07/08/2025

BIZ & FINANCE THURSDAY | AUG 7, 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

Malaysian healthcare firms rake in RM96m at IHW 2025 KUALA LUMPUR: Malaysian healthcare companies recorded RM96.18 million in sales during the International Healthcare Week (IHW) 2025, held from July 16 to 18 at the Malaysia International Trade and Exhibition Centre. The event was organised by UK-based event organiser Informa Markets in strategic partnership with the Malaysia External Trade Development Corporation (Matrade) and featured over 800 exhibitors and attracted more than 22,000 trade visitors. In a statement yesterday, Matrade said that 10 Malaysian firms participated under the Malaysia Pavilion coordinated by the agency, showcasing products ranging from regenerative therapies and diagnostics to wellness supplements and medical disposables. “They successfully generated RM96.18 million in sales, underscoring the event’s impact as a high-value platform for international trade and strategic business partnerships in the healthcare sector,” it said. Matrade chairman Datuk Seri Reezal Merican Naina Merican said the initiative has progressed steadily since initial engagements last year, including the inaugural IHW held in Bangkok, driven by ongoing cooperation and development. “Hosting IHW 2025 in Kuala Lumpur marks a transformative leap, as it is not only the largest healthcare trade event in Southeast Asia but also reflects Malaysia’s rising stature as a regional healthcare hub,” he said. Matrade said that Malaysia’s medical device exports grew by 31.6% in 2024 to RM37.03 billion, while pharmaceutical exports increased by 4% to RM3.04 billion, with key export destinations including the US, Belgium, Singapore, Germany, and Japan. – Bernama

Ringgit gains against dollar ahead of Fed officials’ remarks THE ringgit closed higher against the US dollar yesterday as investors took advantage of the greenback’s weakness ahead of comments from US Federal Reserve (Fed) officials tonight, said an analyst. At 6pm, the local note rose to 4.2235/2305 against the greenback from Tuesday’s close of 4.2260/2310. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the comments from Fed officials will shape traders’ and investors’ expectations for an interest rate cut in September. “Thus far, US data points such as non-farm payrolls and the Institute for Supply Management index have been supportive of a rate cut. A mixed view among the Fed officials could support the US dollar, albeit momentarily,” he said. A series of Fed speakers – San Francisco Fed President Mary Daly, Boston Fed President Susan Collins, and Fed Governor Lisa Cook – will be speaking to the public later in the day to shed more light on the future direction of US interest rates. The ringgit gained against the yen to 2.8570/8619 from 2.8618/8654 at the close on Tuesday; however, it inched down versus the British pound to 5.6160/6253 from 5.6159/6226, and the euro to 4.8929/9010 from 4.8772/8830 previously. The ringgit also trended mostly lower against regional peers. It strengthened against the Thai baht to 13.0291/0567 from 13.0408/0627, but dropped against the Singapore dollar to 3.2806/2863 from 3.2793/2834, reduced against the Indonesian rupiah to 258.1/258.6 from 257.8/258.2 and eased against the Philippine peso to 7.34/7.36 from 7.33/7.34 previously.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2940 2.7960 3.3310 3.1110 4.9730 2.5470 3.3350 5.7150 5.3520 3.5920 60.1200 68.3200 55.2300 4.9700 0.0271 2.9130 42.9400 1.5400 7.5700 118.9200 115.5100 24.8700 1.4600 45.7500 13.8600 118.1800 N/A

4.1520 2.6790 3.2290 3.0240 4.8050 2.4500 3.2250 5.5250 5.1170 3.3400 57.4900 62.7700 52.4100 4.6500 0.0245 2.8160 39.4400 1.4400 7.1200 112.8900 109.6600 22.4400 1.3500 41.6100 12.2700 111.8800 N/A

4.1420 2.6630 3.2210 3.0120 4.7850 2.4340 3.2170 5.5050 5.1020

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

62.5700 52.2100 4.4500 0.0195 2.8060 39.2400 1.2400 6.9200 112.6900 109.4600 22.2400 1.1500 41.4100 11.8700 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

Ranhill Utilities Bhd HOLD. Target price: RM1.40

Frontken Corp. Bhd BUY. Target price: RM5.19

RHB Bank Bhd HOLD. Target price: RM7.10

AUG 6, 2025: RM4.35

AUG 6, 2025: RM1.34

AUG 6, 2025: RM6.26

Source: Maybank Investment Bank

Source: Maybank Investment Bank

Source: Maybank Investment Bank

TO RECAP, RHB Bank and RHB Islamic Bank recently entered into new banca agreements with Tokio Marine Life (TML), Syarikat Takaful Malaysia Keluarga and Syarikat Takaful Malaysia Am (collectively STM). Positively, the insurers will be w ell-positioned to a) capitalise on RHB’s trust and customer touchpoints (branches, digital and relationship managers), b) leverage on the bank’s data analytics and AI capability, c) tap into the bank’s huge customer base, where the current penetration rate is <5%, and d) leverage on positive retail (target 7% CAGR from FY24-27) and SME (target 8.3% CAGR) loan growth. The Total Access Fee (TAF) of RM1.615 billion payable to RHB comprises an upfront fee of RM1.3 billion and RM315 million of performance fees. The RM1.3 billion will be amortised over 20 years, which is about RM49 billion net of tax per annum. The remaining RM315 million variable fee, if performance benchmarks are hit, will be accrued over 3 years. This is up to RM80 million net per annum. In short, the bank could potentially recognise net income of up to RM130 million per annum if performance targets are hit. This is up to ~+3% to our FY26 net profit forecast, subject to auditors’approval for the recognition of the variable fee (versus our earlier estimate of ~+2%). It is unclear if there is the potential for higher dividends upon receipt of the TAF, for the bank has to determine how best to deploy capital. As Malaysia’s fourth-largest financial institution by assets, any economic slowdown would likely affect the group’s performance—and in turn, our estimates, rating, and target price. HOLD with RM7.10 TP. – Maybank Investment Bank, Aug 6

RANHILL SAJ (RSAJ) has announced a tariff adjustment effective Aug 1, with notable revisions made to the non-domestic segment. Tariff for the <35 m3 band has been raised to RM4.15/m3 (from RM3.15/m3), while that of the >35 m3 band was raised to RM5.30/m3 (from RM3.55/m3). Tariff for the shipping segment was raised to RM8.03/m3 from (RM7.05/m3), while a separate data centre tariff of RM5.33/m3 has been introduced. In the domestic segment, tariffs are largely unchanged except for that of >35 m3 band, which was raised to RM3.50/m3 (from RM3.15/m3). In the previous round of non-domestic tariff revision in 2023, tariff for the <35 m3 band was raised by RM0.30/m3, a fraction of the RM1/m3 increase now. We believe the quantum of the tariff hike provides ample financial buffer for RSAJ to cope with escalating lease payments to PAAB in the coming years. Apart from pipe replacement, there are plans for 4 new water treatment plants in Johor, at a reported cost of RM1.4 billion. There are several risk factors for our earnings estimates, target price and rating for Ranhill. Regulatory developments, such as license renewal and tariff determination, have a direct impact on earnings. Unscheduled power plant outages could also result in earnings losses for Ranhill. Ranhill is substantially-owned by YTL Power, having acquired the controlling stake from previous executive chairman/CEO Tan Sri Hamdan in early-2024. Following YTL Power’s entry, there are presently 8 members on Ranhill’s board comprising of 2 executive directors (appointees from YTL Power), 3 non-independent non executive directors and 3 independent non-executive directors. HOLD with RM1.40 TP. – Maybank Investment Bank, Aug 6

EXCLUDING RM18 million in one-offs, primarily forex losses, 1H’25 core profit rose 39% YoY to RM82 million, beating our expectations and meeting consensus, at 51% of our FY25 estimates and 48% of the street’s. Revenue grew 5% YoY to RM289 million, led by stronger performance in TW (+15% YoY), while MY (-19%), SG (-17%), and PHP (-0.4%) saw declines. EBIT margin fell 2.4ppts YoY to 31.6%, largely due to forex headwinds in TW; however, stripping out FX impact, EBIT margin would have reached 38.2%, with core profit margin improving 6.9ppts YoY to 28.4%. The earnings beat was driven by improved margins on a more favourable product mix. From the briefing, we believe that Frontken is on track to deliver a stronger 2H’25 versus 1H’25, consistent with historical seasonality. Growth is underpinned by rising demand for advanced nodes, the commissioning of Plant 3’s new capacity, and plans for a new 8-storey facility. Management also disclosed that a fresh US M&A opportunity is being explored, following the lapse of a prior acquisition deal. We raise our FY25–27 earnings forecasts by 2% to reflect stronger-than-expected margins. We continue to favour Frontken for its niche exposure to advanced semiconductors, consistent margin expansion, and resilient earnings outlook. There are several risk factors for our earnings estimates, target price and rating for Frontken Corp. A sharp downturn in the global markets for electronics and/or oil & gas will affect the demand for Frontken Corp’s services. Additionally, forex volatility, especially USD/RM and TWD/RM, will also affect Frontken Corp’s earnings, as about 10%/35% of the group’s revenue is denominated in USD/TWD. BUY with RM5.19 TP. – Maybank Investment Bank, Aug 6