03/11/2025

BIZ & FINANCE MONDAY | NOV 3, 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

SC’s Batik Lestari Festival returns to promote inclusivity PETALING JAYA: The Securities Commission Malaysia (SC) will host the second instalment of the annual Batik Lestari Festival from Nov 5 to 7 at the SC’s Bukit Kiara premises. This year, the festival not only showcases Malaysian rich batik heritage and artistry but serves as a strategic initiative to build a more inclusive and sustainable marketplace, particularly in supporting micro, small and medium enterprises (MSMEs) growth. Returning after a successful debut last year, the festival’s purpose has been expanded to achieve three key goals – to showcase the heritage and artistry of Malaysian batik; increase awareness and provide greater funding and capital market access for local batik entrepreneurs and artisans, particularly MSMEs; and advocate sustainable practices in batik production. In a statement, SC said this year’s festival coincides with the Asean Capital Market Forum (ACMF) international conference and a series of high-level meetings. The festival aims to position the local batik industry as a leading example of Malaysian creativity and enterprise, enhancing its international recognition and regional growth. The three-day festival will feature a curated marketplace comprising more than 20 designers and vendors, cultural performances, fashion shows and demonstration of batik making. Visitors can participate in hands-on workshops, learn the art of canting, waxing and design techniques directly from skilled artisans. In addition, there will be a series of capital market pocket talks at the event. Speakers will touch on topics such as From Craft to Commerce and Exploring Fund-raising and Grants. The festival is open to the public from 9am to 6pm, with free admission and parking.

Ringgit likely to maintain positive momentum this week THE ringgit is expected to maintain its positive momentum this week, with the Bank Negara Malaysia (BNM) Monetary Policy Committee’s decision on the Overnight Policy Rate (OPR) on Thursday likely to be the main highlight. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to trade between 4.18 and 4.20 against the US dollar this week. “The decision will shed more light on how BNM views the economy and how this could shape its monetary policy stance going forward. “We are pencilling in for the OPR to be maintained at 2.75%, as the Malaysian economy remains resilient in light of the recent advance (gross domestic product growth) estimate for the third quarter of 2025, which came in at 5.2%,” he told Bernama. Last week, Friday-to-Friday, the ringgit firmed against the greenback, closing marginally higher at 4.1860/1930 compared with 4.2210/2255 in the previous week. The local note traded higher against a basket of major currencies. It appreciated against the Japanese yen to 2.7162/7210 from 2.7592/7623, gained against the British pound at 5.5025/5117 from 5.6232/6292, and strengthened versus the euro to 4.8453/8534 from 4.9010/9062 at last week’s close. The ringgit trended mostly higher against its Asean peers. It rose against the Singapore dollar to 3.2185/2241 from 3.2484/2521, enhanced versus the Indonesian rupiah at 251.7/252.2 from 254.2/254.6, expanded against the Philippine peso to 7.12/7.14 from 7.20/7.21, but slipped against the Thai baht to 12.9429/9702 from 12.8768/8952 previously.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2730 2.8110 3.2820 3.0490 4.9410 2.4580 3.2820 5.6180 5.3540 3.5610 60.3700 67.8300 55.4600 4.8900 0.0265 2.7800 43.5400 1.5400 7.3500 118.2600 114.9500 25.5900 1.4400 46.6000 13.7900 117.4400 N/A

4.1270 2.6980 3.1810 2.9640 4.7820 2.3670 3.1810 5.4400 5.1280 3.3160 57.8100 62.4200 52.7000 4.5900 0.0240 2.6790 40.0400 1.4300 6.9200 112.2700 109.1200 23.1100 1.3200 42.4400 12.2200 111.3500 N/A

4.1170 2.6820 3.1730 2.9520 4.7620 2.3510 3.1730 5.4200 5.1130

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

111.1500 3.1160 62.2200 52.5000 4.3900 0.0190 2.6690 39.8400 1.2300 6.7200 112.0700 108.9200 22.9100 1.1200 42.2400 11.8200 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

UUE Holdings Bhd Outperform. Target price: RM0.67

Ancom Nylex Bhd Not rated

Plantation Sector Neutral

Oct 31, 2025: RM0.93

Oct 31, 2025: RM0.60

Source: TA Research

Source: PublicInvest Research

Source: Bloomberg, RHB Research

TALKS between US President Donald Trump and Chinese President Xi Jinping at the Apec summit in Busan signalled a potential improvement in trade relations, with China agreeing to resume purchases of US soybeans. However, details remain unclear, with US Treasury Secretary Scott Bessent indicating imports of 12mn tonnes this season and 25mn tonnes annually over the next three years, still below pre-trade war levels of over 30mn tonnes. China’s recent 180k purchase appears largely symbolic, as most of its soybean needs have already been fulfilled by South American suppliers, while crushers reportedly hold sufficient stock for the near term. In the near term, the announcement could provide mild support to US soybean prices as traders position for potential follow-up buying. We gathered that US soybeans still maintain a certain price advantage over Brazilian soybeans. We expect prices to remain firm through 1Q26, underpinned by improved trade sentiment, a softer US dollar, and the prospect of Fed rate cuts that could encourage speculative inflows into commodities. However, we anticipate prices may ease thereafter as Brazil’s new crop enters the market in early 2Q26, adding notable supply pressure to global oilseed balances. The resumption of US-China soybean trade could increase the supply of soybean oil, a byproduct of soybean crushing, which may in turn limit demand for CPO as a substitute vegetable oil. Nevertheless, despite GAPKI’s projection of Indonesia’s palm oil production increasing by 10% in 2025 and 5% in 2026, we believe any further downside risks to CPO prices will be capped by biodiesel demand under Indonesia’s B50 mandate, a seasonal production slowdown during the monsoon period (Nov–Mar), and lower inventory levels in Malaysia. Maintain NEUTRAL on the sector. – TA Research, Oct 31

WE believe Ancom Nylex is an undervalued food security play, with a 3-year earnings CAGR of 17% driven by new active ingredient (AI) sales, increasing crop output and lower freight costs. The soybean registration in Brazil would be a significant catalyst, given the large market potential. ANCOMNY’s AI like monosodium methanearsonate (MSMA), Diuron, Monex HC, timber preservatives, Bromacil, ester and formulated herbicides are applied for agricultural usage for crops like sugarcane, cotton, oil palm, pineapple and timber. As agriculture chemical products need to be registered by the governments of each country, there is a high barrier of entry to penetrate each market. The agriculture chemical division contributed about 30% to the group’s revenue, and 83% to EBIT in FY25. ANCOMNY has in mid-2025, completed the expansion of its MSMA plant capacity in Klang by 33% to cater for its new AIs like AI “T” and AI “S”. It has already started producing and selling AI “T” to customers in Brazil, while AI “S” will start contribution from FY27. Together, the two new AIs have a sales potential of over RM200m pa. ANCOMNY is now awaiting one last approval for its registration in Brazil to distribute MSMA for the soybean industry. Assuming the registration is approved by year end, ANB will be able to capture the 2026 tender period for the Brazilian soybean harvest in April/May. Brazil’s soybean hectarage is currently at around 47m ha in size, while every ha of land requires three litres of MSMA. Assuming conservative pricing and margins, we estimate just 1% market share of sales for the Brazilian soybean market would add 2-3% to earnings. – RHB Research, Oct 31

UUE Holdings (UUE) reported a core PATAMI of RM6.5m in 2QFY26, marking a 2.8x increase QoQ from RM1.7m in 1QFY26, driven by the ramp up in underground utilities engineering activities following the post festive period. However, on a YoY basis, core PATAMI declined 10.7%, mainly due to slower project execution in Singapore and weaker HDPE pipe sales under the manufacturing and trading segment. Cumulatively, 1HFY26 core PATAMI stood at RM8.2m, meeting only 29% of our and consensus full-year FY26 estimates. Despite the soft 1HFY26 performance, we maintain our FY26 earnings forecast, viewing the shortfall as a temporary setback with recovery expected in 2HFY26, supported by sustained contract wins. This is evidenced by the recent RM26.7m contract secured in the East Coast region for TNB’s 11kV distribution network, which lifted UUE’s orderbook to a record high of RM454.6m, providing earnings visibility for the next three years. The underground utilities engineering segment remained the group’s key earnings driver, contributed over 90% of total revenue with activity levels rebounded (86.0% QoQ and 47.6% YoY) in 2QFY26. However, slower project execution in Singapore and weaker HDPE pipe sales, which typically carry higher margin, compressed overall Group’s margin weighed on YoY performance. The newly established EPCC solar photovoltaic (PV) division, undertaken through its 60%-owned subsidiary Enerxite SB, marks UUE’s entry into the renewable energy value chain. The segment contributed RM0.7m in revenue during 2QFY26 from initial project rollouts and is expected to scale progressively as the group pursues solar opportunities under the National Energy Transition Roadmap. Outperform with TP of RM0.67. – PublicInvest Research, Oct 31