25/06/2025

BIZ & FINANCE WEDNESDAY | JUNE 25, 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

Crest Builder wins RM233m construction deal from Sunway KUALA LUMPUR: Crest Builder Holdings Bhd’s (CBHB) wholly owned subsidiary Crest Builder Sdn Bhd has secured a RM233.3 million construction contract from Sunway Flora Sdn Bhd, a member of the Sunway Group. In a statement issued yesterday, Crest Builder Holdings Bhd (CBHB) announced that the contract pertains to the construction of the main building for the Sunway Flora 2 mixed-use development, located in Taman Mutiara, Bukit Jalil, Kuala Lumpur. “The project consists of two high-rise residential towers—one rising 41 storeys and the other 43 storeys—featuring a total of 686 serviced apartment units. It also includes five levels of elevated car parking as well as a range of recreational amenities for residents. “The construction period is expected to span approximately 36 months from the scheduled site possession date,” it said. CBHB said the latest contract brings its total outstanding order book to about RM1.7 billion, providing earnings visibility over the next four years. “It further underscores the company’s continued success in securing high-value projects from established developers, and reaffirms CBHB’s strong track record in delivering high-quality, timely construction solutions for complex urban developments,” the company said. CBHB group managing director Eric Yong Shang Ming said the contract marks the company’s second project with the Sunway Group, following last year’s Sunway Velocity 3 project, and reflects the client’s confidence in CBHB’s ability. CBHB is primarily involved in construction and property development, mechanical and electrical engineering services, and project management. – Bernama

Ringgit ends higher on easing Middle East tensions THE ringgit ended higher against the US dollar yesterday, buoyed by the apparent ceasefire in the Israel-Iran conflict, said an economist. At 6pm, the local note rose to 4.2410/2465 versus the greenback from Monday’s close of 4.2915/2980. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the de-escalation also led benchmark Brent crude oil prices to retreat to US$69.56 per barrel as risks to global oil supply appear contained for now. “Financial markets are responding with a sense of relief, and risk appetite is gradually returning. “Still, it’s early days. Investors remain cautious amid lingering uncertainties — particularly with the US tariff pause set to expire in early July,” he told Bernama. At the closing, the ringgit traded mostly lower against a basket of major currencies. It trended lower against the Japanese yen at 2.9256/9296 from 2.9028/9074 at Monday’s close, declined versus the British pound to 5.7707/7782 from 5.7437/7524, but improved against the euro to 4.9225/9289 from 4.9236/9311 previously. The local note trended higher against its Asean counterparts. It advanced vis-a-vis the Indonesian rupiah to 259.3/259.7 from 260.2/260.7 on Monday’s close and gained against the Philippine peso to 7.41/7.44 from 7.44/7.46. The ringgit also appreciated against the Singapore dollar to 3.3130/3178 from 3.3188/3243 and strengthened to 12.9793/13.0021 from 12.9998/13.0250 versus the Thai baht previously.

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

4.1990 2.6900 3.2600 3.0600 4.8190 2.4960 3.2600 5.6330 5.0980

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

119.5800 3.6320 60.8700 68.6000 55.8800 5.1000 0.0274 2.9680 15.7000 44.0200 1.5600 7.7100 120.2500 116.8100 24.8900 1.4800 46.1300 13.7800

113.1200 3.3740 58.1500 62.9800 52.9800

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

4.7700 0.0247 2.8670

N/A

40.3800 1.4600 7.2400 114.1600 110.8900 22.4500 1.3600 41.9100 12.1900

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

Magni-Tech Industries Bhd Neutral. Target price: RM2.30

Gamuda Bhd Buy. Target price: RM5.64

Mynews Holdings Bhd Buy. Target price: RM0.80

June 24, 2025: RM4.69

June 24, 2025: RM0.535

June 24, 2025: RM2.14

Source: Bloomberg

Source: Bloomberg

Source: PublicInvest Research

1H'25 results below expectations. Core profit of RM7 million (+61.3% YoY) accounted for 28% and 31% of our and consensus’ full-year estimates. The negative deviation was mainly attributed to the slower-than-expected turnaround progress at Mynews brand CU. YoY, 1H'25 revenue rose 7.8% to RM418.4 million, supported by contributions from 38 new store openings (total: 639 stores) and stronger in-store sales driven by improved product assortment. 1H'25 GPM expanded by 1ppt to 38.4%, underpinned by better wastage control, a more favourable product mix, and a higher contribution from CU, which commands better margins. QoQ, Q2’25 revenue declined 6.2% to RM202.6 million, due to weaker seasonality affected by the Ramadan period and a shorter operating month in February. Q2’25 core earnings fell 25.4% QoQ to RM3 million, impacted by weaker revenue and the food processing centre (FPC) slipping into a minor loss of RM0.4 million (vs a RM1.1 million profit in Q1’25), despite a 2.3ppt improvement in GPM from reduced promotional activities. The encouraging sales momentum is expected to sustain, driven by solid SSSG (we project low- to mid-single-digit) and the planned rollout of 80–100 new outlets, primarily under the Mynews brand. Mynews will remain the key driver of sustainable profitability, given its solid and stable performance, helping to offset CU’s ongoing losses. Additionally, higher sales volumes should enhance bargaining power with suppliers and support GPM expansion, as well as improve FPC utilisation. Meanwhile, we expect CU to reach breakeven in 2025, supported by tighter wastage control and an improved product assortment centred on high-performing SKUs. BUY with RM0.80 TP. – RHB Research, June 24

MAGNI-TECH (Magni)’s Q4'25 declined by 18% YoY to RM28.3 million, due to lower sales from the garment segment which we attribute to uncertainties from ongoing tariff-related headwinds. After adjusting for one-off items, Magni’s Q4'25 core net profit declined 3.7% YoY to RM30.6 million, after adjusting for forex loss of RM2.4 million. The garment segment saw its operating profit margin decline by 1.8 ppts likely due to lower production efficiency and higher labour cost in Vietnam. Full-year FY25 core net profit of RM142.5 million (+17.5% YoY) came in within expectations, accounting for 100% of our full-year forecast. However, we cut our FY26-27 earnings forecast by 11-15%, as we lower our sales assumption, on lower demand for sports apparel due to rising inflationary pressures which may weaken consumer spending. According to the Vietnam Textile and Apparel Association, Vietnam’s garment export value to US has surpassed China, which saw its garment and textile industry exports increase by c.9% YoY in the first 5 months. While Magni may benefit from re routing of China exports to Vietnam, we are wary over global trade uncertainties with the tariff pause drawing closer to its 90th day. This may drive up inflation, which could result in a decline in demand for premium athleisure brands. As a result, we cut our FY26-27 earnings forecast by 11-15%. Nevertheless, we remain positive on Magni’s growth in the long run, driven by increasing awareness among consumers towards health and wellness. On a side note, Magni declared a lower interim dividend of 3 sen (Q4'24: 3.3sen), bringing full-year FY25 DPS to 34.8 sen (including special dividend of 20 sen). NEUTRAL with RM2.30 TP. – PublicInvest Research, June 24

GAMUDA via the consortium Together North – comprising four other members – have been shortlisted for New Zealand’s Northland Corridor highway (NCH) covering the Warkworth to Te Hana section according to the NZ Transport Agency. Should the consortium succeed as the preferred bidder, the said project would be a good addition to GAM’s overseas construction exposure which currently covers Australia, Taiwan, and Singapore – making up 50-60% of the group’s total orderbook. There are two other consortia which have also been shortlisted for the Warkworth to Te Hana section of the NCH-Northway and Go>North. The first stage of the project includes a 26km four-lane expressway from Warkworth to Te Hana which connects to the new P Ǽ hoi to Warkworth expressway. The indicative design for Warkworth to Te Hana includes an 850m long twin-bore tunnel in the Dome Valley and three interchanges located at Warkworth, Wellsford and Te Hana. In terms of indicative project value of Warkworth to Te Hana section of the NCH, an estimated capital cost of between NZ$2.9 billion and NZ$3.8 billion was provided back in CY23 by the NZ Transport Agency. Timeline wise, the preferred bidder for the project (which is implemented using the public-private partnership model) is expected to be confirmed in early CY26. Subject to successful contract negotiations, the contract is then scheduled to be awarded in mid-CY26. The successful PPP consortia is expected to start detailed design and early construction works in late 2026. Rerating catalysts include faster-than-expected rollouts of non RE and data centre jobs such as the Perak-Penang raw water transfer project. BUY with RM5.64 TP. – RHB Research, June 24