08/10/2025

BIZ & FINANCE WEDNESDAY | OCT 8, 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

MPC, auto groups drive productivity with digital tools KUALA LUMPUR: The Malaysia Productivity Corporation (MPC), in strategic collaboration with the Perodua Suppliers Association (P2SA) and Proton Vendors Association (PVA), is strengthening the productivity and competitiveness of the country’s automotive industry through the implementation of the AI for Productivity Transformation Programme. In a statement, MPC said the programme, implemented under the Automotive Productivity Nexus (AutoPN), is aimed at accelerating digital transformation and improving overall production efficiency among local automotive companies. “A total of 17 artificial intelligence (AI)-powered productivity improvement projects have been developed, and the companies involved are now ready to expand the autonomous AI usage to other parts of their production operations. “In the next phase, at least 50 more AI projects will be implemented within five years to accelerate digital transformation and strengthen the industry’s competitiveness,” MPC said. Meanwhile, AutoPN chairman Datuk Abdul Rashid Musa said that the programme has had a significant impact on the performance of the participating companies. “This initiative has significantly reduced the time needed for the preparation and monitoring of production performance. The use of AI enables companies to operate more efficiently, allowing them to focus on higher value-added activities,” he said. MPC director-general Datuk Zahid Ismail said this collaborative approach is highly effective in strengthening the local workforce. “Workers now have skills to use AI in daily operations and act as transformation agents within their respective organisations.” – Bernama

Ringgit higher against dollar on renewed buying interest THE ringgit closed slightly stronger against the US dollar on Tuesday, supported by renewed buying interest in the local unit following recent signs of improved sentiment in regional markets. At 6pm, the local currency was quoted at 4.2125/2155 against the greenback, marking a modest improvement from Monday’s close of 4.2135/2180, as investors showed a mild preference for emerging market currencies. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the USD/MYR pair traded within a tight band, hovering around the RM4.21 level throughout the day, indicating that market participants are still awaiting fresh catalysts before taking stronger positions on either side. He noted that the US Dollar Index (DXY) stayed elevated, supporting a stronger greenback amid ongoing political uncertainties in advanced economies. “The upcoming Budget 2026 is likely to provide near-term support for the ringgit,”he told Bernama. At the close, the ringgit was mostly higher against a basket of major currencies. It rose against the euro to 4.9135/9170 from 4.9155/9207 and strengthened versus the Japanese yen to 2.7938/7960 from 2.8019/8051, but eased against the British pound to 5.6620/6661 from 5.6608/6669. Against Asean currencies, the local note was mostly weaker, except for the Thai baht, which rose to 12.9532/9688 from 12.9810/13.0009. It slipped versus the Singapore dollar to 3.2587/2613 from 3.2562/2599, fell against the Philippine peso to 7.25/7.26 from 7.22/7.23, and declined versus the Indonesian rupiah to 254.3/254.6 from 254.0/254.4. Malaysia Smelting Corp Bhd Neutral. Target price: RM1.48

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2860 2.8470 3.3130 3.0660 5.0140 2.5060 3.3130 5.7740 5.4160

4.1380 2.7290 3.2080 2.9790 4.8500 2.4120 3.2080 5.5880 5.1840

4.1280 2.7130 3.2000 2.9670 4.8300 2.3960 3.2000 5.5680 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

117.8200

111.6500

111.4500 3.1480 63.1300 52.5400 4.4000 0.0192 2.7360 40.4700 1.2300 6.8100 112.1000 109.2200 23.1000 1.1400 42.5900 11.7900 N/A N/A

3.5720

3.3480

N/A

N/A

68.8600 55.5400 4.9000 0.0267 2.8510 44.2400 1.5400 7.4500 118.2900 115.2600 25.8200 1.4500 47.0100 13.7500 N/A

63.3300 52.7400 4.6000 0.0242 2.7460 40.6700 1.4300 7.0100 112.3000 109.4200 23.3000 1.3400 42.7900 12.1900 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

IOI Properties Group Bhd Buy. Target price: RM2.78

Verdant Solar Holdings Bhd Not Rated

Oct 7, 2025: RM2.14

Oct 7, 2025: RM1.44

Source: Bloomberg

Source: PublicInvest Research

Source: Company data, TA Research

IOI Properties Group (IOIPG) has maintained its FY26 sales target of RM2 billion, representing 10% YoY growth (excluding Marina View). Q1’26 sales are expected to be within expectations, supported by steady take-up in Malaysia’s mid-market and township segments. In China, aggressive repricing in 2H’25 helped clear unsold inventory and reignited buyer interest, despite a still-challenging environment. Attention now turns to W Residences Marina View, IOIPG’s flagship development in Singapore with a GDV of S$3.65 billion. The project is slated for a grand launch in October 2025, with management guiding for an average selling price of ~S$5,000 psf. For FY26, we forecast total new sales of RM3.8 billion, comprising RM2 billion from Malaysia and China, and RM1.8 billion from Singapore anchored by a 15% take-up assumption for W Residences. We view this as a base case, given management’s target of 25% take-up within the first year. With its prime location and brand strength, there is room for upside should launch momentum outperform expectations. IOIPG’s earnings base is becoming increasingly diversified, with property investment and hospitality collectively contributing 42% of total revenue in FY25, up significantly from just under 20% in FY22. We expect this momentum to continue, particularly within the property investment segment, where IOI City Mall has stood out with ongoing positive rental reversions that continue to anchor the group’s recurring income growth. The hospitality segment is also benefiting from rising tourist arrivals and the build-up to Visit Malaysia 2026, reflected in higher occupancies and room rates. With stable cash flows, IOIPG is progressing toward its Malaysia REIT listing by end-CY26. The initial portfolio is expected to include IOI City Mall, along with selected office and hotel assets. Buy with RM2.78 TP. – TA Research, Oct 7

MSC owns the largest tin mines in Malaysia, acquired through the purchase of Rahman Hydraulic Tin Sdn Bhd (RHT) in 2004. On the downstream side, MSC currently operates a smelting plant at Pulau Indah, equipped with a cutting-edge Top Submerged Lance (TSL) furnace and an annual production capacity of 60,000 MT. As an integrated tin producer, MSC can optimise resource utilisation, streamline operations, and adapt more swiftly to market demands. Since acquiring RHT in 2004, extensive transformation work has been carried out in mining and pit operations to enhance efficiency and productivity. Tin-in-concentrates production has increased from 2,238 tonnes in 2014 to 2,516 tonnes in 2024. Additionally, MSC further expanded RHT’s existing mining pit eastward by acquiring a 568-acre land parcel through the purchase of Asas Baiduri in 2022, ensuring a long-term supply of tin. To enhance smelting efficiency and cost optimisation, the group is taking a major step by decommissioning the Butterworth smelter by the end of 2025. This is expected to lower operating expenses by 30%. The outlook for the tin market is favourable, with prices recovering in 2024 from 2023 lows on the back of strong demand and supply constraints. We expect this upward long term trend to continue, supported by the structural drivers of green energy transition and global digitalisation. MSC sales are heavily influenced by the demand for tin and its derivative products. A decline in global economic activity or reduced demand from key sectors, such as consumer electronics, automotive electronics, and industrial automation, could negatively impact tin prices. Neutral with RM1.48 TP. – PublicInvest Research, Oct 7

VERDANT Solar Holdings Bhd (VERDANT) is a solar energy company specialising in the design, sale, installation, and maintenance of high-quality solar photovoltaic systems for residential, commercial, and industrial clients. The company focuses on providing cost-effective and reliable solar solutions to help customers reduce their electric ity bills and carbon emissions. Since its establishment in 2013, VERDANT has completed over 2,000 projects and served more than 3,000 customers, promoting sustainable energy use and aiming to contribute to Malaysia’s renewable energy goals. VERDANT also prides itself on tailoring solar systems to meet specific energy needs while supporting Malaysia’s transition to cleaner energy and a greener future. The group has built a strong track record in the solar PV industry since 2015, beginning with marketing solar PV systems for residential properties and trading solar ventilators, before expanding into EPCC services in 2019 and O&M services in 2023. It is committed to completing residential solar PV installations within 30 days upon receiving customer deposits. As at the Sept 2, the group has successfully completed 78.69 MWp of solar PV projects, including 74.63 MWp across residential properties, showcasing its ability to deliver quality and timely projects. Its credentials are reinforced by registrations as a solar PV service provider under SEDA, a Grade 5 CIDB contractor, and Class A with the Energy Commission, enabling participation in NEM and other renewable energy programs. With expertise in navigating local regulatory applications such as NEM, SolaRIS and SELCO, the group provides customers with valuable guidance. Its achievements are further recognised by the Malaysia Book of Records for Most Solar PV Home Installations in 2022, 2023 and 2024, cementing its reputation in the industry. – TA Research, Oct 7