30/10/2025

BIZ & FINANCE THURSDAY | OCT 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

BNM affirms standard practice in US Treasury talks KUALA LUMPUR: Bank Negara Malaysia (BNM) has said its close consultation and agreement with the US Treasury reflect existing practices and “do not in any way affect the ability to independently formulate monetary policy, or our ability to safeguard the stability and value of the ringgit.” BNM noted that similar commitments have been made by other major US trading partners including Thailand, Japan, South Korea, and Switzerland. The central bank said it has been an existing practice for the central bank to share foreign exchange intervention data bilaterally with the US Treasury on a semi-annual basis, with consent given to the US Treasury to quote the data in their Foreign Exchange (FX) Reports published in June and November each year. “Bilateral cooperation has been instrumental in ensuring Malaysia is not being grouped with countries perceived as having non-transparent FX policies,” BNM said in response to Bernama’s query. It stated that such disclosure does not contain any sensitive data and does not impede its ability to undertake foreign exchange interventions to manage excessive volatility and preserve ringgit stability. BNM said its ability to conduct FX intervention as a policy tool to stem excessive exchange rate volatility is consistent with these commitments. “This is expressly acknowledged in the agreement with the US Treasury,” it noted. “BNM’s monetary policy is formulated and implemented independently in accordance with the mandate provided under the Central Bank of Malaysia Act 2009,” it added.

Ringgit extends gains for fifth day on positive sentiment THE ringgit strengthened for the fifth straight day against the US dollar and other major currencies, supported by improved risk appetite following the successful conclusion of the Asean Summit, which helped boost investor confidence in Malaysia’s regional stability and economic integration. At 6pm, the ringgit appreciated to 4.1850/1900 per US dollar from Tuesday’s close of 4.1935/1985. The ringgit traded higher by 1.02% over the past five days. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit strengthened on optimism over the US Federal Reserve’s (Fed) monetary outlook, appreciating as high as RM4.1865 against the US dollar during the early morning session ahead of the Federal Open Market Committee decision. At the opening, the ringgit traded higher against most major currencies. It rose against the Japanese yen to 2.7493/7528 from 2.7605/7640 at Tuesday’s close, inched up against the British pound to 5.5326/5392 from 5.5845/5911 and climbed versus the euro to 4.8722/8780 from 4.8884/8942. The local note trended mixed against most Asean currencies. It improved against the Singapore dollar to 3.2324/2365 from 3.2387/2431 at Tuesday’s close and appreciated vis-a vis the Indonesian rupiah to 251.8/252.2 from 252.4/252.9. The ringgit eased against the Thai baht to 12.9651/9858 from 12.9214/9424 and slipped against the Philippine peso at 7.12/7.14 from 7.09/7.10 previously. – Bernama

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2580 2.8200 3.2870 3.0480 4.9580 2.4640 3.2870 5.6480 5.3930 3.5460 60.2500 68.0600 55.2700 4.9000 0.0265 2.8080 43.7200 1.5300 7.2900 117.8500 114.5400 25.6900 1.4300 46.7600 13.7200 117.0400 N/A

4.1120 2.7060 3.1840 2.9630 4.7980 2.3730 3.1840 5.4680 5.1630

4.1020 2.6900 3.1760 2.9510 4.7780 2.3570 3.1760 5.4480 5.1480

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

110.9600 3.3020 57.7000 62.6200 52.5100

110.7600 3.1020 62.4200 52.3100 4.4000 0.0190 2.6970 40.0100 1.2300 6.6600 111.6800 108.5300 23.0000 1.1200 42.3800 11.7700 N/A N/A

4.6000 0.0240 2.7070

N/A

40.2100 1.4300 6.8600 111.8800 108.7300 23.2000 1.3200 42.5800 12.1700

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

PGF Capital Bhd Buy. Target price: RM2.93

Nestlé (Malaysia) Bhd Buy. Target price: RM122.00

Genting Malaysia Bhd Buy. Target price: RM2.91

Oct 29, 2025: RM1.74

Oct 29, 2025: RM109.20

Oct 29, 2025: RM2.32

Source: Maybank Investment Bank

Source: Maybank Investment Bank

Source: Maybank Investment Bank

NESZ’S Q3'25 core net profit of RM124 million (+26% YoY, +2% QoQ) brought 9M’25 core net profit to RM419 million (+4% YoY). The latter accounted for 78%/81% of ours and consensus full-year earnings estimates. A second interim DPS of 60sen (YTD: 130sen, DPR: 79%, Q3'24: 35sen). The group’s Q3'25 revenue increased by +22% YoY on the back of robust domestic and export sales growth, showcasing waning effects of consumer boycotts. Gross profit (GP) margins softened to 30% (-1.8ppts YoY) as raw material costs remain elevated (eg: coffee & cocoa), but Q3'25 EBIT grew by a wider +58% YoY on stringent cost management where operating expenses made up a lower 15% of revenue in Q3'25 (vs. 19% in Q3'24). Similarly on a QoQ basis, topline and bottomline growth also continued on a positive trajectory led by overall sales volume improvements, but moderated slightly by ongoing input cost pressures (Q3'25 GP margin eased -0.2ppts QoQ). In view of NESZ being a net beneficiary of Government stimulus programs, including the one-off RM100 SARA cash aid disbursed on Aug 31, and the next RM100 cash aid to be disbursed in mid-Feb 2026, we believe that its sales volume may experience a faster pace of recovery, leveraging on its market leadership within various food staple categories. Our FY25/FY26/FY27 earnings estimates are lifted by +7%/+7%/+8% after imputing for higher revenue growth of +12%/+6%/+6% (vs. +6%/+5%/+5% previously). Softening soft commodity ASPs (eg: skim milk, wheat, etc), along with the appreciating MYR against USD may also result in higher group operating margins in the medium-term. Buy with RM122.00 TP. – Maybank Investment Bank, Oct 29

PGF manufactures energy-efficient insulation for buildings. Product demand is driven by global trends for net zero push and more stringent building codes to reduce energy consumption. The insulation industry is in a regulatory driven upcycle, led by Australia’s building code upgrades and Malaysia’s EECA rollout. PGF is ramping up capacity to meet insulation demand, with output set to triple by FY28 from the new Kulim plant. PGF holds 1,311 acres in Tanjong Malim and is the largest landbank owner in the area. PGF’s growth story is anchored in its manufacturing expansion. The new Kulim plant will triple capacity from 25k mt to 85k mt p.a. by FY28 (3.4x), positioning the company to capitalise on the regulatory-driven demand upswing in Australia, New Zealand, and Malaysia. Our earnings growth trajectory is driven by higher capacity, improved efficiency, and stronger utilisation. With PGF benefiting from a stronger AUD/NZD, our sensitivity analysis indicates that a ±5% change in these currencies would affect revenue by about ±3%. PGF is the largest landowner in Tanjong Malim with 1,311 acres located right next to Proton’s Automotive High-Tech Valley (AHTV), an area rapidly transforming into a major EV hub. The land is currently carried at a cost of ~RM3psf, offering significant revaluation and development potential as population and industrial activity pick up. About 400 acres have been earmarked for a 10-15-year township development, while nearby industrial land transactions average around RM40psf, implying substantial upside in asset value. Buy with RM2.93 TP. – Maybank Investment Bank, Oct 29

THERE are now only 3 bidders for up to 3 downstate commercial casino licences in New York. NYSGC may award fewer than 3 licenses but we gather that it will award all 3 in order to raise as much revenue as possible for the state. If all 3 are awarded, New York would collect Ż US$1.5 billion in casino licence fees immediately. Thus, we believe that all 3 remaining bidders (including GENM’s RWNYC) are virtually assured of a license each. That aside, we gather that RWNYC’s bid is the strongest. Under a scenario where 3 downstate commercial casino licences in New York are awarded, Spectrum Gaming projects that the region’s GGR will reach US$6.5 billion by 2031, positioning it as the second-largest gaming market in the United States, trailing only Las Vegas (US$8.6 billion in 2024) and surpassing Singapore (US$5.8 billion in 2024). Spectrum Gaming’s forecast also indicates that GENM’s RWNYC could generate US$2.7 billion in GGR by 2031, representing market share leadership of 42%. RWNYC plans to open a permanent casino featuring 4,000 slot machines and 250 table games by June 2026 — just 6 months after award of a licence. An additional 150 tables will be added by Jan 2027 in existing space, bringing the total number of table games to 400. The final casino will allow for 6,000 slots and 800 tables by Jan 2029. The hotel, garage and other amenities will progressively be opened by 2030. Even if all goes well, the other 2 bidders cannot open until 2030 at earliest. Buy with RM2.91 TP. – Maybank Investment Bank, Oct 29