30/09/2025

BIZ & FINANCE TUESDAY | SEPT 30, 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

Leader Energy bags 136MWp solar project in Kedah PETALING JAYA: Leader Energy Group Bhd has been awarded a 136MWp solar power project under the Large-Scale Solar 5+ (LSS5+) programme, to be developed in Kedah by Leader Energy’s wholly owned subsidiary, Leader Solar Energy (LSE) III. Located in Mukim Kuala Ketil, Daerah Baling, LSE III builds on Leader Energy’s established presence in Malaysia, where the group had previously developed LSE (38MWp) and LSE II (29.4MWp) in 2018 and 2019 respectively under Malaysia’s first Large Scale Solar (LSS) programme. Scheduled to commence operations in 2027, LSE III will add significant capacity to Malaysia’s renewable energy mix. Leader Energy executive deputy chairman and group CEO Datuk Sean H’ng said: “Winning this project is another important milestone for Leader Energy and a testament to the strength of our experience in the renewable energy sector. “Having successfully delivered LSE and LSE II in Kedah, we are confident in bringing even better to LSE III. We are proud to play a role in advancing Malaysia’s energy transition while continuing our growth journey across Asia. Every new project brings us closer to our aspiration of ‘RE-Energising a Tomorrow where renewable energy uplifts lives and economies .’” Beyond Malaysia, Leader Energy’s expertise extends across seven Asian markets, with a diverse portfolio in solar, wind, hydro, and transmission assets, underscoring the Group’s expanding renewable footprint. Leader Energy’s commitment to advancing renewable energy is aligned with its purpose of delivering sustainable energy that betters society and the environment. With a robust pipeline of projects, Leader Energy remains committed to driving long-term value creation.

Ringgit higher vs greenback on US govt shutdown fears THE ringgit ended higher against the American dollar yesterday as concerns over a potential US government shutdown weighed on the greenback, an analyst said. Reports indicated that the federal government is on the brink of a shutdown unless the US Congress can reach a funding agreement before the start of the new fiscal year on Oct 1. At 6pm, the local note rose to 4.2150/2200 against the greenback compared with Friday’s close at 4.2200/2250. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said a US government shutdown would mean limited services which, if prolonged, could undermine economic growth. “The US Congress need to agree on the spending programme by the end of September to avoid a government shutdown. “Hence, the thesis for US interest rate cuts has gained momentum from such an event, resulting in a weaker US dollar,“ he told Bernama. At the close, however, the ringgit was lower against a basket of major currencies. It eased to 2.8365/8400 against the Japanese yen from 2.8171/8206 at Friday’s close, slipped to 5.6612/6679 against the British pound from 5.6345/6412, and declined to 4.9387/9446 versus the euro from 4.9281/9340. The local note fell to 3.2664/2706 vis-à-vis the Singapore dollar from 3.2630/2671 and depreciated to 13.0649/0857 against the Thai baht from 13.0587/1069 previously. The ringgit also edged lower against the Indonesian rupiah at 252.6/253.1 from 252.1/252.5, and was flat versus the Philippine peso at 7.25/7.26 from 7.25/7.27 previously.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2890 2.8220 3.3180 3.0730 5.0230 2.4830 3.3180 5.7520 5.4090 3.5760 60.4000 68.9800 55.5900 4.9100 0.0265 2.8790 44.1200 1.5400 7.4700 118.7200 115.3600 25.5900 1.4500 46.9900 13.8900 117.9000 N/A

4.1420 2.7080 3.2140 2.9860 4.8600 2.3910 3.2140 5.5680 5.1770 3.3500 57.8300 63.4600 52.8100 4.6000 0.0239 2.7740 40.5700 1.4400 7.0300 112.7000 109.5200 23.1100 1.3400 42.7900 12.3100 111.7600 N/A

4.1320 2.6920 3.2060 2.9740 4.8400 2.3750 3.2060 5.5480 5.1620

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

111.5600 3.1500 63.2600 52.6100 4.4000 0.0189 2.7640 40.3700 1.2400 6.8300 112.5000 109.3200 22.9100 1.1400 42.5900 11.9100 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

Ta Ann Bhd Neutral. Target price: RM3.95

Inta Bina Group Bhd Buy. Target price: RM1.00

Top Glove Bhd Hold. Target price: RM0.59

Sept 29, 2025: RM4.15

Sept 29, 2025: RM0.58

Sept 29, 2025: RM0.435

Source: Bloomberg, TA Research

Source: Bloomberg, RHB Research

TA Ann’s share price has increased moderately over the last month, likely driven by elevated CPO prices and buoyed by above average dividend yields. Management remains optimistic on a recovery for its timber segment. While the stock is now trading at 9.8x FY25 P/E, at +2SD above its historical mean, we believe its valuation is fair - being supported by a handsome dividend payout ratio of >70% and FY26F yield of 8%. Its share price has increased post 2Q25 results, rallying by 5% (results were in line with our estimates), and is now nearing the YTD high of RM4.16. This was likely supported by the stock’s appeal as defensive plantation play. We highlight that TAH has maintained attractive dividend payout ratios of 53-84% over the past three years (higher than the averages of 40-50% for companies under our coverage, as detailed in Figure 2), translating into attractive yields of 6-10%. Management is confident of maintaining a 70-80% payout ratio for FY25-26F, implying yields of 8% (vs peer average of 4%), backed by its strong net cash position. CPO prices stayed strong so far in 3Q25, with spot prices up 10% QTD, lifting the YTD average to RM4,354, (+3% vs 2024’s average of RM4,233/tonne). The price of palm kernel (PK) also rose 25% QTD to RM3,628/tonne. As a pure plantation play, TAH directly benefits from these higher prices, which is reflected in its recent share price gain. Nonetheless, should CPO prices fall, TAH would be more susceptible than its peers, with earnings to be affected by 12-15% for every RM100/tonne change. CPO prices should ease in the coming months with the peak output season. Maintain NEUTRAL, new RM3.95 TP. – RHB Research, Sept 29

INTA, via its wholly owned subsidiary Inta Bina Sdn Bhd, has clinched a RM40.6mn main building contract from Eco Majestic Development Sdn Bhd for the construction of 128 landed residential units within the Eco Majestic township by Eco World Development Bhd (Eco World). The project carries a 20-month completion period, commencing on 8 October 2025 with targeted completion by 7 June 2027. Incorporating this latest job win, we estimate INTA’s current total outstanding order book to stand at approximately RM1.7bn (assuming roughly RM250m order book depletion in 3QFY25). This translates into a solid 2.5x cover of its FY24 construction revenue, reinforcing earnings visibility for the company. Given the contract was secured from a recurring client, Eco World, we expect the project margins to remain in line with INTA’s typical main buildings’ construction job margin. Assuming a net margin of 5%, this new job could contribute RM2mn in net profit over its construction period, supporting both profitability and cash flow stability. YTD, INTA has clinched RM865.2m worth of new jobs, already accounting for 86.5% of our FY25F new order assumption of RM1.0bn. With its current tender book of RM5.0bn, we believe the company remains well on track to secure the remaining. Applying a conservative 20% hit rate, this could translate into an additional RM1bn of fresh orders, further strengthening the replenishment pipeline. Overall, we see INTA as a key beneficiary of the domestic property market recovery, underpinned by robust tender activity, established relationships with major developers, and its solid execution track record. Reiterate BUY and unchanged RM1.00 TP. – TA Research, Sept 29

Source: Bloomberg, Phillip Capital Research

TOP Glove is currently operating at 74% utilisation (vs. 61% in 3QFY25) against its 95bn annual installed capacity, supported by firmer demand from the US market. Management is targeting to raise utilisation to 80-85% in FY26, contingent on sustained recovery in demand. Sales volumes stood at 28bn pieces for 9MFY25, with 3QFY25 contributing 9.2bn pieces, and management expects a stronger sequential increase in 4QFY25. Management’s near-term focus remains on operational efficiency and margin optimisation, while taking a more cautious stance on capacity expansion. Raw material costs are expected to remain stable in 4QCY25, easing cost pressures and allowing Top Glove to pass on savings to customers. Domestic natural gas prices have stabilised after last year’s spike and are likely to trend lower into 2026 in tandem with lower global Brent crude prices, keeping energy costs contained in 2HCY25. Malaysia’s US market share has risen to 59% (from 44% a year ago), with Top Glove holding 21% share and the US contributing 26% of its total export volumes. Blended nitrile ASPs remain steady at US$16-17/k pieces in the US, though competition from Chinese manufacturers continues to cap ASP recovery outside the US. Management guided that no further ASP cuts are expected in the US market, given the resilient demand. Top Glove operates 36 glove factories in Malaysia, with 80% of total production concentrated in Klang, Selangor. Each production line is capable of producing 30k-37k pieces/hour, translating to 2.7m pieces/day. Maintain HOLD with RM0.59 TP. – Phillip Capital Research, Sept 29