17/10/2025

BIZ & FINANCE FRIDAY | OCT 17, 2025

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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

RM38m project set to turn Labuan into economic hub LABUAN: The federal government’s approval for the implementation of the RM38 million Waterfront Development Project Phase One at Victoria Harbour Beach – the site of the former wet market in downtown here – reflects its strong commitment to transform this duty-free island into a vibrant economic and tourism destination. Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa said the project reflects the federal government’s firm commitment and continuous efforts to position Labuan not only as Malaysia’s international business and financial centre, but also as a hub for sustainable and inclusive economic growth. She said the proposed development would feature a variety of components designed to boost the island’s economy and tourism appeal, including recreational spaces, gastronomy experiences, venues for social gatherings and public events, a food bazaar, sea sports facilities, and water cruises, among others. Prime Minister Datuk Seri Anwar Ibrahim announced the approval for the project during the tabling of Budget 2026 on Oct 10. “The government’s approval for the implementation of the project underscores the government’s strong political will and commitment to accelerate Labuan’s growth as part of the national development agenda. The project consists of four phases : the first phase will commence next year, and once completed, the subsequent phases will follow progressively,” she told Bernama yesterday. Dr Zaliha said the development is part of a broader strategy under the “Chase City Vision” outlined in the Labuan Local Plan 2040, aimed at revitalising the waterfront area and enhancing the island’s overall urban appeal. – Bernama

Ringgit higher as US-China trade tension weighs on dollar THE ringgit closed higher against the US dollar yesterday as continued trade tension between the US and China weighed on the dollar. At 6pm, the local note climbed to 4.2275/2300 against the US dollar from 4.2305/2355 on Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the weaker performance of the greenback resulted in the decline of the US Dollar Index (DXY), which fell by 0.21% to 98.584. “The trade tension, coupled with a dovish tilt by the US Federal Reserve (Fed) and the ongoing US government shutdown, has raised the prospects of an interest rate cut in the United States at the end of this month,” he told Bernama. However, the ringgit weakened against a basket of major currencies. It slipped against the euro to 4.9284/9313 from 4.9213/9272 at Wednesday’s close, softened further versus the British pound to 5.6792/6826 from 5.6469/6535, and was almost flat vis-à-vis the Japanese yen at 2.7943/7961 from 2.7948/7983. The ringgit traded mostly higher against Asean currencies. It was marginally higher against the Singapore dollar at 3.2630/2651 from 3.2648/2689 previously, strengthened against the Indonesian rupiah to 254.9/255.2 from 255.2/255.6, and advanced versus the Philippine peso to 7.27/7.28 from 7.29/7.30 previously. The ringgit, however, depreciated versus the Thai baht to 12.9933/13.0151 from 12.8975/9182 on Wednesday’s close.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2980 2.7980 3.3140 3.0550 5.0080 2.4660 3.3140 5.7660 5.4290 3.5960 60.5900 68.7300 55.7500 4.9700 0.0268 2.8590 43.6200 1.5500 7.4900 118.9700 115.6200 25.6300 1.4500 46.7100 13.8000 118.1600 N/A

4.1520 2.6850 3.2120 2.9700 4.8460 2.3750 3.2120 5.5820 5.1990 3.3480 58.0300 63.2500 52.9700 4.6600 0.0242 2.7550 40.1200 1.4400 7.0500 112.9400 109.7600 23.1500 1.3400 42.5400 12.2300 112.0200 N/A

4.1420 2.6690 3.2040 2.9580 4.8260 2.3590 3.2040 5.5620 5.1840

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

111.8200 3.1480 63.0500 52.7700 4.4600 0.0192 2.7450 39.9200 1.2400 6.8500 112.7400 109.5600 22.9500 1.1400 42.3400 11.8300 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

Capital A Bhd Buy. Target price: RM1.68

Hartalega Holdings Bhd Hold. Target price: RM1.35

Transportation Neutral

Oct 16, 2025: RM0.885

Oct 16, 2025: RM1.24

Source: HLIB Research

Source: Maybank Investment Bank

Source: Matrade, DOSM, RHB

TELEPORT continued to deliver positive core net earnings in Q2’25, recording RM3.2 million (up from RM0.4 million in Q1’25), despite global uncertainties surrounding US tariffs that prompted a cautious, wait-and-see sentiment during the quarter. The improved performance was primarily driven by stronger contributions from the ecommerce segment, reduced staff costs, an optimised cost structure (benefiting from leverage on 3rd party partner airlines connectivity) and lower net finance costs. While total tonnage declined slightly by - 0.5% QoQ, the number of parcels delivered grew by +13.7% QoQ. Management has guided for a seasonally stronger 2H’25, with peak performance expected in Q4’25. Teleport remains on track to achieve its target of delivering 2 million parcels/day by end-2025, compared to the current peak daily volume of 509k parcels. To support this ambitious goal, Teleport has proactively expanded its capacity by 2.8x, also primarily via strategic partnerships with 3rd party airlines. Based on current growth momentum, Teleport is projected to contribute RM50-60 million in quarterly earnings once the 2 million parcels/day milestone is achieved. Teleport stands to benefit from a weaker USD, as a larger portion of its costs, particularly airline space leasing, is denominated in USD, while only 15% of its revenue is USD based (with the remaining 85% in local currencies). As a result, USD depreciation is margin-accretive. YTD, USD has weakened by 5.3% against MYR and 5.2% against THB, but stayed relatively flat vs PHP at +0.1%, and appreciated by 2.8% against IDR. Buy with RM1.68 TP. – HLIB Research, Oct 16

HART remains focused on operational efficiency and cost control. It has hibernated two plants to carry out automation upgrades. This has reduced its running capacity to 24b pcs p.a. (-35%, from 37b pcs) but lifted the utilisation rate to 100% (from 67% in Q1’26). Other ongoing cost-saving initiatives include workforce rightsizing, tighter wastage control, and improved sourcing. These efforts, coupled with lower electricity tariffs and raw material costs, help cushion the impact of higher wages amid a soft pricing environment. The group remains cautious as pricing is expected to stay competitive amid ongoing oversupply and additional capacity from China glove makers expanding into Southeast Asia (SEA). The industry’s active supply capacity of 500b–550b pcs versus glove demand of ż 370b pcs in 2024 keeps pricing buyer-driven. In our view, the next six months will be critical, particularly on pricing strategy, as a major China glove maker’s Indonesia plant is set to begin commissioning. Initial shipments, initially targeted for Oct 2025, have been delayed to Dec 2025-Jan 2026. We believe this new capacity mainly focuses on the US market. To diversify and strengthen its business, HART is expanding within the healthcare sector (e.g. medical consumables distribution) via M&A and growing its own brand, Gloveon, which now supplies 70% of Malaysia’s private hospitals and leads in Australia’s public healthcare segment. HART prefers organic growth through technology and efficiency gains rather than acquiring existing glove plants. It has no plans to enter the cleanroom glove segment. To manage forex risk, HART currently maintains a 60–80% hedging policy until Jan 2026. Hold with RM1.35 TP. – Maybank Investment Bank, Oct 16

RHB Economics is maintaining a cautious outlook on trade, as the impact of the US’ reciprocal tariffs gradually sets in. Our economics team forecasts Malaysia’s full-year export growth at 3.4%, with growth easing to 3.1% in 2H’25 (vs 3.8% in 1H’25) – this is as frontloading activities fade, especially for shipments to the US, which indicates a more subdued export momentum heading into the year-end. Despite these headwinds, several factors could support exports in 2H’25, eg: clearer US tariff guidance, gradual easing in US-China tensions, and Malaysia’s diversified product and market mix. Furthermore, a uniform US tariff rate across Asean should help to maintain Malaysia’s regional competitiveness. Black swan events continue to cloud the outlook, including Israel’s recent attack on Doha (Qatar), Russia’s drone strikes on Ukraine, as well as civil unrest in Indonesia and Nepal. Meanwhile, despite some signs of easing tensions between Israel and Iran, shipping lines continue to bypass the Red Sea, opting for routes around the Cape of Good Hope. Many major carriers remain reluctant to transit through the affected zone, citing ongoing safety and security concerns. As a result, the longer route via Africa’s southern tip continues to be the preferred option for now. Separately, rising trade tensions between the US and China added another layer of uncertainty to the global trade landscape. China’s recent announcement of sweeping rare earth export restrictions prompted tariff threats from Washington, which, if escalated, could disrupt critical supply chains and dampen trade flows between the two largest economies. While the US’rhetoric has since softened, markets remain wary of potential retaliatory measures. – RHB Research, Oct 16