23/09/2025

BIZ & FINANCE TUESDAY | SEPT 23, 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

Out-of-home media company Seri Jaya to acquire Ganad Media KUALA LUMPUR: Out-of-home (OOH) media specialist Seri Jaya Corporation Bhd’s wholly owned subsidiary Seni Jaya Sdn Bhd (SJSB) has entered into a share sale and purchase agreement (SSPA) with Dwi Mewah Sdn Bhd to acquire 100% equity interest in Ganad Media Sdn Bhd. Established in 1986, Ganad Media is a well-recognised name in Malaysia’s OOH sector, with a portfolio of high-visibility advertising media and display solutions across prime urban locations. The acquisition marks a significant milestone in Seni Jaya’s growth journey, enabling the group to expand its customer base, diversify its product offerings, and reinforce its market leadership. Jeff Cheah See Heong, CEO of Seni Jaya Corporation, commented, “This acquisition represents a strategic expansion for Seni Jaya. Ganad Media brings with it a legacy of premium sites, a strong reputation in the industry, and valuable client relationships. By combining our expertise, we aim to deliver even more impactful advertising solutions and unlock synergies that will elevate our market position.” He further noted, “Ganad Media’s portfolio, particularly its landmark sites in Kuala Lumpur, will complement our existing assets and create a stronger, more diversified platform for clients. This move is not only about expanding scale, but also about elevating the quality and impact of our OOH offerings. With this acquisition, Seni Jaya reinforces its commitment to shaping Malaysia’s OOH landscape into one that is modern, immersive, and technology-enabled. By integrating Ganad Media’s established presence with Seni Jaya’s innovation-driven approach, the group is poised to capture new growth opportunities and deliver long-term, sustainable value to its stakeholders.

Ringgit ends firmer on govt’s prudent RON95 subsidy move THE ringgit closed firmer against the US dollar and other major currencies yesterday, supported by positive market sentiment following the government’s measured rationalisation of RON95 fuel subsidies. At 6pm, the local note stood at 4.1945/2040 versus the greenback, compared with 4.2040/2115 at Friday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama the rationalisation exercise signalled the government’s commitment to fiscal consolidation while remaining mindful of its impact on the rakyat. “The measured approach shows that the government is pragmatic in its efforts to fix its finances. “It can be deemed credit-positive, which should translate into positive sentiment towards the ringgit in the medium to long term.” Earlier, he said S&P Global Ratings’ recent affirmation indicated that the government’s sovereign rating remains stable. On Sept 20, the Ministry of Finance said S&P had reaffirmed Malaysia’s sovereign credit ratings at ‘A-’ with a stable outlook. At the close, the ringgit was higher against major currencies. It rose versus the Japanese yen to 2.8364/8430 from 2.8419/8471 at Friday’s close, firmed to 5.6630/6758 against the British pound from 5.6775/6876, and strengthened to 4.9390/9502 vis-à-vis the euro from 4.9447/9536. The local note was also firmer against Asean currencies. It advanced to 3.2688/2764 versus the Singapore dollar from 3.2744/2805, appreciated to 13.1890/2243 against the Thai baht from 13.1973/2271, edged up to 252.5/253.1 vis-à-vis the Indonesian rupiah from 253.2/253.8, and strengthened to 7.35/7.37 against the Philippine peso from 7.36/7.38.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2830 2.8330 3.3280 3.1000 5.0220 2.5120 3.3280 5.7640 5.4020 3.5850 60.4700 68.9800 55.5600 4.9300 0.0267 2.8950 44.1400 1.5300 7.6100 118.5300 115.1900 25.5500 1.4500 46.7800 14.0300 117.7200 N/A

4.1350 2.7180 3.2220 3.0120 4.8580 2.4180 3.2220 5.5780 5.1690 3.3360 57.8800 63.4400 52.7600 4.6300 0.0241 2.7890 40.5700 1.4300 7.1600 112.5200 109.3500 23.0700 1.3300 42.5900 12.4200 111.5600 N/A

4.1250 2.7020 3.2140 3.0000 4.8380 2.4020 3.2140 5.5580 5.1540

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

111.3600

3.1360

N/A

63.2400 52.5600 4.4300 0.0191 2.7790 40.3700 1.2300 6.9600 112.3200 109.1500 22.8700 1.1300 42.3900 12.0200 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

Inari Amertron Bhd Outperform. Target price: RM2.37

Gamuda Bhd Outperform. Target price: RM6.20

QL Resources Bhd Hold. Target price: RM4.25

Sept 22, 2025: RM4.30

Sept 22, 2025: RM2.16

Sept 22, 2025: RM5.69

Source: Maybank Investment Bank

Source: PublicInvest Research

Source: PublicInvest Research

DURING the recent briefing, management guided for improved customer loading forecasts, supported by stronger smartphone sales. Meanwhile, the production volume, new product introductions (NPIs), and qualifications for smartphones and wearables remain on track with customer estimates. Other segments, such as memory and optoelectronics, are also gaining traction, though their contribution remains relatively immaterial at this junction. RF production and NPIs for the latest flagship smartphones are progressing, with rising RF-in-module content. Management expects higher loading factors over the next two quarters compared to the historical 65%-70% range. It is also testing numerous RF chips for digital watches, where it sees potential to secure additional component orders, as competitors are already at full capacity. In the automotive segment, Inari is poised to become the exclusive tester for a key customer in Malaysia, with testing volume expected to double following the transfer of testers from its peers. Optoelectronics operations in Malaysia are shifting towards ChipFab, with volumes set to double, while its Philippines plant is experiencing stronger demand for 800G transceivers, led by AI data centres. Under the partnership with China’s Sanan Optoelectronics, Inari’s 25% stake in Lumileds International would cost about US$71.4m (RM300m). Although it may experience some losses in the first year following consolidation, we expect substantial improvement in FY27F, as new OSAT orders from the automotive LED maker would help cushion the impact of associate losses. The extent of the contribution could be as much as 50% of Lumileds’ LED assembly and testing jobs, which could potentially account for 10% of Inari’s sales. Upgrade to Outperform with a new TP of RM2.37. – PublicInvest Research, Sept 22

GAMUDA ended FY25 on a strong note after posting 4QFY25 net profit of RM332.1m (+11.2% YoY, +34.6% QoQ). This was mainly driven by an improved performance in its domestic engineering & construction (E&C) division. The Group’s full-year FY25 net profit of RM1.0bn (+10.0% YoY) came in within both our and consensus expectations, accounting for 99.2% and 95.7% of respective full year estimates. Given the robust orderbook of RM38.4bn, improving margins, and an expanding projects pipeline in both overseas and local markets, we remain optimistic over the Group’s prospects. 4QFY25 revenue increased by 2.6% YoY, primarily driven by strong domestic construction activity. Domestic E&C revenue surged by 122.4% YoY to RM1.5bn, which represents 38.6% of total E&C revenue, a 19-point increase from the prior year. This explosive growth was fuelled by a significantly larger domestic order book that almost tripled from RM7.0bn to RM19.0bn. However, the decline in its domestic property division, caused by weaker demand following recent US tariff announcements, partially offset these gains. 4QFY25 net profit grew 21.9% YoY to RM332.1m, lifted by stronger contribution from domestic E&C and overseas property divisions. The gradual shift in project mix toward domestic contract supported steady margin improvement, with net margin rose to 6.9%, compared to 6.3% a year ago as more local projects ramped up during the period. Overseas property’s net profit surged by 68% as several Vietnam quick turnaround projects (QTPs) especially Eaton Park project continued to generate robust sales with higher margins. We retain our Outperform call on Gamuda with an unchanged SOTP-based TP of RM6.20. – PublicInvest Research, Sept 22

QLG’S FY26 outlook is likely to remain subdued with operating challenges within its ILF and CVS segments hindering meaningful group earnings growth YoY, despite expectations for stable MPM and growing POCE contribution. QLG’s 2QFY26 earnings should reflect lower PBT margins from its ILF segment QoQ, given the removal of egg subsidies on 1 Aug 2025. Recall that egg subsidies of 10 sen/egg were halved on 1 May 2025 (to 5 sen/egg), and subsequently removed on 1 Aug 2025. Since then, we understand that the group has only managed to raise egg ASPs by 5 sen/egg. However, industry egg supply has remained tight, hence it has not experienced any egg volume decline post-ASP adjustments. Further, with the appreciation in MYR vs. USD, and relatively stable feed raw material ASPs (corn & soybean) this should offer some cost reprieve to the ILF segment. We expect QLG’s MPM segment to continue being the main driver to group earnings growth in FY26E. Despite potential cost pressures driven by weak fish landing, SST and soft fishmeal demand, surimi and frozen surimi-based product ASPs and demand should remain stable. Elsewhere, the group’s surimi processing plant in Indonesia (PT Hasil Laut) is running at a utilisation rate of c.20% and marketing efforts are being ramped up to grow sales volume at a faster pace. Earnings contribution from the CVS segment may remain challenging as weak sales per store are further exacerbated by rising store operating costs from minimum wage, SST on leases, and utility cost increases. As for POCE, segmental earnings growth is expected to be driven by its clean energy exposure through BM Greentech through progressive increases in solar and other renewable energy project orders. HOLD, TP at RM4.25. – Maybank Investment Bank, Sept 22