18/09/2025

BIZ & FINANCE THURSDAY | SEPT 18, 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

Matrade targets RM2.5 billion sales from INSP at Mihas 2025 KUALA LUMPUR: The International Sourcing Programme (INSP) aims to achieve RM2.5 billion in sales from more than 4,000 one-to one business meetings at the Malaysia International Trade and Exhibition Centre yesterday. The Malaysia External Trade Development Corporation (Matrade) chairman Datuk Seri Reezal Merican Naina Merican said the programme – held in conjunction with the Malaysia International Halal Showcase (Mihas) 2025 – connects 300 international buyers from 50 countries with 600 Malaysian exporters. “This is not just about short-term deals but long-term partnerships in high-value markets. The buyers have been carefully vetted by Matrade’s trade commissioners worldwide to ensure that the chances of mismatched meetings are low,” he told reporters. Reezal Merican said the participation of premium buyers such as China’s JD.com and India’s Reliance Industries Ltd provides Malaysian exporters, particularly small and medium enterprises (SME), an opportunity to penetrate international retail networks. “JD.com alone records annual sales of RM700 billion, and Reliance about RM500 billion. If Malaysian exporters are able to capture even 1% of their combined market, the value would be significant,” he said. He said Matrade ensures only export-ready companies participate in the programme. In a separate statement, Matrade CEO Datuk Seri Mohd Mustafa Abdul Aziz said,“One of the key strengths of INSP Mihas is Matrade’s ability to leverage our network of 48 overseas trade offices to curate and pre-qualify buyers, which ensures that the business meetings are highly targeted, connecting Malaysian companies with buyers who have genuine demand.”

Ringgit ends near one-year high vs dollar on Fed cut hopes THE ringgit closed stronger yesterday, hitting a near one-year high against the greenback ahead of the US interest rate decision later in the day, an economist said. At 6pm, the local note stood at 4.1860/1900 against the US dollar, compared with Friday’s close of 4.1975/2080. The ringgit last closed stronger, at 4.1760, on Oct 2, 2024. The market was shut on Monday and Tuesday for Malaysia Day holidays. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of a US Federal Reserve (Fed) interest rate cut have fuelled demand for emerging market currencies, including the ringgit. “Clearly, traders and investors are watching for the Fed’s latest assessment, especially the dot plot chart, which will guide the market on the direction of US interest rates,” he told Bernama. He said a 25 basis point cut had largely been priced in by the market. Mohd Afzanizam added that the key focus would be how far the Fed is prepared to lower rates and what that means for the US economic outlook. The ringgit, however, traded lower against major currencies, weakening against the yen to 2.8607/8636 from 2.8373/8446 at Friday’s close, against the British pound to 5.7131/7185 from 5.6864/7006, and against the euro to 4.9583/9631 from 4.9203/9326. Against Asean currencies, the ringgit strengthened versus the Indonesian rupiah to 254.6/255.0 from 256.3/257.0 and against the Thai baht to 13.1892/2081 from 13.2317/2703. It, however, weakened against the Philippine peso to 7.36/7.37 from 7.35/7.37 and against the Singapore dollar to 3.2793/2827 from 3.2719/2803. Malaysia Economy DTI: Personal spending accelerates in July

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2640 2.8570 3.3340 3.0940 5.0500 2.5540 3.3340 5.8100 5.4430 3.5540 60.2400 69.3500 55.2800 4.9200 0.0268 2.9130 44.7000 1.5300 7.6000 118.0000 114.6800 25.4000 1.4500 47.4800 14.0100 117.2100 N/A

4.1180 2.7420 3.2320 3.0080 4.8870 2.4590 3.2320 5.6270 5.2110 3.3340 57.6900 63.8100 52.5300 4.6200 0.0242 2.8080 41.1200 1.4300 7.1500 112.0200 108.8700 22.9400 1.3300 43.2500 12.4200 111.1100 N/A

4.1080 2.7260 3.2240 2.9960 4.8670 2.4430 3.2240 5.6070 5.1960 3.1340 57.6900 63.6100 52.3300 4.4200 0.0192 2.7980 40.9200 1.2300 6.9500 111.8200 108.6700 22.7400 1.1300 43.0500 12.0200 110.9100 N/A

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

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

MBSB Bhd Buy. Target price: RM0.79

Kuala Lumpur Kepong Bhd Neutral. Target price: RM21.50

Sept 17, 2025: RM20.08

Sept 17, 2025: RM0.72

Source: Bloomberg

Source: Bloomberg

Source: TA Research, DOSM

POST-Q2’25 results, MBSB maintained all of its FY25 guidance items – these include NIM of >2% (1H’25: 2.1%), financing growth of 5-6% (1H’25: flat YoY) and ROE of 5-6% (1H’25: 3.7%). This came to us as no surprise, as management had guided for a more subdued earnings performance in 1H’25 from a recalibration of its credit underwriting standards, followed by an acceleration in 2H’25 with the gradual execution of pipeline deals. While July’s policy rate cut could be a mild stumbling block near-term, this should be cushioned by the abovementioned financing growth acceleration and deposit structure (90% in fixed deposits). Under Flight26, management’s main focus is on CASA acquisitions to catalyse a domino effect to lift the group’s financing diversification, NIM and asset quality. To that end, MBSB’s CASA strategies focus on providing unique and differentiated solutions to address customers’ pain points. For retail customers, MBSB’s CASA accounts are embedded with remittance-related features with a gold investment offering in the works, while for commercial clients, MBSB’s recently launched “retailers’ dashboard” (i.e. cash flow tracking system) has reportedly received positive feedback and traction. MBSB sees two routes to address its excess capital (CET-1 ratio >19%) – namely, above-industry financing growth and elevated dividend payouts (90%). With the recent 1H’25 DPS of 2 sen implying a third consecutive payout near the 90% level, we are now more comfortable with raising our payout ratio estimates to 90% (previously 70%) – on our revised earnings estimates (i.e. 16% FY24 27 CAGR), these generate sector-high dividend yields of 8-10% for FY25-27, while the CET-1 ratio should remain above 15% up to FY27. BUY with new RM0.79 TP. – RHB Research, Sept 17

MALAYSIA’S distributive trade momentum remained resilient in July 2025, with the Volume Index of Distributive Trade (DTI) expanding 4.6% YoY to 165.4 points, improving from 4.4% YoY in June. In value terms, Distributive Trade Sales (DTS) rose 5% YoY to RM156.4 billion, also higher than June’s 4.8% gain, reflecting sustained consumer spending despite an uncertain global environment. The steady YoY performance underscores the resilience of domestic demand, supported by a healthy labour market, stable income conditions, and targeted government assistance measures. On a sequential basis, momentum also picked up, with trade volume up 1.9% MoM and trade value increasing 2.3% MoM, suggesting a firmer recovery trajectory heading into 2H’25. The Volume Index for Wholesale Trade, holding the largest share of the total distributive trade at 44.9%, registered a growth of 5.9% YoY (June 25: 6.1% YoY) to 154.6 points (Sales value: RM70.13 billion). On a MoM basis, this segment increased by 2.4%. The Retail Trade sector experienced a faster YoY growth of 4.4%, reaching 185.8 points (Sales value: RM67.01 billion). This is as compared with 4.1% YoY recorded in the prior month. Nevertheless, the spending pattern of this segment declined from a month a ago by -0.7%. In addition, the Volume Index of Motor Vehicles rebounded by 0.9% YoY (June 25: -0.6% YoY) to 142.4 points (Sales value: RM19.29 billion). On a MoM basis, this segment increased by double digit growth of 12.9%. Year-to-date (YTD), Malaysia’s retail trade performance has been broadly steady, with average growth of 4.3% in the first seven months of 2025. – TA Research, Sept 17

KLK TechPark in Tanjung Malim. KLK Land, a wholly owned subsidiary of KLK, has launched KLK TechPark in Tanjung Malim. The 1,500-acre integrated hub comprises 1,300 acres of land for industrial development and 200 acres for residential support, to be developed in phases over 2025 2035. It is strategically located near the Automotive High-Tech Valley (AHTV), with direct access to the North-South Expressway and close proximity to Tanjung Malim town. KLK TechPark will feature build-to-suit solutions, industrial plots and ready-built factories. Phase 1 will have BYD as the anchor investor, covering a total area of 150 acres, and is slated for completion by end 2026. According to Perak Tourism, Industry, Investment and Corridor Development chairman Loh Sze Yee, the construction of BYD’s factory has already commenced at end-August. We understand Phase 1 is an outright sale of the land to BYD, with basic infrastructure provided. For Phase 2, it includes a 200 acre vendor park aimed at automotive and manufacturing players, and is set to be launched by end-2025. Overall, the GDV for the integrated hub is projected to be RM3.5 billion. While there are no further details available, we estimate that KLK’s margin for land sale to BYD could exceed 50%, given the low holding cost of