25/07/2025

BIZ & FINANCE FRIDAY | JULY 25, 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

Dobot Malaysia eyes RM3m revenue after local expansion SUBANG JAYA: Dobot Malaysia Sdn Bhd is eyeing RM3 million in revenue this year following the expansion of its footprint in Malaysia. Country manager (Malaysia and India) Kent Goh said the opening of Dobot Robotics subsidiary in the country marks a key milestone in its global expansion to drive technological innovation. “We want to improve productivity to drive Industry 4.0 adaptation. “Besides, the demand for environmental, social, and governance (ESG) compliance is accelerating the adoption of technology while rising wages and tighter controls on foreign labour intake are also driving demand for automation,” he told Bernama after Dobot Malaysia branch’s grand opening yesterday. Dobot Robotics is a global research and development as well as manufacturing company specialising in intelligent collaborative robots based in China. The company, founded in 2015, has shipped over 80,000 units globally to more than 80 countries. Goh said Dobot Robotics has also been selling robots in Malaysia with over 500 units sold over the past five years. Hence, Goh said Dobot Malaysia will focus on the automotive and consumer electronics sectors with the product offering ranging from RM10,000 to more than RM100,000. Meanwhile, Dobot Robotics co-founder Jun Jie Xie said in his opening remarks that Dobot Malaysia aims to boost its growth by focusing on four key strategies, mainly by empowering smart manufacturing, deepening industry-education integration, enhancing localised services as well as co-building an innovation ecosystem.

Ringgit firmer on optimism over trade deal with US THE ringgit ended higher against the US dollar yesterday, buoyed by optimism that Malaysia could secure a more favourable trade deal with the US, said an analyst. The local note also traded higher versus the US dollar for the fifth consecutive day. At 6pm, the ringgit rose to 4.2135/2210 against the greenback from Wednesday’s close of 4.2255/2300. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia is actively engaging in discussions with the US over the impending 25% tariff rate set to take effect on Aug 1, aiming to secure a rate below 20%. SPI Asset Management managing partner Stephen Innes said regional tailwinds further lifted sentiment after US President Donald Trump concluded a trade deal with Japan on Tuesday, which included reducing tariffs on the import of Japanese goods into the US to 15% from 25%. At the close, the ringgit was higher against a basket of major currencies. It advanced against the Japanese yen to 2.8751/8804 from 2.8837/8870, rose against the British pound at 5.7080/7182 from 5.7230/7291 and inched up against the euro to 4.9517/9605 from 4.9586/9639. The local note was firmer against regional peers, except the Philippine peso. It increased vis-à-vis the Singapore dollar to 3.2995/3057 from 3.3071/3109, appreciated against the Thai baht to 13.0570/0863 from 13.1370/1567 and improved versus the Indonesian rupiah to 258.5/259.1 from 259.1/259.5. – Bernama

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2860 2.8420 3.3540 3.1450 5.0460 2.5990 3.3540 5.8220 5.4400 3.5860 60.2200 69.3000 55.1400 5.0400 0.0272 2.9310 43.4900 1.5300 7.6600 118.8000 115.4300 25.3100 1.4600 46.4300 13.9200 117.9700 N/A

4.1530 2.7280 3.2570 3.0600 4.8840 2.5040 3.2570 5.6380 5.2120 3.3400 57.6900 63.7900 52.4100 4.7300 0.0246 2.8380 40.0200 1.4300 7.2200 112.7800 109.5800 22.8700 1.3400 42.3000 12.3400 111.8800 N/A

4.1430 2.7120 3.2490 3.0480 4.8640 2.4880 3.2490 5.6180 5.1970

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

111.6800

3.1400

N/A

63.5900 52.2100 4.5300 0.0196 2.8280 39.8200 1.2300 7.0200 112.5800 109.3800 22.6700 1.1400 42.1000 11.9400 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

CIMB Group Holdings Bhd Buy. Target price: RM8.40

AME REIT Buy. Target price: RM1.80

Technology Overweight

JULY 24, 2025: RM6.70

JULY 24, 2025: RM1.64

Source: Bloomberg

Source: Bloomberg

Source: Company data, RHB

CIMB said Q2’25 loans growth momentum largely mirrored that in Q1’25 – ie low-single digit reported growth driven by drawdown of pipeline by its consumer and SME segments. The non-retail segment, though, continues to adopt a wait and-see stance, coupled with CIMB remaining disciplined in terms of wholesale loan pricing, there could be downside risk to the 5-7% loan growth target. Recall that we had trimmed our FY25F loans growth assumption to 4% from 5% post release of its Q1’25 results, which we keep unchanged at this juncture. Malaysia NIM improved QoQ thanks to: i) Continued optimisation of its funding composition; and ii) impact from the lower Statutory Reserve Requirement in May. Singapore NIM also improved QoQ as the repricing of deposits from a lower benchmark rate was felt in Q2, as well as the impact from deposit campaigns rolling off the book. On the other hand, NIM in Thailand was impacted by some one-off adjustments. CIMB did not comment much on Indonesia as its Q2’25 results will be out next week but judging from the overall group and NIM trends in key markets above, NIM in Indonesia likely experienced some compression sequentially. Looking ahead, impact from the 25bps Overnight Policy Rate (OPR) cut should impact group NIM by a mere 1-2bps. CIMB had cut its campaign and board deposit rates by 10 20bps/5-10bps respectively in May, followed by a full pass through of the OPR cut. All else equal, NIM could rise in 2026. BUY with MYR8.40 TP. – RHB Research, July 24

Q1’26 core profit of RM9.2 million (+3.2% YoY) met 21% of our full year estimates. We deem the results to be within expectations in view of stronger quarters ahead, supported by a high number of planned acquisitions for FY26F. Q1’26 DPU amounted to 1.96 sen (Q1’25: 1.84 sen). Meanwhile, Q1’26 gearing stood at 23% (Q1’25: 15%). YoY, Q1’26 revenue rose 14.7% to RM14.1 million, supported by additional contributions from two properties (i-Park SAC 23 & 24 and i-TechValley 46) acquired in Q4’25, as well as higher rental rates from tenancy renewals. Despite a 3.2% YoY increase in Q1’26 core profit, net margin declined by 7.2ppts to 64.9%, mainly due to a rise in interest expense (+62.5% YoY) following the acquisitions, while the 2.5ppts drop in NPI margin to 90.2% was likely attributable to higher operating costs. QoQ, Q1’26 revenue grew 8.2% on the back of these same factors, leading to a 7% QoQ increase in core profit to RM9.2 million. We expect QoQ earnings to improve, supported by the ongoing acquisition of properties slated for completion in Q2’26. Beyond the immediate term, FY26 earnings should be further lifted by the full-year contribution from the recent acquisition spree, which includes five properties estimated to generate an additional RM4.5 million in FY26 gross rental income, complemented by the renewal of nine existing tenancies (27% gross rental). Meanwhile, we view the downside risks from the sales & service tax (SST) expansion as relatively limited for AME REIT, given its long-term master leases and a tenant profile that largely consists of established MNCs) capable of absorbing higher tax-related costs. BUY with RM1.80 TP. – RHB Research, July 24

ENGINEERING support players are recording stronger order books and robust revenue growth – a leading indicator for automated test equipment (ATE) manufacturers and OSATs. Electronics manufacturing services (EMS) players also report healthy visibility, underpinned by increased project transfers and customer enquiries. We expect stronger numbers in Q2 and 2H, supported by sector recovery, despite lingering US tariff concerns. Most companies maintain an optimistic outlook, citing higher loadings from replacement cycles, new product introductions, demand recovery, and technology advancements – complemented by fresh opportunities from “Plus One” strategies. Malaysia is well positioned to benefit from both short-term order diversion and long-term manufacturing relocation, supported by its developed ecosystem, skilled talent pool, and infrastructure. While tariffs could induce demand volatility, the sector remains in an upcycle with no major disruptions anticipated. Notably, most semiconductor supply chains are exempted, and Malaysia’s parts and components suppliers have minimal direct export to the US – estimated at below 15% for most. The Bursa Malaysia Technology Index (KLTEC) remains negative YTD, weighed by: i) Softer-than-expected results, ii) US tariff and sanction concerns, and iii) risk-off market sentiment. However, current valuations are compelling, and improved guidance across the sector suggests investors should position for the recovery, despite all external noise. Revenue trends have strengthened since end-2024, even if near-term bottomline growth may be dampened by unrealised FX losses. – RHB Research, July 24