18/06/2025

BIZ & FINANCE WEDNESDAY | JUNE 18, 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

Pahang plans high-tech zone to woo AI and tech investments KUANTAN : The Pahang government will establish a high-tech zone in the state, dedicated to attracting companies involved in artificial intelligence (AI), automation, and big data. State Investment, Industrial development, Science, Technology and Innovation Committee chairman Datuk Mohamad Nizar Mohamad Najib said the initiative aims to draw investments from technology firms to the east coast region. “The Pahang High-Tech Zone will be developed in the Kuantan area. Should there be any changes to the location, we will make an official announcement. We also aim to attract talent in the AI sector to be part of the ecosystem and support the growth of startup companies we are nurturing in Pahang,” he added. He said this to reporters after launching the AI for Productivity Transformation and officiating the closing ceremony of the Speed GCPV (Grid-Connected Photovoltaic) programme at the Pahang Skills Development Centre yesterday. Meanwhile, Mohamad Nizar expressed hope that Pahang Skills and the Pahang Foundation would collaborate to attract companies and fresh talent in the field of AI to the state. “We in Pahang must be well-prepared to face both the opportunities and challenges that AI will bring. The state government will also explore potential incentives to encourage more AI companies to establish operations here, rather than limiting their presence to the Klang Valley or other states. He added that the state government is also exploring the development of floating solar farms, or floating photovoltaics, as part of its commitment to achieving net zero carbon emissions by 2030. – Bernama

Ringgit steady against dollar as investors remain cautious THE ringgit ended nearly flat against the US dollar yesterday as investors stayed cautious amid the ongoing military conflict in the Middle East. At 6pm, the local note stood at 4.2390/2475 versus the greenback compared to Monday’s close of 4.2370/2450. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit-greenback pair continued to trade sideways during the day. He said similarly, the US Dollar Index (DXY) remained below 100 points while Brent crude oil prices fell 0.46% to US$72.89 per barrel. He explained that although geopolitical risks have increased, the impact on financial markets remains relatively manageable, at least for the time being. “The Middle East situation will continue to be on traders’ and investors’ radar in the immediate term,” he told Bernama. At the close, the ringgit traded higher against a basket of major currencies. It rose versus the Japanese yen to 2.9271/9332 from 2.9397/9455 at Monday’s close, strengthened against the British pound to 5.7413/7528 from 5.7555/7664 on Monday, and increased vis-à-vis the euro to 4.8986/9084 from 4.9077/9170 previously. The ringgit was also stronger against its Asean peers. It edged up versus the Indonesian rupiah to 260.2/260.8 from 260.4/261.2 on Monday and rose against the Philippine peso to 7.48/7.49 from 7.51/7.53 Monday. The local currency also gained against the Singapore dollar to 3.3068/3137 from 3.3102/3167 at the previous close and firmed vis-a-vis the Thai baht to 13.0114/0443 from 13.0389/0696 previously.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.3055 2.8290 3.3590 3.1670 4.9830 2.6220 3.3590 5.8500 5.3260

4.1715 2.7150 3.2600 3.0820 4.8220 2.5250 3.2600 5.6640 5.0980 3.3660 57.7700 63.0100 52.6400 4.7700 0.0248 2.8850 41.0500 1.4500 7.2900 113.3000 110.0700 22.6100 1.3500 42.6300 12.2700 112.3900 N/A

4.1615 2.6990 3.2520 3.0700 4.8020 2.5090 3.2520 5.6440 5.0830 3.1660 57.7700 62.8100 52.4400 4.5700 0.0198 2.8750 40.8500 1.2500 7.0900 113.1000 109.8700 22.4100 1.1500 42.4300 11.8700 112.1900 N/A

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

118.5200 3.6150 60.3200 68.4800 55.4000 5.0800 0.0274 2.9810 15.7000 44.6300 1.5400 7.7500 119.3500 115.9500 25.0300 1.4700 46.8100 13.8400

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

Oil & Gas Neutral

Solarvest Holdings Bhd Buy. Target price: RM2.37

Cloudpoint Technology Bhd Outperform. Target price: RM1.22

June 17, 2025: RM0.72

June 17, 2025: RM1.80

Source: Bloomberg

Source: PublicInvest Research

Source: PublicInvest Research

CLOUDPOINT has secured the renewal of a 3-year service contract with a key FI client, valued at nearly RM20 million. Additionally, the group executed several hyperscale data centre projects with contract values ranging between RM14 million and 18 million. It also onboarded: i) a local bank for networking and cybersecurity projects, ii) a regional bank for a data centre cabling initiative, and iii) a government-linked investment company under a ServiceNow platform agreement. Operating expenses rose during the quarter, attributable to i) the full consolidation of UC (which included a partial bonus payout in January 2025), ii) one-off advisory costs linked to the proposed transfer to the Main Market, and iii) initial expenditures for the new AI-focused subsidiary. Cloudpoint’s outstanding order book remains healthy at RM110 million, with 71% expected to be recognised in FY25. The RM230 million tender book, covering the next 2 years, largely derived from repeat engagements with existing clients. Key tenders include i) technology refresh initiatives, ii) expansion of ServiceNow solutions to 3–5 new clients and enhanced modules for current clients, and iii) infrastructure projects related to hyperscaler data centres in Johor and Cyberjaya. The newly established 80%-owned subsidiary marks the group’s strategic entry into enterprise AI solutions. This includes integration of the ServiceNow AI platform such as AI agents & workload automation and new partnerships with i) Trust Decision (AI fraud detection and prevention tools for FIs and fintechs), and ii) Dynatrace (AI-based application monitoring and observability solutions). Cloudpoint is also exploring initiatives in data warehousing and data leak prevention. OUTPERFORM with RM1.22 TP. – PublicInvest Research, June 17

SINCE the start of the Trump administration, Brent crude oil prices have declined from a peak of US$82/bbl to a low of US$60/bbl, averaging US$70.7/bbl YTD. The weakness in prices has been driven by escalating trade tensions, recession fears, and persistent oversupply, prompting key agencies to revise down their price and demand forecasts. On the supply side, US production remains elevated, while Opec+ has unexpectedly tripled its planned unwinding of production cuts, signalling a strategic pivot away from price support to raising the risk of another price war. Adding to the volatility, Brent crude surged over 8% following Israel’s strikes on Iranian nuclear and military sites. However, we believe the rally is likely to be short-lived as global supply remains ample with spare capacity providing buffer against sustained disruptions. Domestically, Petronas continues to face structural headwinds, including a prolonged dispute with Petros, which has heightened regulatory uncertainty and delayed capex plans. These challenges, coupled with global oil price weakness, have weighed on the KL Energy Index, which now trades near -1 SD. Opec+ has shifted its strategy from supporting oil prices to ramping up production, even as Brent crude tumbles to US$60/bbl, a level unseen since the pandemic-driven collapse in February 2021. Saudi Arabia is leading this shift, likely pressuring its fellow members over poor compliance with production quotas. Petronas faces inevitable cost optimisation and capex deferment as tumbling oil prices continue to shrink profit margins. With Brent crude hovering around US$65/bbl, we estimate that Petronas’operating cash flow could drop to RM69.2 billion for FY25, RM33.3 billion lower than FY24. – PublicInvest Research, June 17

WE are positive on Solarvest’s major development in Brunei via its 34% stake in Seri Suria Power (B), which marks a strategic step in expanding its regional footprint. The group’s wholly-owned subsidiary, Atlantic Blue (34%), together with Khazanah Satu (30%) and Serikandi Oilfield Services (36%), has – via a JV entity – Seri Suria Power (B), signed a power purchase agreement (PPA) with Brunei’s Department of Electrical Services, Prime Minister’s Office. The JV will develop a large-scale solar photovoltaic (PV) plant with a capacity of 30MWac in Kampong Belimbing, Kota Batu, Brunei. This is set to be Brunei’s biggest national solar project. The PPA spans 25 years, with the commercial operation date targeted for end-2026. The EPCC works will be undertaken by Serikandi Solarvest, a JV between Solarvest Borneo (49%) and Serikandi Holdings (51%). Construction is expected to commence in Q3’25. This venture strengthens the group’s presence in the region, as well as enhances its recurring income base through the development and ownership of renewable energy assets. The project underscores Solarvest’s commitment to becoming a leading clean energy and green technology solutions provider across key markets. Management guided that the project’s IRR will be in line with its Malaysia-based projects, ie ranging from a high single digit to the low teens. Total capex is estimated at BND35 million, with funding structured at a 70:30 debt-to-equity ratio. Based on these parameters and Solarvest’s 34% stake, we estimate the project could contribute earnings of RM2-3 million pa. Excluding project

financing, net gearing is estimated to rise to 0.21x. BUY with RM2.37 TP. – RHB Research, June 17