19/09/2025

BIZ & FINANCE FRIDAY | SEPT 19, 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

TM and NCT Group to expand smart industrial park solutions PETALING JAYA: Telekom Malaysia (TM), via its enterprise and government solutions arm TM One, and NCT Group of Companies, through its wholly owned subsidiary NCT AI Sdn Bhd, have signed a memorandum of collaboration (MoC) to extend smart industrial park solutions nationwide. Building on their 2022 agreement for the NCT Smart Industrial Park (NSIP) in Selangor, this expanded partnership will see TM deliver not only advanced connectivity, but also smart solutions, cloud, and ICT services to modernise NCT’s operations and enhance customer experiences across its wider developments. Together, NCT and TM will also co-develop go-to-market strategies to position NCT’s Smart Industrial Parks as future-ready investment hubs, attracting global and local industries, and replicating the model across Malaysia to drive economic growth, sustainability and digital adoption. TM group CEO Amar Huzaimi Md Deris said: “This partnership reflects TM’s role not just as a connectivity provider, but as the enabler of smart industrial ecosystems.” He added with their Vision AI, Intelligent Operations Centre, intelligent building management systems and other smart solutions, they are powering NCT’s Smart Industrial Parks into fully integrated, future-ready hubs for businesses and communities. NCT group founder and group managing director Datuk Sri Yap Ngan Choy said: “Our first undertaking with TM established a clear direction to redefine Malaysia’s industrial park landscape, with the goal to create a national model for smart, sustainable and digitally driven industrial growth.” With this new collaboration, he said they expect to advance the progress made to-date.

Ringgit retreats against dollar as markets reassess US rate outlook THE ringgit retreated against the greenback at the close yesterday as investors reassessed the US interest rate outlook following the Federal Reserve’s interest rate cut on Wednesday, an economist said. At 6 pm, the local note stood at 4.1945/1995 against the US dollar, down from yesterday’s close of 4.1860/1900. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local note saw some correction due to some uncertainty over the US interest rate outlook, although the US Federal Open Market Committee cut its key rate by 25 basis points last night. The US benchmark lending rates now range between 4% and 4.25%. “Clearly, the measured pace adopted by the Fed to ease its monetary policy suggests that they are still concerned about inflation, although they also acknowledge the fact that the labour market has weakened,” Mohd Afzanizam told Bernama. At the close, the ringgit was traded mostly lower against major currencies. It strengthened against the yen to 2.8484/8520 from 2.8607/8636 at Wednesday’s close, weakened to 5.7238/7306 against the British pound from 5.7131/7185 and dipped vis-à-vis the euro to 4.9654/9714 from 4.9583/9631 previously. Against Asean currencies, the local note was mixed. It climbed to 253.7/254.2 versus the Indonesian rupiah from 254.6/255.0 at Wednesday’s close and rose against the Philippine peso to 7.35/7.36 from 7.36/7.37. However, it weakened against the Thai baht to 13.1903/2114 from 13.1892/2081 yesterday and fell to 3.2800/2842 against the Singapore dollar from 3.2793/2827.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2680 2.8470 3.3330 3.0910 5.0410 2.5340 3.3330 5.8110 5.4380 3.5570 60.3500 69.2300 55.3400 4.9300 0.0268 2.9090 44.5500 1.5300 7.6000 118.1000 114.7400 25.3700 1.4500 47.2800 13.9800 117.3200 N/A

4.1200 2.7300 3.2280 3.0040 4.8760 2.4390 3.2280 5.6240 5.2020 3.3350 57.7700 63.6700 52.5600 4.6300 0.0243 2.8030 40.9600 1.4300 7.1500 112.1100 108.9200 22.9100 1.3300 43.0400 12.3900 111.1700 N/A

4.1100 2.7140 3.2200 2.9920 4.8560 2.4230 3.2200 5.6040 5.1870

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

110.9700 3.1350 63.4700 52.3600 4.4300 0.0193 2.7930 40.7600 1.2300 6.9500 111.9100 108.7200 22.7100 1.1300 42.8400 11.9900 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

Hap Seng Plantations Bhd Hold. Target price: RM1.80

Scientex Bhd Neutral. Target price: RM3.55

Southern Score Builders Bhd Buy. Target price: RM0.75

Sept 18, 2025: RM1.96

Sept 18, 2025: RM3.39

Sept 18, 2025: RM0.53

Source: Bloomberg, Phillip Capital Research

Source: Bloomberg, RHB Research

Source: Bloomberg, Phillip Capital Research

SCIENTEX’S FY25 results largely met expectations. Management expects a stronger year ahead, underpinned by steady property demand and a potential rebound from its packaging segment. 4QFY25 core profit improved by 7% QoQ (+2% YoY), bringing FY25 net profit to RM528.7m (-2% YoY). The company also declared a DPS of 6 sen for 4QFY25, taking FY25 DPS to 12 sen (FY24 DPS: 10 sen). This translates to a core payout ratio of 35%. Despite cash-heavy investing activities in FY25 (>2x YoY), net gearing stayed manageable at 0.48x (FY24: 0.18x). Management does not plan major land acquisitions for FY26 for now, and expects net gearing to remain below 0.5x, with a dividend payout ratio at >30%. The packaging unit’s revenue slipped by 4% YoY in FY25, while the utilisation rate remained steady at just above 60% (FY24: 61%). Despite this, EBIT fell by a further 31% YoY, as intensifying competition from China squeezed margins, bringing the FY25 margin to 6% (FY24: 8.4%). Sequentially, however, margins improved to 6.9% in 4QFY25 (3QFY25: 5.6%), on lower raw material and electricity costs. Meanwhile, the property segment chalked solid numbers, with sales and EBIT up 8% and 14% YoY from sustained demand for affordable housing and a higher take-up at new launches (+9% YoY). While the packaging market will remain tough in the near term, SCI believes that it is at the low end of the cycle, with demand expected to gradually recover. This should be supported by lower raw material costs and improved efficiencies. Packaging accounts for 55% and 20% of SCI’s revenue and EBIT. On its property unit, SCI is guiding for >RM3bn in launches, with 70-80% take-up rates. We continue to expect its property segment to be the main earnings driver. Maintain NEUTRAL with RM3.55 TP. – RHB Research, Sept 18

HAPL is poised for earnings recovery in 2H25, supported by stronger seasonal FFB production, firm CPO prices, and better cost efficiencies. That said, rising fertiliser costs, increased labour costs, and regulatory risks remain structural headwinds, weighing on near-term earnings visibility. FFB production is expected to be broadly flat YoY at 656k tonnes (+1% YoY) in 2025E, supported by stronger 2H25 output following a 4% YoY contraction in 1H25 to 276.5k tonnes. We forecast HAPL’s average realised CPO price to gradually ease from RM4,309/MT in 2024 to RM4,305/ RM4,020/ RM3,920 across 2025-27E, reflecting cautious sentiment amid global demand uncertainties and supply chain disruptions. HAPL’s 2Q25 CPO unit cost eased QoQ to RM2,577/MT (1Q25: RM2,634/MT) but remained 3% higher YoY, bringing 6M25 average to RM2,603/MT (1H24: RM2,529/MT). This is due to higher labour costs and weaker output. Softer PK credit (RM721/MT vs. RM845/MT) further weighed on margins, with management guiding that 2025 costs could exceed RM2,200-2,300/MT should production recovery lag. Note that as a pure upstream player, HAPL is particularly sensitive to fluctuations in both palm product prices and production volumes, providing substantial leverage in upcycles but exposing earnings to downside risks during periods of price weakness. HAPL revised its full-year FFB production guidance down to 678k MT (from 711k MT) after 6M25 output of 276.5k tonnes (-4% YoY) was impacted by slower fruiting patterns, crop-cycle adjustments, and adverse weather conditions in 1Q25, where heavy rains and flooding disrupted harvesting activities. Despite the weaker start, management remains confident of a recovery in 2H25. HOLD with RM1.80 TP. – Phillip Capital Research, Sept 18

WE came away from Southern Score’s briefing reassured on its earnings prospect and project pipeline. FY26E earnings momentum is expected to be well supported by its RM1.4bn outstanding order book comprising 58% Platinum Victory jobs, 23% from other residential, 15% data centres, and 4% job from Radium. On Southern Score construction division, the group is actively tendering for RM648m worth of jobs with 60% of it for government related projects (ie: flood mitigation works and government buildings) and the remaining 40% for private sector jobs including residential and basic infrastructure projects. We gather that current construction tender book excludes bids for direct negotiation projects that are worth RM510m, targeted to roll out in FY26. This includes the construction contract for Radium hospital in Melaka valued at RM210m assuming RM1.5m/bed for 140-bed hospital. SJEE’s data centre order book has doubled to RM214m QoQ following its RM122m contract wins in the quarter from 2 project sites under the same US-based DC clientele. SJEE remains active in tendering for data centre projects with an RM384m tender book, consisting of existing customers and a new Australia-based DC client’s project at Cyberjaya. Management intends to maintain SJEE’s order book at RM200 300m which is expected to lift its revenue contribution to 35 40% of the group’s annual revenue. We like Southern Score for its strategic expansion into the fast-growing DC sector, coupled with robust order book visibility from existing anchor clients, including PV and Radium. Maintain BUY and RM0.75 TP. – Phillip Capital Research, Sept 18