13/08/2025

BIZ & FINANCE WEDNESDAY | AUG 13, 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

Sunway iLabs, a16z Perennial in tech innovation partnership KUALA LUMPUR: Sunway iLabs, the innovation and corporate venture capital (CVC) arm of Sunway Group, has partnered with Andreessen Horowitz (a16z) Perennial, a wealth management platform dedicated to backing generational companies and sustainable innovation, to accelerate cross-border tech innovation. Through this partnership, Sunway iLabs will work closely with a16z Perennial to identify and support breakthrough innovations in AI, enterprise software, health tech, education tech, climate tech, and more. The partnership combines a16z Perennial’s global innovation network with Sunway’s regional leadership and ecosystem depth to co-establish a conducive environment for cross-border technology adoption and scalability. “We are excited to partner with a16z Perennial, a platform built on one of the world’s most respected venture capital firms, renowned for its deep expertise in backing transformative technologies,” said Matt van Leeuwen, CEO of Sunway iLabs and chief innovation officer of Sunway Group. “Being based in the heart of Silicon Valley, a16z offers unparalleled access to the world’s most advanced innovations and a powerful global network. This partnership enables us to bridge these frontier technologies with Southeast Asia’s growing digital economy, accelerating responsible and impactful innovation across borders.” Sunway iLabs has actively made direct investments in startups and participated in four other venture capital funds since its inception: Orbit Malaysia, The Hive Southeast Asia, Gobi Partners, and DeepTech Labs (in partnership with ARM and the University of Cambridge). Collectively, Sunway iLabs’ portfolio comprises nearly 100 companies across various sectors.

Ringgit extends gains ahead of US inflation data THE ringgit maintained its upward momentum against the US dollar and other major currencies yesterday, as traders and investors awaited the release of the US Consumer Price Index. At 6pm, the local note strengthened to 4.2290/2320, an increase of 0.08% against the greenback from Monday’s close of 4.2320/2360. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said higher-than-expected July readings could prompt the US Federal Reserve to reconsider cutting the Federal Funds Rate at its Federal Open Market Committee meeting in September. He said the final estimate for Malaysia’s second-quarter GDP would also be closely monitored. The Industrial Production Index as well as Index of Services and Construction Work Done for Q2 indicate that the final GDP figure could come in lower than the official advance estimate of 4.5%. “Our estimates showed that GDP in Q2 could settle at 4.3%. As such, the growth trajectory will determine the degree of monetary accommodativeness in light of the weaker economic outlook globally,” he told Bernama. At the close, the ringgit ended firmer against major currencies. It edged up versus the Japanese yen to 2.8490/8512 from Monday’s close of 2.8657/8686, improved against the euro to 4.9090/9125 from 4.9269/9316 on Tuesday and increased vis-a-vis the British pound to 5.6905/6946 from 5.6933/6987. The ringgit also traded higher against regional peers. It advanced against the Singapore dollar to 3.2867/2893 from 3.2936/2973 at yesterday’s close and strengthened versus the Thai baht to 13.0135/0300 from 13.0569/0769.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2990 2.8150 3.3420 3.1180 4.9980 2.5620 3.3420 5.7790 5.3300

4.1630 2.7020 3.2380 3.0300 4.8370 2.4690 3.2380 5.5950 5.1050 3.3600 57.6300 63.1800 52.5400 4.6800 0.0247 2.8090 39.6900 1.4400 7.1800 113.1100 109.8500 22.6700 1.3500 41.8900 12.2600 112.1800 N/A

4.1530 2.6860 3.2300 3.0180 4.8170 2.4530 3.2300 5.5750 5.0900 3.1600 57.6300 62.9800 52.3400 4.4800 0.0197 2.7990 39.4900 1.2400 6.9800 112.9100 109.6500 22.4700 1.1500 41.6900 11.8600 111.9800 N/A

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

118.3200 3.6080 60.1800 68.6600 55.3000 4.9800 0.0273 2.9020 15.4000 43.1500 1.5400 7.6200 119.1500 115.7100 25.1000 1.4700 46.0000 13.8300

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

Plantations Neutral

DRB-Hicom Bhd Neutral. Target price: RM0.84

UUE Holdings Bhd Outperform. Target price: RM1.00

AUG 12, 2025: RM0.83

AUG 12, 2025: RM0.805

Source: PublicInvest Research

Source: PublicInvest Research

UUE’S all-time high orderbook of RM421.7 million as at end June 2025 reflects a broader infrastructure investment upcycle across both Malaysia and Singapore. In Malaysia, Tenaga Nasional’s RP4 allocates RM42.8 billion in capex from 2025 to 2027, more than double the allocation under RP3, with distribution networks expected to receive the largest share, consistent with previous cycles. Meanwhile, in Singapore, SP PowerAssets is ramping up investment in underground infrastructure and cable upgrades, supported by multiyear initiatives to future proof its grid. These trends provide strong structural visibility for recurring project flows in UUE’s core markets, particularly within the mid-voltage distribution segment, where the group holds a strategic advantage. New factory to boost its HDPE pipe manufacturing capacity, which set to strengthen vertical integration and margin stability. The group operates three lines at 65.7% utilisation in FY25, with plans to add 6–9 new lines by mid-2026. This will enable UUE to support larger internal jobs and scale up third-party sales. Additionally, the new facility will introduce corrugated pipes, a higher-margin product with strong demand from property developers. Key risks: i) Project execution may be affected by uncertainties in permit approval timelines, particularly in densely populated areas and during festive seasons. These delays can impact work commencement and progress billing. ii) Reliance on main contractors for project awards remains a structural limitation, as the Group typically undertakes specialist underground utility scopes rather than acting as a principal contractor. As such, its project pipeline is linked to the success of key partners may expose risks outside its control. Outperform with RM1.00 TP. – PublicInvest Research, Aug 12

Source: PublicInvest Research

PALM oil inventory in Malaysia rose for the fifth consecutive month, reaching its highest level since December 2023, driven by a strong rebound in production and moderate export growth. However, the latest inventory figure came in lower-than-expected, pushing CPO futures higher by RM100/mt to RM4,357/mt. Year-to date, the average CPO price stood at RM4,337/mt. Malaysia’s palm oil inventory in July increased by 4% MoM to 2.11m mt, the highest since December 2023. The stock-to-usage ratio eased slightly from 9.9% to 9.8%, as production growth outpaced exports. After a sharp decline in the previous month, exports rebounded by 3.8% MoM to 1.3m mt. The improvement was driven by robust demand from India (+23.2%) and several smaller consuming countries, offsetting weaker shipments to China (- 32%), the EU (-15.6%), the Middle East (-56.5%), and the US (- 18.9%). CPO production rose 7.1% MoM to 1.81m mt, marking the highest level in 10 months. While production in East Malaysia fell 3.1%, Peninsular Malaysia recorded a strong 14.4% MoM increase, driving overall growth. Indonesian government may not start its B50 biodiesel blending plan in Jan 2026 as it needs to sort out various issues. The local authority will conduct a road test before deciding whether to raise the biodiesel blending from 40% currently to 50%. A road test typically needs six to eight months to run. Our top picks are Sarawak Plantation and Ta Ann, supported by their favourable age profiles and promising FFB production growth. – PublicInvest Research, Aug 12

CTRM, a wholly owned subsidiary of DRB, announced that it has entered into a conditional share purchase agreement with Spirit AeroSystems Inc and Spirit AeroSystems International Holdings inc. to acquire the entire equity interest in Spirit MY. The purchase consideration will be based on an enterprise value of US$95.2 million (RM426.1 million), adjusted for net working capital, cash and indebtedness. The proposed acquisition tentatively expected to be completed by Q4’25. CTRM specialises in the design, development, and manufacturing of composites components for the aerospace industry. The company’s core operations involve producing advanced aircraft composite parts that are supplied to major aerospace systems providers including Spirit AeroSystems, Collins Aerospace, and GKN Aerospace. These components ultimately reach leading aircraft OEMs such as Airbus, Boeing, Bombardier, and Embraer through CTRM’s tier-one customers. The proposed acquisition will strengthen CTRM’s market position in the aerospace manufacturing by expanding its aerostructure capabilities through increased operational scale, strengthening supply chain influence and opening new growth pathways. Furthermore, this acquisition aligns with and supports Malaysia’s national industrial development goals, particularly The New Industrial Master Plan 2030, and The Malaysian Aerospace Industry Blueprint 2030, both of which aim to establish the country as a premier aerospace hub in the region. Neutral with RM0.84 TP. – PublicInvest Research, Aug 12