11/08/2025

BIZ & FINANCE MONDAY | AUG 11, 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

Gold prices expected to rise 10% on possible Fed rate cut KUALA LUMPUR: Gold is expected to increase by a further record-breaking 10% in September from the current level of US$3,370 per ounce, driven by expectations that the US Federal Reserve will lower its interest rates. Malaysia Gold Association (MGA) president Datuk Seri Louis Ng is confident that the precious metal is poised to rise further as the narrowing of the interest rate differential between the US dollar and the Malaysian ringgit is expected to spur demand. Gold is currently hovering at US$3,370, up by 28% from US$2,630 at the beginning of the year, largely due to geopolitical tensions and market uncertainty, he told Bernama after appearing on Bernama TV’s The Nation programme last Thursday. “This is a record-breaking performance. In the first seven months of the year, we’ve seen a 28% appreciation in gold prices. “If you look at the price pattern, the prices have been consolidating in the past three months, and I foresee a breakout happening after the Fed cuts interest rates, which is expected to happen around September,” said Ng, who is also the executive chairman of Public Gold Marketing Sdn Bhd. Public Gold is one of Malaysia’s leading gold trading companies. When asked whether the Russia-Ukraine war, the conflict between the US and Israel against Iran and the US-China trade war have been impacting gold demand as a safe-haven investment asset, Ng said the momentum from the wars is “already slowing down”. As such, he said the only major factor that could contribute to a significant surge in gold prices is the expected Fed interest rate cut. “Based on that, the price after September could go up another 10%, about US$300 to US$400 per ounce, from the current price. “That’s very possible,“ he said. – Bernama

Ringgit likely to trade cautiously amid US tariff concerns THE ringgit is anticipated to trade cautiously against the dollar this week as investors monitor external developments, particularly regarding US tariffs. In a research note, Kenanga Investment Bank Bhd stated that the ringgit should find support from domestic economic stability and a softer US dollar, likely holding near current levels. “President Donald Trump’s proposed chips and pharmaceutical tariffs will likely dampen sentiment in risk assets. Investors are also tracking pressure on BRICS and signs of strain in the US-China trade detente. Trump’s rapid-fire policy moves and media headlines continue to drive market uncertainty,” it said. As such, the research firm said, the ringgit traded higher last week, hovering within the range of 4.23-4.24 after a weaker-than expected US jobs report pulled the greenback lower. On a Friday-to-Friday basis, the ringgit ended the week higher against the greenback, closing at 4.2420/2480 versus 4.2750/2815 previously. However, it traded lower against a basket of major currencies. On Friday, the ringgit depreciated vis-à-vis the Japanese yen to 2.8720/8763 from 2.8407/8452 the previous week, declined against the British pound to 5.7034/7114 from 5.6208/6293 and eased versus the euro to 4.9381/9451 from 4.8752/8826. The ringgit also trended lower against Asean currencies. The local note slipped against the Singapore dollar to 3.3014/3064 from 3.2907/2960 at the end of last week, inched down versus the Thai baht to 13.1173/1419 from 13.0058/0319, slid versus the Indonesian rupiah to 260.3/260.8 from 258.8/259.4 and edged down against the Philippine peso to 7.43/7.44 from 7.35/7.36 in the preceding week. – Bernama

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2940 2.8130 3.3420 3.1180 5.0130 2.5690 3.3450 5.7750 5.3570 3.6040 60.1400 68.8400 55.2300 4.9900 0.0272 2.9210 43.1000 1.5400 7.6200 119.0000 115.5800 25.1100 1.4600 46.2700 13.8900 118.1800 N/A

4.1580 2.6990 3.2450 3.0340 4.8510 2.4740 3.2420 5.5920 5.1280 3.3560 57.6000 63.3500 52.4800 4.6800 0.0247 2.8260 39.6500 1.4400 7.1800 112.9700 109.7200 22.6800 1.3500 42.1400 12.3100 112.0400 N/A

4.1480 2.6830 3.2370 3.0220 4.8310 2.4580 3.2340 5.5720 5.1130

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

111.8400 3.1560 63.1500 52.2800 4.4800 0.0197 2.8160 39.4500 1.2400 6.9800 112.7700 109.5200 22.4800 1.1500 41.9400 11.910 N/A 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

Mr DIY Group Bhd Buy. Target price: RM1.87

Sentral REIT Buy. Target price: RM0.93

Mah Sing Bhd Buy. Target price: RM1.83

AUG 8, 2025: RM0.80

AUG 8, 2025: RM1.20

AUG 8, 2025: RM1.60

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

WE are mildly positive on Mah Sing’s latest land acquisition. We believe this premium serviced apartment project near Suria KLCC will likely attract foreign buyers. Management indicated that it will continue to focus on its M-series projects, and unlikely pursue high-end development aggressively. Mah Sing entered into a conditional sale and purchase agreement with vendor Malayan United Industries (MUI MK, NR) for the acquisition of 1.485-acre freehold land, where the Corus KLCC Hotel is located. The land is transacted at RM260m and the acquisition will be funded via a combination of internal funds and bank borrowings. The purchase consideration translates into a land cost of RM4,019 psf. This is considered reasonable as the land has a plot ratio of 15x. The site is strategically located along Jalan Ampang, within walking distance to the iconic Petronas Twin Towers, Suria KLCC, KLCC Park, Intermark Mall, The Linc KL and Pavilion KL. It is also close to the Ampang Park interchange MRT & LRT station. The land will be developed into a premium serviced apartment project with an indicative ASP of RM2,000 psf with unit sizes ranging 500-1,200 sqf. This marks Mah Sing’s first premium project in the city centre probably a decade after developing Icon @ Jalan Tun Razak, M Suites @ Embassy Row and M City along Jalan Ampang. This new development is mainly targeted at foreigners as well as investors, in our view. We understand that The Conlay by E&O and Pavilion Square saw more foreign buyers recently, especially from China. We make no changes to our earnings forecasts. This new high end project is slated for launch in 1H26. Near-term earnings will be mainly underpinned by the M-series projects and new launches. Maintain BUY and RM1.83 TP. – RHB Research, Aug 8

MR DIY Group’s 2Q25 results should meet expectations on robust GPM and outlet expansion. The stock is trading at 20-30% discount to other comparable retailers under our coverage, which we believe is unwarranted. This is considering the similar degree of earnings visibility it offers as a major proxy to capture the resilient domestic consumer spending whilst the sustainable GPM expansion will insulate earnings from the impact of rising opex. In view of the elevated cost of living, the inflation-weary consumers will continue to be compelled to downtrade or bargain hunt to stretch their money. Such environment bodes well for Mr DIY as it is well-positioned to capitalise by leveraging on its entrenched store network (>1400 stores), value-for-money product offerings, and established brand equity. On top of that, the recent enrolment into the Sumbangan Asas Rahmah (SARA) initiative could be another avenue to capture the steady consumption of lower-income groups if it were to be significantly scaled up in the future. Outlet expansion will remain the primary growth driver with Mr DIY targeting to open at least 190 net new stores (including other formats with Chinese partner KK Group) in FY25F. Whilst the expansion of Mr DIY store network will increase the penetration in the underserved markets, the tie-up with KK Group will broaden the total addressable markets to better reach female and Gen Z consumers with the offering of beauty and wellness, lifestyle, and fashion products. Meanwhile, we believe the current GPM tailwinds are sustainable and should more than offset the lacklustre SSSG trends and rising opex (wages, rentals, and utilities) stemming from various reform measures. Maintain BUY and TP of RM1.87. – RHB Research, Aug 8

SENTRAL REIT’s 1H25 results were in line with expectations. We like the REIT underpinned by its stable earnings outlook and wide yield spread following the recent rate cut. Further re-rating catalyst could come from the potential disposal of the vacant Wisma Sentral Inai, which, based on an estimated valuation of RM150m, would help pare down its gearing to 39%. 1H25 core profit of RM39.7m (-1.7% YoY) was in line, meeting 48% and 52% of our and consensus full-year estimates respectively. 2Q25 DPU amounted to 3.2 sen (2Q24: 3.2 sen), while 2Q25 gearing stood at 44% (2Q24: 45%). YoY, 1H25 revenue dipped slightly by 2.1% to RM94.3m on lower contributions from Menara Shell after a tenant left in Jun 2024. That said, 1H25 NPI margin expanded slightly by 0.5ppts to 77%, thanks to cost optimisation, particularly on utilities and staff costs across the property portfolio. In addition to a lower interest expense (-1.9%) following an interest rate swap arrangement, 1H25 core profit declined by a smaller margin of 1.7% to RM39.7m. QoQ, 2Q25 revenue was flattish (+0%) at RM47.1m, mainly due to stable occupancy and minimal lease activity. With lower operating costs incurred for some properties, 2Q25 core profit rose slightly by 2.4% QoQ to RM20.1m. We expect revenue and occupancy to remain stable sequentially, with most of the leases due in 3Q25 already renewed in advance. That said, 3Q25 profit could see some upside from interest savings following the recent rate cut, given 38% of the REIT’s debt is on a floating rate basis. Most of the leases expiring in FY25 (which account for 21% of NLA) are held by long-term tenants in Cyberjaya, Menara Shell, and Platinum Sentral - the REIT’s key flagship assets, and hence, non-renewal risk should be low. Maintain BUY and RM0.93 TP. – RHB Research, Aug 8