02/07/2025

BIZ & FINANCE WEDNESDAY | JULY 2, 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

Avangaad wins RM66.8m contract from Northport KUALA LUMPUR: Avangaad Bhd’s wholly owned subsidiary Libra Perfex Precision Sdn Bhd has secured a contract from Northport (Malaysia) Bhd worth RM66.8 million. Avangaad, formerly known as EA Technique, is a marine transportation and offshore storage specialist. The company secured a new five-year contract valued at RM47.9 million to provide daily charter services for three units of 50-tonne Bollard Pull Z-Peller harbour tugboats, following its successful tender bid for the tugboat services. The contract includes an optional five-year extension, potentially securing up to a decade of recurring revenue and showcasing Avangaad’s long-term earnings visibility and order book strength. Simultaneously, the group’s three existing 40-tonne Z-Peller harbour tugboats have been awarded a further two-year service extension from Northport, estimated at RM18.9 million. Avangaad executive director Datuk Mubarak Hussain Akhtar Husin said these contract awards are a clear and robust endorsement of Avangaad’s proven capability in delivering consistently high standards of service and reliability in marine operations. “While we continue to maintain a presence in offshore storage, the newly secured contracts emphasise our expansion into non-oil and gas sectors. “More importantly, they reiterate our potential to penetrate broader market segments and grow our base of recurring income,” he said in a statement yesterday. He added that these new and extended contracts come on the heels of Avangaad’s successful upliftment from Bursa Malaysia’s Practice Note 17 status, showcasing Avangaad’s sustained turnaround and strong market confidence. – Bernama

Ringgit rises on improved sentiment, weaker dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit closed higher against the US dollar yesterday, supported by improved sentiment towards emerging market currencies amid a weaker greenback. At 6pm, the local note rose to 4.1995/2005 versus the greenback from Monday’s close of 4.2060/2130. SPI Asset Management managing partner Stephen Innes said the US dollar’s status as a default safe-haven currency is increasingly being reassessed, prompting investors to explore opportunities in regional currencies such as the ringgit. “The current low-volatility environment is encouraging greater risk appetite, particularly for emerging market currencies. “Notably, the ringgit, often considered a regional laggard, is breaking through key technical resistance levels despite Malaysia offering comparatively lower yields than some other emerging market peers,” he told Bernama. At the close, the ringgit traded lower against a basket of major currencies. It depreciated against the Japanese yen to 2.9351/9389 from 2.9156/9206, eased versus the British pound to 5.7797/7866 from 5.7597/7693, and fell against the euro to 4.9566/9625 from 4.9290/9372 on Tuesday. The local note was traded mixed against its Asean counterparts. It strengthened against the Indonesian rupiah to 258.9/259.4 from 259.0/259.5 and rose against the Philippine peso to 7.45/7.46 from 7.46/7.48 previously. However, it shed vis-à-vis the Singapore dollar to 3.3015/3059 from 3.2986/3034 and shrank against the Thai baht to 12.9363/9585 from 12.9356/9627 on Tuesday.

1 US Dollar

4.2595 2.8170 3.3490 3.1250 5.0260 2.6040 3.3490 5.8560 5.4110 3.5280 59.8100 69.0600 54.8000 5.0500 0.0271 2.9670 43.3600 1.5300 7.6700 118.0600 114.7200 24.9300 1.4600 46.4600 13.7200 117.2500 N/A

4.1245 2.7010 3.2500 3.0400 4.8620 2.5080 3.2500 5.6670 5.1780

4.1145 2.6850 3.2420 3.0280 4.8420 2.4920 3.2420 5.6470 5.1630

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

111.1300 3.3070 57.2700 63.5300 52.0500

110.9300 3.1070 63.3300 51.8500 4.5400 0.0195 2.8610 39.6700 1.2300 7.0200 111.8700 108.7000 22.3100 1.1400 42.0900 11.7600 N/A N/A

4.7400 0.0245 2.8710

N/A

39.8700 1.4300 7.2200 112.0700 108.9000 22.5100 1.3400 42.2900 12.1600

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

Sunway Bhd Buy. Target price: RM5.31

Cypark Resources Bhd Hold. Target price: RM0.94

Yinson Holdings Bhd Buy. Target price: RM4.33

July 1, 2025: RM4.79

July 1, 2025: RM0.92

July 1, 2025: RM2.39

Source: Maybank Investment Bank

Source: Maybank Investment Bank

Source: Maybank Investment Bank

WE deem Yinson’s Q1'26 results to be within expectations as the group’s FY26’s earnings are likely to be backloaded in 2H’26 after FPSO Agogo’s first oil in August 2025. Yinson booked a Q1’26 core net profit of RM126 million (+13% QoQ, -42% YoY). We deem the results to be within expectations at 19%/20% of ours/consensus full-year FY26 estimates respectively as Yinson’s earnings are likely backloaded in 2H'26 after FPSO Agogo’s first oil in August 2025. Note that FPSO Agogo’s completion rate stands at 90% as at end-April 2025. Also, due to early delivery and possibly first oil for FPSO Agogo, Yinson is also likely eligible for “bonus” payments in 2H'26 – which could boost earnings. The successful hook-up and first oil of FPSO Agogo would be a catalyst, in our view, as Yinson would de-risk itself from construction, execution, cost-overrun and delivery risks. The additional cash flows post-FPSO Agogo’s bareboat charter rates would be helpful in paring down project debts. Also, any new FPSO job win would be positive, should the project’s upfront payment (by end-client) be sizeable enough to ease Yinson’s balance sheet position. We believe that the FPSO market is robust with a robust global tender pipeline of up to 13 awards over the next 12 months (source: Energy Maritime Associates). Yinson could be bidding for 1 new job in FY26 in the mid-sized segment (50-200 kboepd) for projects with high upfront payment from end-clients. We continue to like Yinson’s prospects as the FPSO subsegment is currently on an upcycle due to the increasing deepwater & ultra-deepwater investments, and ESG initiatives. BUY with RM4.33 TP. – Maybank Investment Bank, July 1

WE are positive on SWB’s latest land acquisition in Rawang for its attractive pricing. The land, which is adjacent to its existing land (245 acres) there, will be developed into an industrial park to be launched by FY28. Via its 70%-owned subsidiary, Sunway Rawang City S/B, SWB has entered into a SPA to acquire 99.6 acres of freehold land in Kuang from Teik Sing Realty Sdn Bhd for RM65.1 million cash (or RM15 psf). The new site, which will be developed into an industrial tech park, is expected to generate an additional RM700 million in GDV. Combined, the total GDV for the industrial park will be RM2.7 billion. While the land cost of RM15 psf (post-conversion: RM18.7 psf) is 39% higher than the cost of the earlier 245-acre parcel, it remains comparable to current asking prices of RM17 psf (agricultural) to RM28 psf (industrial) in the Kuang area. Post-conversion, we estimate the combined land cost to be around RM225 million (RM15psf), accounting for just 8% of the total combined GDV. Sunway plans to develop a comprehensive industrial ecosystem comprising factories, warehouses, and commercial spaces, supported by smart technologies and sustainable planning. There are several risk factors to our earnings estimates and TP for Sunway: 1) slower-than-expected property sales and longer-than expected downturn in the property sector; 2) delay in obtaining necessary approvals for its property projects; 3) slower progress billings and construction work pace; 4) higher raw material costs; and 5) labour shortage that hit its construction and hotel operations. BUY with RM5.31 TP. – Maybank Investment Bank, July 1

CYPARK reported a core net loss of RM27.8 million in Q4’25 (vs. - RM27 million in Q4’24), broadly unchanged YoY, as continued WTE losses offset stronger renewable energy (RE) contributions. FY25 results were in line with our estimates (100%), and slightly below consensus loss (104%). Headline Q4’25 PAT of RM7.8 million was driven by a one-off provision reversal of RM30 million. Revenue fell 66% YoY to RM19.1 million due to accounting adjustments related to the Hospital Rawang project. FY25 core net loss widened to RM108.3 million (FY24: –RM48.4 million), dragged by continued losses in the WTE segment and completion of Hospital Rawang project. RE segment led performance with FY25 revenue up 20% YoY to RM103 million, driven by the full-quarter contribution from the 172MWp LSS3 project. Construction & Engineering revenue plunged 94% YoY due to the completion of Hospital Rawang project. WTE losses narrowed YoY, but remained a drag, posting a RM56.5 million LBT for FY25 (FY24: -RM61.6 million). Cypark’s medium-term prospects remain encouraging, supported by the RE and WTE space. Key near-term catalysts include: (1) the refinancing of RM1 billion solar and WTE-related debt by end-Jun 2025, which could reduce borrowing costs by ~20%, and (2) full-year earnings contributions from its LSS3 asset. Longer term, potential upside may come from the proposed phase 2 expansion of the WTE plant—expected to double waste processing capacity and extend concession lifespan, thereby lowering D&A. HOLD with RM0.94 TP. – Maybank Investment Bank, July 1