5/09/2025

BIZ & FINANCE FRIDAY | SEP T 5, 2025

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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

Swift Haulage, China firm plan cold storage facility in Shah Alam KUALA LUMPUR: Swift Haulage Bhd’s subsidiary Swift Cold Chain Sdn Bhd has teamed up with China’s Moon Environment Technology Co Ltd to build a cold storage facility at the upcoming Shah Alam International Logistics Hub. In a joint statement, the companies said the facility will have capacity for about 10,000 pallets and use natural refrigerants such as ammonia and carbon dioxide to ensure environmental sustainability while maintaining high performance and energy efficiency. Under the agreement, Moon Environment will provide expertise, resources and technologies to deliver the project on time and to the highest standards of quality and safety. The partnership was formalised at a signing ceremony officiated by Swift Cold Chain CEO Tan Nee Phing and Moon Environment CEO Zhao Baoguo. Tan said the investment underscores Swift Cold Chain’s commitment to capability, credibility and competitiveness. “It marks the beginning of a journey to set new standards for the cold chain industry,” she said. Zhao said the eco-friendly facility will meet Malaysia’s growing cold chain logistics demand and symbolise China-Malaysia cooperation. “This is just the beginning. We look forward to building a stronger, more comprehensive partnership with Swift Cold Chain, creating lasting value and shared success,” he added. The Shah Alam International Logistics Hub is expected to complete its first phase this year and begin operations in the first quarter of 2026. Billed as Malaysia’s first green-certified logistics hub and among Asean’s largest, it will connect directly to key transport networks and industrial zones, making it a central cold chain hub. – Bernama

Ringgit mostly lower against major and Asean currencies THE ringgit closed slightly lower against the US dollar yesterday following a 0.1% rise in the US Dollar Index (US DXY) to 98.245 points despite a weaker-than-expected job openings report in the US, said an analyst. At 6pm, the local note eased to 4.2260/2320 from Wednesday’s close of 4.2230/2285. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market attention was now on the ADP Employment Change report, which measures private-sector job creation in the US, with consensus expectations at 65,000 new jobs in August compared with 104,000 in the previous month. “Initial Jobless Claims are expected to edge slightly higher to 230,000 last week from 229,000 the week before. In a sense, traders and markets can agree that signs of economic weakness in the US are becoming clearer,” he told Bernama. He said the case for an interest rate cut has therefore become more compelling, with futures pricing now showing a more than 90% probability of a rate reduction. “However, the US dollar seems to gain some strength. On that note, traders and investors are likely to be more guarded as the Nonfarm Payroll (NFP) data point could surprise on the upside this Friday,” he added. At the close, the ringgit was mostly lower against major currencies. It rose against the euro to 4.9203/9273 from 4.9223/9287, but slipped versus the yen to 2.8489/8531 from 2.8430/8469 and against the pound to 5.6793/6874 from 5.6614/6687. Against Asean currencies, the ringgit was also mostly lower, except for a slight strengthening against the Singapore dollar to 3.2775/2824 from 3.2777/2822 previously.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2900 2.8220 3.3290 3.1060 5.0030 2.5300 3.3290 5.7670 5.3650 3.5800 60.4200 68.7100 55.5400 4.9500 0.0270 2.9050 43.8100 1.5400 7.6000 118.6900 115.4600 25.1400 1.4600 46.8900 13.8800 118.0700 N/A

4.1520 2.7070 3.2240 3.0180 4.8390 2.4360 3.2240 5.5820 5.1360

4.1420 2.6910 3.2160 3.0060 4.8190 2.4200 3.2160 5.5620 5.1210

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

111.8800 3.3550 57.8300 63.1900 52.7500

111.6800 3.1550 62.9900 52.5500 4.4400 0.0194 2.7890 40.0700 1.2400 6.9500 112.4800 109.4100 22.5100 1.1400 42.4900 11.9000 N/A N/A

4.6400 0.0244 2.7990

N/A

40.2700 1.4400 7.1500 112.6800 109.6100 22.7100 1.3400 42.6900 12.3000

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

Solarvest Holdings Bhd Buy. Target price: RM2.95

Mega First Corporation Bhd Outperform. Target price: RM5.80

Syarikat Takaful Malaysia Keluarga Bhd Neutral. Target price: RM3.20

Sept 4, 2025: RM3.51

Sept 4, 2025: RM2.42

Sept 4, 2025: RM3.04

Source: PublicInvest Research

Source: Bloomberg

Source: Bloomberg

DURING the analyst briefing last week, management projected a strong pick-up in the 2H on the back of resilient renewable energy (RE) earnings, boosted by higher water flow s and increased capacity, while the resources and packaging segments have passed their low point in the Q2 with a gradual recovery underway. Despite recording a 5.4% increase in USD-denominated energy sales in the Q2’25, led by higher energy volume of 10.9%, the renewable energy segment experienced a decline of 3.6% YoY, mainly due to a 9% translation loss. The hydropower plant is running at full capacity utilisation as the water level is relatively high during the wet season. Recently, the Pakse substation recorded the highest water level since 2019 at 9.68m for the same period. With higher river flows and full capacity for all turbines, we expect the Energy Availability Factor to be above 80% compared to the 1H’25’s 74.6%. There will be an overhaul of two turbines during the dry season in December. The JV-owned oleochemical business recorded nine consecutive quarterly losses with 1H’25 totaling RM45.4 million. As gas supply has been fully restored since July 2025, the oleochemical plant in Carey Island has been gradually ramping up its capacity. The key challenge now lies with the volatile palm kernel price, which has pushed the palm kernel/CPO ratio above 81% compared to the historical average of 64%. In our view, the plant needs to double its sales volume before it can reach the breakeven level. In-short, we expect narrower losses in the 2H compared to the 1H. Outperform with RM5.80 TP. – PublicInvest Research, Sept 4

SOLARVEST, with its 80%-holding consortium partner, has been shortlisted to develop a photovoltaic (PV) plant in Larut and Matang, Perak under LSS PETRA 5+ (LSS5+), and we expect EPCC contract wins to follow in CY26. The consortium, comprising Malakoff with an 80% stake and Solarvest with a 20% holding, has been shortlisted to develop a 470MWac large-scale solar PV plant, following the competitive large-scale solar bidding exercise conducted by the Energy Commission for LSS PETRA 5+. The power purchase agreement (PPA) with the national power company will last 21 years, with the plant’s commercial operation date set for end-2027. We estimate the value of the EPCC contract at RM1-1.2 billion. Solarvest is also eyeing an additional EPCC contract of at least another 30MWac from LSS5+. Assuming an IRR of 6-7% and total capex of RM1.2 billion, the project could generate RM4-8 million via associate earnings, potentially boosting CY28 earnings by 4.4-8.7%, given Solarvest’s 20% stake. The expansion of its asset portfolio aligns with the group’s strategy to achieve 30% of income from recurring sources. As of Q1’26 (March), Solarvest’s outstanding orderbook is worth RM1.2 billion (flat QoQ), with 77.8% from utility-scale projects and the remainder from commercial and industrial (C&I) and residential jobs. We expect the EPCC contracts from LSS5+ to be awarded in Q2’26, which may take Solarvest’s orderbook to a further record high. Management also expects more wins from LSS5 EPCC contracts, with involvement in 30% of awarded quotas. Buy with RM2.95 TP. – RHB Research, Sept 4

ASAT June 2025, STMB was the largest family takaful operator in Malaysia, with a 27.8% market share. In 1H’25, it achieved 19% YoY growth in gross direct contributions (GDC), compared to the industry’s slower 2% (slowdown in agency-related activities). Meanwhile, STMB remained in second place in the general takaful industry, with a 22.8% market share. The segment posted a 5% YoY GDC growth vs the industry’s +10%, largely driven by motor takaful sales – which is an area it is not keen on growing too aggressively in. STMB’s bread-and-butter family takaful products (eg: mortgage and personal financing protection) will remain as focus areas, as these currently form 90% of the group’s contractual service margin (CSM) balance. The group is also actively looking to expand in the non-credit retail takaful segment, which are also CSM-accretive, and comprises protection for solar panels and home assets, among others. We think STMB’s brand equity and wide bancatakaful network are advantageous in this regard – under STMB’s new bancatakaful deal with RHB Islamic Bank, it will have access to distribute such products to RHB’s wealth clients. Post-access fee payment for the bancatakaful agreement renewal with RHB, STMB’s capital adequacy ratio remains above the regulatory floor of 130%. That said, the group had recently launched a RM1 billion Tier 2 sukuk wakalah programme to further solidify its capital position. Of the available amount, STMB intends to issue RM500 million (i.e. 50%) to be directed towards working capital purposes and investments in digital and IT infrastructure. Neutral with RM3.20 TP. – RHB Research, Sept 4