Apex Equity Holdings Berhad

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)
Research by TA
Buy - TP RM1.35

"1H Profit Driven by Brokerage and Moneylending"

Tagging a 30% discount to the sector's average P/E ratio of 22x, we maintain AEHB's TP at RM1.35. BUY maintained on the stock, at this juncture.

Analyst:
Li Hsia Wong
liwong@ta.com.my

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)
Research by Public
Current Price RM1.14

“Ceasing Coverage"

Apex Equity Holdings (Apex Equity) has been delivering sequential improvement in revenue since the resumption of its moneylending business in 3QFY22. We believe the moneylending operations have complemented its bread-and-butter stockbroking business, leading to an overall increase in revenue. Coupled with the recovery in trading activities on Bursa Malaysia, we expect Apex Equity to deliver higher topline in the coming quarters. However, we note that finance cost has inched up on a YoY as well as QoQ basis in the recent 1Q24 results. We are ceasing our coverage on Apex however, due to i) limited corporate access, ii) completion of our commitments under Bursa RISE, as well as iii) redeployment of resources to broaden our coverage on other sectors. Our last call is Neutral with a TP of RM1.20, based on 0.7x PBR.

Analyst:
Research Team
research@publicinvestbank.com.my

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)
Research by TA
BUY – TP RM1.35

" Aspirational Goals"

We have shifted our valuation methodology for Apex from PBV to PER, reflecting the anticipated increase in the group's earnings potential. Tagging a 30% discount to the sector's average P/E ratio of 22x, we raise Apex's TP to RM1.35 from RM1.19. With that, we have upgraded the stock from sell to BUY, given the broader risk-reward potential

Analyst:
Li Hsia Wong
liwong@ta.com.my

KUALA LUMPUR: Apex Equity Holdings Bhd's shareholders have dismissed its external auditor Crowe Malaysia, which recently said it was unconvinced that the company would be able to recover RM23.8 million in loan receivable.

© New Straits Times Press (M) Bhd

General Meetings: Outcome of Meeting

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - DATO' SRI PANG CHOW HUAT

MEMORANDUM OF UNDERSTANDINGApex Equity Holdings Berhad ("APEX" or "the Company")
Status of Memorandum of Understanding entered between Apex Securities Berhad and Yuanta Securities (Hong Kong) Company Limited

OTHERSAPEX EQUITY HOLDINGS BERHAD ("AEHB" OR THE "COMPANY")
- PROPOSED DISPOSAL OF ONE (1) UNIT OF ELEVEN (11) STOREY COMMERCIAL BUILDING KNOWN AS "MENARA APEX" OWNED BY APEX DEVELOPMENT SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF APEX EQUITY HOLDINGS BERHAD FOR A SALES CONSIDERATION OF RM55,000,000.00

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)
Research by PIB
Neutral – TP of MYR 1.20

“Higher Interest and Tax Cost”

Apex Equity Holdings (Apex Equity) reported a 25.6% YoY decline in 1QFY24 net profit to RM1.45m. Despite a higher revenue on the back of stronger brokerage income and interest income from its moneylending business, net profitwas dragged by higher interest cost as well as higher tax cost. We keep our FY24-26F earnings forecasts unchanged for now as we expect brokerage income to be higher given the increase in trading value and volume. Stockbroking remains its largest contributor, accounting for 84% of total revenue. We maintain our Neutralrating on Apex Equity with an unchanged TP of RM1.20, based on 0.7x PBR.

Analyst(s):
Research Team
research@publicinvestbank.com.my

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)
Research by TA
Sell – TP of MYR 1.19

“1QFY24 Net Profit Dragged by Higher Tax”

AEHB reported 1QFY24 net profit of RM1.45mn, down 25.8% YoY from RM1.95mn in 1QFY23. While the 1QFY24 revenue and PBT came within expectations, the net profit fell below due to a higher effective tax rate for the current quarter from expenses not deductible for tax purposes and deferred tax assets not recognised for losses incurred. As such, AEHB’s 1QFY24 net profit accounted for only 17% of our full-year forecast.

Analyst(s):
Li Hsia Wong
liwong@ta.com.my

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - DATUK WIRA FARHASH WAFA SALVADOR J.P.

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Intention to Deal During Closed Period

Annual Report & CG Report - 2023

AUDIT REPORT - MODIFIED OPINION / MATERIAL UNCERTAINTY RELATED TO GOING CONCERN : QUALIFIED OPINION

OTHERSProposed Amendments to the Memorandum and Articles of Association of the Company

General Meetings: Notice of Meeting

PROVISION OF FINANCIAL ASSISTANCE

KUALA LUMPUR: Apex Equity Holdings Bhd is anticipated to grow its earnings at a compound annual growth rate of nine per cent over the course of three years.

© New Straits Times Press (M) Bhd

MATERIAL LITIGATIONFederal Court Civil Application No. 02(f)-80-08/2022(W) (Appeal 80)
Court of Appeal Civil Appeal No. W-02(IM)(NCC)-1551-08/2019 (Appeal 1551)
(KL High Court Originating Summons No. WA-24NCC-56-02/2019) (OS 56)
Appellant: Apex Equity Holdings Berhad & Anor
Respondent: Concrete Parade Sdn. Bhd.

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)
Research by PB
Neutral – TP of RM1.20

“New Management Spearheading New Direction”

Apex Equity Holdings’ (Apex Equity) has gone through a series of management and shareholding changes in recent years following the exit of its major shareholder, the late Chan Guan Seng, in 2017. Now, a new management team has been put in place and the group aims to improve on corporate governance as well as generate higher returns through non-core asset disposal and business diversification i.e. expansion of money lending operation. All in all, we are projecting a 3-year earnings CAGR of 9%, underpinned by healthier domestic economic growth and an increase in money lending activities. We maintain our Neutral rating with an unchanged TP of RM1.20, based on 0.7x PBR.

Analyst(s):
Research Team
research@publicinvestbank.com.my

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)
Research by TA
Buy – TP of RM1.19

“Signs MOU with Yuanta Securities (HK)”

Apex Securities Berhad (ASB) and Yuanta Securities (Hong Kong) Ltd. (Yuanta HK) have officially entered into a 3-year Memorandum of Understanding (MOU) as of March 8, 2024. ASB, a wholly owned subsidiary of Apex Equity Holdings Berhad (AEHB), is set to collaborate with Yuanta HK, a wholly owned subsidiary of Taiwan's Yuanta Financial Holdings Co. Ltd. The MOU, aimed at fostering cooperation between the two entities, may be extended beyond the initial period subject to mutual agreement, while termination can occur with a one-month written notice or immediate effect in cases of non-compliance or breaches. The MOU does not require approval from ASB's shareholders or relevant regulatory authorities.

Analyst(s):
Li Hsia Wong
liwong@ta.com.my

Futu's MooMoo is pretty aggressive.

I don't see how $KENANGA / 6483 (KENANGA INVESTMENT BANK BERHAD) $MERCURY / 8192 (MERCURY INDUSTRIES BERHAD) $APEX / 5088 (APEX EQUITY HOLDINGS BERHAD) $SYF / 7082 (SYF RESOURCES BERHAD) can compete from the angle of stockbroking. It's a race to the bottom. Those who's not able to find other avenues to make money will struggle big time.

Plus what do this say about the long term prospect of $BURSA / 1818 (BURSA MALAYSIA BERHAD) when you're poaching the future investors away from the local market? Cos the way I see it - as much as Moo Moo can trade MY stocks, they dont care about the local market, but poaching and promoting to trade foreign stocks. Ah well...

MEMORANDUM OF UNDERSTANDINGApex Equity Holdings Berhad ("APEX" or "the Company")
Memorandum of Understanding entered between Apex Securities Berhad and Yuanta Securities (Hong Kong) Company Limited

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)
Research by PB
Neutral - TP of RM1.20

"Higher Brokerage and Moneylending Profit"

Apex Equity Holdings’ (Apex Equity) FY23 net profit was 14.1% higher YoY due to stronger contribution from stockbroking and moneylending business. Cumulative results came in within our expectations, making up 104% of our full-year forecast. The increase in stockbroking profit was due to higher brokerage and margin while the moneylending segment delivered a full-year recognition of earnings contribution. We believe the money lending segment will continue to generate earnings to the group to supplement the volatile stock and securities broking income. We make no changes to our earnings forecasts. We maintain our Neutral rating on Apex Equity with an unchanged TP of RM1.20, based on 0.7x PBR.

Analyst(s):
Research Team
research@publicinvestbank.com.my

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)
Research by TA
Buy - TP of RM1.19

"FY23 Results Within Expectations"

We continue to envisage modest earnings growth for AEHB in FY24, primarily supported by an expected improvement in the securities market. We believe that ongoing efforts by Bursa to fortify the trading ecosystem, enhance market vitality, and attract greater foreign participation will contribute to an upswing in trading activities and market volumes. We note that the stock and securities segment still accounts for a sizeable 84% of total revenue, followed by moneylending at around 15%.

Analyst(s):
Li Hsia Wong
liwong@ta.com.my

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

$APEX / 5088 (APEX EQUITY HOLDINGS BERHAD)

PROVISION OF FINANCIAL ASSISTANCE