24/10/2025

BIZ & FINANCE FRIDAY | OCT 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

Mercury Securities to underwrite PSP Energy’s ACE Market IPO KUALA LUMPUR: Integrated fuel and lubricant trader PSP Energy Bhd has signed an underwriting agreement with Mercury Securities Sdn Bhd for its initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia, targeted for December. In a statement, it said the IPO involves a public issue of 213.8 million new shares and an offer for sale of 74.82 million existing shares, representing 20% and 7%, respectively, of the enlarged issued share capital of 1.07 billion shares. It said that of the total new shares, 53.44 million will be offered to the Malaysian public, 48.1 million to eligible directors, employees and contributors under the pink form allocation, 53.44 million to selected investors, and 58.82 million for bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti). All 74.82 million existing shares for sale are also reserved for bumiputera investors approved by Miti, it said. It said Mercury Securities would underwrite 101.54 million new shares made available to the Malaysian public and pink form applicants. Group managing director Ong Chee Seng said proceeds from the IPO would fund the acquisition of an additional bunker vessel, the commercialisation of a new bunkering service hub at Tanjung Bruas Port, Malacca by the first half of 2026, and the expansion of its tanker and fuel capacity. PSP Energy, with over 13 years of experience in Malaysia’s downstream oil and gas sector, trades and distributes fuel and lubricant products. The group operates two licensed storage plants in Telok Gong, Port Klang supported by 42 road tankers and three bunker vessels. – Bernama

Ringgit ends firmer against dollar on stronger oil prices THE ringgit closed marginally higher against the US dollar yesterday, supported by firmer crude oil prices amid supply concerns following sanctions imposed by the US and the EU on a major Russian oil producer. At 6pm, the ringgit appreciated to 4.2250/2285 against the US dollar from 4.2280/2325 at Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said as Malaysia is a net oil and gas exporter, the situation favoured the ringgit, which traded on a firmer note yesterday. “Brent crude oil prices have risen to US$64.73 per barrel as sanctions heightened fears of supply disruption. “Meanwhile, the US dollar-ringgit pair was quoted at RM4.23 during the morning session before improving to around RM4.22 later in the day,”he told Bernama. At the close, the ringgit traded mostly higher against major currencies. It gained against the euro to 4.8976/9017 from 4.9019/9072, and strengthened against the Japanese yen to 2.7687/7712 from 2.7849/7880 at Wednesday’s close. Meanwhile, it weakened against the British pound to 5.6395/6442 from 5.6309/6368. The local note also traded mostly higher against Asean currencies. It appreciated against the Singapore dollar to 3.2513/2542 from 3.2556/2593, strengthened against the Philippine peso to 7.21/7.22 from 7.23/7.25, and improved against the Indonesian rupiah to 254.0/254.4 from 254.9/255.3 previously. However, it edged down versus the Thai baht to 12.8772/8937 from 12.8573/8769.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.3030 2.8030 3.3090 3.0680 4.9880 2.4740 3.3090 5.7360 5.4290

4.1570 2.6880 3.2060 2.9830 4.8270 2.3820 3.2060 5.5560 5.1960

4.1470 2.6720 3.1980 2.9710 4.8070 2.3660 3.1980 5.5360 5.1810

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

118.3000 3.5740 60.6600 68.4600 55.8400 4.9700 0.0268 2.8300 15.0000 43.9700 1.5500 7.4600 119.1100 115.7600 25.5300 1.4500 47.0300 13.6700

112.1500 3.3470 58.0900 62.9900 53.0600

111.9500 3.1470 62.7900 52.8600 4.4700 0.0193 2.7180 40.2400 1.2400 6.8100 112.8700 109.6900 22.8500 1.1400 42.6300 11.7200 N/A N/A

4.6700 0.0243 2.7280

N/A

40.4400 1.4400 7.0100 113.0700 109.8900 23.0500 1.3400 42.8300 12.1200

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

CapitaLand Malaysia Trust Buy. Target price: RM0.76

IGB REIT Buy. Target price: RM2.96

Malaysia CPI September sees mild uptick

Oct 23, 2025: RM0.62

Oct 23, 2025: RM2.67

Source: Maybank Investment Bank

Source: Maybank Investment Bank

Source: PublicInvest Research, DOSM, CEIC

IGB REIT’s Q3’25 results came in slightly above expectations, accounting for 77% and 75% of our and consensus full-year forecasts, respectively. Revenue rose 6.4% YoY to RM165.2 million, while NPI increased by 9.5% to RM124.9 million on stable operating costs (- 2.1% YoY). Distributable income for the quarter rose 3.4% YoY to RM102.8 million, translating into a higher DPU of 2.77 sen (vs. 2.68 sen in Q3’24). Management highlighted that occupancy and tenant retention remain robust, with both malls maintaining near-full occupancy. Mid-single-digit positive rental reversions remain intact and we expect Q4’25 to be a strong period, driven by festive spending, sustaining positive rent growth momentum into FY26. The long-awaited acquisition of MVS is expected to complete by end-Nov 2025, contributing a one-month rental impact in Q4’25. Upon completion, the enlarged portfolio’s fair value will rise to RM8.1 billion (from RM5.4 billion currently). Management indicated that no major AEIs are planned for MVS in the near term given its relatively young asset age (opened 2019) and near full occupancy. However, they see potential for long-term organic growth through NLA reconfiguration, consistent with IGBREIT’s proven asset enhancement track record at MVM and TGM. We raise our FY25–27 earnings by 4.1–4.6%, factoring in higher rental assumptions for MVM and TGM and incorporating one month contribution from MVS (previously 1.5 months). While FY26 yield is modest at 4.7%, the recent share price pullback offers an attractive entry point. Buy with RM2.96 TP. – Maybank Investment Bank, Oct 23

Q3’25 gross revenue rose 6.2% YoY to RM116 million, driven by broad-based rental growth across retail assets (+11.2% YTD reversions) and incremental income from new industrial assets. NPI grew 11.5% YoY to RM69.1 million, supported by lower utilities costs (-22%) and improved operating efficiencies, pushing NPI margin to 59.6% (Q3’24: 56.7%). The YTD retail performance remained steady despite marginally softer shopper traffic (-1% YoY) and tenant sales (-0.8% YoY), in the absence of holidays and festivities, while key outstation malls continued to record high-teens rental reversions. Management remains constructive on FY26 prospects, guided by sustained rental growth and improved leasing terms. Retail AEIs and tenant remixing are expected to drive occupancy and shopper, led by ongoing upgrades at Gurney Plaza and 3 Damansara, as well as the upcoming 63,000 sq ft active lifestyle zone at The Mines (which includes a 14,000 sq ft indoor water park) by Q1’26. Tenant negotiations have largely normalised post-SST implementation, and management expects to maintain mid-to-high single-digit rental reversions into FY26. We maintain our FY25–27 earnings forecasts. The enlarged logistics and industrial portfolio should provide full-year contributions from FY26 onwards. Gearing improved to 39.8% post–Aug 2025 private placement, lowering financing costs (YTD: 4.36%) and providing headroom for future acquisitions. Management reaffirmed its target to raise industrial exposure to 20% of AUM by 2028, focusing on Penang, Klang Valley, and Johor. As at end-2024, CLMT owns six retail and two logistics properties, totaling 4.3 million sq ft NLA with a portfolio value of RM5.1 billion. Buy with RM0.76 TP. – Maybank Investment Bank, Oct 23

MALAYSIA’S headline CPI rose to +1.5% YoY in September 2025 (August: +1.3% YoY), marginally above market expectations of +1.4% YoY. Core inflation also picked up to +2.1% YoY (August: +2.0% YoY), suggesting persistent but modest underlying price pressures. On a MoM basis, headline CPI increased +0.2% (August: +0.1%). The full enforcement of the minimum wage policy for micro enterprises in August has extended coverage beyond firms with five or more employees, now encompassing over 90% of registered businesses. While upward pressure on services inflation may materialise over time, the current pass-through remains limited. Headline inflation averaged +1.3% YoY in Q3’25, unchanged from Q2’25, indicating a broadly stable price environment despite labour cost adjustments. We maintain our 2025 headline inflation forecast at +1.5% YoY (previously +1.9%), reflecting a more subdued cost environment. While upside risks persist from Tenaga Nasional’s revised electricity tariff structure and the SST base expansion in July 2025, their combined impact is expected to be marginal, with competitive pass-through and demand sensitivities limiting second-round effects. Additional cost drivers such as the phased increase in foreign worker levies and the scheduled EPF contribution hike for non-citizens in Q4’25 may introduce incremental pressures, though these are likely to be absorbed via productivity offsets and favourable base effects. The upcoming 10% excise duty hike on alcohol and tobacco in November could add approximately +0.1 to +0.2 percentage points to headline inflation, given their combined CPI weight of 1.9%. – PublicInvest Research, Oct 23