22/07/2025

BIZ & FINANCE TUESDAY | JULY 22, 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

Malaysia poised to become major healthcare hub: MBSB KUALA LUMPUR: Malaysia is poised to become a major healthcare hub, driven by quality care, advancing technologies, and the growth of the hospitality sector, said MBSB Investment Bank Bhd (MBSB IB). In a note yesterday, the bank said that the healthcare sector is undergoing a transition due to evolving national healthcare needs. “Malaysia is progressing from a developing to a high-income nation, and its healthcare system is grappling with the complexities that accompany this shift. “The epidemiological transition from communicable to non communicable diseases, coupled with an ageing population, reflects a maturing society that now faces diseases of affluence and lifestyle,“ it said. MBSB IB noted that challenges are no longer merely about basic access, which has largely been achieved in Peninsular Malaysia, but now concern quality, efficiency, equity, and sustainability amid rising costs and demand. Malaysia is not rigidly adhering to a single ideological model – whether fully public or private – but is instead adopting a pragmatic, dual-tier system with increasing public-private partnerships, it said. The bank said strong government support forms the backbone of the sector. “Malaysia is also leveraging healthcare as an economic engine. Beyond providing care for its citizens, the country actively promotes itself as a leading healthcare destination. “As of writing, Malaysia has been named the number one destination for medical tourism, generating over RM2 billion in annual revenue on average, with over 1.3 billion foreign patients seeking treatment and surgery at local facilities,” it said. – Bernama

Ringgit extends gains on Japan political uncertainty THE ringgit extended its gains against the US dollar at yesterday’s close, as the greenback struggled to appreciate amid political uncertainties in Japan, said an analyst. At 6pm, the ringgit rose to 4.2320/2365 against the greenback, compared to Friday’s close of 4.2410/2455. SPI Asset Management managing partner Stephen Innes said the ringgit trended higher, supported by the election setback for Japan’s Prime Minister Shigeru Ishiba’s coalition, which did not trigger broader market volatility. “The absence of contagion allowed Asian and other emerging market currencies, including the ringgit, to edge higher and strengthen modestly,” he told Bernama. Bank Muamalat chief economist Dr Mohd Afzanizam said the ringgit strengthened as the US Dollar Index fell 0.13% to 98.268, with major currencies like the euro, yen, and pound gaining against the dollar. At the close, the ringgit was traded mostly higher against a basket of major currencies. It strengthened against the British pound to 5.6954/7015 from 5.6999/7060 and advanced versus the euro to 4.9277/9330 from 4.9336/9388 at Friday’s close. However, it fell against the Japanese yen to 2.8612/8644 from 2.8517/8549. Meanwhile, the local note rose vis-à-vis the Singapore dollar to 3.2990/3028 from 3.3027/3065, and gained against the Thai baht to 13.0754/0954 from 13.3027/3065. Additionally, the ringgit appreciated against the Indonesian rupiah to 259.2/259.6 from 260.2/260.6 and edged up versus the Philippine peso to 7.40/7.41 from 7.41/7.43 previously. – Bernama Globetronics Technology Bhd Not Rated

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.3110 2.8190 3.3510 3.1360 5.0150 2.5790 3.3510 5.7850 5.4130 3.6090 60.4200 68.8700 55.4900 5.0800 0.0274 2.8990 43.4800 1.5400 7.6700 119.4000 116.0200 25.2100 1.4700 46.0800 13.8900 118.6600 N/A

4.1690 2.7000 3.2460 3.0450 4.8440 2.4800 3.2460 5.5900 5.1730 3.3670 57.7600 63.2500 52.6200 4.7600 0.0247 2.8010 39.9200 1.4400 7.2100 113.3400 110.1400 22.7400 1.3500 41.7000 12.2900 112.3000 N/A

4.1590 2.6840 3.2380 3.0330 4.8240 2.4640 3.2380 5.5700 5.1580

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

112.1000 3.1670 63.0500 52.4200 4.5600 0.0197 2.7910 39.7200 1.2400 7.0100 113.1400 109.9400 22.5400 1.1500 41.5000 11.8900 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

Samaiden Group Bhd Buy. Target price: RM1.44

Consumer Products Neutral

JULY 21, 2025: RM1.27

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

GROWTH numbers could moderate in Q2’25, particularly for the retailers following a solid start in Q1’25 that was aided by the earlier AidilFitri timing. Looking beyond the immediate term, we foresee consumer sentiment staying soft, impacted by elevated inflationary pressures as well as uncertain economic and income outlook stemming from global trade tensions. As such, inflation-weary consumers will continue to spend selectively, prioritising essential purchases and bargain-hunt for value hence capping discretionary spending. Meanwhile, all eyes will be on the imminent implementation of petrol subsidy rationalisation later this year to gauge if the actual impact on consumer spending will be restricted. Amidst the rising operating cost environment (sales & service tax (SST) expansion, electricity tariff revision, EPF contributions for foreign workers), we doubt the companies will be able to fully pass on the additional costs considering the demand elasticity and anti profiteering regulation in place. Hence, margin trends could turn subdued, particularly for retailers (AEON, Padini, Mynews, Focus Point) unless there are significant efficiency gains to offset the impact. On the other hand, things are turning more favourable for food manufacturers (Nestle, Farm Fresh, Power Root) as easing commodity prices and strengthening of the ringgit should translate to a more promising margin outlook ahead. We prefer defensive and liquid large-cap names – MRDIY and 99SMART – for their entrenched position to capture consumer spending and reasonable valuations vs consumer staple peers. We believe they can better mitigate opex inflation owing to their dominant market share, massive scale of operations and established brand equity. – RHB Research, July 21

WE are ceasing coverage on Globetronics Technology due to a reallocation of internal resources. We view GTB’s acquisition of Mpire Global (Mpire) negatively, given the lack of clear synergies between an OSAT player and Mpire’s core businesses in property construction, development, and fleet management solutions. Furthermore, the acquisition valuation appears unattractive, as Mpire recorded losses over the past four years. GTB acquired 277.2 million ordinary shares in Mpire, representing a 30.85% stake, at RM0.11/share. It also purchased 135.6 million Warrants C (45.3% of total Warrants C) and 26.1 million Warrants C (8.7% of total Warrants C) via off-market and open-market transactions at RM0.09/warrant. Notably, Warrant C is currently out-of-the-money with an exercise price of RM0.15 and expires on May 31, 2030. These acquisitions were fully funded via internal resources. The purchase price of RM0.11/share translates into a steep 4.6x P/BV multiple, based on Mpire’s book value of RM21.5 million as at March 31, 2025. Additionally, GTB has invested RM15 million in undisclosed quoted securities over the past 12 months. In total, these investments amount to RM60.1 million – equivalent to 19.5% of GTB’s latest consolidated net assets. Mpire was listed on the Main Market of Bursa Malaysia under the Consumer Products & Services sector. The company and its subsidiaries are involved in property construction and development, as well as fleet management services. Its offerings include motor vehicle trading and leasing, integrated fleet management solutions, after-sales support, and financing services for both consumer and commercial clients. – RHB Research, July 21

WE reiterate our positive stance on Samaiden’s outlook following its latest win of three new bioenergy assets, which reinforce the group’s strong position in the renewable energy (RE) space. Samaiden, through its subsidiaries Legasi Green Resources (88% stake), Sumas Energy (51%), and SC Green Solutions (100%), has been shortlisted under the Feed-in Tariff (FiT) 2.0 programme by Sustainable Energy Development Authority (Seda) Malaysia. The group won two biomass plants with 5.5MW and 11MW installed capacity and one biogas plant with 1.5MW installed capacity. The power purchase agreement (PPA) spans 21 years, with FiT 2.0 structured in two phases – a fixed FiT rate for the initial 10 years, followed by a competitive bidding mechanism within a tariff floor and ceiling set by Seda for the remaining 11 years of the renewable energy power purchase agreement (RePPA). We maintain our earnings estimates for now, pending more details as Samaiden is still fine-tuning its costing (plant capex is generally at RM10-12 million per MW) and funding structure for this new facility. Our back-of-envelope calculations suggest that the three plants could contribute RM11 million in annual earnings to Samaiden, based on the group’s effective stakes in the respective projects, and could potentially be valued at around RM0.38/share. Management is guiding for a high single-digit to low double-digit IRR. These projects are expected to be energised as early as 2028. Meanwhile, its previously secured 7MW biomass project is pending approvals from relevant authorities. BUY with RM1.44 TP. – RHB Research, July 21