2021 and subsequently secured service contracts with TNB in 2022 after having supplied generators indirectly since 2005. The company has also expanded its geographical footprint to Sabah last year, providing services indirectly to Sabah Electricity Sdn Bhd. Express Powerr also serves a diverse range of end-user industries, including mechanical and electrical, manufacturing, construction and event industries, as well as government agencies.
Yahoo
27-06-2025
- Business
- Yahoo
Mercury Securities Group Berhad Second Quarter 2025 Earnings: EPS: RM0.004 (vs RM0.004 in 2Q 2024)
Revenue: RM9.33m (down 1.1% from 2Q 2024). Net income: RM3.58m (down 8.3% from 2Q 2024). Profit margin: 38% (down from 41% in 2Q 2024). The decrease in margin was primarily driven by higher expenses. EPS: RM0.004 (in line with 2Q 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Mercury Securities Group Berhad's share price is broadly unchanged from a week ago. You should always think about risks. Case in point, we've spotted 3 warning signs for Mercury Securities Group Berhad you should be aware of, and 2 of them are potentially serious. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
24-06-2025
- Business
- The Star
AGX earnings to be supported by aerospace logistics recovery
PETALING JAYA: Mercury Securities is upbeat about AGX Group Bhd 's long-term potential due to various factors despite some downside risks. 'We are positive on its long-term potential underpinned by a scalable asset-light model that enhances financial agility, niche strength in aerospace logistics and its positioning to tap into rising cross-border eCommerce and maintenance, repair, and overhaul demand,' it added. AGX is a regional third-party logistics provider with operations across nine countries, specialising in sea and air freight forwarding, aerospace logistics, and warehousing. 'We project core net profit compounded annual growth rate of 28% for financial year 2024 (FY24) to FY26, supported by aerospace logistics recovery and stable freight volumes. 'FY25 to FY27 top line is forecast to grow about 10% annually, while margins normalise at 28% gross and 12% earnings before interest tax depreciation and amortisation. 'The balance sheet remains robust, with estimated capital expenditure of only about RM1mil per year,' it said. Mercury Securities is initiating its 'hold' stance on the stock with a target price (TP) of 54 sen. Its TP is based on 13.5 times FY26 earnings per share, a modest 10% premium to the local logistics sector price to earnings ratio average, justified by AGX's strong earnings trajectory and strategic niche. 'Global trade headwinds and aerospace concentration risks temper near-term upside. Key risks include changes in local and internal regulations, decline in demand for sea and freight changes, fluctuations in sea and freight rates and dependence on a major local carrier,' it noted.
The Star
02-05-2025
- Business
- The Star
Reduced expectations of IPOs
KUALA LUMPUR: Recent performances of initial public offerings (IPOs) on Bursa Malaysia indicates that there will be no more 'guaranteed' upsides for new listings especially on its debut day anymore. This is the sense that brokers, fund managers and analysts are getting; compared to just last year where IPO outperformance, especially upon its listing on the first day, was almost guaranteed. Negative sentiments following the flare ups in trade tensions and reciprocal tariffs appeared to have reduced expectations of outperformance of new listings. Fundamentals, right business strategy and reasonable valuations would be key to attracting investors to IPO counters, analysts said. 'I don't think there will be anymore of such irrationality for now,' said an analyst. Meanwhile, Tradeview Capital founder and chief executive officer (CEO) Ng Zhu Hann pointed to the recent delays of two planned IPOs that indicate the rather subdued level of risk sentiment now. Cuckoo International (MAL) Bhd had in early April said it was postponing its planned listing by some two months which is expected to complete by June 24. SPB Development Bhd had earlier delayed the launch of its Main Market IPO to an unspecified date on market uncertainties. 'Many new listing's share prices in the first quarter are trading below their IPO price. This is compared to last year where 80% to 90% of new listings had performed better than their reference price. 'The two delayed IPOs of SPB and Cuckoo points to weaker sentiment on the take up rate of these IPOs and risk appetite is quite weak in the first quarter,' Ng told StarBiz. 'If they had proceeded, shareholders could have potentially lost money there. If the uncertainty prolongs, then it is likely that Bursa Malaysia would find it difficult to secure the targeted 60 new listings this year,' he added. However, Bursa Malaysia's CEO Datuk Fad'l Mohamed said earlier in the week that it is on track to meeting its full-year target of 60 IPOs despite the present volatile economic environment. There were 16 IPOs year-to-date. According to Mercury Securities, larger IPOs with bigger market capitalisation tend to benefit from the larger investor pools and greater interests from retail and institutional investors as there are more sell-side coverage and meet funds' investment mandate. These factors contribute to enhanced price discovery and aftermarket support, it said. On the other hand, it noted micro-cap listings or those typically with less than RM100mil in market capitalisation continue to face structural headwinds with weak price momentum post-IPO. These were seen through the thin trading volumes, minimal research coverage and usually limited institutional interest, Mercury Securities said. 'A case in point is Sik Cheong Bhd that has a market cap of RM71.8mil, has since recorded a 46.3% decline in share price. The stock's struggle highlights the liquidity discount often applied to micro-cap names despite of the fundamental strength of the company remain intact,' it said. These appear to reinforce a broader theme that scale is becoming a proxy for investability, it said. 'As volatility and uncertainty remain elevated in broader market, investors tend to favour IPOs offering better market liquidity as this help to facilitate sustained demand interest (retail and institutional flows), while providing greater flexibility to exit positions efficiently in the event of uncertainty,' the research house noted. Moving forward, Ng said he expects appetite for new IPO listings to recover sometime in the second half of this year noting of the meaningful recovery of the FBM KLCI levels from the index's year-to-date lows of 1,386.63 points. The FBM KLCI closed at 1,540.22 points on Wednesday. 'But the market's average daily trading values are still below RM2bil since then and it indicates participation is not yet broad-based. I would suggest investors to be selective in picking IPOs to invest into,' he said. But confidence could be returning sooner than expected as Eco-Shop Marketing Bhd just announced plans to raise RM419.87mil for a planned upcoming listing on the Main Market of Bursa Malaysia. The dollar store retailer plans to use the raised funds to expand its retail footprint and distribution centres nationwide; invest into information technology hardware and software and; repay bank borrowings. This will be the largest IPO to be launched in Malaysia over the past eight months. The retail portion offers about 187 million new shares at RM1.21 each. Ten cornerstone investors have collectively already subscribed 90.31% of Eco-Shop's total institutional offering excluding the bumiputra portion under the Investment, Trade and Industry Ministry, the company said. The cornerstone investors included AHAM Asset Management Bhd, Albizia Capital Pte Ltd, Areca Capital Sdn Bhd, Eastspring Investments Bhd, Kairous Equity Sdn Bhd, Kenanga Investors Bhd, Kenanga Islamic Investors Bhd, Lion Global Investors Ltd and RHB Asset Management Sdn Bhd. In the last six months, Mercury Securities noted there were a total of 42 IPOs on Bursa Malaysia. Among these, it noted of strong first-day performers on the Main Market were Life Water Bhd (44.6%), Azam Jaya Bhd (39.7%), and 99 Speed Mart Retail Holdings Bhd (13.9%). 'There is a huge disparity between the first day performance and the post IPO performance. 'While certain IPOs like Steel Hawk Bhd (130%) and Oriental Kopi Holdings Bhd (98.9%) delivered eye-catching returns, more than 70% of the IPOs are now underperforming and trading below their IPO offering price,' Mercury Securities said. 'The phenomenon of strong first-day pops followed by subdued price action or retracement post listing, indicating a clear signal that investors are increasingly discriminating between quality and hype,' it added. It noted of IPOs which debuted in March and April 2025 was during a time period that was marked by surge in geopolitical and macroeconomic uncertainty had mostly seen lackluster first-day performances and have generally underperformed days after its listing. 'In such an environment, new listings face an uphill battle to attract sustained buying interest, particularly in the absence of strong fundamentals or compelling growth catalysts,' the research house said.
