02/12/2025

BIZ & FINANCE TUESDAY | DEC 2, 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

CelcomDigi accepts MCMC spectrum assignment PETALING JAYA: CelcomDigi Bhd has accepted the Malaysian Communications and Multimedia Commission’s (MCMC) assignment of spectrum for 2x5 MHz in the 1800MHz spectrum frequency band and 2x20 MHz in the 2600MHz spectrum frequency band. The assignments are effective Nov 30, 2025, and remain in effect until June 30, 2032, for the 1800MHz band and June 30, 2027, for the 2600MHz band. CelcomDigi has made price component payments of RM292.5 million to MCMC for both bands and will commit cumulative annual payments totalling RM120 million over the assignment period for each band. The assignments will ensure CelcomDigi’s network capabilities and the quality of experience for all customers. It also affirms the company’s commitment to infrastructure investments to meet rising connectivity and digitalisation needs in Malaysia. The 1800MHz and 2600MHz spectrum bands are key frequencies commonly deployed for 4G LTE and to bolster 5G capacity. With the latest allocations, CelcomDigi is expected to enhance network performance and better accommodate the rising data needs of Malaysian users and enterprises. The company noted that the newly awarded spectrum will further strengthen its long-term growth trajectory as it progresses with the nationwide network integration and modernisation efforts following the Celcom–Digi merger.

Ringgit flat against US dollar ahead of FOMC meeting THE ringgit ended flat against the American dollar yesterday as traders adopted a wait-and-see approach ahead of the US Federal Open Market Committee (FOMC) meeting next week. At 6pm, the ringgit stood at 4.1300/1365 versus the greenback compared to last Friday’s close of 4.1300/1350. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said traders will also monitor US economic data, especially the US ISM Manufacturing Purchasing Managers’ Index for November, for further guidance on market direction. “The consensus estimate stands at 49.0 points compared to 48.7 in October. “The ISM Index for the manufacturing sector has been hovering below the 50-point demarcation line for eight straight months, suggesting that manufacturers have remained pessimistic for quite sometime,” he told Bernama. At the close, the ringgit trended lower against major currencies. It slid versus the British pound to 5.4644/4730 from 5.4528/4594 at last Friday’s close, weakened against the euro to 4.7995/8070 from 4.7768/7825 previously, and declined vis-a-vis the Japanese yen to 2.6594/6637 from 2.6420/6456. The local note also fell against Asean currencies. It slipped versus the Singapore dollar to 3.1880/1932 from 3.1813/1857 at the end of last week and dropped against the Indonesian rupiah to 247.8/248.3 from 247.6/248.0. The ringgit also depreciated vis-a-vis the Thai baht to 12.9026/9290 from 12.8245/8472 previously and eased against the Philippine peso to 7.05/7.07 from 7.04/7.06.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.2000 2.7580 3.2340 2.9970 4.8660 2.4120 3.2340 5.5530 5.2490 3.5190 59.6100 66.7900 54.3900 4.7900 0.0263 2.7130 42.4800 1.5500 7.2600 116.2100 112.8800 25.3700 1.4300 45.7300 13.6300 115.4200 N/A

4.0520 2.6450 3.1320 2.9110 4.7060 2.3210 3.1320 5.3750 5.0230 3.2720 57.0600 61.4200 51.6500 4.4500 0.0232 2.5870 39.0500 1.3700 6.8200 110.3200 107.1600 22.9100 1.2500 41.6200 12.0800 109.3600 N/A

4.0420 2.6290 3.1240 2.8990 4.6860 2.3050 3.1240 5.3550 5.0080

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

109.1600 3.0720 61.2200 51.4500 4.2500 0.0182 2.5770 38.8500 1.1700 6.6200 110.1200 106.9600 22.7100 1.0500 41.4200 11.6800 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

SDS Group Bhd Outperform. Target price: RM0.83

LBS Bina Group Bhd Outperform. Target price: RM0.67

Tenaga Nasional Bhd Outperform. Target price: RM16

Dec 1, 2025: RM13.32

Dec 1, 2025: RM0.715

Dec 1, 2025: RM0.395

Source: PublicInvest Research

TNB reported a 3QFY25 core net profit of RM933.1m, higher 5.8% QoQ and tripled YoY. The improvement was driven by higher electricity sales and a more favourable fuel cost environment, with total generation costs broadly flat QoQ and significantly lower YoY, despite stronger demand, underpinned by lower delivered coal prices. This brings 9MFY25 core earnings to RM2,879.2m, broadly meeting our full year estimate at 72.5%. TNB had earlier revised its demand growth projection to 2.8 3.8% (from 3.5-4.5%), yet 9MFY25 demand remained subdued at only 1.6%, weighed by persistent softness in the industrial segment while growth was driven mainly by commercial load. Nevertheless, revenue resilience under the RP4 framework continues to safeguard cost recovery and support TNB’s expanding capex programme for grid and distribution upgrades. The recent Ministry of Finance approval of TNB’s Reinvestment Allowance (RIA) application under Schedule 7B further restores tax clarity and reduces structural tax risk by allowing future qualifying capex to be deducted against income. Electricity demand continued to improve in 3QFY25, recording a 3.9% YoY to 34,653GWh, bringing actual demand closer to the levels assumed under RP4. This improvement, together with the new tariff schedule implemented in July 2025, resulted in only minimal Other Regulatory Adjustments (ORA) during the quarter, as revenue recovery was more closely aligned with actual consumption. The commercial sector remained the main contributor with 9.8% YoY growth, while the industrial segment contracted 3.6% YoY. However, on a YTD basis, overall demand growth remains modest at 1.6%, still below TNB’s revised full-year target of 2.8-3.8%. We reaffirm our Outperform call with a DCF-derived TP of RM16. – PublicInvest Research, Nov 27

Source: PublicInvest Research

Source: PublicInvest Research

IN 3QFY25, LBS Bina delivered net profit of RM29.3m (+6.1% YoY, +8.0% QoQ), which came in within expectations. YTD, group net profit of RM84.6m (-9.6% YoY) constituted about 75% of our and consensus full-year profit forecast. Again, development projects within the Klang Valley such as KITA @ Cybersouth, LBS Alam Perdana, Prestige Residence and Idaman projects remained the largest revenue and PAT contributor, whereby their revenue accounted for 86% of the group’s revenue in 9MFY25. We understand that the group’s performance YTD was slower YoY as certain development projects were completed or nearing their completion stage. Elsewhere, the group has achieved 9MY25 pre-sales of RM886.7m (9MFY24: RM956.1m), which is only about 59% of FY25 sales target of RM1.5bn. However, we understand that as at 20 November, group pre-sales have increased to RM1.13bn (or 75% of FY25 sales target), which is well on track as launches are mostly taking place in 2HFY25. It has about RM359m in bookings. 9MFY24’s RM956.1m only accounted for 59% of the group’s FY25 sales target of RM1.5bn. However, we understand now the group has sold about RM1.13bn (or 75% of FY25 sales target) as at 20 November 2025, which is well on track as launches are mostly taking place in 2HFY25. It has about RM359m in bookings which indicate that it could still meet its FY25 sales target. Group pre-sales were predominantly from the Klang Valley (72%), while Johor and Pahang contributed 14% and 13% respectively. Unbilled sales were steady at RM1.4bn in 3QFY25. Separately, it has launched projects worth about RM1bn in 9MFY25. We maintain our Outperform with unchanged TP of RM0.67. – PublicInvest Research, Nov 27

SDS Group posted a core net profit of RM7.32m, down 24.9% YoY for 2QFY26, mainly due to margin compression from both retail and wholesale segments amid softer consumer spending. Cumulative 1HFY26 core net profit came in below our and consensus expectations, meeting only 41% of full-year estimates. The discrepancy in our forecast was largely due to lower retail footfall, which typically carries higher margins. We revise our FY26F-28F earnings forecasts downward by an average of 11% as we lower our sales assumption for the retail segment given the lower footfall. We expect SDS to post stronger earnings in 3QFY26, mainly driven by the year-end festive spending. Additionally, we think that the lower raw material prices and the strengthening of the ringgit may lead to an uptick in SDS’ profit margins. 2QFY26 revenue declined 4.9% YoY to RM86.5m, mainly due to lower revenue from the retail segment given the decline in consumer footfall. The wholesale segment also fell 2.8% YoY on weaker sales volume. QoQ, both retail and wholesale segments improved by 1.1% and 2.5% respectively, attributable to the better sales from mid-autumn festive products. 2QFY26 core net profit fell 24.9% YoY to RM7.3m, primarily due to lower topline contribution against a largely fixed operating cost base, resulting in net profit margin compression (-2.3% ppts YoY). QoQ, the core net profit rose 4.1%. Although consumer sentiment is expected to remain subdued in the near term amid ongoing macroeconomic uncertainties, we believe SDS’ earnings will be resilient, supported by prudent cost management and seasonal year-end spending. Outperform with RM0.83 TP. – PublicInvest Research, Nov 27