06/03/2025

BIZ & FINANCE THURSDAY | MAR 6, 2025

20

MARKETS/FROM THE BROKERS

SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors.

DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shall not be liable or responsible for any consequences resulting from usage of the information.

[ Compiled by SunBiz Team

Ringgit surges against dollar on fresh global risk appetite THE ringgit surged against the US dollar yesterday, riding the wave of broad greenback weakness and renewed global risk appetite, said an analyst. At 6pm, the domestic unit was significantly higher at 4.4270/4320 against the US dollar from 4.4635/4680 at Tuesday’s close. SPI Asset Management managing partner Stephen Innes noted that the greenback is losing steam fast, as weaker US economic data fully offset any negative impact from tariffs, allowing traders to reprice growth expectations and shift into regional currencies such as the ringgit. “Adding to the bullish momentum, China’s National People’s Congress outcome was taken favourably. While not groundbreaking, Beijing’s decision to maintain its 5% growth target provided a steady hand for Asian markets, reinforcing stability across regional assets,” he told Bernama. Innes said Germany’s large stimulus package has impacted global markets, especially in export-driven economies like Malaysia, which could benefit from higher European demand. Meanwhile, the ringgit was traded mostly lower against major currencies. It was lower against the British pound to 5.6825/6889 from 5.6789/6846 on Tuesday, fell against the euro to 4.7409/7462 from 4.6916/6963 but rose against the Japanese yen to 2.9614/9647 from 2.9956/9989. The local currency traded mixed against Asean currencies. It rose against the Singapore dollar to 3.3126/3166 from 3.3203/3242 and went up against the Thai baht to 13.1545/1756 from 13.1853/2057.

Income distribution of 11.4 sen per unit for PMB syariah fund KUALA LUMPUR: PMB Investment Bhd, an Islamic fund management company (IFMC) under Pelaburan Mara Bhd declared an income distribution of 11.4 sen per unit for the PMB Shariah Growth Fund for the financial year ended Feb 28, 2025, amounting to a total gross distribution of RM12,363,864.07. The Net Asset Value (NAV) per unit before the distribution was RM1.6638, adjusted to RM1.5498 after the distribution. The distribution, credited based on the ex-date of Feb 28, 2025, represents a yield of 7.02% based on the closing NAV per unit. Chief investment officer Hang Tuah Amin Tajudin stated, “The PMB Shariah Growth Fund continues to demonstrate resilience and strength, delivering an impressive five-year return of 67.47% as of Feb 28, 2025 or average of 13.49% per year over 5 years. This milestone reflects our disciplined investment strategy, which prioritises Shariah-compliant equities and strategic asset allocation to optimise investor returns. We remain committed to identifying high-potential opportunities within robust sectors, ensuring longterm sustainable growth.” PMB Shariah Growth Fund adheres to a well-defined asset allocation strategy, with 80% to 99.5% of its NAV invested in Shariah-compliant equities and equity-related securities. The remaining portion is allocated across Islamic money market instruments, Islamic deposit placements, sukuk, and other permissible Shariah-compliant investments. The fund’s portfolio is continuously reviewed to adapt to evolving market conditions, considering global, regional, and domestic economic landscapes.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.5215 2.8420 3.3710 3.1300 4.7980 2.5620 3.3710 5.7810 5.1100

4.3885 2.7270 3.2710 3.0440 4.6410 2.4680 3.2710 5.5960 4.8960 3.5300 59.8800 60.6600 55.7500 4.9300 0.0257 2.9220 38.3600 1.5400 7.5000 118.8500 115.5000 22.8300 1.4500 40.6600 12.4100 117.8500 N/A

4.3785 2.7110 3.2630 3.0320 4.6210 2.4520 3.2630 5.5760 4.8810

1 Australian Dollar 1 Brunei Dollar 1 Canadian Dollar 1 New Zealand Dollar 1 Singapore Dollar 1 Sterling Pound 1 Swiss Franc 100 UAE Dirham 100 Bangladesh Taka 100 Chinese Renminbi 100 Danish Krone 100 Hongkong Dollar 100 Indian Rupee 100 Indonesian Rupiah 100 Japanese Yen 100 New Taiwan Dollar 100 Norwegian Krone 100 Pakistan Rupee 100 Philippine Peso 1 Euro

124.3500 3.7920 62.5500 65.9400 58.6900 5.2600 0.0284 3.0190 14.8000 41.7300 1.6400 7.9600 125.2000 121.6700 25.2900 1.5700 44.6700 14.0000

117.6500

3.3300

N/A

60.4600 55.5500 4.7300 0.0207 2.9120 38.1600 1.3400 7.3000 118.6500 115.3000 22.6300 1.2500 40.4600 12.0100 N/A

100 Qatar Riyal 100 Saudi Riyal

100 South Africa Rand 100 Sri Lanka Rupee 100 Swedish Krona

100 Thai Baht

Source: Malayan Banking Bhd/Bernama

KPJ Healthcare Bhd Buy. Target price: RM3.00

Allianz Malaysia Bhd Hold. Target price: RM22.40

TH Plantations Bhd Hold. Target price: RM0.58

March 5, 2025: RM0.595

March 5, 2025: RM2.78

March 5, 2025: RM18.54

Source: Maybank Investment Bank

Source: Maybank Investment Bank

Source: Maybank Investment Bank

TO recap, Allianz did not announce a final DPS with its Q4’24 results. Even so, we still expect the group to declare one, probably in June, to be approved during its AGM then. Given its strong results, we think that the group is in a position to at least sustain its Q4’23 quantum of 69 sen. Along with its interim DPS of 26.5 sen (31.5 sen in FY23), total DPS for FY24 would be 95.5 sen (100.5 sen in FY23) – a potential yield of 5.2%. Given prevailing earnings uncertainties, we have assumed a constant 95.5 sen DPS for subsequent years as well. Medical insurance premiums total about RM700 million. This accounts for about 18% of Allianz Life’s gross written premiums (GWP) of RM3.8 billion in FY24, and only 10% of Allianz Group’s total GWP of RM7.2 billion. Management is of the view that it is too early to gauge the financial impact of the move to cap premium increases at 10% per annum, given that the claims experience needs to be correspondingly assessed. What is of comfort is that the insurance companies are in active talks with hospitals and other stakeholders, in trying to bring down the cost of future claims. What is positive is that Allianz Life continues to see strong growth. GWP in 2024 rose 8%, with stronger growth in Bancassurance (+26.9%) and Employee Benefits (+14.5%). Its annualised new premiums rose 15.1%, which was almost double the industry’s growth pace of 8.6%, and its market share improved to 10.4% from 9.8% in 2023. New business value rose 4.6% and its Contractual Service Margin increased 8.9%. HOLD with RM22.40 TP. – Maybank Investment Bank, March 5

FY24 earnings outperformance was propelled by a surge in IP/OP volumes (+10%/+9% HoH, +7%/+2% YoY), increased average revenue per IP/OP owing to more complex case-mix (+5%/+6% YoY), and roll-out of KPJ’s centralized procurement (CP) initiative which strengthened Q4’24’s EBITDA margin to 27.1% (+7.2ppts YoY, +3.9ppts QoQ). Out of its five hospitals under gestation, four have reached EBITDA breakeven (except for KPJ Miri), and all five recorded a pre-tax improvement of +34% with FY24 LBT of RM90 million (FY23: -RM137 million) – marking steady progress towards recovery. KPJ targets +300 operational beds in FY25 as part of its long-term plan to land at 6,000 beds by FY30 (3,847 beds @ end-FY24) in support of growing patient demand (FY24 BOR: 69% vs. FY23 BOR: 67%). This two-pronged strategy to enhance revenue intensity will be supported by the CP initiative, where >85% of its 29 hospitals are already onboarded. We expect FY24’s strengthened EBITDA margin of 24% (+1.7ppts YoY) to remain resilient into FY25-27. Additionally, KPJ’s robotic-enhanced surgical capabilities and quality of care remains attractive to foreign patients (FY24 MT revenue: RM232 million, +22% YoY) especially for its key hospitals in Klang Valley (Ampang Puteri, DSH2) and Johor (within JS-SEZ). We like KPJ’s COE and hub-and-spoke model as it allows for consolidation of specialized medical services/expertise and niche critical infra in its key hospitals, reducing duplication of high-cost medical equipment and encourages efficient patient flow. KPJ has also embarked on a DRG casemix analysis exercise to improve its operational efficiency as it gears up for the potential implementation of DRG in the mid-to-longer term. BUY with RM3.00 TP. – Maybank Investment Bank, March 5

Q4’24 headline PATMI of RM26 million (+215% YoY, +51% QoQ) was, in part, lifted by net FV gain on biological assets & forestry (RM11 million) and unrealised FX gain (RM4 million). Adjusted, Q4 core PATMI of RM14 million (-2% YoY, -27% QoQ) brings 12M’24 core PATMI to RM45 million (+162% YoY), just 85% of our forecast. The earnings shortfall was due to lower-than-expected CPO ASP achieved in Q4’24 of RM4,345/t (vs. MPOB CPO ASP of RM4,840/t). The sharp drop in Q4’24 FFB output (-14% YoY, -11% QoQ) also contributed to earnings pressure. We estimate its 12M’24 all-in cost-to-customer at RM2,769/t (-4% YoY). THP managed to have substantially completed its full-year fertiliser plan for FY24. 12M’24 FFB output (+3% YoY) was 98% of our full-year FFB forecast due to slowing output towards year end. Heavy rainfall and flash floods affected some of its estates’ operations in early 2025. In Jan 2025, THP reported a 16% YoY decline in FFB output (-23% MoM). Although THP targets a 15% YoY FFB growth for FY25, we have only imputed a +5% YoY growth for FY25. Following subdued Q4’24 results, we have cut our FY25/26 core PATMI forecasts by 14%/20% respectively on slightly lower CPO ASPs (-1%) and higher unit cost to account for higher-than expected minimum wage cost guidance. We introduce our FY27E PATMI forecast. THP proposed a final DPS of 3sen (ex-date: April 4). THP’s key catalyst remains the speed of its deleveraging exercise to improve its balance sheet position. It continues to earmark RM809 million of its assets for disposal as at end-Dec 2024. HOLD with RM0.58 TP. – Maybank Investment Bank, March 5