21/07/2025

BIZ & FINANCE MONDAY | JULY 21, 2025

/thesuntelegram FOLLOW / Malaysian Paper

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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

Kenanga IB maintains Q2 GDP growth forecast at 4.5% KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga IB) has maintained its second-quarter 2025 GDP growth forecast at 4.5%, in line with the Department of Statistics Malaysia’s (DOSM) advance estimate, citing stronger performance in the services and agriculture sectors in June. The research firm stated that growth is expected to be driven by resilient, domestically oriented sectors, supported by sustained private and public expenditure, rising household incomes, and increased inbound tourism ahead of Visit Malaysia 2026. It is also expected that ongoing investment cycles and progress in major infrastructure projects, aligned with the 12th Malaysia Plan, will bolster momentum. “Additionally, the mining sector is anticipated to recover in the second half of 2025 as scheduled maintenance activities taper off, while private consumption remains firm, underpinned by stable labour market conditions and the recent cut in the Overnight Policy Rate (OPR) to 2.75%,“ Kenanga IB said in a report. The Department of Statistics Malaysia (DOSM) reported that GDP grew 4.5% in 2Q25 (1Q25: 4.4%), matching Kenanga IB’s forecast and beating Bloomberg’s 4.2% consensus, though suggesting domestic momentum may be peaking. On a quarter-on-quarter basis, GDP rebounded 1.1% (1Q25: -3.5%), slightly above the 1.0% seen in 2Q24. Growth was led by continued strength in the services sector (5.3%), supported by wholesale and retail trade, transport and storage, and business services. Agriculture expanded to a two quarter high (2%) on stronger palm oil output, while construction maintained double-digit growth (11%) for a sixth straight quarter. Full 2Q25 GDP figures will be released on Aug 15.

Ringgit rebounds to end higher against US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

KUALA LUMPUR: The ringgit rebounded from recent losses to end higher against the US dollar on Friday, supported by a better-than-expected forecast of Malaysia’s second quarter growth, which signalled that the domestic economy remains resilient amid external uncertainties. At 6 pm, the local note rose to 4.2410/2455 from 4.2465/2510 at Thursday’s close. Malaysia’s economy is forecast to grow by 4.5 per cent in the second quarter of 2025 (2Q 2025) based on advance gross domestic product (GDP) estimates, slightly outpacing the previous quarter’s 4.4%. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the recent pre emptive overnight policy rate cut by Bank Negara would likely support growth in the second half, especially as downside risks have increased. “The ringgit appeared to have gained some strength today, improving 0.13% against the US dollar,” he noted. Second quarter growth was driven by robust domestic demand, with the growth momentum sustained in April and May, with a stronger performance anticipated in June, according to the Department of Statistics Malaysia’s advance forecast today. The ringgit improved against the Japanese yen to 2.8517/8549 from 2.8548/8580 at Thursday’s close, but eased versus the euro to 4.9336/9388 from 4.9217/9269 and retreated against the British pound to 5.6999/7060 from 5.6886/6946. It slipped against the Indonesian rupiah to 260.2/260.6 compared with Thursday’s 259.8/260.2, fell against the Thai baht to 13.3027/3065 from 13.0521/0720 and traded down vis-à-vis the Singapore dollar to 3.3027/3065 from 3.3013/3051. – Bernama

1 US Dollar

4.3130 2.8200 3.3540 3.1340 5.0170 2.5750 3.3540 5.7980 5.4060 3.6150 60.4100 68.9100 55.5000 5.0900 0.0273 2.9070 43.0800 1.5400 7.6400 119.5000 116.1300 25.0800 1.4700 45.7300 13.8800 118.7200 N/A

4.1750 2.7040 3.2530 3.0480 4.8510 2.4780 3.2530 5.6090 5.1710 3.3800 57.7900 63.3500 52.6900 4.7800 0.0247 2.8110 39.5900 1.4400 7.1900 113.4400 110.2400 22.6400 1.3500 41.6100 12.3000 112.4600 N/A

4.1650 2.6880 3.2450 3.0360 4.8310 2.4620 3.2450 5.5890 5.1560

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

112.2600 3.1800 63.1500 52.4900 4.5800 0.0197 2.8010 39.3900 1.2400 6.9900 113.2400 110.0400 22.4400 1.1500 41.4100 11.9000 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

Sunway Bhd Buy. Target price: RM5.81

Property Overweight

Cloudpoint Technology Bhd Buy. Target price: RM1.13

JULY 18, 2025: RM0.79

JULY 18, 2025: RM5.06

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

Source: Hong Leong Investment Bank Research

WE like Cloudpoint Technology for its strong client profile, broad suite of solutions and vendor partnerships, and consistent financial track record. We believe it is well positioned to ride on principals’ innovation, rising artificial intelligence (AI) adoption, increasing cybersecurity sophistication, tighter regulatory compliance, and financial institutions’ (FIs) sustained digitalisation spending. CLOUDPT is one of the largest local networking and cybersecurity providers for FIs - an industry known for stable annual IT budgets. It serves four of five local Tier-1 banks, with over 90% of FY24 sales derived from FIs, some with decades-long ties. This reflects strong stickiness, cost competitiveness (vs international providers), and deep expertise in compliance-heavy, mission-critical systems, positioning the group as a trusted technology partner in a high-barrier industry. The company’s 75% acquisition of Unique Central - one of Malaysia’s top five structured cabling players - marks a strategic upstream entry into data centre infrastructure. With over 100MW of cabling works delivered, the MYR3.6-3.9m profit guarantee (for its 75% stake) in FY25-26 provides earnings uplift and positions CLOUDPT as an integrated enabler of Malaysia’s digital backbone. As enterprises accelerate investment in AI infrastructure - such as AI servers and high-performance storage - the group is strategically positioning itself to support clients in migrating from legacy systems to modern, AI-ready stacks. Initiating coverage with a BUY and RM1.13 TP – RHB Research, July 18

WE are positive with Sunway’s latest land acquisition at Lorong Chuan in Singapore, following the successful launch of the first Tengah Plantation Close project (Novo Place) in end 2024. The Lorong Chuan project is expected to have a GDV of SGD1.4 1.5bn, targeting mainly at the mid-range market segment. We think the project will be well received upon its launch in 2H26. New land in Singapore. Sunway announced that the Urban Redevelopment Authority had awarded a parcel of land measuring 15,831.5 sqm (or 3.91 acres) at Chuan Grove, Singapore at a price of SGD703.6m to Sing Holdings (SING SP, NR) and Sunway. This land has a 99-year lease term, and is planned for residential development. Both SING and Sunway will have an equity interest of 65% and 35%. Sunway will fund the acquisition via internal funds and borrowings. This new land is within walking distance to the Lorong Chuan MRT station, and only one stop away from Bishan and Serangoon MRT interchanges. Nearby amenities include NTP+ mall, Junction 8, and a number of education institutions. Assuming an ASP of SGD2,500-2,700 psf, our estimated GDV for this project is SGD1.4 1.5bn. We think the project will be well received given its location and price point, which should suit the demand from the mid range market segment. We raise our FY27F earnings by 5% as the project will be launched in 2H26. Meanwhile, FY25F-27F earnings will be underpinned by strong unbilled sales of MYR4.06bn and outstanding construction orderbook of MYR6.6bn. Maintain BUY, with new TP of RM5.81 from RM5.79. – RHB Research, July 18

MALAYSIA’S property sector remains resilient despite early-2025 headwinds from the AI chip rule and US tariffs. In the Klang Valley, KL’s high-end residential market is showing early signs of recovery, with premium projects like TA Global’s Clouthaus and E&O’s Conlay Signature Suites seeing encouraging take-up. Demand in the high-end segment often serves as a barometer of sentiment among investment-oriented buyers, particularly foreign investors. A sustained recovery could boost the sector further, as developers benefit from higher margins. In Johor, the JS-SEZ and enhanced connectivity to Singapore are driving robust demand, with developers like Sunway, Mah Sing, and UEMS planning major launches in the region. However, in the area near to RTS, rising speculative demand and a surge of high-density, investor-focused launches risk overshooting actual end-user demand and the RTS capacity, raising the potential for oversupply and price corrections. In Penang, a stronger ringgit and US trade uncertainty may dampen tech-sector incomes, thereby weighing on high-end residential demand and pressuring developers like E&O. In Negeri Sembilan, increased competition from both within the state and from Selangor is putting pressure on incumbents such as Matrix and OSK. However, the development of MVV 2.0 offers long-term upside as a cost-competitive industrial hub, which could eventually support residential demand over time. Maintain OVERWEIGHT on the sector, supported by rising incomes, policy tailwinds and Malaysia’s transition toward a high value economy. – Hong Leong Investment Bank Research, July 18