10/12/2025

BIZ & FINANCE WEDNESDAY | DEC 10, 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

FBG bags construction contract worth RM206m

Ringgit holds steady as US FOMC meeting begins THE ringgit continued to hold steady against the US dollar yesterday, as markets positioned for a cautious tone as the FOMC begins its two-day meeting. At 6pm, the ringgit stayed almost unchanged at 4.1105/1165/1145 versus the greenback compared with Monday’s close of 4.1100/1145. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local note continued to oscillate within a tight range of RM4.1123 to RM4.1225 during the day, reflecting a cautious stance among traders as FOMC members decide on the Federal Funds Rate in the meeting. Besides, he said, market players will also be monitoring the Job Openings and Labour Turnover Survey (JOLTS) tonight to obtain data and provide more insight on the US economy. “The job opening is expected to moderate to 7.2 million in October based on consensus estimates from 7.227 million in the previous month. “In a nutshell, signs of a weakening labour market have become more visible, which necessitates a rate cut. However, the main question now is for 2026 whether the US Federal Reserve (Fed) would be keen to reduce the rate further at a time when risks of higher inflation could limit the pace of monetary tightening,” he told Bernama. At the close, the ringgit trended mostly lower against major currencies. It fell versus the British pound to 5.4863/4943 from 5.4729/4789 at Monday’s close and weakened against the euro to 4.7900/7970 from 4.7873/7926; however, it edged up vis-à-vis the Japanese yen to 2.6332/6373 from 2.6429/6460.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

KUALA LUMPUR: FBG Holdings Bhd, a turnkey contractor and property developer, announced that its wholly owned subsidiary, FBG Builder Sdn Bhd, has received a letter of acceptance from Sunray Construction & Interior Sdn Bhd for the proposed construction of Tower 2, a hotel apartment development at the Johor Bahru City Square site. The RM206.2 million contract involves the construction and completion of main building works, mechanical and electrical installations, testing and commissioning, together with all related fittings, fixtures and associated works. The project is scheduled to commence on Dec 15, 2025 and expected to be completed by July 14, 2028, within a timeframe of 2 years and 7 months. With this latest contract, FBG’s order book now stands at RM1.03 billion which will provide positive earnings visibility until 2028. The contract award follows the recently announced redevelopment of Johor Bahru City Square by its owner Allgreen Properties Ltd. The mall will undergo a multi-phase enhancement to transform it into a modern lifestyle destination, supported by future demand from the Johor Bahru–Singapore RTS Link. As part of this plan, new hotel apartments will be added above the existing mall, strengthening its retail mix and positioning the property as a vibrant, multi-functional hub in the heart of Johor Bahru. FBG Group executive chairman Tan Sri Chan Kong Choy remarked that this award marks another significant milestone for FBG as they continue to strengthen their presence in large-scale building works across the country. He added with a solid pipeline of construction projects, this new contract will contribute positively to the group’s performance.

1 US Dollar

4.1925 2.7870 3.2240 3.0190 4.8770 2.4250 3.2240 5.5810 5.2230

4.0465 2.6740 3.1240 2.9340 4.7180 2.3360 3.1240 5.4040 4.9990 3.2450 57.0300 61.5800 51.6200 4.4000 0.0232 2.5810 38.9700 1.3900 6.7600 110.2000 106.9400 22.9700 1.2500 41.8200 12.1600 109.2100 N/A

4.0365 2.6580 3.1160 2.9220 4.6980 2.3200 3.1160 5.3840 4.9840 3.0450 57.0300 61.3800 51.4200 4.2000 0.0182 2.5710 38.7700 1.1900 6.5600 110.0000 106.7400 22.7700 1.0500 41.6200 11.7600 109.0100 N/A

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

115.2100 3.4990 59.5500 66.9300 54.3300 4.7400 0.0262 2.7060 14.5000 42.3700 1.5500 7.1800 116.0800 112.6500 25.4300 1.4300 45.9100 13.7200

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

V.S. Industry Bhd Buy. Target price: RM0.61

Telecommunications Neutral

Ramssol Group Bhd Buy. Target price: RM1.35

Dec 9, 2025: RM0.475

Dec 9, 2025: RM1.06

Source: Maybank Investment Bank

Source: RHB, Company data

Source: Maybank Investment Bank

MAXIS and Time dotCom (TDC) recorded earnings that beat expectations on solid cost optimisation, while OCK Group (OCK) trailed estimates on sluggish contracting revenues and the MYR strength. Meanwhile, Axiata, TM and CelcomDigi (CDB) earnings were in line, adjusted for one-off items. On dividends, TDC surprised with a special interim DPS of 21.64sen. Post results, a sole adjustment (upgrade) was made to Maxis’ forecasts with FY25-27 core earnings lifted by 10-15%. We expect OCK’s earnings (Q1’26) to catch up in the ensuing quarters. from an expanding orderbook and improved sales recognition. Aggregate sector core earnings (fixed telcos and Big-2 MNOs) grew 7.1% QoQ, as strong fixed line earnings (+21% QoQ) more than offset softer mobile earnings (-2.2% QoQ) against a marginal 1% YoY industry revenue increase in Q3’25. YTD industry EBITDA continued to hold steady (-0.5% YoY), with the extended cost optimisation drives across all telcos. Of the two MNOs, Maxis’ revenue and EBITDA shares ticked up further to 43.1% and 45.1% in Q3’25, at the expense of CDB whose shares slipped to 56.9% and 54.9%, from 57.3% and 55.9% in Q2’25. In tandem with the stronger 9M’25 results, Maxis lifted EBIT guidance to a “mid-single digit” from “flat to low single digit”, flagging additional scope still for cost optimisation. TM opted to remove its headline EBIT guidance (previously“similar to FY24”), as it expects significantly higher manpower costs in Q4’25 as a result of a voluntary separation exercise. In addition to the positive special dividend surprise, TDC said it would look to further optimise its under-levered balance sheet (Q3’25 net cash: RM660 million) over the next 12-24 months. – RHB Research, Dec 9

VS Industry Bhd is the 26th largest EMS provider in the world by revenue, ranked according to Manufacturing Market Insider in 2020. VSI has undertaken cost restructuring, mainly workforce rationalisation, following customer-driven tariff-related cost-downs. While the prior quarter absorbe d the one-off cost impact, Q2’26 is still expected to soften, reflecting normal seasonality and further drag from USD weakness. That said, we anticipate a seasonally stronger 2H’26 as order flows normalise. Management also remains focused on securing new business, albeit with potential margin trade-offs. A new pool-cleaning customer was also onboarded, with small-scale production slated to begin in CY26. Management highlighted that the PHP operations are progressing well towards breaking even. The second product model commenced mass production in Dec 2025, while the first model continues to ramp steadily. PHP has also secured a third product, slated to begin production by Q2’26. Overall, losses are expected to cease by Q1’26 as volumes build and operational efficiencies improve. Expansion opportunities from existing and new clientele will allow VSI to reap higher levels of operational efficiency and profitability. Forward earnings hinge on new product rollout and further outsourcing by clients; we see upside from foreign operations which are slowly gaining traction. We leave our forecasts unchanged. The expected breakeven of PHP operations should provide a lift to group margins, although USD weakness may partially offset this improvement in the near term. BUY with RM0.61 TP. – Maybank Investment Bank, Dec 9

ON Dec 5, Ramssol, through its wholly owned subsidiary Rider Gate Sdn Bhd (RGSB), was appointed as a collection agent by the Road Transport Department of Malaysia (JPJ). Under the agreement, RGSB will provide services encompassing motor vehicle ownership transfer registrations & licence renewals, and the facilitation of electronic summons payments. The appointment will span a two-year period from the commencement date of JPJ services on the Rider Gate platform and we expect the parties to formalise the agreement by Q1’26. We view this appointment favourably, as it strengthens Ramssol’s Rider Gate platform, its online marketplace for second hand motorcycles’ transactions. The three services to be offered in its role as a collection agent for JPJ are highly complementary and is likely to reduce potential friction points typically associated with second-hand motorcycle transactions. We expect the Rider Gate platform to start delivering meaningful contributions in 2026, accounting for 5-10% of our FY26 revenue forecast. Ramssol was first established in 2010, offering digital solutions in the field of Human Capital Management (HCM). Today, their suite of offerings has grown to include IT consulting & system integration, robotic process automation, and cloud & digital transformation. Through its strategic expansion, Ramssol has grown to be the “No.1 Southeast Asian People Solutions Provider”, with offices across 5 countries in Southeast Asia. Key potential catalysts include the securing of tax incentives and a faster scale-up of the AutoTech and AI Cloud segments. BUY with RM1.35 TP. – Maybank Investment Bank, Dec 9