24/07/2025

BIZ & FINANCE THURSDAY | JULY 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

PHB boosts portfolio with RM247m acquisitions KUALA LUMPUR: Pelaburan Hartanah Bhd (PHB), an investment holding company under the purview of Yayasan Pelaburan Bumiputera, has acquired two prime industrial properties located in Kedah and Johor, for a total investment of about RM247 million. PHB said its first asset, located in Kulim Hi-Tech Park and purchased from Kulim Technology Park Corporation, spans 0.809ha and comprises three industrial buildings – a four-storey main building, a single-storey warehouse, and a production area – all of which are currently fully leased to Schott Glass, a global specialist in glass and materials technology. The second property, acquired from Rancak Beta Sdn Bhd, is situated in Port of Tanjung Pelepas, a key logistics hub in southern Malaysia, spanning 3.804ha and featuring a single-storey warehouse fully tenanted by Maersk, a leading global player in logistics. In a statement yesterday, group managing director and CEO Mohamad Damshal Awang Damit said both assets are high performing industrial facilities located in strategic economic zones outside the Klang Valley, offering long-term lease stability and quality tenants. “As demand for quality industrial and logistics spaces continues to rise, PHB remains focused on expanding into high value industrial corridors to optimise long-term performance and sustain attractive returns for unitholders of Amanah Hartanah Bumiputera. “These strategic acquisitions align with PHB’s goal of enhancing yield while optimising sectoral allocation within its portfolio, thereby ensuring more sustainable and robust revenue generation,” he said. – Bernama

Ringgit extends gains on bullish domestic, foreign leads THE ringgit extended its gains against the US dollar at yesterday’s close, lifted by the latest fiscal support measures announced by the government as foreign funds flocked into the local equity market, said an analyst. The local currency was also supported by optimism following the US-Japan trade deal which boosted Asian equity and foreign exchange markets across the board. At 6pm, the ringgit rose to 4.2255/2300 versus the greenback compared with Tuesday’s close of 4.2300/2370. Yesterday, Prime Minister Datuk Seri Anwar Ibrahim unveiled a new round of fiscal support measures aimed at alleviating living costs, stimulating domestic consumption and boosting household spending ahead of the upcoming National Day and Malaysia Day celebrations. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the one-off RM100 cash aid for Malaysians aged 18 and above, given through MyKad under the RM2 billion Sumbangan Asas Rahmah programme, would help support economic growth in the second half of 2025. However, the ringgit was weaker against a basket of other major currencies at the close. It slipped versus the Japanese yen to 2.8837/8870 from 2.8690/8739 at Tuesday’s close, weakened vis-a-vis the British pound to 5.7230/7291 from 5.7088/7183 on Tuesday, and fell versus the euro to 4.9586/9639 from 4.9512/9594. The local note was also easier against some regional peers. It was flat against the Indonesian rupiah at 259.1/259.5 compared with 259.1/259.7 on Tuesday’s close. However, it slid vis-à-vis the Singapore dollar to 3.3071/3109 from 3.3011/3071 on Tuesday. – Bernama

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2910 2.8270 3.3540 3.1500 5.0420 2.5850 3.3540 5.8070 5.4430 3.5880 60.1600 69.2300 55.2100 5.0500 0.0272 2.9370 43.7200 1.5300 7.6400 118.9200 115.5700 25.3200 1.4600 46.5100 13.9300 118.1300 N/A

4.1570 2.7130 3.2560 3.0650 4.8790 2.4890 3.2560 5.6240 5.2110 3.3540 57.6200 63.7000 52.4600 4.7400 0.0246 2.8420 40.2200 1.4400 7.2000 112.8900 109.7100 22.8700 1.3400 42.3500 12.3500 111.9900 N/A

4.1470 2.6970 3.2480 3.0530 4.8590 2.4730 3.2480 5.6040 5.1960

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

111.7900

3.1540

N/A

63.5000 52.2600 4.5400 0.0196 2.8320 40.0200 1.2400 7.0000 112.6900 109.5100 22.6700 1.1400 42.1500 11.9500 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

Life Water Bhd Outperform. Target price: RM0.95

Basic Materials Overweight

Pavilion REIT Buy. Target price: RM2.00

JULY 23, 2025: RM1.70

JULY 23, 2025: RM0.785

Source: PublicInvest Research

Source: RHB, Bloomberg

Source: Bloomberg

LIFE WATER is a leading beverage manufacturer in Sabah, producing drinking water and carbonated drinks. The Group is vertically integrated, engaging in plastic packaging manufacturing and operating its own delivery and distribution centres. Life Water markets its products under several brands, including K2, Sasa, Sabah Water, 2more, and TRITONiC, and also undertakes contract manufacturing for private-label drinking water supplied to petrol stations, hypermarkets, wholesalers, and hotels. Life Water currently operates 4 beverage manufacturing plants with a total annual capacity of 448m litres in Sabah. The group commands 11% share of the bottled water market in Malaysia and is recognised as a leading brand in Sabah. Life Water plans to increase its drinking water production capacity by 80% within the next 2 years, from 448m litres/annum to 804m litres/annum. This expansion will be achieved through the integration of two new production lines, including Sandakan Sibuga 1, projected to commence operations in 2H’25, and Sandakan Sibuga Plant 2, expected to commence in FY27. Life Water is poised for further growth through geographic expansion into neighbouring markets including Sarawak and Brunei. The group is also strengthening its product portfolio with the introduction of Lemony, a new variant under the 2more carbonated drinks range, and is also developing Mandak, a new line of flavoured beverages, for which ingredient sourcing is currently being finalised and planned to launch by end 2025. The group is well bolstered by Sabah’s robust tourism recovery, with arrivals rising 20.4% YoY to 3.14 million in 2024 and an elevated target of 3.5 million for 2025. Outperform with RM0.95 TP. – PublicInvest Research, July 23

WE remain positive on the outlook for aluminium smelters mainly due to easing alumina costs. LME aluminium prices have been more volatile with the imposition of US tariffs, dropping to a low of US$2,300/tonne in April, but prices have since recovered to US$2,600/tonne (+5% YTD). While the tariffs have raised concerns on slower demand for aluminium, LME aluminium prices are supported as the overall global supply remains tight amid delays in the ramping up of new smelting capacity in Europe due to high energy costs, and limited room to grow in China as it nears the 45m tonne annual production cap. That said, the Main Japanese Port (MJP) premium has fallen by 58% YTD due to the higher supply in Asia following reduced interest in exporting to the US, whereas the US Midwest premium has risen 200% YTD. On the cost side, alumina prices have decreased 46% YTD, accounting for only 14% of LME aluminium prices – down from a peak of 31% in Dec 2024, as supply chain disruptions from Guinea eased. This bodes well for aluminium smelters, with a ramp-up in new refinery capacities in Asia. In the longer term, we remain positive on PMAH as it targets increasing alumina self-sufficiency from 23% currently to 99% by 2027, with the new refinery project in Indonesia. Even if alumina prices fall further, Indonesia remains costcompetitive for alumina refineries due to its bauxite export ban. Conversely, carbon anode costs have risen 23% YTD, driven by higher petroleum coke prices, following supply disruptions. That said, margin should still be supported as carbon anodes make up a relatively small portion of smelting costs. PMAH’s hedging positions remain relatively unchanged: i) 60% at US$2,600 (2025), ii) 40% at US$2,700 (2026), iii) 35% at US$2,750 (2027). – RHB Research, July 23

1H’25 core profit of RM169.1m (+12.5% YoY) met 52% of our and consensus full-year estimates. Q2’25 DPU amounted to 2.3 sen (Q2’24: 2.1 sen), bringing 1H’25 DPU to 5 sen (1H’24: 4.5 sen). Meanwhile, 1H’25 gearing stood at 36%. YoY, 1H’25 revenue grew 5.2% to RM441.5 million, mainly contributed by Pavilion Bukit Jalil (+15.8%), driven by a higher occupancy rate and income generated from its exhibition centre and advertising spaces, with improved advertising revenue from the upgraded LED screen at Elite Pavilion Mall (+21.6%). 1H’25 NPI margin expanded by 0.7ppts to 61.7%, thanks to operating leverage stemming from higher revenue. QoQ, Q2’25 sales dropped 6.5% to RM213.3 million on softer seasonality due to the absence of festive seasons. Consequently, Q2’25 core profit fell 13% QoQ to RM78.7 million. We expect Q3’25 retail sales to remain soft, due to the absence of festival-related spending, before picking up in the seasonally stronger Q4. Looking beyond the immediate term, management remains confident on achieving mid-single-digit rental reversions in FY25, supported by strong bargaining power from high occupancy rates despite the Sales & Service Tax or SST expansion. Pavilion Kuala Lumpur should continue to benefit from rising tourist arrivals — the government targets to grow this total by 25% YoY in 2025 — as tourists typically account for 30% of its footfall and spend more than local shoppers. Meanwhile, Pavilion Bukit Jalil is on track to reach 94% occupancy by FY25, with a large portion of space already committed. BUY with RM2.00 TP. – RHB Research, July 23