31/07/2025

BIZ & FINANCE THURSDAY | JULY 31, 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

AORB, KK mayor ink RM360m revitalisation deal KUALA LUMPUR: Alpha Ocean Resources Bhd (AORB) has signed a memorandum of agreement (MoA) with the mayor of Kota Kinabalu for a proposed revitalisation project involving the development of a tuna and deep-sea fishing landing port, a marine tourism infrastructure, and a hospitality belt. AORB said the agreement signed yesterday involves a proposed 30-year concession on two land parcels in Kota Kinabalu, with an option to extend for a further 30 years, subject to mutual agreement, and estimated the total cost of the project and concession at RM360 million. “The mayor is currently applying for the alienation of the lands to facilitate the implementation of the revitalisation project,” it said in a filing with Bursa Malaysia yesterday. The firm noted that execution of the MoA forms part of AORB’s strategic diversification of its business into the enhancement, upgrading, operation, management and maintenance of such facilities. This collaboration with the mayor will leverage AORB’s expertise in the seafood industry to support the revitalisation project and the concession, create a platform for sustainable growth, and expand AORB’s presence in Kota Kinabalu, contributing to the city’s economic development, it said. Events of default include failure to execute the deals within the prescribed term, non-approval by relevant authorities, or any material delays deemed to render the project financially unviable. ““If the MoA is terminated due to breach, wilful default, or gross negligence by the mayor, they must cover all reasonable, documented costs AORB incurred related to the MoA and project,” it said. – Bernama

Ringgit ends lower vs dollar before Fed call THE ringgit reversed its morning gains to close slightly lower against the US dollar yesterday, as traders turned cautious ahead of the US Federal Reserve’s (Fed) interest rate decision, amid uncertainty over a potential cut. At 6pm, the local note eased to 4.2410/2455 versus the greenback from Tuesdday’s close of 4.2320/2365. The two-day Federal Open Market Committee (FOMC) meeting, taking place from July 29 to 30 in Washington, is expected to provide key guidance on the Fed’s monetary policy direction. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was higher against the US dollar during the morning session at RM4.2278, but weakened later in the day. However, he said the ringgit’s weakness was capped by positive news following the International Monetary Fund’s (IMF) upward revisions to global and Malaysian GDP forecasts. At the close, the ringgit ended lower against major currencies. It fell against the Japanese yen to 2.8646/8678 from 2.8479/8511 at the close on Tuesday, depreciated versus the British pound to 5.6745/6805 from 5.6518/6578 on Tuesday, and edged lower against the euro to 4.8996/9048 from 4.8990/9042 previously. The ringgit was mixed against regional peers. It was lower against the Indonesian rupiah at 258.5/258.9 from Tuesday’s 257.8/258.2, weakened against the Singapore dollar to 3.2919/2957 from 3.2875/2913, but improved against the Philippine peso to 7.36/7.38 from 7.38/7.39, and inched up versus the Thai baht to 13.0528/0719 from 13.0537/0740 previously. – Bernama

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.3000 2.8170 3.3390 3.1180 4.9760 2.5710 3.3390 5.7490 5.3760 3.5600 60.2700 68.3400 55.3200 5.0200 0.0271 2.9030 43.2800 1.5400 7.6100 119.1600 115.8000 24.9200 1.4600 45.9800 13.8800 118.3800 N/A

4.1640 2.7020 3.2400 3.0330 4.8120 2.4760 3.2400 5.5640 5.1460 3.3330 57.7000 62.8500 52.5400 4.7000 0.0245 2.8070 39.7900 1.4500 7.1600 113.1200 109.9300 22.5000 1.3400 41.8600 12.3000 112.1800 N/A

4.1540 2.6860 3.2320 3.0210 4.7920 2.4600 3.2320 5.5440 5.1310

1 Australian Dollar 1 Brunei Dollar 1 Canadian Dollar 1 New Zealand Dollar 1 Singapore Dollar 1 Sterling Pound 100 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

111.9800

3.1330

N/A

62.6500 52.3400 4.5000 0.0195 2.7970 39.5900 1.2500 6.9600 112.9200 109.7300 22.3000 1.1400 41.6600 11.9000 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

IGB REIT Neutral. Target price: RM2.60

Bursa Malaysia Bhd Neutral. Target price: RM8.05

TASCO Bhd Buy. Target price: RM0.86

JULY 30, 2025: RM7.59

JULY 30, 2025: RM0.485

JULY 30, 2025: RM2.74

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

REVENUE reached RM222.6 million (flat QoQ, -10.9% YoY), with pre-tax profit at RM11.8 million (+188.6% QoQ, +37.6% YoY) and core earnings at RM10.2 million (+72.6% QoQ, -8.2% YoY) – falling short of our and Street forecasts at 16-19.3% of full-year estimates. The shortfall stemmed from weaker-than-expected volume in the DBS segment, which consists of the contract logistics (CL), cold chain or CSC, and trucking or TD segments. This was partially cushioned by a better international business solutions (IBS) business. Note: Core net profit was adjusted to account for a gain on PPE disposal and an unrealised FX loss. Q1’26 revenue of RM99.9 million rose 7.9% QoQ (-0.8% YoY), driven by the stronger ocean freight forwarding (OFF) business – supported by automotive, aluminium, and aerospace customers. The supply chain solutions (SCS) division also contributed to a stronger IBS, as it posted a 36.9% YoY rise (+12.6% QoQ) on increased shipment bookings from healthcare and fastmoving consumer goods or FMCG customers. Nonetheless, this is partially offset by a softer air freight forwarding or AFF wing on reduced shipment volumes from key customers. In tandem with a stronger QoQ revenue, IBS’ PBT beat our forecasts at 30.8% of full-year estimates. Q1’26 revenue and PBT stood at RM122.6 million (-5.6% QoQ, - 17.8% YoY) and RM6.8 million (+264% QoQ, -41% YoY). PBT marked a QoQ spike on an exceptional write-off expense during the preceding quarter. Overall, the DBS segment remained weak, as its PBT fell short of our forecasts at 13.9% of full-year estimates. The softer CL was primarily attributed to the production suspension of a major solar panel customer. BUY with RM0.86 TP. – RHB Research, July 30

BURSA’S Q2’25 net profit of RM57.1 million (-29% YoY, -17% QoQ) brought the 1H’25 sum to RM125.5 million (-19% YoY) – this formed 48% and 46% of our and consensus full-year estimates. As expected, 1H’25 total revenue dipped 8% YoY after a sequentially weaker showing in Q2’25 due to QoQ softness in both the securities and derivatives markets. Opex was also up QoQ in Q2’25 largely due to higher staff costs, leading to a higher Q2’25 CIR of 56% (Q1’25: 50%, 1H’25: 53%). BURSA declared an interim DPS of 14 sen or a 90% payout (1H’24: 18 sen DPS, 94% payout), which also met our expectations. BURSA’s Q2’25 SADV of RM2.4 billion was a 15% QoQ decline (YoY: -39%), likely due to increased risk-off sentiment following US President Donald Trump’s Liberation Day announcement in early April. That said, management expects an equity market rebound in 2H’25 as trade uncertainties dissipate, while a more accommodative global monetary policy environment and undemanding valuations of local equities could also attract investors into the Malaysian market. As such, management retained its full-year PBT target of RM369-408 million despite the 1H’25 print of RM167 million tracking below that range. In 2H’25, BURSA’s priorities include enhancing market vibrancy by deploying market development initiatives (eg: Vibrancy Initiative Programme) and intensifying measures to raise corporate performance (eg: improving corporate visibility). On the derivatives front, the exchange is also committed to growing equity-based products with smaller contract sizes to improve accessibility especially towards retail investors. NEUTRAL with RM8.05 TP. – RHB Research, July 30

1H’25 core profit of RM208.9 million (+9.5% YoY) met 52% and 51% of our and Street’s full-year estimates. Q2’25 DPU was 2.8 sen (Q2’24: 2.6 sen), bringing 1H’25 DPU to 6.0 sen (1H’24: 5.5 sen). Q2’25 gearing stood at 16.4% (Q2’24: 17.3%). YoY, 1H’25 revenue rose 6.1% to RM331.5 million, driven by solid rental reversion from a lower base as the REIT was undergoing a major reconfiguration in the previous year. 1H’25 NPI margin expanded by 1.5ppts to 76.3%, supported by operating leverage from higher revenue. QoQ, Q2’25 revenue fell 6.6% to RM160.1 million due to softer seasonality in the absence of festive periods. Consequently, Q2’25 core profit fell 11.6% QoQ to RM97.8 million. We expect sequential retail sales (with turnover rent accounting for 12-15% of rental income) to remain seasonally soft due to the absence of festive periods in Q3’25, although this should be partially mitigated by the recently announced additional public holiday in September and continuous government measures to support consumer spending. Beyond the immediate term, management is guiding for mid-single-digit rental reversions, considering its robust tenant demand and full occupancy at both Mid Valley Megamall and The Gardens Mall. Additionally, the reconfiguration of space previously occupied by an anchor tenant into multiple smaller specialty lots – which typically command higher average rental rates – is expected to be fully reflected in FY25. Its strong bargaining power should, in our view, enable the REIT to pass through the latest SST rate increase to tenants. NEUTRAL with RM2.60 TP. – RHB Research, July 30