21/08/2025

BIZ & FINANCE THURSDAY | AUG 21, 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

SMRT nets RM28.4m FY25 profit on revenue, IoT growth CYBERJAYA: Pure play enterprise Internet of Things (IoT) solutions provider, SMRT Holdings Bhd announced its fourth quarter (Q4’25) and 12 months (FY25) financial results for the period ended June 30, 2025. In FY25, the group’s net profit after tax (PAT) rose 14.1% year on-year (YoY) to RM28.4 million, after adjusting for a one-off disposal gain of RM1.1 million recorded in FY24. This stronger underlying growth, compared to the reported 7.7% increase from RM26 million, was driven by the full-year impact of higher margin recurring income. Correspondingly, the group’s PAT margin improved to 39.5% in FY25 from 37.7% in FY24. Revenue for FY25 increased by 4.1% YoY to RM71.9 million from RM69.1 million in the prior year, supported by a growing recurring revenue base. Notably, the group’s operations in the Philippines delivered its first full-year contribution, with all of its revenue derived from recurring income. On a quarterly basis, SMRT’s Q4’25 revenue stood at RM17.4 million, compared to RM17.9 million in Q4’24, primarily due to external seasonal factors that affected deployment timelines. Nevertheless, the group’s PAT grew by 28.5% to RM7.2 million from RM5.6 million in Q4’24, supported by the continued growth in managed sites, which provide recurring, higher-margin income. Group managing director Maha Palan said they are pleased to conclude the financial year on a firm note, supported by their ongoing initiatives to strengthen their presence in key markets and verticals, despite operating against a more volatile regional economic environment. Sunway Construction Group Bhd Buy. Target price: RM6.80

Ringgit dips vs US dollar, gains against other major currencies THE ringgit appreciated against most major currencies but eased slightly against the greenback at the close yesterday amid cautious market sentiments ahead of the release of the US Federal Open Market Committee (FOMC) meeting minutes. At 6pm, the local note dipped to 4.2250/2290 against the US dollar from Tuesday’s close of 4.2215/2255. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that apart from the minutes, comments by senior US central bank officials will also come into focus after the release of the FOMC details. “Markets are anxious about whether the US Federal Reserve (Fed) will deliver a 25 basis points interest rate cut in the upcoming FOMC meeting,” he told Bernama. Afzanizam said last week’s US consumer price index and producer price index dynamics suggested that the Fed might continue to focus on inflation, but noted that the weak labour market warranted additional monetary stimulus. At the close, the ringgit settled mostly higher against a basket of major currencies. It gained versus the euro to 4.9196/9242 from 4.9307/9354 on Tuesday and inched up against the British pound to 5.7033/7087 from 5.7066/7120, but dropped vis-à-vis the Japanese yen to 2.8648/8677 from 2.8572/8601. The ringgit also traded mostly higher against other Asean currencies. It gained versus the Singapore dollar to 3.2864/2898 from 3.2901/2935 at Tuesday’s close, strengthened against the Thai baht to 12.9756/9935 from 12.9848/13.0027 and inched up vis-à vis the Indonesian rupiah to 259.6/260.0 from 259.8/260.2.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2965 2.7840 3.3410 3.0940 5.0010 2.5400 3.3410 5.7940 5.3440 3.6060 60.1700 68.6800 55.6200 5.0100 0.0273 2.9150 42.8400 1.5400 7.6300 119.0800 115.6500 25.1200 1.4600 46.0800 13.7600 118.2500 N/A

4.1605 2.6720 3.2360 3.0080 4.8390 2.4470 3.2360 5.6090 5.1160 3.3580 57.6200 63.2000 52.8500 4.7000 0.0248 2.8090 39.4000 1.4400 7.1800 113.0500 109.7900 22.6900 1.3500 41.9700 12.2000 112.1100 N/A

4.1505 2.6560 3.2280 2.9960 4.819 2.4310 3.2280 5.5890 5.1010

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

111.9100

3.1580

N/A

63.0000 52.6500 4.5000 0.0198 2.7990 39.2000 1.2400 6.9800 112.8500 109.5900 22.4900 1.1500 41.7700 11.8000 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

Focus Point Holdings Bhd Buy. Target price: RM0.74

EG Industries Bhd Not Rated

AUG 20, 2025: RM5.81

AUG 20, 2025: RM1.14

AUG 20, 2025: RM0.555

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

SUNWAY Construction has provided an update following the July 12 announcement on the Malaysian Anti-Corruption Commission (MACC) investigation involving one of its employees. On Aug 18, SCGB received official confirmation from MACC clarifying that the scope of its investigation pertains solely to the personal conduct of the individual concerned, and it remains an isolated case. MACC has further confirmed that neither SCGB nor any of its subsidiaries are subjects of investigation under any provision of the MACC Act 2009, including Section 17A. SCGB’s board of directors takes this matter with utmost seriousness, and the company remains committed to uphold the highest standards of integrity, transparency, and governance across its operations. We believe the latest MACC update may instil confidence towards SCGB’s established robust mechanisms and systems that uphold anti-corruption compliance, as the case remains an isolated one. The adoption and certification of the ISO 37001 Anti-Bribery Management System (ABMS) demonstrates its commitment to ethical business practices, requiring substantial financial investment in system development amongst others. SCGB has RM15.9 billion worth of active tenders (as of end Q1’25), with around 70-80% comprising DC jobs. Upcoming wins may stem from the Seremban Sentral project (GDV of RM2 billion) and some DCs in the Klang Valley (the outcomes could be known in 2H’25), coupled with potential expansion works for JHB1X0 DC in Sedenak which has a total planned capacity of 200-300MW. BUY with RM6.80 TP. – RHB Research, Aug 20

1H’25 core profit of RM16.6 million (+4.5% YoY) met 46% and 44% of our and consensus full-year forecasts. The results are in line with expectations, as we expect a stronger 2H’25 due to seasonal factors. YoY, 1H’25 revenue grew 4.9% to RM145.7 million, mainly driven by growth in the optical segment (+5.3%) from store expansion (five owned and one franchised stores) and SSSG of less than 5%. 1H’25 GPM expanded 1.9ppts YoY to 67.2%, supported by stronger bargaining power from higher volumes. Consequently, 1H’25 PBT rose 3.4% YoY to RM22.1 million, with stronger optical performance (+16.1%) offset by the F&B segment, which slipped back into a loss of RM1.6 million (vs 1H’24 PBT: RM0.6 million) due to cautious consumer sentiment and rising opex. QoQ, Q2’25 revenue was flattish at RM72.8 million (-0.2%) on less aggressive price promotions, but improved GPM (+1.3ppts to 67.8%) lifted core profit 12% QoQ to RM8.8 million. Focus Point is well-positioned to capture the rising myopic population, leveraging its market leadership and strong brand equity. The group will continue to drive effective marketing initiatives and expand into East Malaysia – where competition is relatively limited – to further grow market share. Corporate sales (7% of optical revenue) are also expected to sustain strong growth (1H’25: +>70% YoY), supported by rising demand from employers offering optical benefits to attract and retain talent. In the F&B segment, management is in discussions to secure new business and ramp up central kitchen utilisation, while Komugi’s expansion will remain prudent amid subdued consumer sentiment. BUY with RM0.74 TP. – RHB Research, Aug 20

EG is undergoing a structural earnings uplift, driven by a move into higher-margin upstream components and modules since 2022. This shift has transformed its revenue mix, with legacy consumer electronics contributions decreasing to 52% in 9M’25, from 92% in FY22. The transformation accelerated in FY24, when EG began producing network switches for a leading China-based telecommunications equipment provider, benefiting from the global shift of production out of China. Contributions from this customer are expected to grow rapidly, enhancing EG’s exposure to the boom in AI demand and supporting its sustained margin improvement. EG is one of a few manufacturers in Southeast Asia producing high-power 5G optical modules. Building on a 6-year partnership with CIG, it was appointed in Oct 2022 as CIG’s exclusive global manufacturer for 100G-800G optical modules and, in April 2024, for the cutting-edge 1.6T modules for AI/DCs. EG will produce 50% of CIG’s 800G and 1.6T output, with 800G demand projected to quadruple over 2024-2025 and 1.6T to double over 2024-2026, driven by Nvidia, Google, and other hyperscalers. To support its growth, EG is expanding via its new Batu Kawan Smart Factory 4.0, which is dedicated to high-power photonics, AI modules, and network equipment. The facility will install additional high-speed surface mount technology (SMT) lines, 1K to 10K cleanroom facilities, and deploy advanced automation in testing and packaging. Beyond CIG and the China-based network switch customer, EG secured its first direct US client — Customer G — for energy storage and power systems, which will occupy dedicated space at the Batu Kawan facility. – RHB Research, Aug 20