24/09/2025

BIZ & FINANCE WEDNESDAY | SEPT 24, 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

KIP REIT enhances footprint in East Coast with KIP Kuantan KUALA LUMPUR: Pacific Trustees Bhd, the trustee of KIP Real Estate Investment Trust (KIP REIT) has completed its acquisitions of three retail assets in Kuantan, Pahang (KIP Kuantan) for a total purchase consideration of RM56 million. The KIP Kuantan acquisition, endorsed by unitholders at an EGM held on July 22, comprises three complementary properties within a single integrated development. With the addition of KIP Kuantan, the group’s portfolio has expanded to 16 properties across Peninsular Malaysia. Together with assets pending completion, the group’s combined net lettable area will exceed 3.4 million sq ft, with an estimated portfolio value of approximately RM1.7 billion. The acquisition enhances KIP REIT’s geographic diversification with a strong footprint in the East Coast, complementing its existing suburban retail strategy in the Central and Southern regions. KIP REIT CEO Valerie Ong commented, “The completion of KIP Kuantan represents another milestone in our growth journey, extending our footprint into the East Coast with high-quality, income-accretive assets. These assets are anchored by essential retailers and reputable brands that will further reinforce our recurring income base and diversify our tenant portfolio.” She added, “With the recent completion of KIPMall Desa Coalfields and now KIP Kuantan, our portfolio has grown to 16 assets valued at approximately RM1.6 billion. We will continue to focus on strategic acquisitions, proactive asset enhancement and disciplined capital management to achieve our medium term RM2 billion asset target while delivering sustainable long-term returns to our unitholders.”

Ringgit ends lower against greenback on profit-taking THE ringgit closed lower against the US dollar yesterday due to profit-taking, as traders and investors opted to lock in recent gains, said an analyst. At 6pm, the local note eased to 4.1985/2000 against the greenback from Monday’s close of 4.1945/2040. Nonetheless, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expects the ringgit to improve even as other emerging market currencies weaken against the greenback, as the positive impact from the RON95 fuel subsidy rationalisation continues to support the local note. “The subsidy rationalisation should enhance credit rating agencies’ assessment of Malaysia’s fiscal position. “This signals the government’s commitment to fiscal consolidation, which helps to reduce sovereign credit risks and should support Malaysia’s current A3/A- sovereign rating,” he told Bernama. At the close, the ringgit was traded lower against a basket of major currencies. It declined to 2.8441/8453 against the Japanese yen from 2.8364/8430 at Monday’s close, fell to 5.6701/6721 versus the British pound from 5.6630/6758 on Monday, and eased to 4.9546/9564 against the euro from 4.9390/9502 previously. The local note, however, traded mixed against Asean currencies. It appreciated against the Indonesian rupiah to 251.5/251.8 from 252.5/253.1 on Monday and edged up to 7.33/7.33 against the Philippines’ peso from 7.35/7.37 on Monday. However, it depreciated to 3.2724/2738 versus the Singapore dollar from 3.2688/2764 yesterday, and slipped to 13.1900/2001 against the Thai baht from 13.1890/2243 previously.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2725 2.8280 3.3270 3.0820 5.0390 2.5110 3.3270 5.7700 5.4180 3.5600 60.3300 69.2000 55.4500 4.9100 0.0266 2.8960 44.1200 1.5300 7.6000 118.2300 114.9000 25.4800 1.4500 47.0200 14.0100 117.4400 N/A

4.1245 2.7120 3.2220 2.9950 4.8740 2.4170 3.2220 5.5840 5.1840 3.3400 57.7400 63.6400 52.6600 4.6100 0.0240 2.7910 40.5600 1.4300 7.1500 112.2400 109.0800 23.0100 1.3300 42.8000 12.4200 111.2900 N/A

4.1145 2.6960 3.2140 2.9830 4.8540 2.4010 3.2140 5.5640 5.1690

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

111.0900

3.1400

N/A

63.4400 52.4600 4.4100 0.0190 2.7810 40.3600 1.2300 6.9500 112.0400 108.8800 22.8100 1.1300 42.6000 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

Auto & Autoparts Neutral

Kelington Group Bhd Buy. Target price: RM6.10

Solarvest Holdings Bhd Buy. Target price: RM3.26

Sept 23, 2025: RM2.73

Sept 23, 2025: RM5.38

Source: Bloomberg

Source: Company data, RHB

Source: Bloomberg

THE sector saw mostly in-line earnings for the quarter ended Jun 2025, while the Malaysia Automotive Association (MAA) reported Aug 2025 TIV of 73,041 units (+4% MoM). Sime Darby’s (SIME) FY25 (June) core profit of RM1.17 billion (- 11% YoY) met our estimates but outperformed consensus’ mainly on stronger industrial earnings, though slightly offset by wider losses in the China auto division. With parts prices revised upwards on July 1, and inventory costs having eased, we expect the industrial segment to continue delivering robust results and better margins (Q4’25: 8.7%; Q3’25: 5.2%; FY25: 6.9%). Overall, we see SIME posting stable earnings for the rest of CY25 (1H’26), backed by solid Perodua sales, although China losses remain a pain point. Bermaz Auto’s (BAUTO) Q1’26 results missed expectations mainly due to loss-making results from associates. While we expect a QoQ recovery, a meaningful improvement may only come in CY27, on the back of new Mazda launches. For MBM Resources (MBMR), the slight earnings miss came from softer margins in both the motor and autoparts segments. We expect Perodua to book higher sales volumes in FY26-27, underpinned by its stronger market share (45% YTD-August vs 44% a year ago). Its attractive FY26 yield of 9% should also lend support to the stock. August TIV was up 4% MoM, largely within expectations, driven by promotional campaigns and new launches. This brought YTD-2025 TIV to 516.8k units (-4% YoY), at 71% of our FY25 projection. Moving forward, we expect to see some normalisation from fewer working days in Sept 2025. As such, we maintain our 2025 TIV forecast at 730k units for now, implying an 11% YoY decline. – RHB Research, Sept 23

KGB announced that it has through its wholly owned subsidiary Kelington Engineering (S), accepted a letter of award (LoA) to undertake a bulk gas distribution piping system project in Singapore worth S$33 million (RM108 million). The project works are for a leading US-based semiconductor manufacturer where the group has an entrenched relationship, having successfully executed multiple ultra-high purity (UHP)/advanced engineering (AE) jobs in the past. The latest job involves the customer’s highbandwidth memory (HBM) advanced packaging facility, a first in Singapore that caters to the burgeoning demand for artificial intelligence (AI) chips. Works will start immediately with completion targeted for Dec 2026. With the latest LOA, the group’s orderbook has risen to an estimated RM1.1 billion, at 61% of our orderbook replenishment assumption, matching the RM1.1 billion secured for the whole of 2024. This includes the RM244 million LoA from a German chipmaker announced in August and other contracts secured in July-August totalling RM164 million. Tenderbook (adjusted for the latest wins) is estimated at RM4 billion. Notable tenders with outcomes forthcoming include the second AE job in Dresden (RM1.4 billion), India (RM1.1 billion), China/Hong Kong (RM0.6 billion) and Singapore (RM0.6 billion). The group recently incorporated a Japanese subsidiary with discussions ongoing with the Japanese Government’s upstart foundry, Rapidus and US-based chipmaker which is building a new facility in Hiroshima. Our forecasts are unchanged as the latest contract falls within our orderbook replenishment assumption. We expect additional order wins into Q4’25 to drive cumulative orders to an all-time high. Key risks include weaker-than-expected order replenishment, lower-than-expected margin and delays in project execution. BUY with RM6.10 TP. – RHB Research, Sept 23

SOLARVEST has signed a Joint Investment Framework Agreement with Brookfield targeting the development of at least 1,500MWp of RE projects (mainly under Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS)) over the next 3-5 years. Financing will be structured on a project-by-project basis, with external debt raised via loans, bonds, or sukuk, supplemented by equity contributions from both parties. Each project will be held under a special purpose vehicle (SPV), with Solarvest owning 51% and Brookfield 49%. Brookfield operates under Brookfield Catalytic Transition Fund (CTF), a climate-and-energy transition investment vehicle established by Brookfield Asset Management (US$1 trillion assets under management (AUM); US$137 billion in renewable power and transition assets globally). CTF is mandated to deploy capital into clean energy and transition assets in emerging markets – including South and Southeast Asia with a fund size target of US$5 billion. This marks its first investment in Malaysia. Solarvest could secure RM3-5 billion in EPCC contracts (including battery energy storage systems (BESS)) through this partnership, while leveraging Brookfield’s low-cost capital and corporate network – critical to securing CRESS offtake agreements. Solarvest will lead development activities, including site identification, regulatory approvals, land leases, and project completion. These could also generate additional earnings from developer’s margins and power generation sale. As at Q1’26, Solarvest’s outstanding orderbook stood at RM1.2 billion (77.8% utility-scale). Management targets RM2 billion by end CY25, with upside into CY26 driven by MyBeST programme roll-outs (Q4’25), Large Scale Solar 5+ (LSS5+) EPCC awards (1H’26), and further utility-scale solar projects, ie CRESS and other programmes. BUY with RM3.26 TP. – RHB Research, Sept 23