15/09/2025

BIZ & FINANCE MONDAY | SEPT 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

Celebrating 46 years of Cosway at Cosway Reimagined KUALA LUMPUR: Cosway (M) Sdn Bhd, one of Malaysia’s most established hybrid direct marketing names, is celebrating its 46th anniversary with a bold new chapter. The brand invites the public to join Cosway Reimagined, a three-day festival of innovation, style and wellness happening at LaLaport BBCC, Kuala Lumpur, from Sept 26 to 28. For the first time, newly appointed CEO Chryseis Tan will take the stage to share her vision for Cosway’s future. This highly anticipated public address marks a defining moment for the company as it reinvents itself for a new generation of Malaysians. The highlight of Cosway Reimagined will be the unveiling of CosYoung, a vibrant lifestyle brand created for today’s beauty and wellness shoppers. With clean, science-backed formulations and a modern aesthetic, CosYoung represents Cosway’s renewed commitment to accessibility, style and relevance for Gen Z and millennial consumers. “Leading a company with such a proud legacy is both a privilege and a responsibility I embrace fully,” says Tan. “Cosway Reimagined is our commitment to the future – fresher, bolder and built to thrive.” But the festival is about more than new launches. Over three exciting days, visitors can look forward to exclusive product debuts, interactive experiences, engaging workshops, meet-and greet opportunities and limited-time offers. From beauty and wellness showcases to lifestyle demonstrations, Cosway Reimagined promises something for everyone – loyal customers, curious first-timers and families alike.

Ringgit expected to trade in tight range this week

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit is expected to trade within a tight range this week as investor focus shifts to the United States’ anticipated interest rate cut. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit may climb higher after breaching the RM4.20 level, especially if the US Federal Reserve quarterly projections signal a more dovish stance. SPI Asset Management managing director Stephen Innes shared a similar view, projecting the ringgit to hover between RM4.19 and RM4.21. “(Friday’s) gains have put RM4.20 firmly on the radar for next week, as markets continue to prioritise labour market weakness over persistent inflation,” he noted. On a weekly basis, the ringgit ended the week higher against the greenback, closing at 4.1975/2080 versus 4.2260/2320 previously. The local note traded mostly lower against a basket of major currencies. The ringgit appreciated vis-a-vis the Japanese yen to 2.8373/8446 from 2.8489/8531 in the previous week, but eased against the British pound to 5.6864/7006 from 5.6793/6874, and it was flat versus the euro to 4.9203/9326 from 4.9203/9273. However, the ringgit was mostly higher against Asean peers. It gained against the Singapore dollar to 3.2719/2803 from 3.2775/2824 at the end of last week, increased against the Indonesian rupiah to 256.3/257.0 from 257.3/257.7, and advanced against the Philippine peso to 7.35/7.37 from 7.40/7.42 previously. However, it slid against the Thai baht to 13.2317/2703 from 13.0666/0908 in the previous week. – Bernama

1 US Dollar

4.2830 2.8640 3.3370 3.0880 5.0200 2.5630 3.3370 5.8090 5.4060 3.5850 60.4400 68.9400 55.4600 4.9200 0.0269 2.9130 44.4800 1.5300 7.5900 118.5400 115.1800 25.4900 1.4500 47.3400 14.0800 117.7400 N/A

4.1370 2.7480 3.2320 3.0010 4.8580 2.4680 3.2320 5.6240 5.1750 3.3380 57.8900 63.4400 52.6900 4.6200 0.0243 2.8080 40.9200 1.4300 7.1400 112.5300 109.3400 23.0200 1.3400 43.1100 12.4800 111.6200 N/A

4.1270 2.7320 3.2240 2.9890 4.8380 2.4520 3.2240 5.6040 5.1600

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

111.4200 3.1380 63.2400 52.4900 4.4200 0.0193 2.7980 40.7200 1.2300 6.9400 112.3300 109.1400 22.8200 1.1400 42.9100 12.0800 N/A 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

Gamuda Bhd Buy. Target price: RM6.64

Semiconductor Sector Neutral

UMediC Group Bhd Buy. Target price: RM0.45

Sept 12, 2025: RM5.64

Sept 12, 2025: RM0.38

Source: Bloomberg, Phillip Capital Research

Source: Bloomberg, Phillip Capital Research

UMEDIC’S FY25 revenue came in at RM49m (-11% YoY) weighed down weaker manufacturing (-11%) and distribution segments (- 11%). This decline was mainly attributed to lower demand for medical devices and consumables from both public and private hospitals, as well as other healthcare service providers. FY25 core net profit of RM8m (-7% YoY) were within ours but above consensus expectations, accounting for 100% and 114% of full year forecasts, respectively. 4QFY25 revenue rose by 6% QoQ to RM12m, supported by higher contribution from manufacturing (+11%) and distribution (+2%) segments. EBITDA margin rose by 8.3ppts QoQ to 34.5% on lower operating costs. We expect UMC’s core net profit to register sequential improvement in coming quarters, supported by stronger manufacturing orders and an improvement in utilisation rate. The expansion plan remains on track, with full capacity of 12m units/year targeted by 1QCY26. We foresee FY26 earnings growth to driven by the phased ramp-up of new capacity and accelerating export momentum. We make no changes to our earnings forecast and introduce our FY28 earnings of 3.4sen (+14% YoY). We continue to like UMC for its i) manufacturing segment growth trajectory on capacity doubling and robust global demand, and ii) a healthy pipeline of new products broadening revenue stream. Current valuations appear undemanding, with the stock trading at -2SD below its 3 year mean. Downside risks to our call include a potential slowdown in demand for medical equipment, operational disruptions, and the loss of licenses. Maintain BUY and TP of RM0.45. – Phillip Capital Research, Sept 12

GAMUDA announced that the group under a joint consortium with Evia MCS (Evia) and H108 has emerged as the highest bidder for a 317,000 sf land at Chencharu, Singapore with a tender price of SG$1bn (RM3.3bn). Gamuda is expected to lead the JV with a 50% stake, while Evia and H108 will each hold 20% and 30% stake, respectively. The project has a maximum gross floor area (GFA) of 1m sf mixed development with an estimated GDV of RM6bn. This acquisition marks Gamuda’s return to the Singapore property market since the OLA executive condominium in 2018. With the OLA project fully taken up in 2023, this comes at an opportune time to bolster its property development pipeline. Under this project, 78% of the land will be allocated for a private condominium featuring 875 units, which we expect to see strong demand given its strategic location adjacent to Khatib MRT station and proximity to several schools. The scheduled project launch timeline will be in 2HCY26. Assuming a 10% PBT margin, similar to its previous Singapore property project, we estimate the project to contribute RM300m PBT over CY26-30. Gamuda’s effective 50% stake, which translates to RM1.6bn, is expected to be fully funded by debt with minimal impact on the group’s net gearing. We make no changes to our earnings forecast as this falls within our land bank replenishment. We continue to like Gamuda for its strong track record in executing infrastructure projects and rising exposure to data centre projects. Key risks include delays in project execution, slower-than-expected contract wins, weaker property sales, and potential cost overruns. Maintain BUY rating and TP of RM6.64. – Phillip Capital Research, Sept 12

Source: SIA, TA Securities

US President Donald Trump stated that he will impose “fairly substantial” tariffs on semiconductor imports soon. However, he indicated that exemptions may be granted to companies relocating production to the US or planning to invest in domestic manufacturing facilities. Earlier this year, the Department of Commerce initiated an investigation into semiconductor imports, citing potential national security risks. Trump had initially suggested a 100% tariff before later raising the possibility of rates ranging from 200% to 300%. We believe he is likely awaiting the outcome of the investigation before finalising the tariff rate. Malaysia is one of the world’s top six semiconductor exporters, accounting for roughly 7% of global exports and about 13% of the global assembly, testing, and packaging market. Any substantial tariff on semiconductors would inevitably weigh on Malaysia, as the industry is deeply integrated into global supply chains. A steep tariff could undermine Malaysia’s export performance, as higher tariffs would drive up production costs, part of which may be passed on to customers, ultimately weighing on demand. Roughly 65% of Malaysia’s semiconductor exports to the US come from American firms operating in Malaysia, which could be eligible for exemptions. We expect more conditional exemptions to be introduced over time, given the complexity and interdependence of the global semiconductor supply chain. Building a self-sufficient ecosystem would likely take decades. We are NEUTRAL on the sector. – TA Research, Sept 12