08/08/2025

BIZ & FINANCE FRIDAY | AUG 8, 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

SD Guthrie Q2 net profit rises, 7.75 sen dividend declared KUALA LUMPUR: SD Guthrie Bhd’s net profit for the second quarter ended June 30, 2025 (Q2’25) rose 22% to RM505 million from RM415 million a year earlier, driven primarily by stronger contributions from the upstream segment which offset lower earnings from the downstream segment. For the first half of the financial year, net profit surged to RM1.07 billion from RM626 million in the same period last year, while revenue grew to RM9.99 billion from RM9.31 billion. The plantation firm said in a Bursa Malaysia filing yesterday that crude palm oil (CPO) price is expected to remain volatile in the second half of 2025 as the industry enters its peak output cycle. This is supported by improved weather conditions and softer biodiesel demand amidst the low crude oil price environment and ongoing global macroeconomic uncertainty. “While the price discount of palm oil relative to other vegetable oils is likely to support stronger demand from key markets, persistent macroeconomic headwinds, coupled with uncertainties in the global trade environment following the US’ revised tariff measures, are adding further volatility to the overall operating environment,” it said. The group anticipates an improvement in fresh fruit bunches production in the second half of the year, supported by better operating conditions and productivity enhancement efforts across its operations in Malaysia, Indonesia, Papua New Guinea and the Solomon Islands. The board has declared an interim single-tier dividend of 7.75 sen per share in respect of the financial year ending Dec 31, 2025 to be paid on Oct 31, 2025. – Bernama

Ringgit falls against major currencies on soft demand THE ringgit has retreated to close lower against the US dollar as well as major currencies yesterday on lack of buying interest, said an analyst. At 6pm, the local note eased to 4.2340/2385 against the greenback from Wednesday’s close of 4.2235/2305. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the market is of the view that the US tariff is likely to take a toll on the US economy that would necessitate the Federal Reserve (Fed) to reduce the Fed Fund Rate to provide support to the economy. However, Mohd Afzanizam said the US Dollar Index (DXY) is having difficulties to gain strength as the possibilities for an interest rate cut by the Fed is gaining further traction. “The US DXY was down 0.1% to 98.074 as the US tariffs continue to grab the news headline,“ he told Bernama. Mohd Afzanizam said the ringgit versus the US dollar was generally in a tight range of between RM4.22 and RM4.23 during the day. At the close, the ringgit ended lower against major currencies. It fell against the yen to 2.8732/8765 from 2.8570/8619 at the close on Wednesday, dropped versus the British pound to 5.6596/6656 from 5.6160/6253, and the euro to 4.9411/9463 from 4.8929/9010 previously. The ringgit also trended lower against regional peers. It dropped against the Singapore dollar to 3.2973/3013 from 3.2806/2863, declined against the Thai baht to 13.0954/1146 from 13.0291/0567, was lower against the Indonesian rupiah to 259.9/260.3 from 258.1/258.6 and slipped against the Philippine peso to 7.42/7.44 from 7.34/7.36 previously.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2900 2.8020 3.3320 3.1160 5.0020 2.5500 3.3360 5.7300 5.3490 3.5950 60.0700 68.6900 55.1800 4.9700 0.0271 2.9120 43.1700 1.5400 7.5900 118.8900 115.4800 24.9800 1.4600 45.9900 13.8500 118.0700 N/A

4.1540 2.6880 3.2340 3.0310 4.8400 2.4560 3.2310 5.5470 5.1230

4.1440 2.6720 3.2260 3.0190 4.8200 2.4400 3.2230 5.5270 5.1080

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

111.9400 3.3470 57.5300 63.2100 52.4300

111.7400 3.1470 63.0100 52.2300 4.4600 0.0195 2.8090 39.5100 1.2400 6.9500 112.6700 109.4300 22.3600 1.1500 41.6800 11.8800 N/A N/A

4.6600 0.0245 2.8190

N/A

39.7100 1.4400 7.1500 112.8700 109.6300 22.5600 1.3500 41.8800 12.2800

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

Semiconductor Neutral

Tasco Bhd Buy. Target price: RM0.86

Pentamaster Corp Bhd Buy. Target price: RM4.25

AUG 7, 2025: RM0.48

AUG 7, 2025: RM3.83

Source: TA Research, SIA

Source: Bloomberg

Source: Bloomberg

1H’25 core net profit of RM30.4 million (-30.4% YoY) came in at 39% and 41 % of our and Street estimates. We deem this to be in line, expecting a stronger 2H driven by orderbook recovery and scheduled project deliveries. Core earnings exclude RM1.7 million in delisting expenses, RM4.3 million in accelerated Employee Share Option Scheme or ESOS charges, unrealised FX losses and fair value and disposal gain/loss. EBITDA margin declined, pressured by lower revenue, higher costs, and adverse FX movements. Group revenue fell 19.2% YoY to RM276.5 million, largely dragged by a sharp 51% YoY contraction in the factory automation solution (FAS) division, due to lower medical segment project deliveries stemming from timing differences and slower order conversion cycles. On a brighter note, the ATE segment saw a strong 25.2% YoY rebound in revenue to RM178.5 million, driven by electrooptical sectors and uptick in test handlers for semiconductor customers. The medical segment is projected to account for 30% of FY25 revenue as the expansion at a customer’s site is near the tail-end while the transition to new customer/segment will take a longer period due to the longer production cycle time. The group is securing upgrade orders from medical clients while expanding into renewables, data centres, and healthcare automation to diversify its customer base. Recovery seen in ATE to sustain into 2H’25, underpinned by a recovery in semiconductor industry and improved orders from the Singapore, China, Europe and Japan markets. Management notes a gradual capex recovery from semiconductor customers, particularly in logic and power segments, with strong orders expected into 2H and some conversions spilling into Q1’26. BUY with RM4.25 TP. – RHB Research, Aug 7

IN June 2025, the global semiconductor sector sustained its positive momentum with another strong rise in sales. According to the Semiconductor Industry Association (SIA), global semiconductor sales for the month reached US$59.9 billion (+1.5% MoM, +19.6% YoY), marking the 20th consecutive month of YoY sales growth, driven by sustained demand for AI and high-performance computing applications. The YoY improvement was primarily driven by all regions except Japan (- 2.9% YoY). The Asia Pacific/All Other led the growth (+34.2% YoY), followed by Americas (+24.1% YoY), China (+13.1% YoY), and Europe (+5.3% YoY). By geography, June 2025’s sales increase of 1.5% MoM was mainly driven by the Asia Pacific/All Other (+5.8% MoM), and China (+0.8% MoM). Meanwhile, the slowdown was observed in Japan (-1.7% MoM), Europe (-0.7% MoM), and America (-0.2% MoM). According to SEMI, global sales of total semiconductor manufacturing equipment by original equipment manufacturers are forecast to reach a new industry record of US$125.5 billion in 2025, representing a 7.4% YoY increase. Growth is expected to continue into 2026, with sales projected to hit another record high of US$138.1 billion. This strong momentum is primarily driven by the leading-edge logic and memory segments, as robust AI-fuelled demand for chip innovations continues to spur investments in capacity expansion and advanced manufacturing technologies. – TA Research, Aug 7

Q1’26 results fell short of expectations, partially due to additional (RM5 million per quarter vs Q1’25’s RM3.8 million) costs (+32.1% YoY) for general headquarters (GHQ) and regional headquarters (RHQ), as Yusen Group embarks on the next 5-year plan, and a higher effective tax rate (17.5% vs Q1’25 9.5%). However, should the budgeted expenses not be fully utilised, there will be a clawback in Q4’26, as seen in prior years. To recap, TASCO’s domestic business solutions or DBS segment’s PBT fell by 41% YoY (+264% QoQ) in Q1’26, largely on lower contributions from the contract logistics (CL), cold supply chain (SCS), and trucking (TD) units. Within the CL segment, warehousing PBT declined by 11% on the lesser movement of goods amid slower demand, as well as inefficiency in operations due to new customer process implementations, partially offset by stronger customs clearance PBT, which doubled QoQ on top of a 78% rise in haulage PBT. Management plans to incur an additional RM250 million on qualifying expenditure by 2026 (cumulative RM556.5 million ILS capex), to leverage on the ongoing ILS tax incentive before the incentive period ends in 2027. This includes two new projects at Shah Alam and Northport, and a new Penang regional hub for a healthcare client. These could further elevate the current unutilised tax credits of RM31.4 million by another RM36 million (which can be taken up indefinitely). TASCO’s current gearing is at a comfortable 0.51, but this is expected to inch up with the planned expansions. BUY with RM0.86 TP. – RHB Research, Aug 7