27/03/2025

BIZ & FINANCE THURSDAY | MAR 27, 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 rises against dollar despite global uncertainties THE ringgit closed higher against the US dollar yesterday despite having to contend with greater uncertainties from abroad. At 6pm, the local note rose to 4.4280/4315 against the greenback from Tuesday’s close of 4.4355/4390. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said during the morning session, the ringgit versus the US dollar appreciated to RM4.4235 but fell slightly in the afternoon session to RM4.4310, gaining 0.14% compared to Tuesday’s closing. “Despite having to contend with a high degree of volatility, ringgit is deemed the third best-performing currency on a year-to date basis, rising by one per cent from the start of the year. “This suggests that traders and investors are still constructive about the Malaysian economy prospect,” he told Bernama. Mohd Afzanizam said the best-performing currency in Asia is the Japanese yen as the Bank of Japan is expected to raise their policy rates owing to prospects of higher inflation going forward. The ringgit was traded mostly higher against a basket of major currencies. It appreciated against the euro to 4.7805/7842 from 4.7908/7946 at Tuesday’s close, went up against the British pound to 5.7161/7206 from 5.7351/7396, but inched down against the Japanese yen to 2.9498/9524 from 2.9480/9503. The local note was also mostly higher against Asean currencies. It rose against the Philippine peso to 7.67/7.68 from 7.70/7.71, strengthened against the Thai baht to 13.0277/0453 from 13.0633/0813, and advanced against the Singapore dollar to 3.3104/3133 from 3.3158/3186 at the previous close. However, the ringgit was flat against the Indonesian rupiah to 266.9/267.2 from 266.9/267.3. Astro Malaysia Holdings Bhd Buy. Target price: RM0.24

Pininfarina to redesign CelcomDigi’s retail stores

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

PETALING JAYA: CelcomDigi Bhd partnered with Pininfarina, a subsidiary of Tech Mahindra, to design the interior of its newly branded CelcomDigi (CD) retail stores. Pininfarina, a world renowned Italian design house well-known for its sleek and func tional aesthetics, designed a unique interior space that enables CelcomDigi to deliver a superior customer retail experience to its customers. This is in line with the company’s aim to be the preferred one stop retail store destination for all customers’ connectivity needs. To date, this new modern concept has been applied to 52 CD Stores around the country, with more to come. In designing the stores, Pininfarina blended its use of next gen technologies and experience design with CelcomDigi’s ambitions to deliver a fresh and inspiring “one-stop” store concept that ensures customers a consistent and engaging experience across all CelcomDigi stores. Each store features modular zones that showcase the latest in technology and connectivity, reinforcing CelcomDigi’s vision as the go-to destination for 5G and AI devices, offering customers a wide range of smart devices, gaming and home entertainment to choose from. More importantly, the modern layout empowers CelcomDigi frontliners, known as CD Champions to provide personalised, customer-focused service, ensuring that every visit is tailored to meet the needs of each customer. CelcomDigi‘s chief sales and retail officer Cheng Weng Hong said that with these stores, they are redefining the retail store experience to better serve their customers’ evolving connectivity needs in today’s digital world.

1 US Dollar

4.4985 2.8480 3.3640 3.1460 4.8590 2.5860 3.3640 5.8270 5.1280

4.3655 2.7350 3.2670 3.0630 4.7030 2.4920 3.2670 5.6440 4.9130 3.5200 59.7800 61.4500 55.5800 5.0200 0.0254 2.9060 40.3800 1.5300 7.4600 118.4600 115.1000 23.0400 1.4300 42.1000 12.3200 117.5200 N/A

4.3555 2.7190 3.2590 3.0510 4.6830 2.4760 3.2590 5.6240 4.8980

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

123.8900 3.7790 62.4000 66.7600 58.4700 5.3400 0.0280 3.0010 14.6000 43.8900 1.6300 7.9200 124.7900 121.2500 25.5200 1.5600 46.2100 13.8900

117.3200 3.3200 61.2500 55.3800 4.8200 0.0204 2.8960 40.1800 1.3300 7.2600 118.2600 114.9000 22.8400 1.2300 41.9000 11.9200 N/A 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

Alliance Bank Malaysia Bhd Neutral. Target price: RM4.90

MISC Bhd Buy. Target price: RM8.34

March 26, 2026: RM7.13

March 26, 2026: RM4.64

March 26, 2026: RM0.19

Source: PublicInvest Research

Source: TA Research

Source: Maybank Investment Bank

TO recap, ABMB announced a proposed rights issue of new ordinary shares to raise gross proceeds of RM600 million. Based on an illustrative entitlement ratio of 3 rights shares for every 32 ABMB shares, in the rights issue will lead to an issuance of 145 million right shares. The entire proceeds will be allocated towards working capital as well as interest for the group’s borrowings. The pricing has yet to be fixed. The exercise is expected to complete in Q3’25. We understand that the proceeds from the proposed rights issue will be allocated to sustain ABMB’s robust loans growth trajectory (10-12% YoY) for the next 2 years. Recall that ABMB loans growth of 14.2% YoY in its latest Q4’24 results, outpaced system loans growth of 5.6%. Meanwhile, CET1 ratio is expected to improve by 1.1% to 13.5%, providing capacity for future growth. Management intends to maintain an optimum CET1 ratio of 12.5-12.8% (9M’25: 12.4%). Post rights issue, ABMB is looking for a credit re-rating to AA, which would help reduce its COF. This exercise will also provide opportunity for shareholders to participate in the growth of the group as a discounted rate. Although this would lead to an 8.5% dilution on ABMB’s FY26 27 EPS, the capital raised is expected to lift ABMB’s CET1 ratio to 13.5%, where we do not discount the possibility of higher dividend payout going forward. Although loans growth is likely to remain robust, we expect more competition within the SME segment, as the other competing banks are also eyeing to capture higher market share. In addition, the operating environment for SME businesses are becoming more challenging due to inflationary pressures which could potentially stifle their growth. NEUTRAL with RM4.90 TP. – PublicInvest Research, March 26

ASTRO’s FY25 core net profit of RM66 million came in below both ours and consensus expectations at 79.7% and 70% of full-year forecasts, respectively. Core net profit excludes RM63 million unrealised forex gain due to mark-to market revaluation of transponder lease liabilities. On our end, results were missed mainly due to higher-than-expected content costs and lower-than-expected earnings from new TV packages. Excluding exceptional items, FY25 core net profit declined to RM66 million (-63.3% YoY), weighed down by lower Pay-TV subscription revenue (-8.1% YoY), weaker adex (-16.2% YoY), and higher content costs (+4.7% YoY). YoY – Q4’25’s revenue declined 6.5% YoY to RM766 million from RM820 million, mainly due to weaker Pay-TV subscription revenue (-7.7% YoY) and adex (-15.5% YoY) amid macroeconomic headwinds and poorer business and consumer sentiment. Core net profit contracted further by 62.9% YoY to RM13 million from RM35 million, mainly due to i) higher content costs (+4.7% YoY); ii) impairment of receivables; and iii) higher net financing costs driven by unfavourable unrealised forex arising from unhedged lease liabilities. QoQ – Q4’25’s revenue increased by 2.2% QoQ to RM766 million from RM750 million, primarily attributed to an increase in adex (+16.3% QoQ) and sales of programming rights, offset by a slight decrease in Pay-TV subscription revenue (-2.1% QoQ) and lower ARPU (-0.7% QoQ). Consequently, core net profit increased from RM1 million to RM13 million despite higher content costs (+9.5% QoQ). BUY with RM0.24 TP. – TA Research, March 26

BASED on TotalEnergies’s official press release, Mero 3 has successfully achieved first oil on Oct 30, 2024. Despite recording an additional cost provision of US$150m in Q4’24, we are confident that MISC will begin on a new, clean slate for its Offshore Business Unit (OBU) segment in FY25. After Mero 3’s successful first oil, we highlight that MISC has de-risked from construction, project and delivery risks & cost overruns. Mero 3 will rake in bareboat charter rates of US$595k/day (based on our assumption) beginning Oct 30, 2024 for 22.5 years. This will boost MISC’s cash flows and could translate into a potentially a higher dividend payout from FY25, in our view. The delivery of Mero 3 should free up MISC’s balance sheet to bid for new jobs in the current global FPSO upcycle. Management has repeatedly guided over the past few quarters that it would likely collaborate with a strategic partner to share resources, capabilities and risks. MISC is a defensive name in our view, with its LT LNG, Petroleum tankers and FPSO/FSO assets that provides recurring, stable earnings & cash flows. We view MISC’s valuations undemanding at current levels, trading at a 12x of FY26 forecasts – close to its -2SD of its 5-year forward PER valuations. Our annual DPS estimate of 36 sen implies a dividend yield of 5.0%, which we believe would be supportive of MISC’s share price. There are several risk factors affecting our earnings estimates, target price and rating for MISC. Abrupt changes in the momentum of petroleum tanker rates and bunker prices may lead to lower earnings for MISC. Additionally, sharp appreciation of MYR vis-a-vis USD will also affect its earnings, as the group’s revenue is almost entirely derived in USD. BUY with RM8.34 TP. – Maybank Investment Bank, March 26