4/09/2025

BIZ & FINANCE THURSDAY | SEPT 4, 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

Malaysia’s Zchwantech earns Amazon’s Select Tier Status KUALA LUMPUR: Zchwantech Sdn Bhd, a home-grown technology solutions provider, has achieved Amazon Web Services (AWS) Select Tier Partner status within the AWS Partner Network (APN). AWS Select Tier Services Partners are organisations recognised for proven technical expertise and demonstrated customer experience. “AWS Select Tier Partner status validates our strong technical foundation and reinforces our mission to be a trusted digital transformation solutions provider,” said Zchwantech chairman Datuk Seow Gim Shen. “We’re not just adopting cloud—we’re empowering businesses and governments to reimagine their operations with security, agility, and intelligence. As digital adoption accelerates in the Asean region, becoming an AWS Select Tier Partner equips us to lead at scale including national-level projects like digital identity infrastructure,” he added. To attain Select Tier Partner status, Zchwantech has met several AWS technical requirements including AWS certifications, capabilities, and implementations, as well as AWS technical and business professional training accreditations. Zchwantech has been utilising AWS cloud services since 2017. The company currently manages more than 300 virtual servers (using Amazon EC2), a wide range of serverless services, and over 400,000 requests per second on behalf of its customers. With a staff strength of 300 and 46 AWS certifications, Zchwantech has built and operates large-scale platforms and applications that serve customers of significant size and complexity.

Ringgit ends higher ahead of US labour data THE ringgit closed higher against the greenback yesterday as traders awaited the US labour market data, said an analyst. At 6pm, the local note rose to 4.2230/2285 versus the US dollar from Tuesdday’s close of 4.2270/2350. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Federal Open Market Committee (FOMC) meeting on Sept 16 and 17, along with geopolitical events like China’s military parade, would provide important inputs as well for traders and investors. He also said that the US dollar-ringgit pair oscillated within a tight range of between RM4.2268 and RM4.2345, while the US Dollar Index (DXY) was slightly higher at 98.444 points. “Regional currencies such as the Thai baht were weaker against the greenback as domestic politics and policies dominated market sentiments,” he told Bernama. The ringgit traded mostly higher against a basket of major currencies. It strengthened versus the Japanese yen to 2.8430/8469 from 2.8451/8507 on Tuesday and gained vis-a-vis the British pound to 5.6614/6687 from 5.6638/6745 on Tuesday, but depreciated against the euro to 4.9223/9287 from 4.9194/9287. Meanwhile, the ringgit performed mixed against other Asean currencies. It advanced versus the Singapore dollar to 3.2777/2822 from 3.2808/2873 at Tuesday’s close and edged up against the Indonesian rupiah to 257.2/257.7 from 257.5/258.1 previously. However, the local note fell versus the Thai baht to 13.0529/0759 from 13.0459/0762 on Tuesday and slipped against the Philippine peso to 7.37/7.38 from 7.35/7.37.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2980 2.8120 3.3320 3.1130 5.0000 2.5240 3.3320 5.7510 5.3670 3.5910 60.5500 68.6900 55.5900 4.9600 0.0271 2.8990 43.9000 1.5400 7.5900 119.1200 115.7200 25.1400 1.4600 46.7900 13.8700 118.3000 N/A

4.1630 2.7000 3.2290 3.0270 4.8400 2.4310 3.2290 5.5710 5.1420 3.3670 58.0000 63.2200 52.8300 4.6600 0.0245 2.7950 40.4000 1.4400 7.1400 113.0900 109.8500 22.7100 1.3400 42.6200 12.3100 112.1800 N/A

4.1530 2.6840 3.2210 3.0150 4.8200 2.4150 3.2210 5.5510 5.1270

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

111.9800

3.1670

N/A

63.0200 52.6300 4.4600 0.0195 2.7850 40.2000 1.2400 6.9400 112.8900 109.6500 22.5100 1.1400 42.4200 11.9100 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

IOI Corporation Bhd Neutral. Target price: RM4.33

MBM Resources Bhd Hold. Target price: RM5.63

Aurelius Technologies Bhd Buy. Target price: RM1.19

Sept 3, 2025: RM5.21

Sept 3, 2025: RM1.04

Sept 3, 2025: RM3.88

Source: Maybank Investment Bank

Source: PublicInvest Research

Source: Maybank Investment Bank

MBM’S dealership is not expected to be involved in P2’s upcoming EV launch, as the initial “trial-and-error” phase is expected to be managed directly by the OEM. That said, MBM will supply auto parts for the new model (targeting an output of 500 units/month), particularly safety products, acoustics, and tyre assembly. Meanwhile, we understand that in 1H’25, auto parts revenue rose 6% YoY despite lower volume, mainly due to a shift to turnkey arrangements with a key customer, where MBM purchases components on behalf of customers and bills them back, lifting revenue but not margins. Elsewhere, Hino and Volvo sales remained soft, while VW (+15% YoY to 251 units) and Daihatsu (+17% YoY to 411 units) improved in 1H’25, supported by OEM incentives and new stock arrivals. Jaecoo sales more than doubled from a low base (dealership started in Q3’24). Upcoming launches include Jaecoo J5 and C9 PHEV (2H’25), Hino Euro 5 LCV (Q4’25), and Volvo ES90 (2026), which we believe should feed into FY26 earnings. Dividend prospects remain strong, supported by cash reserves and higher associate payouts this year. We expect dividend yield of >9%, based on a 60% payout assumption. However, we believe earnings upside beyond FY25 is likely capped by P2’s production constraints. We understand P2’s EV is unlikely to be assembled at its two existing plants in Rawang. We continue to view MBM as a defensive pick, offering stable dividends and exposure to P2, the resilient mass-market leader. Hold with RM5.63 TP. – Maybank Investment Bank, Sept 3

THE group incurred a PPE impairment loss of RM39.2 million in Q4’25, following the underutilisation of its palm wood plant after just 1.5 years of operation, resulting in FY25 losses of RM18 million. The total investment in the plant amounted to RM140 million (land: R M60 million, PPE: RM80 million). Aggressive replanting in Sabah, along with younger estates in Indonesia, reduced the group’s average plantation age profile to 12.2 years. Fertiliser application was fully completed in Malaysia but only 60% in Indonesia due to persistent rainfall. A total of 10,000ha was replanted (9,500ha oil palm, 500ha coconut). Refinery utilisation stood at ~70%, while oleochemical plants achieved >60%. Management targets 5–10% FFB production growth in FY26F, though the mature area will shrink due to aggressive replanting. Fertiliser requirements for the next six months have been secured, with prices expected to rise by a high single-digit percentage. However, the impact on production costs will be cushioned by higher yields. FFB production costs are expected to inch up from RM290/mt to RM300/mt. Capex is budgeted at RM900 million, with 65% allocated to upstream and 35% to downstream operations. Key projects include doubling the ester plant capacity in Penang to 24k tonnes. The group also aims to replant 12,000ha (RM26,000/ha cost) and expand its coconut plantation from 3,800ha to 5,000ha, positioning IOI as Malaysia’s second-largest coconut plantation operator. For its 32%-owned associate Bumitama (SGX-listed), management expects the impact from Indonesian plantation scrutiny to affect ~1,000ha, a relatively small portion of its 187,000ha landbank. Neutral with RM4.33 TP. – PublicInvest Research, Sept 3

WE believe ATECH remains on a growth trajectory with 2H’25 likely to improve from accelerated customer demand. While we understand that tariff risks are mitigated, ATECH may need to absorb some opex costs. From our briefing, we note that growth momentum from both new and existing customers is expected to come primarily from the C&I and SC segments, supported by steady demand and ongoing NPI initiatives. The ED segment is also on track for recovery, as a key customer stabilises and new customers in POS and Automotive ramp up production as scheduled. With a total built-up space of 504k sq ft, plant utilisation remains at 90% for P1–P3, while P5 is still running at 10%. ATECH also indicated that a potential new C&I customer is in the pipeline, with more clarity likely to emerge next year. This is not imputed in our FY26 forecasts. ATECH shared that its key semiconductor component customer is experiencing rising product demand, prompting ATECH to enhance efficiency and production capacity to meet demand. ATECH expects its monthly revenue run rate to trend higher by end-2025 and is already in discussions to add potential new production lines in 2026. We maintain forecasts, expecting ATECH to deliver stronger results on firmer customer demand, which typically accelerates in 2H. Customers are set to absorb upcoming tariff costs and share opex increases with ATECH, with pricing mechanisms in place to safeguard current margin levels. We favour ATECH for its positioning as a trade diversion beneficiary, exposure to niche global customers, and solid growth outlook. Buy with RM1.19 TP.– Maybank Investment Bank, Sept 3