01/08/2025

BIZ & FINANCE FRIDAY | AUG 1, 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

Six Ai-CHA stores set for halal certification, more planned KUALA LUMPUR: Indonesian ice cream & tea brand Ai-CHA celebrated official halal certification by Jakim for its first outlet at Berjaya Times Square yesterday with a firm commitment to have at least five more outlets to be certified halal this year. Ai-CHA Global deputy general manager Danny Tahardi noted that Ai-CHA has become the first Indonesian ice cream and tea brand in Malaysia to receive the halal certification from Jakim, the Islamic Development Department of Malaysia. “Even as we scale up our presence in Malaysia, achieving a Malaysian record of opening 300 outlets within 12 months, we put tremendous emphasis on the halal aspect of the business,” he stated, adding that five more outlets were on track towards obtaining halal certification by year-end. Tahardi said, “Our ingredients are already from halal sources. The process of seeking halal certification is always ongoing for us. This is the cornerstone of our business. We want all consumers to be fully confident they are consuming halal food and drinks when they step into an Ai-CHA outlet.” Ai-CHA Malaysia country manager Jason Chung reaffirmed the brand’s full commitment towards gradually achieving halal status for all its outlets in Malaysia. It has already been certified halal by the Majelis Ulama Indonesia in its home market. Since entering the Malaysian market in 2024, Ai-CHA has grown rapidly to operate 362 outlets nationwide. Looking ahead, Ai-CHA plans to introduce additional hot snacks such as fried chicken and French fries at selected outlets, positioning itself as a halal casual snacking destination. Ai-CHA operates in nine countries namely Indonesia, Thailand, Vietnam, Laos, the Philippines, Cambodia, Myanmar, and Brunei.

Ringgit lower against dollar as Fed holds rates steady THE ringgit reversed its gains in the morning to end lower against the greenback yesterday as the US Federal Reserve (Fed) kept its benchmark interest rate steady overnight. The Fed funds rate was kept unchanged at 4.25-4.5%. At 6pm, the local note fell to 4.2650/2730 versus the US dollar from Wednesday’s close of 4.2410/2455. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Fed’s decision to hold its key interest rate unchanged signalled that the current monetary policy stance is appropriate. “This implies that the Fed is keen to keep the policy unchanged as concerns over tariff-induced inflation warrant a restrictive monetary policy stance,” he told Bernama. Back home, he noted that the tabling of the 13th Malaysia Plan (13MP) by Prime Minister Datuk Seri Anwar Ibrahim in Parliament yesterday saw the development expenditure (DE) allocation raised to RM430 billion from RM400 billion for the next five-year period from 2026 and 2030. At the close, the ringgit ended higher against major currencies. It rose against the Japanese yen to 2.8443/8498 from 2.8646/8678 at the close on Wednesday, appreciated versus the British pound to 5.6426/6532 from 5.6745/6805, and gained against the euro to 4.8766/8857 from 4.8996/9048 previously. The ringgit was also mostly higher against regional peers. It improved against the Philippine peso to 7.31/7.33 from 7.36/7.38, edged higher versus the Thai baht to 13.0448/0753 from 13.0528/0719, and strengthened against the Singapore dollar to 3.2889/2953 from 3.2919/2957.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.3230 2.8000 3.3330 3.1200 4.9470 2.5620 3.3330 5.7310 5.3490 3.5880 60.4600 67.9400 55.6200 5.0100 0.0273 2.8980 43.0500 1.5500 7.5800 119.8200 116.4300 24.8900 1.4700 45.5500 13.8000 119.0200 N/A

4.1880 2.6860 3.2360 3.0350 4.7860 2.4670 3.2360 5.5500 5.1190 3.3570 57.8900 62.5000 52.8400 4.7000 0.0247 2.8040 39.5900 1.4500 7.1400 113.7500 110.5300 22.4700 1.3500 41.4800 12.2300 112.8100 N/A

4.1780 2.6700 3.2280 3.0230 4.7660 2.4510 3.2280 5.5300 5.1040

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

112.6100

3.1570

N/A

62.3000 52.6400 4.5000 0.0197 2.7940 39.3900 1.2500 6.9400 113.5500 110.3300 22.2700 1.1500 41.2800 11.8300 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 Hold. Target price: RM7.60

Axis REIT Buy. Target price: RM2.24

Dialog Group Bhd Buy. Target price: RM2.34

JULY 31, 2025: RM1.75

JULY 31, 2025: RM6.58

JULY 31, 2025: RM2.00

Source: Maybank Investment Bank

Source: Maybank Investment Bank

Source: Maybank Investment Bank

DIALOG announced that its 25%-owned JV company, PT2SB signed a new, LT tank terminal contract with Pengerang Biorefinery SB (PBSB). PT2SB will expand and develop a 272k cbm, fully dedicated to PBSB for 25 years. The project is expected to be completed in 1H’28. We estimate an additional NPV for this new project at approx. +2 sen for Dialog’s 25% stake. Dialog is expected to release its FY25 results in mid-Aug 2025. The total capex for this project is estimated to be about US$330 million (over a 3-year period). Using the following assumptions: i) EBITDA margins of 75%; ii) annual maintenance capex of RM5 million; iii) debt/equity portion of 70/30 for the project; iv) annual interest expense of 5% – we arrive at an IRR of 9.3%. Also, this project will likely start contributing to Dialog’s profitability beginning FY29E. We estimate an additional annual recurring profit of RM10-15 million per annum to Dialog from this asset. We are positive on this development – as this ends Dialog’s drought in Pengerang since its last job win in Pengerang in 2019 (PT5) from BP Singapore. The tank terminal will be via a 25-years fully dedicated, take or-pay agreement with PBSB. PBSB is a JV between Petronas, Eni and Euglena – which will be spending RM6 billion to develop a biorefinery (650k tonnes per year) in the area. The tank will be linked to the biorefinery and will be used to store & support biofuel feedstocks and products storage. BUY with RM2.34 TP. – Maybank Investment Bank, July 31

CIMB Niaga’s Q2’25 results were marginally below our expectations but in line with consensus. We have trimmed its FY25 net profit by 2.8%, for which the impact to CIMB Group’s net profit would be <1%. Niaga’s Q2’25 core net profit of IDR1.65t (-4% YoY, -9% QoQ) took 1H’25 core net profit to IDR3.46t (+1% YoY). The results were marginally below our expectations (but in line with consensus) and our Indonesia banking analyst has trimmed his FY25 forecast by 2.8% on lower NIM estimates. This would, in turn, lower our CIMB Group FY25 net profit forecast by <1%. Positives for the quarter include still fairly decent loan growth of 6.8% YoY and stronger asset quality, which contributed to lower credit cost in 1H’25. Separately, overheads were also under control. On the flip side, NIM slipped QoQ (but was still within management’s guidance) while 1H’25 non-interest income (NOII) was flat YoY. Niaga’s management maintains most of its FY25 targets which include a) loan growth of 5-7% (Q2’25: 6.8% YoY), b) NIM of 3.9 4.2% (1H’25: 3.96%), c) cost/income ratio <45% (1H’25: 45.5%), and d) ROE of 14-15% (1H’25: 13.5%). Positively, the credit cost guidance is revised down to 0.6-0.8% from “within 1%” before, in light of improving asset quality. As the second largest domestic financial institution in Malaysia in terms of asset size, any economic slowdown in the country would have a knock-on effect on the group’s operating performance. HOLD with RM7.60 TP. – Maybank Investment Bank, July 31

AXIS REIT’S Q2’25 results came in line with expectations, with 1H’25 realised net income and distributable income accounting for 50%/48% of our and consensus’ full-year forecasts. While we make no changes to our core earnings estimates, we raise our FY25 distributable income by 4.4% to reflect the RM8.8 million net gain from the disposal of The Annex, largely from the realisation of prior fair value gains. Q2’25 revenue and NPI rose 18% and 20% YoY, driven by rental contributions from assets acquired in 2H’24 and full occupancy at Axis Mega Distribution Centre Phase 2. Core net income rose 28% YoY to RM50.8 million, while Q2’25 DPU increased 18% YoY to 2.65 sen, which includes 0.14 sen from disposal gains. Portfolio occupancy improved to 97% (from 89% in Q2’24; flat QoQ). The RM8.8 milliongain from The Annex will be distributed in three tranches from Q2’25 to Q4’25 to stabilise income distribution. Axis remains upbeat in executing its RM430 million acquisition pipeline in 2H’25 (none completed so far) without equity fund raising. Gearing stood at 32.7% as at end-June 2025, leaving adequate headroom of RM903 million before reaching 0.5x maximum gearing limit. Management continues to target assets with acquisition yields of ~6.5%, supported by rental growth that has kept pace with asset values. There are several risk factors that could impact our earnings estimates, target price and rating for Axis. Changes in rental rates, occupancy rates, operating expenses and interest rates may lead to lower earnings for Axis. BUY with RM2.24 TP. – Maybank Investment Bank, July 31