08/12/2025

BIZ & FINANCE MONDAY | DEC 8, 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

CPO futures seen trading in ‘yo-yo’ pattern this week KUALA LUMPUR: The crude palm oil (CPO) futures market is expected to trade in a volatile “yo-yo” pattern this week, as year-end holidays lead to reduced participation from international traders, a trader said. Interband Group of Companies senior palm oil trader Jim Teh noted that most global market participants typically take annual leave in December, resulting in thinner liquidity and wider price fluctuations. “A yo-yo market provides a good opportunity for physical buyers, especially given the current high stock position,” he told Bernama. He added that Malaysia’s palm oil stock data for November, to be released by the Malaysian Palm Oil Board on Dec 10, will be closely watched by the market. On the other hand, palm oil trader David Ng expects the CPO market to trade with a bullish bias, given the recent strength in the soybean oil market and expectation of declining production in the coming weeks. “We expect prices to trade between RM4,080 per tonne and RM4,250 per tonne next (this) week,” he said. Last Friday, trading on Bursa Malaysia’s derivatives market was halted due to a Globex system outage. For the period from last Thursday to this Friday, the spot-month December 2025 contract added RM50 to RM4,095 per tonne, January 2026 contract gained RM54 to RM4,135 per tonne, and February 2026 contract increased RM62 to RM4,152 per tonne. Meanwhile, March 2026 and April 2026 contracts edged up RM65 to RM4,168 per tonne and RM4,171 per tonne respectively, and May 2026 contract climbed RM67 to RM4,168 per tonne. Healthcare Facilities & Services Overweight

Ringgit tipped to remain steady at 4.10-4.12 to dollar THE ringgit is expected to remain steady and trade within the 4.10-4.12 range against the US dollar this week, supported by market expectations of an interest rate cut by the US Federal Reserve at its upcoming Federal Open Market Committee (FOMC) meeting. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said most traders and investors anticipate the Fed will deliver a 25-basis-point cut at the meeting scheduled for tomorrow and Wednesday. “The focus will be on the FOMC meeting and, more importantly, the policy guidance, especially their latest quarterly projections on macroeconomic variables, particularly the federal funds rate and inflation forecast,” he told Bernama. Earlier last week, the local note was flat on Monday before strengthening from Tuesday through Friday. It also touched the 4.11 level – its strongest level in four years and five months – on Thursday. On a weekly basis, the ringgit strengthened against the greenback, closing higher at 4.1105/1140 compared with 4.1300/1350 in the previous week. The local note weakened against the yen to 2.6536/6561 from 2.6420/6456, slid versus the euro to 4.7912/7953 from 4.7768/7825, and slipped vis-a-vis the British pound to 5.4859/4905 from 5.4528/4594 at last week’s close. The ringgit appreciated versus the Indonesian rupiah to 246.8/247.2 from 247.6/248.0 last week, increased against the Singapore dollar to 3.1741/1773 from 3.1813/1857 previously, and was higher against the Philippine peso at 6.97/6.98 from 7.04/7.06.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1880 2.7770 3.2250 2.9930 4.8730 2.4160 3.2250 5.5750 5.2350 3.4920 59.4700 66.8800 54.2500 4.7500 0.0263 2.7170 42.4000 1.5500 7.1800 115.9000 112.5400 25.4800 1.4200 45.7400 13.6400 115.0900 N/A

4.0420 2.6640 3.1240 2.9090 4.7150 2.3270 3.1240 5.3970 5.0120

4.0320 2.6480 3.1160 2.8970 4.6950 2.3110 3.1160 5.3770 4.9970

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

109.1000 3.2380 56.9500 61.5300 51.5400

108.9000 3.0380 61.3300 51.3400 4.2100 0.0182 2.5820 38.8000 1.1700 6.5500 109.8300 106.6400 22.8100 1.0400 41.4500 11.6800 N/A N/A

4.4100 0.0232 2.5920

N/A

39.0000 1.3700 6.7500 110.0300 106.8400 23.0100 1.2400 41.6500 12.0800

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

VS Industry Bhd Trading buy. Target price: RM0.59

Coraza Integrated Technology Bhd Buy. Target price: RM0.70

Dec 5, 2025: RM0.47

Dec 5, 2025: RM0.57

Source: Bloomberg, TA Research

Source: Company data, RHB Research

Source: PublicInvest Research

VS Industry Bhd recorded a 2.8% YoY increase in 1QFY26 core net profit to RM33.7m, supported by higher order volumes and the absence of one-off impairments. Cumulative 1QFY26 earnings were in-line with both our and market expectations, representing 30% and 26% of full-year estimates, respectively. With Malaysia’s reciprocal tariff rate now fixed at 19%, visibility on order flows should gradually improve. The recent interest rate cut in the US also offers some relief and may support a gradual improvement in demand. However, given VS’s high customer concentration in the US, we believe earnings recovery may take time, especially against the backdrop of a softer US economy. 1QFY26 revenue declined 2.9% YoY to RM1.08bn, primarily due to weaker contribution from the Indonesian operations, which fell 30.7% YoY to RM77m. However, this was more than offset by stronger contribution from the Malaysian operations, which increased by 25% YoY to RM1bn. Notably, the Singapore and Philippines operations are reported under the Malaysian segment, as they primarily support customers served by the Malaysian unit. 1QFY26 core net profit rose 2.8% YoY to RM33.7m, mainly supported by a RM9m YoY increase in PBT from the Malaysian operations (+25% YoY), which more than offset the RM3.9m decline in PBT from the Indonesian operations (- 69.4% YoY). On a QoQ basis, the group swung from a core net loss of RM30.1m to a core net profit, backed by higher customer orders as well as the reversal of impairment losses on trade receivables and plant and equipment. We upgrade our rating from Neutral to Trading Buy with an unchanged TP of RM0.59. – PublicInvest Research, Dec 5

SECTOR results for Sep 2025 were broadly in line. Effects of payer pressure are visible, with a clear shift towards day-care models that are weighing on inpatient volumes. Still, 3Q25 revenue intensity continued to rise, while EBITDA margins benefitted from higher bed occupancy and operational efficiencies. With the current iteration of payer pressure largely concluded, managements’ forward guidance was generally optimistic, hinging on sustained uplift in revenue intensity, selective bed expansions at high occupancy hospitals, and holistic cost management. Sector domestic inpatient admissions in 3Q25 slowed to +1.7% YoY (2Q25: +2.2% YoY) amid payer pressure that is driving a structural shift in the case mix towards day care, with KPJ appearing to be the most impacted (-0.1% YoY). Nevertheless, revenue intensity continues to trend upwards on a favourable mix of higher-value cases, efficiency gains, and a steady pick-up in medical tourists. KPJ Healthcare still our preferred pick; Keep BUY on IHH Healthcare and Duopharma Biotech (DBB). We still favour KPJ for its superior margins and ROE, rising revenue intensity, and growing contribution from maturing hospitals, providing better visibility on near-term earnings and margin expansion. We also maintain BUY on IHH for its consistent execution, premium regional footprint, and affluent-patient focus that underpins its earnings resilience. Meanwhile, we like DBB for its solid earnings visibility and resilient pharmaceutical demand, which is set to ride on margin tailwinds into 2026. Still Overweight on sector. – RHB Research, Dec 5

FOLLOWING an analyst briefing, we remain optimistic about CORAZA’s outlook, supported by a strong order book of approximately RM90.0mn. Management indicated that the group is aiming for record high revenue in FY25. Meanwhile, management also highlighted that the aerospace business is gaining traction, with the potential to deliver more meaningful contributions next year. Separately, the new P3 plant has been completed, and management is currently in discussions with two new multinational customers from the semiconductor segment to take up the new capacity. Management indicated that the outlook for the final quarter is positive, and the group is aiming for a record high revenue in FY25, supported by a strong order book of approximately RM90.0mn. For context, the group previously achieved a record revenue of RM143.3mn in FY22. In 3QFY25, the sheet metal fabrication segment remained the main revenue contributor, accounting for 89.3% of total revenue. Management also guided that the utilisation rate for this segment is currently operating at around 50 to 60%. In terms of revenue contribution by industry in 3QFY25, the semiconductor segment remained the largest contributor at 81% (- 2pp QoQ), followed by instrumentation (13%, unchanged QoQ) and life sciences and medical devices (6%, +1pp QoQ). Management highlighted that the aerospace business is gaining traction, although its revenue contribution remains insignificant at this stage. The group is currently working with an aerospace customer on the final qualification for one of the parts, and there is potential for one or two products to enter mass production next year. Maintain our Buy call with RM0.70 TP. – TA Research, Dec 5