24/06/2025

BIZ & FINANCE TUESDAY | JUNE 24, 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

Local institutions maintain net buying momentum for fifth week KUALA LUMPUR: Local institutions continued their buying streak for the fifth consecutive week, with net inflows amounting to RM510.6 million compared with RM620.6 million in the previous week, said MIDF Amanah Investment Bank Bhd. However, local retailers snapped their two-week outflow streak, recording a net inflow of RM54.7 million, according to MIDF’s Fund Flow Report for the week ended June 20, 2025. Similarly, foreign investors extended their net selling streak on Bursa Malaysia for a fifth consecutive week, with net outflows totaling RM565.2 million, slightly higher than the previous week’s outflow of RM444.4 million. “The foreign investors were net sellers on every trading day, with outflows ranging from –RM52.5 million to –RM202.2 million. The largest outflow was recorded on Friday, followed by Monday with –RM130.3 million,“ said the investment bank. The three sectors which recorded the highest net foreign inflows were transportation and logistics (RM95.8 million), real estate investment trusts (RM38.4 million), and construction (RM28.9 million). Meanwhile, the sectors with the highest net foreign outflows were financial services (RM387.4 million), healthcare (RM110.0 million), and industrial products and services (RM52.9 million). In Asia, foreign investors reversed their net buying position last week, recording an outflow of -US$618.6 million, except for South Korea and India which registered net foreign inflows. MIDF noted that the average daily trading volume saw a broad based decline last week, except for foreign investors. “Local institutions and local retailers saw a decline of -13.3% and -10.9%, respectively, while foreign investors saw a surge of +24.0%,” it added. – Bernama

Ringgit lower against US dollar amid geopolitical uncertainty THE ringgit closed lower against the greenback yesterday as US involvement in the war between Israel and Iran spurred demand for safe haven assets like the American dollar, an analyst said. The United States bombed Iran’s nuclear facilities on Sunday. At 6 pm, the local note slid to 4.2915/2980 versus the greenback from last Friday’s close of 4.2505/2565. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index was 0.25% higher at 98.958 points as heightened geopolitical risks in the Middle East have led to cautious sentiments among traders. He said Brent crude prices stayed elevated as the Iranian parliament approved a measure to close the Strait of Hormuz, which will disrupt oil supplies from the Middle East if the closure actually happens, but ultimately, the decision will come down to Iran’s top leaders. “Immediately, traders and investors are observing the dynamics of the Israel-Iran standoff and whether it would escalate into a new trajectory,” he told Bernama. At the close, the ringgit traded mostly lower against a basket of major currencies. It appreciated against the Japanese yen to 2.9028/9074 from 2.9245/9289 at last Friday’s close, but slipped versus the British pound to 5.7437/7524 from 5.7356/7437 and declined vis-à-vis the euro to 4.9236/9311 from 4.9000/9069 previously. The local note was marginally lower versus the Philippine peso at 7.44/7.46 from 7.43/7.45 last Friday, and inched down versus the Indonesian rupiah to 260.2/260.7 from 259.2/259.7 previously. It also weakened vis-à-vis the Thai baht to 12.9998/13.0250 from 12.9727/9969 last Friday.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.3430 2.8100 3.3650 3.1520 4.9920 2.5960 3.3650 5.8330 5.3350 3.6320 60.8700 68.6000 55.8800 5.1000 0.0274 2.9680 44.0200 1.5600 7.7100 120.2500 116.8100 24.8900 1.4800 46.1300 13.7800 119.5800 N/A

4.1990 2.6900 3.2600 3.0600 4.8190 2.4960 3.2600 5.6330 5.0980 3.3740 58.1500 62.9800 52.9800 4.7700 0.0247 2.8670 40.3800 1.4600 7.2400 114.1600 110.8900 22.4500 1.3600 41.9100 12.1900 113.1200 N/A

4.1890 2.6740 3.2520 3.0480 4.7990 2.4800 3.2520 5.6130 5.0830

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

112.9200 3.1740 62.7800 52.7800 4.5700 0.0197 2.8570 40.1800 1.2600 7.0400 113.9600 110.6900 22.2500 1.1600 41.7100 11.7900 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

Wasco Bhd Buy. Target price: RM1.72

Sime Darby Property Bhd Buy. Target price: RM2.33

Auto & Autoparts Neutral

June 23, 2025: RM1.39

June 23, 2025: RM0.975

Source: Company data, RHB Research

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

THE Malaysian Automotive Association (MAA) reported a TIV of 68,007 units (+12% MoM, -3% YoY) in May, with total production volume (TPV) reaching 66k units (-12% YoY). The stronger sequential performance was largely expected, given the more working days post Aidil Fitri festivity. As the sector continues to face challenges amid price competition and the softening of overall consumer sentiment, we maintain our NEUTRAL call, for now. May TIV came in at 68k units (+12% MoM, -3% YoY), bringing 5M25 TIV to 316,722 units (-5% YoY). The MoM recovery was as expected given the higher number of working days vs April and delivery of vehicles booked in 1Q25. The pick-up in sales volume was mainly driven by the major marques, namely Honda (+38% MoM), Perodua (+15% MoM), and Proton (+5% MoM). Chinese car maker Chery also saw an increase of +18% MoM (mainly contributed by Jaecoo), while BYD recorded a slightly modest growth of +6% MoM. Mazda sales volume, meanwhile, slipped 14% MoM. The national carmakers’ TIV share rose to 64% in YTD May 2025 from 62% in 2024. TPV saw a 17% MoM uptick (-12% YoY) in May, in line with the increase in TIV numbers. The TPV’s MoM increase was mainly contributed by Proton (+33%), Perodua (+16%), and Toyota (+14%), but slightly offset by Honda (-6%). Based on Road Transport Department (JPJ) figures - which include non-MAA members - while BYD still leads the EV market adoption, Tesla Model Y recorded the highest units registered (985 units) in May while e.MAS 7 came second (862 units). Total EV registrations rose 69% YoY in May to 4,152 units, bringing YTD-May 2025 registrations to 13.9k units (+59% YoY), making up 4.1% of total cars registered, vs 2.5% in 2024. – RHB Research, June 23

WE view the proposed Wasco Greenergy listing as broadly positive - providing a timely opportunity to unlock value from the renewable energy segment and allowing Wasco to monetise part of its stake while retaining a controlling 62.5%. This enables value-unlocking while maintaining strategic control. Importantly, the public issue proceeds will go to Greenergy and fund its next growth phase, which could lead to a re-rating of Wasco’s shares, particularly if the IPO is priced attractively. Wasco has proposed the listing of its Greenergy subsidiary on the Main Market of Bursa Malaysia via an IPO. Ahead of this, Greenergy will acquire the remaining 40% stake in Wasco Thermal (WTSB) from Tema Energy Ventures (Tema Energy) for MYR19.3m - to be settled through the issuance of 14.4m new Greenergy shares at MYR1.34 each. Post the acquisition, Wasco’s stake in Greenergy will be reduced to 88.87% while Tema Energy will hold 11.13%. Greenergy will then undertake a bonus issue of 295.6m new shares to existing shareholders on a pro-rata basis, raising its issued share capital to 425m shares. Greenergy’s IPO will involve the offer for sale of up to 75m existing shares and a public issue of 75m new shares, representing 30% of the enlarged issued share capital. Proceeds from the new shares will support Greenergy’s expansion, including biomass projects, Indonesian operations, digitalisation, and R&D activities. Post the IPO, Wasco’s stake will dilute to 62.5%, reducing its earnings contribution, although it retains strategic control. For FY23-24, the bioenergy segment’s contribution to operating profit was 20-30%. We view the exercise as strategically sound, with successful execution and pricing key to unlocking its full value. Reiterate BUY and RM1.72 TP. – RHB Research, June 23

WE are upbeat on Sime Darby Property’s new joint industrial project at Carey Island. We believe Carey Island will be a new economic growth corridor, given the port amenities nearby, while East Coast Rail Link’s (ECRL) last terminal station will be at Port Klang. In addition, the Government also has plans for a new port at Carey Island in the future. The JV will further strengthen SDPR’s presence in the west side of the Klang Valley, as it has already established a strong foothold in Bandar Bukit Raja, Subang Jaya, and Elmina. Jointly developing Carey Island. Last Friday, both SD Guthrie and SDPR signed a JV agreement to develop up to 2,000 acres of land in Carey Island, Selangor. There were no details on the land price, GDV, and effective stake yet as the project is still at its planning stage. However, although SDG may hold a majority stake in the JV as it is the landowner, we think SDPR may play a major role in the development, given the latter’s experience and track record in industrial development. Its key flagship industrial projects are Elmina Business Park, Bandar Bukit Raja, while others include Serenia Business Park, Bandar Universiti Pagoh Industrial Park, XME Business Park, and Vision Business Park. he Sime Darby group of companies have a long track record in developing economic corridors, eg Guthrie Corridor, Subang Jaya, and now Malaysia Vision Valley 2.0. Carey Island may be a new growth corridor in the next 10-15 years. It has been identified by the Government as the new site for a world-class port due to its strategic location near Port Klang and proximity to Pulau Indah. South Klang Valley Expressway, which is integrated with the North-South Expressway provides the main road connectivity. Maintain BUY and RM2.33 TP. – RHB Research, June 23