Five equities push the MSE Equity Price Index higher

 

The MSE Equity Price Index rose by 0.46% to 3,835.631 points driven by the gains in BOV, Hili Properties, MaltaPost, Grand Harbour Marina and the ordinary shares of RS2. Meanwhile, Malita and the preference share of RS2 moved lower and two other equities closed unchanged. Today’s total trading activity in local equities amounted to €0.21 million. Download today’s Equity Market Summary.

Bank of Valletta plc was today’s most actively traded equity as it climbed by 0.6% to the €1.70 level, after recovering from an intra-day low of €1.68 (-0.6%) across thirteen trades amounting to 59,747 shares.

Grand Harbour Marina plc surged by 37.1% to the €0.85 level across eleven deals totalling 64,000 shares. Yesterday, Grand Harbour Marina published its interim financial statements for the six-month period ended 30 June 2024. Revenues remained relatively unchanged at €2.06 million as the higher pontoon revenues offset the drop in superyacht turnover. On the expenditure side, total operating costs moved 4.5% lower at €1.34 million mainly reflecting a drop in direct and personnel costs. Meanwhile, net finance costs decreased by 4.9% to €0.35 million. On the other hand, GHM’s financial performance was positively affected by the share of profit of €3.26 million from its investment in IC Çeşme Marina located in Turkey (in contrast to the share of loss of €0.06 million reported in H1 2023), significantly boosted by a reduction in foreign exchange losses following IC Çeşme’s repayment of euro-denominated loans. GHM reported a pre-tax profit of €3.66 million (H1 2022: €0.24 million). After accounting for a tax charge of €0.16 million, the net profit for the period under review amounted to €3.49 million.

Hili Properties plc gained 2.6% to the €0.195 level on a single trade of 8,000 shares. Last Wednesday, Hili Properties published its interim financial statements for the six-month period ended 30 June 2024. Revenues remained virtually unchanged at €7.61 million while operating expenses (net of other income) dropped by 11.5% to €1.69 million. However, the financial performance was negatively impacted by €0.14 million in investment losses. Furthermore, net finance costs increased by 9.8% to €3.20 million. Profit before tax amounted to €2.55 million compared to €2.73 million in the same period last year. The net profit for the period attributable to shareholders of Hili Properties amounted to €1.67 million. As at 30 June 2024, equity attributable to shareholders amounted to €119.2 million, which translates into a net asset value per share of €0.297.

MaltaPost plc rose by 4.2% to the €0.448 level as 5,500 shares changed hands.

The ordinary shares of RS2 plc moved 8.3% higher to the €0.65 level across three trades amounting to 1,743 shares. Meanwhile, the preference shares of RS2 declined by 0.8% to an all-time low of €0.60 as 1,700 shares changed hands. Last Wednesday, RS2 published its interim financial statements for the six-month period ended 30 June 2024. Revenues increased by 8.4% to €19.1 million while operating costs (net of other income) dropped by 2.8% to €19.2 million. RS2 recorded a pre-tax loss of €0.29 million compared to a loss of €2.25 million in the same period last year. In their commentary, the Directors referred to the major processing outsourcing agreement with one of the largest acquirers in the US, which was announced in January 2024. The Board explained that due to circumstances outside of the Group’s control, this project is currently on hold by the client. The Directors reported that they have no visibility on whether the project may re-start as the decision rests entirely within the client’s discretion. Nonetheless, the Group has not experienced any credit losses from this project and has received all payments for works carried out.

Malita Investments plc slumped by 4.0% to the €0.48 level on two trades totalling 13,950 shares. Last Wednesday, Malita published its interim financial statements for the six-month period ended 30 June 2024. Revenues grew by 5.1% to €4.92 million which filtered through a 4.4% increase in operating profit to €4.32 million. Meanwhile, the financial performance of Malita was dented by a fair value decrease of investment property of €8.69 million in contrast to a positive movement of €7.30 million recorded in the first half of 2023. The net loss for the period under review amounted to €3.62 million compared to a profit of €10.4 million in the first half of 2023. As at 30 June 2024, the net asset value per share stood at €0.908. The Directors declared a net interim dividend of €0.0086 per share, virtually unchanged from the previous year but reflecting a higher payment in absolute terms in view of the additional shares subscribed through the Rights Issue. The dividend is payable on Wednesday 2 October 2024 to all shareholders as at the close of trading on Monday 9 September 2024.

Malta International Airport plc closed unchanged at the €5.95 level over three deals totalling 2,901 shares.

Santumas Shareholdings plc held the €1.30 level over trivial volumes.

Today, International Hotel Investments plc published its interim financial statements covering the six-month period ended 30 June 2024. Revenues increased by 8.7% to a record (at interim stage) of €135.6 million compared to €124.7 million in H1 2023 as the Group saw an improvement in revenue from most of its hotels. On the expenditure side, operating costs (net of exchange gains/losses) decreased by 3.9% to €125.8 million driven by higher direct costs and marketing expenses. As a result, operating profit improved to €9.76 million compared to €3.71 million recorded in the corresponding period last year. EBITDA for the period amounted to €22.9 million (H1 2023: €18.7 million) which translates into an improved EBITDA margin of 16.9% (H1 2023: 15.0%). Meanwhile, interest expenses increased markedly to €21.7 million compared to €17.3 million in the same period last year. Furthermore, IHI registered net exchange losses on borrowings amounting to €1.11 million, compared to a loss of €1.60 million in the first half of 2023. The Group’s loss before tax amounted to €12.0 million compared to €14.7 million in the first half of 2023. As at 30 June 2024, the net asset value per share stood at €1.002.

MedservRegis plc also published the interim results. Revenues remained virtually unchanged at €32.2 million. On the expenditure side, total operating costs (net of other income) increased by 3.9% to €29.4 million. Consequently, the Group’s operating profit fell by 23.2% to €2.89 million compared to €3.75 million in the first half of 2023. MedservRegis reported an adjusted EBITDA of €8.07 million, which is 10% lower than the €9 million figure reported for the same period last year. This translates into an EBITDA margin of 25.0% (H1 2023: 28.1%). The Board of Directors expressed its optimistic views on achieving its 2024 forecasts. This is based on a robust pipeline of awarded contracts, timely arrival of critical materials, and positive feedback from clients. In this context, the Directors anticipate a significant increase in business volume during the second half of the year.

The RF MGS Index snapped a three-day losing streak, increasing by 0.12% to 905.447 points. Preliminary estimates released today showed that inflation in the Eurozone during August is projected to fall to a three-year low of 2.2%, dropping from 2.6% last July. Furthermore, core inflation is also forecasted to decrease to 2.8%.

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap—370 of the Laws of Malta and a member of the Malta Stock Exchange.