27/05/2025

BIZ & FINANCE TUESDAY | MAY 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

FGV receives unconditional takeover offer from Felda KUALA LUMPUR: FGV Holdings Bhd has received an unconditional voluntary takeover offer from the Federal Land Development Authority (Felda), which seeks to acquire all remaining shares in the company not already under its control. In a notice issued by Maybank Investment Bank Bhd on behalf of Felda, the offer proposes a cash consideration of RM1.30 per share for all outstanding ordinary shares of FGV not currently held by Felda. As of May 20, 2025, FGV’s total issued share capital stood at RM7.02 billion, comprising 3.64 billion ordinary shares and one special share held by the Minister of Finance (Incorporated). Felda currently owns 69.50% of FGV’s equity, amounting to 2.53 billion shares. With this new offer, Felda and its parties acting in concert (PACS) collectively hold a controlling stake of 86.93% in the plantation and agribusiness giant. The PACS include Felda’s wholly owned subsidiary, Felda Asset Holdings Company Sdn Bhd, together with the Pahang state government. Other PACs include Koperasi Kakitangan Felda Malaysia Bhd, whose board consists of Felda management, as well as Sulong Jamil Mohamed Shariff and his wife, Salina Samsudin. The offer would be formally presented to shareholders via an offer document, which outlines the terms, conditions and acceptance procedures. “This document, along with the relevant forms, will be dispatched once the Securities Commission confirms that it has no further comments on its contents,” it said. The move signals Felda’s continued efforts to consolidate control over FGV, following previous strategic manoeuvres to increase its stake in the company. – Bernama

Ringgit gains against dollar amid sudden US policy shifts THE ringgit continued its upward momentum to close higher against the US dollar yesterday as sudden shifts in American trade policies and growing concerns over the US fiscal policy pushed the US dollar index (DXY) lower. At 6pm, the local note rose to 4.2155/2220 versus the US dollar from last Friday’s close of 4.2285/2345. Meanwhile, US President Donald Trump’s decision to postpone the planned 50% tariffs on European Union (EU) goods to July 9 gave both sides more time to reach a deal. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said concerns over the US economy are gaining traction as higher US Treasury yields would likely significantly impact the US economy. “The next thing to watch is whether the ‘One Big Beautiful Bill’, which is seen as likely to result in a wider fiscal deficit, will be passed by the US Senate. “For now, the view of US fiscal position is rather negative as reflected by the rise in US Treasury yields and the US dollar outlook,” he told Bernama. The ringgit gained vis-à-vis the euro to 4.7972/8046 from 4.7985/8053 last Friday. However, it fell against the British pound to 5.7175/7263 from 5.7072/7153 and slid marginally versus the Japanese yen to 2.9506/9553 from 2.9502/9546. The local note improved against the Singapore dollar to 3.2826/2879 from 3.2891/2940 last Friday, strengthened against the Thai baht to 12.9231/9466 from 12.9744/13.0012, and advanced vis à-vis the Philippine peso to 7.60/7.62 from 7.65/7.66. The ringgit also rose against the Indonesian rupiah to 259.4/259.9 from 260.7/261.1.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2690 2.7990 3.3250 3.1090 4.8690 2.5740 5.7960 5.2310

4.1360 2.6860 3.2290 3.0260 4.7120 2.4790 5.6130 5.0110 3.3380 57.3700 61.5700 52.3000 4.7800 0.0246 2.9010 39.8900 1.4400 7.3900 112.3600 109.1700 22.4300 1.3500 42.2000 12.1900 111.4200 N/A

4.1260 2.6700 3.2210 3.0140 4.6920 2.4630 5.5930 4.9960

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

3.3250

3.2290

3.2210

117.5000 3.5840 59.8900 66.9000 55.0300 5.0900 0.0272 2.9970 15.3000 43.5200 1.5300 7.8400 118.3500 115.0000 24.8300 1.4600 46.3500 13.7400

111.2200 3.1380 57.3700 61.3700 52.1000

4.5800 0.0196 2.8910

N/A

39.6900 1.2400 7.1900 112.1600 108.9700 22.2300 1.1500 42.0000 11.7900

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

Time dotCom Bhd Neutral. Target price: RM5.10

Focus Point Bhd Buy. Target price: RM1.05

Petronas Dagangan Bhd Neutral. Target price: RM18.90

May 26, 2025: RM0.78

May 26, 2025: RM5.21

May 26, 2025: RM19.10

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

PETRONAS Dagangan’s 1Q25 results came in within expectations with better bottomline driven by lower opex despite weaker sales volume. That said, we remain cautious on its outlook, as the share price overhang may persist pending uncertainties over the impending implementation of RON95 subsidy rationalisation starting in 2H25. At 29% and 28% of our and Street full-year estimates, PETD’s 1Q25 core earnings of MYR295m (+19% QoQ; +29% YoY) came in within expectations. A first interim DPS of 20 sen was declared (1Q24: 18sen). 1Q25 revenue inched up by 1% QoQ on higher ASPs (+3%) masking lower sales volumes (-3%). Core earnings further strengthened at 19% QoQ on lower operating expenditure. YoY wise, 1Q25 core profit also improved by 29% on the back of stronger commercial segment (+49%; higher gross profit from diesel and Jet A1 and lower opex), offsetting weaker retail (-3%; , lower gross profit from reduced demand for diesel and mogas). PETD’s retail sales volume fell 11% YoY on lower diesel sales, but its commercial sales volume increased by 13% YoY in 1Q25. The convenience segment also continued to deliver better profitability (+40% YoY) in 1Q25, driven by lower opex despite flattish Petronas shop merchandise sales. The government remains committed to implementing the RON95 subsidy rationalisation in 2H25, with an announcement from Finance Ministry expected in the near term - it is still expected to provide subsidies for 85% of the population. However, the latest news reported that Prime Minister Datuk Seri Anwar Ibrahim disagreed with the Cabinet proposal of the fuel price hike and suggested that the subsidy removal should apply to foreigners instead. Depending on the implementation mechanism, we do not discount the possibility of this having a negative impact on retail sales volume. Keep NEUTRAL, with new RM18.90 TP. – RHB Research, May 26

FOCUS Point’s 1Q25 results met expectations, supported by solid SSSG and improved GPM. We like the company for its steady expansion, effective marketing initiatives, continued penetration into the corporate optical segment, and improving traction in the F&B business. We believe the current single-digit valuation offers investors attractive exposure to an underappreciated market leader with strong brand equity and solid business fundamentals. 1Q25 net profit of MYR7.8m (+4.9% YoY) met 21% and 20% of our and consensus full-year forecasts. We deem the results to be within expectations, given the anticipation of stronger quarters ahead due to seasonality. First interim DPS of 1.75 sen (1Q24: 1.75 sen) was declared and will go ex on 9 Jun - within expectations. YoY, 1Q25 revenue rose 6.8% to MYR72.9m, underpinned by the opening of three new optical stores (total: 202 outlets), while SSSG was in the mid- to high-single digits. 1Q25 GPM expanded by 1ppt YoY to 66.5%, driven by better terms with suppliers on higher optical sales volume, along with improved contribution from Komugi. 1Q25 PBT increased 6.1% YoY to MYR10.6m, although the F&B segment slipped into the red (-MYR0.7m vs -MYR0.1m in 1Q24), mainly due to the earlier timing of Ramadan. QoQ, 1Q25 revenue declined 12.6% due to softer seasonality following the festive and long holiday period. Consequently, 1Q25 net profit fell 15% QoQ to MYR7.8m, despite a 6ppt improvement in GPM, as promotional activities in the optical segment normalised after 4Q24. Focus Point aims to further strengthen its brand equity through effective marketing initiatives, including 10 planned roadshows in FY25. The group also plans to open 10 new optical outlets. Keep BUY and RM1.05 TP. – RHB Research, May 26

TIME dotCom’s results were in line. The key standouts were retail fibre footprint expansion and tight cost controls, while the cloud (VMWare) business shrank further. We see the stock’s risk-reward profile as balanced, following the strong price run over the past three months. We raise our TP slightly after adjusting our ESG score, following the release of its Scope 1 and 2 metrics. 1Q25 core PATAMI of MYR117.9m dipped QoQ (+3% YoY) on lower core EBITDA and revenue seasonality, partially offset by a lower tax expense. This tracked in line, at 25% and 24% of our and consensus full-year forecasts. Cloud and other solutions revenue (9% of revenue) remained under pressure, being down 22% YoY (-25% QoQ) as AVM Cloud (67% subsidiary) continued to grapple with the conversion of VMWare into a subscription model following Broadcom’s acquisition in 2023. Wholesale revenue also declined for three straight quarters, with management attributing it to some cyclicality. The retail segment remained the bright spot, on stable ARPU - with growth led by the expansion into new areas (+0.1m fibre premises passed during the quarter to 1.9m). The data centre (DC) business held under AIMS Group (30% stake) narrowed QoQ after the high 4Q24 base. The continued expansion of TDC’s retail fibre footprint (typically 0.2-0.3m new premises added pa) should continue to drive fibre revenue growth, but management noted existing areas/markets are seeing market saturation due to stiff competition from mobile network operators. While multi-dwelling units remained its stronghold, TDC has made good inroads into single-dwelling units (SDU) with 50% of new fibre premises added coming from SDU. Keep NEUTRAL, TP adjusted to RM5.10. – RHB Research, May 26