15/08/2025

BIZ & FINANCE FRIDAY | AUG 15, 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

Gentari breaks ground on Australian RE storage project PETALING JAYA: Clean energy solutions provider Gentari marked the groundbreaking of the Maryvale Solar & Energy Storage project (Project Maryvale), a key milestone in delivering reliable, low-carbon energy for New South Wales (NSW). Project Maryvale is a next-generation hybrid renewable energy facility that integrates a 243 MWp solar installation with a 172 MW/409 MWh battery energy storage system (BESS). Once operational, it can supply up to 172 MW of clean, dispatchable electricity—enough for about 82,000 homes a year— while avoiding up to 615,000 tonnes of carbon emissions annually. “Project Maryvale represents our commitment to accelerating Australia’s energy transition with reliable, dispatchable renewable energy,” said Gentari Australia head Claire Elkin. “As one of the first large-scale DC-coupled solar and storage projects in the country, it embodies our ambition to deliver clean energy solutions at scale while supporting grid resilience.” Project Maryvale was awarded a Long-Term Energy Service Agreement (LTESA) under the NSW government’s Electricity Infrastructure Roadmap. Administered by ASL as the NSW Consumer Trustee, the LTESA provides financial certainty through an option of an energy price floor. This mechanism helps to de-risk the project and facilitate financing. The project is located within the Central-West Orana REZ – one of the priority zones identified by the NSW government to accelerate renewable energy development. The project is being delivered by PCL Construction’s solar division, appointed as the EPC contractor, while the PV modules and BESS system are being free-issued through direct procurement from Tier 1 suppliers.

Ringgit retreats after traders cash in on gains

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit closed lower yesterday, snapping three consecutive days of gains as profit-taking emerged, with traders opting to lock in earlier gains. At 6pm, the local note slipped to 4.2090/2145 from Wednesday’s close of 4.2040/2085. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit recorded a sharp rise earlier yesterday, reaching as high as 4.1860 during the morning session, before the US dollar–ringgit pair climbed to 4.2088 later in the day. He noted that the USD/MYR had crossed the psychological threshold of 4.20, but profit-taking activities may have emerged as traders sought to lock in gains. “At the current juncture, enthusiasm for an interest rate cut by the United States Federal Reserve (Fed) has gained momentum, and it is taking a toll on the US dollar. “The impression that the Fed might be behind the curve in managing the monetary policy could also have contributed to the weakness in the US dollar,” he told Bernama. At the close, the ringgit ended mostly lower against major currencies, except the euro, against which it appreciated to 4.9170/9234 from 4.9305/9357. It fell versus the Japanese yen to 2.8703/8742 from Wednesday’s close of 2.8554/8586 and decreased vis-a-vis the British pound to 5.7146/7220 from 5.7078/7139. The ringgit traded mostly higher against regional peers. It strengthened versus the Singapore dollar to 3.2849/2895 from 3.2864/2902 at yesterday’s close, rose versus the Thai baht to 13.0004/0238 from 13.0276/0476, and was higher against the Philippine peso to 7.39/7.41 from 7.41/7.42.

1 US Dollar

4.2560 2.8070 3.3260 3.0920 4.9860 2.5560 3.3260 5.7830 5.3200

4.1200 2.6930 3.2220 3.0060 4.8250 2.4620 3.2220 5.6010 5.0920 3.3260 57.1500 63.0200 52.0100 4.6400 0.0246 2.8130 39.4300 1.4300 7.1600 111.9700 108.7500 22.7400 1.3300 41.8600 12.2100 111.0300 N/A

4.1100 2.6770 3.2140 2.9940 4.805 2.4460 3.2140 5.5810 5.0770 3.1260 57.1500 62.8200 51.8100 4.4400 0.0196 2.8030 39.2300 1.2300 6.9600 111.7700 108.5500 22.5400 1.1300 41.6600 11.8100 110.8300 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

117.1200 3.5720 59.6700 68.4900 54.7400 4.9400 0.0272 2.9060 15.3000 42.8600 1.5300 7.6100 117.9400 114.5500 25.1800 1.4500 45.9700 13.7800

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 (M) Bhd Buy. Target price: RM1.87

Banks Neutral

RCE Capital Bhd Neutral. Target price: RM1.15

AUG 14, 2025: RM1.05

AUG 14, 2025: RM1.54

Source: Bloomberg

Source: Bloomberg

Source: Company data, RHB

RCE posted a Q1’26 net profit of RM26 million, a 14% drop YoY (QoQ: +56% headline, -26% core) – this formed 17% and 19% of our and consensus’ full-year PATMI forecasts. The key variance vs our estimates came from: i) Softer-than-expected operating income of RM63.5 million (+2% YoY, -17% QoQ) due to weaker than-expected financing receivables growth, and ii) higher-than expected impairment allowances of RM11 million (+46% YoY, - 25% QoQ) from still-elevated cases of bankruptcies and early retirements among civil servants. Management reiterated the need to remain cautious with disbursements amidst a tough operating environment, where cases of bankruptcies and early retirements are still at elevated levels. Indeed, financing receivables growth was a soft 1% YoY (flat QoQ) – tracking below our initial estimate of +6% for FY26, which we revised down to +3%. Notably, management notes that the number of bankruptcy cases appears to have plateaued, although improvements will need to be seen before the group can turn more bullish with disbursements. Recall that Bank Negara Malaysia (BNM) had recently cut the OPR by 25bps. This will have a slight positive impact to interest/profit expenses on RCE’s revolving credits, which form 30% of the group’s financing liabilities base. We estimate the interest/profit expense savings to amount to RM2 million pa – not too significant. RCE plans to issue a new sukuk tranche to take advantage of recent favourable bond yield movements. While the tranche amount and profit rate are undisclosed, this could help the group significantly reduce its overall funding costs over the long term. NEUTRAL with RM1.15 TP. – RHB Research, Aug 14

MR DIY Group’s 1H’25 results met expectations on solid GPM and new store expansion. Net profit of RM333 million (+11% YoY) accounted for 52% of both our and consensus forecasts. Q2’25 DPS of 1.5 sen represents a payout ratio of 90%, above our expectation. Post results, we make no changes to our earnings forecasts but revise up our dividend payout assumption to 85% from 75%. YoY, 1H25 revenue grew 6% to RM2.5 billion primarily underpinned by 162 net new store additions with SSSG recorded at -3%. On a more positive note, 1H’25 GPM remained heightened at 47.8% (+2.1ppts), driven by favourable FX and increasing scale of operations globally. This more than offset the opex inflation (opex/revenue +1.1ppts) mainly stemming from higher minimum wages. Consequently, 1H’25 earnings rose 11% to RM333 million, with net margin expanding 0.6ppts to 13.5%. QoQ, Q2’25 revenue and net profit fell 3% and 9% due to the earlier timing of Aidil Fitri in 2025 and in reflection of the full impact of higher minimum wages. Subdued SSSG trends could persist in light of the soft consumer sentiment and robust store expansion, hence management is committed on marketing strategies to attract footfall. The RM2/Eco sales campaign has garnered encouraging reception and will be further upscaled whilst the recent enrolment into the MyKasih initiative could be another booster. Meanwhile, the GPM expansion is sustainable on favourable FX and increasing bargaining power capitalising on the trade war situation. On the other hand, the group is working on to right-size the staff count by lifting productivity and believes there is more room for improvement. BUY with RM1.87 TP. – RHB Research, Aug 14

BASED on our channel checks, we think sector loans growth could show a deceleration from the +7% YoY print in Q2’24, consistent with the slower banking system figure (June 2025: +5% YoY vs June 2024: +6% YoY with some banks citing slower drawdowns from non-retail due to tariff uncertainties) and FX impact. While domestic NIM could likely expand QoQ partly helped by the SRR cut and banks frontrunning July’s OPR cut, NIM from overseas operations should see continued pressure from falling benchmark rates and tight liquidity conditions. On the other hand, declining bond yields (Q2’25 average MGS 10-year yield down 20bps QoQ) is positive for trading gains, while market volatility and uncertainty should benefit FX and hedging activities. We think these could compensate for any weakness from lower loan and wealth-related fees. While individual opex trends will likely be mixed, we expect banks to exercise tight opex discipline amid tougher conditions to grow topline. On asset quality, first-order impacts from the US tariffs appear contained and there has been no major tariff-related asset quality issues observed. That said, sector credit cost is expected to rise QoQ, as highlighted above. Expected credit loss model refreshes will likely incorporate softer GDP growth expectations, though we do not expect the impact to be significant. Lastly, while provision buffers appear adequate, we do not discount the possibility of banks adding to pre-emptive provisions out of precaution – Affin and AMMB stand out for having sub-peer LLC levels, though both banks retain some degree of overlay balances still. – RHB Research, Aug 14