22/08/2025

BIZ & FINANCE FRIDAY | AUG 22, 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

Ringgit gains against US dollar, regional peers

MBSB: Consumer sector stays resilient on strong fundamentals KUALA LUMPUR: Malaysia’s consumer sector is expected to remain resilient, supported by strong macroeconomic fundamentals, policy measures and structural growth drivers, MBSB Investment Bank said. In a research note, the investment bank said measures under the 13th Malaysia Plan including higher minimum wages, cash aid and fuel subsidies, would help sustain household incomes. Together with the recent 25-basis-point cut in the overnight policy rate, these initiatives are expected to boost disposable incomes and support household spending power. “This is further supported by stable labour market conditions, a benign inflation outlook and a firm recovery in tourism, with stronger Asean and Chinese arrivals fuelling retail, food and beverages, and discretionary demand. “On the cost side, a firmer ringgit and easing input costs should improve margins, enhancing earnings visibility,” MBSB said. Coupled with the sector’s defensive tilt, where staples continue to provide resilience, the consumer sector remains well positioned to outperform in a volatile market, it added. MBSB also said the consumer sector is well positioned to benefit from tourism-driven consumption, as the rebound in tourist arrivals provides a structural uplift for consumer oriented businesses, particularly across fast-moving consumer goods, convenience retail and discretionary segments. It said increased foot traffic in airports, malls and tourist hotspots is expected to translate into stronger demand for bottled beverages, ready-to-eat snacks and casual dining. – Bernama

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit closed higher against the US dollar and its regional peers amidst cautious sentiments yesterday, after the US Federal Open Market Committee (FOMC) meeting minutes revealed that almost all participants supported keeping the interest rate unchanged. At 6pm, the local note rose to 4.2235/2275 against the US dollar from Wednesday’s close of 4.2250/2290. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said FOMC minutes showed that the US Federal Reserve (Fed) is maintaining its current stance as it continues to learn about the impact of the tariff shocks on inflation. “But the dissenting views by two FOMC members who opted for a 25 basis points cut in the last meeting suggest that the impact from the tariff hike on inflation is expected to be transitory. “We shall see whether these views would reverberate among the FOMC members as they learn from the incoming data,” he told Bernama. At the close, the ringgit settled mostly higher against a basket of major currencies. It rose versus the British pound to 5.6899/6953 from 5.7033/7087 on Wednesday and inched up vis-à-vis the Japanese yen to 2.8595/8626 from 2.8648/8677 on Wednesday. At the same time, the local note traded higher against other Asean currencies. It strengthened versus the Singapore dollar to 3.2819/2853 from 3.2864/2898 at Wednesday’s close, gained against the Thai baht to 12.9460/9638 from 12.9756/9935 on Wednesday, and edged up vis à-vis the Indonesian rupiah to 259.2/259.6 from 259.6/260.0.

1 US Dollar

4.2870 2.7690 3.3330 3.0860 4.9930 2.5040 3.3330 5.7710 5.3590

4.1520 2.6570 3.2300 3.0000 4.8330 2.4120 3.2300 5.5880 5.1310 3.3510 57.5800 63.1200 52.6800 4.7000 0.0247 2.8100 39.4900 1.4400 7.1900 112.8000 109.5500 22.6600 1.3400 41.9500 12.1900 111.8800 N/A

4.1420 2.6410 3.2220 2.9880 4.8130 2.3960 3.2220 5.5680 5.1160

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

117.9900 3.5980 60.1100 68.5800 55.4300 5.0000 0.0272 2.9150 15.2000 42.9200 1.5400 7.6300 118.8200 115.4000 25.0900 1.4600 46.0600 13.7500

111.6800

3.1510

N/A

62.9200 52.4800 4.5000 0.0197 2.8000 39.2900 1.2400 6.9900 112.6000 109.3500 22.4600 1.1400 41.7500 11.7900 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

Dialog Group Bhd Neutral. Target price: RM2.02

Auto & Auto parts Neutral

S P Setia Bhd Buy. Target price: RM1.35

AUG 21, 2025: RM0.51

AUG 21, 2025: RM1.83

Source: Bloomberg

Source: Bloomberg

SP SETIA’S Q2’25 results missed expectations as its development earnings were still weak. The YoY drop in Q2’25 revenue was largely attributed to lower contributions from land sales as well as reduced revenue from projects in Australia and Vietnam following substantial handovers of completed developments in 2024. Q2’25 EBIT margin was higher at 33% vs 31% in the previous quarter, as Q2’25 saw the recognition of the disposal of Taman Pelangi land worth RM157 million (estimated profit of over RM100 million). 1H’25 land sales of RM224 million were much lower compared to RM989 million worth of land sales that were recognised in 1H’24 (mainly from Glengowrie and Taman Pelangi Indah 2). Q2’25 property sales totalled RM1.186 billion vs RM718 million in Q1’25. Of the total property sales of RM1.9 billion in 1H’25 (including RM235 million from land sales), 75% came from local projects, while the remainder was from Australia and Vietnam. The central region contributed RM955 million, while the Southern region raked in RM430 million in sales. Setia Alaman and Setia Eco Park in the central region and Atlas Melbourne in Australia were the major sales contributors for 1H’25. Sales for JV project Parkside Residence at Federal Hill, launched in early 2025, remained slow – at only RM28 million (vs RM14 million in Q1’25). The company finally signed key collaboration terms with strategic partner Ally Logistic Property, Taiwan’s largest warehousing infrastructure developer, to develop a build-to-lease warehouse on a 42-acre parcel of land at Setia Alaman. Pending further details on the JV (equity interest and resulting land disposal), we are uncertain if SP Setia will be able to hit its RM4.8 billion sales target by the year-end. BUY with RM1.35 TP. – RHB Research, Aug 21

DIALOG’S Q4’25 results pointed to a stable performance, with a marginal QoQ uptick in core earnings led by stronger JV & associate contributions. At 99% and 106% of our and Street full year estimates, Dialog’s FY25 core earnings of RM423 million (- 31% YoY) are in line with our expectation, but surpassed the consensus projection. Q4’25 core earnings improved by 2% QoQ on the back of stronger revenue (+5%; increased activities in Malaysia, Australia and New Zealand) and JV & associate contributions (+25%; sustained occupancy levels and storage rates as well as FX gains) despite the lower EBITDA margins recorded (Q4’25: 25% vs Q3’25: 27%). Cumulatively, FY25 core earnings were down by 31% YoY to RM423m, no thanks to an exceptionally weak Q2’25 that resulted from additional cost provisions to account for cost overruns and EPCC project losses. Occupancy levels and monthly storage rates for independent terminals are still well sustained, at above 90% and above S$6/cu m. We are generally positive on the recently announced 272,000cbm expansion plan in Pengerang for Pengerang Biorefinery. Further long-term growth could be expected for the upcoming aromatics plant with an estimated 1m cu m capacity, and new Phase 3 expansion of the Pengerang complex – which is still in the discussion stage. Additionally, management guided that the Baram Junior Cluster (BJC) Small Field Asset Production Sharing Contract (SFA PSC) would require US$235m in capex. The field has a reserve profile of 137bcf of gas and 2mmboe in condensate. First gas is expected by Jan 1, 2027. NEUTRAL with RM2.02 TP. – RHB Research, Aug 21

Source: Company data, RHB

THE Malaysian Automotive Association (MAA) reported a TIV of 70,057 units (+28% MoM, -5% YoY) in July, with total production volume (TPV) reaching 66k units (-7% YoY). The stronger sequential performance was largely expected, post Aidil Adha. July TIV rose to 70k units (+28% MoM, -3% YoY), lifting the 7M’25 figure to 443,777 units (-6% YoY), at 61% of our FY25 forecast. The rebound was expected, buoyed by a full working month in July, ie 23 days vs 19 days in June. The pick-up in sales volume was led by Perodua (+50% MoM) and Proton (+24% MoM), followed by Honda and Toyota (+13% and +14%.). Meanwhile, Chinese marque Chery’s sales volume increased by 11% MoM, while BYD’s fell 18%. With this, national marques expanded their market share to 64% in YTD-July, from 62% in 2024. Perodua retained its position as the market leader, accounting for 45% of TIV. Total production volume (TPV), on the other hand, shot up 37% MoM (+1% YoY) in July, in line with the increase in TIV numbers. The MoM increase was contributed by Perodua (+36% MoM) – mainly coming from a low base and Toyota (+55% MoM), likely in anticipation of an increase in demand from ongoing Merdeka promotions. BYD ranked as the top-selling EV brand in July, based on Road Transport Department figures – which include non-MAA members. – RHB Research, Aug 21