26/09/2025

BIZ & FINANCE FRIDAY | SEPT 26, 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

Powerwell enters FY26 with healthy RM117m order book PETALING JAYA: Powerwell Holdings Bhd, a homegrown specialist in low and medium voltage electrical distribution equipment, is riding strong tailwinds from the data centre, infrastructure and renewable energy sectors as it enters the new financial year (FY26). The group, which held its 20th AGM yesterday, reported a healthy order book of RM117 million as of end-June 2025, providing clear earnings visibility. “We are upbeat on our prospects as we enter FY26, underpinned by our five-pillar growth strategies and strong order book,” said managing director Catherine Wong Yoke Yen. “Backed by our proven track record and leadership in the power distribution industry, Powerwell is well placed to capture opportunities across multiple sectors, strengthen our market presence and deliver sustainable value to stakeholders.” The company completed a 20% expansion of its assembly lines at its Shah Alam facility in August 2025 to meet growing demand. Meanwhile, its investment in fire-suppression system subsidiaries has started contributing positively in the first quarter of FY26, with more synergistic mergers and acquisitions being explored. Wong noted that the recent rate cut by the US Federal Reserve is expected to create a more favourable global business environment, further supporting the group’s expansion drive. For FY25, Powerwell declared a dividend of 1 sen per share, amounting to RM5.8 million, representing a 31% payout ratio based on its RM18.8 million net profit.

Ringgit rises against major currencies ahead of US data THE ringgit ended marginally higher against the greenback yesterday as improved market sentiment emerged ahead of the release of the US Personal Consumption Expenditures (PCE) inflation data today. The PCE price index measures the prices paid by American consumers for goods and services and is the US Federal Reserve’s (Fed) preferred gauge of inflation. At 6pm, the local note climbed to 4.2085/2120 against the greenback from Wednesday’s close of 4.2120/2170. However, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the market remained cautious as persistent US inflation concerns would continue to justify the Fed’s restrictive monetary stance. “The cautious tone adopted by the Fed chairman signalled that the US central bank is unlikely to ease its monetary policy aggressively,” he told Bernama. Hence, he said the ringgit traded within a narrow range against the US dollar yesterday, oscillating between RM4.2050 and RM4.2170. At the close, the ringgit traded higher against a basket of major currencies. It strengthened against the Japanese yen to 2.8283/8308 from 2.8400/8436, gained against the British pound to 5.6600/6647 from 5.6761/6828, and bounced against the euro to 4.9429/9470 from 4.9567/9626 previously. The local note was also higher against Asean currencies. It appreciated against the Thai baht to 13.0959/1133 from 13.1572/1781, improved versus the Singapore dollar to 3.2662/2692 from 3.2743/2784, and climbed against the Indonesian rupiah to 251.2/251.5 from 252.4/252.8.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2890 2.8360 3.3260 3.0800 5.0330 2.4990 3.3260 5.7660 5.4220 3.5900 60.4100 69.1200 55.6100 4.9000 0.0266 2.8890 44.2300 1.5400 7.5400 118.6900 115.3500 25.5900 1.4500 47.0000 13.9400 117.9100 N/A

4.1420 2.7210 3.2210 2.9940 4.8690 2.4060 3.2210 5.5810 5.1900 3.3420 57.8400 63.5900 52.8300 4.6000 0.0240 2.7840 40.6700 1.4400 7.0900 112.6700 109.5100 23.1100 1.3400 42.7900 12.3500 111.7500 N/A

4.1320 2.7050 3.2130 2.9820 4.8490 2.3900 3.2130 5.5610 5.1750

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

111.5500

3.1420

N/A

63.3900 52.6300 4.4000 0.0190 2.7740 40.4700 1.2400 6.8900 112.4700 109.3100 22.9100 1.1400 42.5900 11.9500 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

VS Industry Bhd Buy. Target price: RM0.78

Texchem Resources Bhd Buy. Target price: RM1.37

Farm Price Holdings Bhd Buy. Target price: RM0.47

Sept 25, 2025: RM0.60

Sept 25, 2025: RM0.745

Sept 25, 2025: RM0.415

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

VSI is scheduled to release its Q4’25 results on Sept 30. Our previous forecasts on expectations of a strong volume ramp-up in Q4’25 may not play out, considering the uncertainties on the US tariffs during the quarter before the final decision on Aug 1. This could have led to a drop in production throughput (60% of VSI’ sales go to the US) as customers opt to take a wait-and-see approach and defer their shipments. The sales weakness will translate to a sharp margin erosion on negative operating leverage given the high fixed-cost nature of the business. As such, we estimate Q4’25 core net profit to come in at

TEX plans to dispose of a 34% stake in Sea Master Food for RM14.9 million in cash, with subsidiary Wilpack Food Services paying RM10 million to TEX and allocating RM4.6 million for debt repayment. The transaction should be completed by Q4’25, leaving TEX with a 66% ownership in the subsidiary. The food division recorded 1H’25 revenue of RM59 million(-11% YoY) and a PBT loss of RM1.3 million, primarily due to political instability and foreign exchange controls in Myanmar. TEX intends to reinvest the RM10 million proceeds into a food processing project in Thailand, potentially through JVs with local plant owners. This initiative aims to diversify supply sources and establish a foundation for turnaround once the Thailand operations are launched, expected by end-FY25. The nearline HDD market is experiencing shortages, driven by AI-related storage demand and limited production capacity. This trend is expected to drive sales for TEX’s polymer engineering division, which supplies most of the plastic packaging to HDD customers. Management also sees growing demand from the semiconductor sector, as well as opportunities in medical and life sciences applications. Higher-margin projects currently underway, along with others in the pipeline, ought to improve division profitability and operating leverage. We expect growth in remaining segments to be limited due to ongoing headwinds, though performance appears to have bottomed out. In the restaurant segment, management plans menu updates and suburban expansion to enhance margins, while a stronger MYR could reduce imported raw material costs. BUY with RM1.37 TP. – RHB Research, Sept 25

FARM Price’s capacity expansion, expected to be operational in FY26, should unlock FY26 (+33% YoY) earnings growth and valuation re rating following years of full utilisation. Supportive government policies aimed at enhancing food security and supply resilience should provide strong structural tailwinds, alongside growing penetration into Singapore. Malaysia’s National Agrofood Policy (NAP) 2.0 sets out structural initiatives to enhance self-sufficiency, modernise the food value chain, and strengthen regional supply resilience. We believe FPHB’s focus on fresh produce distribution, supported by expanded cold-chain and logistics capacity, and cross-border sales into Singapore, is positioned to benefit from these initiatives through access to policy incentives, stable demand, and improved regional market penetration. Currently operating at full utilisation, FPHB has allocated RM18 million capex to expand its Senai distribution centre by 35%, with completion targeted in Q1’26. We expect the additional capacity to be absorbed within three years, driven by market share gains in Malaysia and Singapore, alongside continued growth in pre-packed and fresh-cut vegetables. FPHB targets Singapore to contribute 50% of sales in the longer term (from 28% currently) – supported by market share gains and the country’s reliance on fresh produce imports. It differentiates itself from local competitors through a structurally-lower cost base – enabling prices to be 10-15% below market levels – and a Johor border facility that ensures short delivery times. Its role as a panel supplier to Compass Group (Singapore), a leading institutional foodservice operator, is a testament to the company’s quality and reliability. BUY with RM0.47 TP. – RHB Research, Sept 25