27/10/2025

BIZ & FINANCE MONDAY | OCT 27, 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

RM109m given to 2,006 Sabah entrepreneurs via Tekun Nasional TELUPID: The Ministry of Entrepreneur Development and Cooperatives (Kuskop) has disbursed RM109 million via Tekun Nasional as of September this year to empower micro, small, and medium enterprise (MSME) entrepreneurs in Sabah. Minister Datuk Ewon Benedick said yesterday the funding has benefited 2,006 Tekun entrepreneurs in the state, which includes RM8.5 million allocated to 207 entrepreneurs in Telupid. “This clearly demonstrates Tekun Nasional’s commitment to empowering the people through micro-financing support, particularly for rural communities and small entrepreneurs who need capital injection to grow their businesses,” he said in a statement. He added that since its establishment in 1998, Tekun Nasional has disbursed a total of RM10.84 billion in financing to 607,514 entrepreneurs nationwide as of September. Of this total, RM1.26 billion was channelled to 67,248 entrepreneurs in Sabah, with RM37.4 million allocated to 1,320 entrepreneurs in Telupid under the Beluran parliamentary constituency. “Telupid is rich in natural resources and has immense agricultural and tourism potential. Our local entrepreneurs, especially those in small-scale businesses, agriculture, handicrafts and the food industry, are our strength. “They not only generate income for their families but also create jobs and drive the local economy,“ he said. Ewon advised residents to take full advantage of the Informal and Micro Financing Scheme and other funding programmes offered by Tekun Nasional, stressing the importance of participating in training and mentorship programmes provided by agencies under Kuskop. – Bernama

Ringgit likely to trade in narrow range against US dollar this week THE ringgit is expected to remain range-bound against the US dollar this week as cautious sentiment prevails ahead of the upcoming Federal Open Market Committee (FOMC) meeting. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that market attention will centre on the FOMC meeting scheduled for Oct 28 and 29. “The anticipated 25-basis-point rate cut has largely been priced in by the market. The key question now is how the Federal Reserve will steer its policy direction should the United States government shutdown remain unresolved,” he told Bernama. Against this backdrop, Mohd Afzanizam said that the ringgit is expected to continue trading within a narrow range between RM4.22 and RM4.23 against the US dollar this week. Meanwhile, the US Consumer Price Index (CPI) for September was released yesterday, marking the first major economic report since the government shutdown began on Oct 1. The latest data showed that the core CPI rose to 330.54 in September from 329.79 in the previous month, while the overall inflation rate eased to 3.0 per cent, which is lower than expected. The data offered further clues on the US Federal Reserve’s interest rate trajectory, suggesting that inflationary pressures are moderating. On a weekly basis, the ringgit firmed against the greenback, closing marginally higher at 4.2210/2255 compared with 4.2240/2275 last week. The local note appreciated against the Japanese yen to 2.7592/7623 from 2.8218/8244, strengthened versus the euro to 4.9010/9062 from 4.9421/9462, and gained against the British pound at 5.6232/6292 from 5.6741/6788, at last week’s close.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2950 2.8080 3.3030 3.0640 4.9870 2.4770 3.3030 5.7210 5.4290 3.5620 60.5800 68.4400 55.7400 4.9600 0.0267 2.8200 44.1400 1.5400 7.4200 118.8800 115.5300 25.6500 1.4500 47.1600 13.6700 118.0500 N/A

4.1480 2.6940 3.1990 2.9780 4.8250 2.3850 3.1990 5.5380 5.1960 3.3320 58.0000 62.9600 52.9500 4.6600 0.0241 2.7170 40.5900 1.4400 6.9900 112.8500 109.6700 23.1600 1.3300 42.9400 12.1200 111.9100 N/A

4.1380 2.6780 3.1910 2.9660 4.8050 2.3690 3.1910 5.5180 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

111.7100 3.1320 62.7600 52.7500 4.4600 0.0191 2.7070 40.3900 1.2400 6.7900 112.6500 109.4700 22.960 1.1300 42.7400 11.7200 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

Axis REIT Neutral. Target price: RM1.96

ViTrox Corp Bhd Hold. Target price: RM4.11

Auto & Autoparts Neutral

Oct 24, 2025: RM4.64

Oct 24, 2025: RM2.14

Source: PublicInvest Research

Source: FactSet, Maybank Investment Bank

IN 3QFY25, Axis REIT’s (AXREIT) realised net profit came in at RM52.3m (+27.2% YoY, +1.4% QoQ) which was within our and consensus expectations. The Group’s 9MFY25 realised net profit of RM154.2m (+28.1% YoY) constituted about 76% and 75% of our and consensus full year estimates. Property income improved 17.3% YoY mainly due to gains of disposal of investment property i.e. the disposal of The Annex which completed on 30 April 2025, resulting in a total net gain on disposal of RM8.8m, rent contribution from new asset i.e. its newly developed Axis Mega Distribution Centre (Phase 2) which achieved 100% occupancy in January 2025 and positive rental reversion from existing assets in its portfolio. In 3QFY25, it signed two sale and purchase agreements to acquire a warehouse facility located in Telok Gong, Port Klang for RM80m and industrial property located in Kawasan Industri Bandar Sultan Suleiman, Port Klang, for RM50m. 9MFY25 NPI rose 18.8% YoY to RM235m, mainly due to contribution from rental contribution from newly acquired properties, higher contribution from Axis Mega Distribution Centre (Phase 2) which was fully leased out in January 2025 and positive rental reversion from the existing portfolio. Meanwhile, higher property expenses which rose 8.0% YoY to RM36.5m were mainly due to the increased number of properties in the portfolio. The group which increased its assets under management to RM5.26bn in FY24 after completing a record 8 acquisitions during the year, raising its portfolio count to 68 properties with 15.11msf of space under management. It has in the pipeline a plan to acquire assets worth RM300m in remaining of FY25, focusing on Grade A logistics facilities and manufacturing facilities with long leases from tenants. – PublicInvest Research, Oct 24

9M25 results came in above our expectations but fell short of consensus estimates, likely reflecting a stronger-than-anticipated order recovery following the easing of US tariff-related uncertainties. Pending further details from the upcoming 24 October 2025 briefing, we make no changes to our FY26–27E earnings forecasts but lift FY25E by 9%. Excluding EIs of RM0.2m (mainly inventory write-offs), ViTrox’s 9M25 core earnings rose 10% YoY to RM87m, above our expectations but below consensus, accounting for 82% and 69% of our and the street’s full-year forecasts, respectively. Revenue increased 37% YoY to RM553m, underpinned by a sustained, broad-based demand recovery, led primarily by the ABI and MVS segments. EBIT margin expanded by 2.2ppts YoY to 21.6%, likely driven by improved operating leverage. However, core net margin contracted 3.9ppts YoY to 15.8%, impacted by higher tax expense following the expiry of its pioneer status. The earnings beat was mainly attributable to stronger-than-expected revenue growth. 3Q25 revenue surged 25% QoQ to RM229m, supported by stronger customer demand. EBIT margin improved 0.9ppts QoQ to 22.4%, likely driven by better operating leverage. However, core net profit was flat QoQ at RM31m, as net margin contracted 3.4ppts to 13.6%, weighed down by higher tax expense provisions. We lift FY25E forecasts by 9% to account for the stronger-than expected revenue but keep FY26E-27E forecasts unchanged, pending further clarity post-results briefing. Keep HOLD and RM4.11 TP unchanged. – Maybank Investment Bank, Oct 24

Source: MAA, RHB Research

THE Malaysia Automotive Association (MAA) has reported Sep 2025 TIV of 58,490 units (-22% MoM). We maintain our cautious outlook on the sector amid intensifying competition. However, current macroeconomic trends are supportive of car sales, coupled with seasonally stronger 4Q25 numbers. We believe the acceleration of EV adoption remains a key talking point for the sector. This will likely be driven by an expanding EV ecosystem, launches of new EV models, and incentives to encourage uptake. As of March, only 4,161 EV charging bays (EVCBs) have been installed nationwide, with another 4,477 planned but without a clear timeline - still below the targeted 10,000 units by end-2025. Grid capacity is a key hurdle, as direct current (DC) chargers (now growing more steadily as it can charge much faster than alternating current (AC) chargers) require much more power than AC chargers, making upgrades costly and time consuming. This is particularly difficult for malls and condominiums with limited power supply. High-rise buildings - home to 40-45% of Klang Valley residents - also face regulatory hurdles, as installations need approval from management bodies due to infrastructure, cost-sharing, and safety concerns. Though not mentioned in Budget 2026, the Ministry of Finance confirmed that the tax holidays for CBU EVs will end in Jan 2026. This is within our expectations, as we believe the focus is on assembling EVs locally. Stay NEUTRAL on the sector. – RHB Research, Oct 24