15/12/2025

BIZ & FINANCE MONDAY | DEC 15, 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

Rubber market to move sideways with upward bias KUALA LUMPUR: The Malaysian rubber market is expected to move sideways with an upward bias in both demand and price this week, driven by the monsoon season and heavy rainfall in major rubber producing countries, according to industry expert Denis Low. He said Hat Yai, Thailand, has been flooded for more than a week now, while strong winds and incessant heavy rains are pouring down on rubber estates and processing plants, halting rubber production. “While the monsoon season and floods are not a surprise, what is surprising is the market situation. Instead of its usual volatility and higher prices, the market remains muted with very insignificant increases in price and demand. “This brings us to the fact that the market remains depressed by the ongoing spat involving Japan, China and Taiwan coupled with the uncertainty over the Ukraine-Russia peace deal.” Low also mentioned that the Thai Meteorological Department has issued heavy rain warning for 35 provinces, with the southern region facing the most downpours, while the Malaysian Meteorological Department has warned of continuous rain for the peninsula’s east coast and western Sarawak. On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 rose by 8.5 sen to 724 sen per kg while latex-in-bulk stood at 575.5 sen per kg. Meanwhile, the gold futures contract on Bursa Malaysia Derivatives is expected to trade higher this week, as investors are still drawn to the safe-haven asset following the US Federal Reserve’s decision to cut interest rates for the third time this year. Bank Muamalat Malaysia Bhd’s chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the gold is likely to hold around US$4,300 per troy ounce level this week. Market Strategy Global imbalances temper confidence

Ringgit likely to trade at RM4.09-RM4.11 vs US dollar THE ringgit is likely to trade cautiously this week, hovering between RM4.09 and RM4.11 against the US dollar after strengthening by 0.39 per cent week-on-week. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said a series of key US data releases this week will provide fresh guidance for market participants. These include the Nonfarm Payrolls (NFP), Consumer Price Index (CPI), Personal Consumption Expenditures (PCE), as well as the University of Michigan Consumer Sentiment Index (CSI). “This is also alongside a series of speeches by US Federal Reserve (Fed) officials, who are expected to share reservations regarding inflationary risk, as it is still oscillating above the two per cent level,” he told Bernama. The local note hovered at RM4.11 on Monday and started to weaken on Wednesday ahead of the Federal Open Market Committee meeting, before finally rebounding after the Fed cut the interest rate, which brought the local note to 4.1040 on Thursday. On a weekly basis, the ringgit strengthened against the greenback, closing higher at 4.0945/1005 compared with 4.1105/1140 last week. The local note strengthened against the yen to 2.6264/6304 from 2.6536/6561, and climbed vis-a-vis the British pound to 5.4789/4869 from 5.4859/4905; however, it slipped versus the euro to 4.8037/8107 from 4.7912/7953 at last week’s close. The ringgit also trended mostly higher against its Asean peers. It appreciated versus the Indonesian rupiah to 245.9/246.4 from 246.8/247.2 last week, increased against the Singapore dollar to 3.1701/1750 from 3.1741/1773 previously, and was higher against the Philippine peso at 6.93/6.94 from 6.97/6.98.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1750 2.7930 3.2250 3.0240 4.8960 2.4310 3.2250 5.5840 5.2750 3.4850 59.4000 67.2000 54.0800 4.7200 0.0261 2.6970 42.4800 1.5500 7.1700 115.5100 112.1900 25.5900 1.4200 46.4500 13.7600 114.7200 N/A

4.0290 2.6800 3.1260 2.9390 4.7380 2.3410 3.1260 5.4070 5.0520

4.0190 2.6640 3.1180 2.9270 4.7180 2.3250 3.1180 5.3870 5.0370

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

108.7500 3.2320 56.8900 61.8300 51.3800

108.5500 3.0320 61.6300 51.1800 4.1800 0.0181 2.5630 38.8700 1.1800 6.5500 109.4500 106.3000 22.9100 1.0400 42.1100 11.8000 N/A N/A

4.3800 0.0231 2.5730

N/A

39.0700 1.3800 6.7500 109.6500 106.5000 23.1100 1.2400 42.3100 12.2000

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 Hold. Target price: RM0.49

Binastra Corporation Bhd Buy. Target price: RM2.85

Dec 12, 2025: RM0.54

Dec 12, 2025: RM2.08

Source: Bloomberg, TA Research

Source: Bloomberg, RHB Research

Source: HLIB Research

V.S. maintained a cautious tone in its latest results briefing, reiterating that the consumer EMS industry remains in a downturn amid persistent global excess capacity. Management stressed that the near-term priority is to safeguard customer relationships rather than pursue margin expansion, with internal restructuring continuing to address loss-making divisions. The group also guided for a softer 2QFY26, as brand owners keep inventory low in December before recalibrating their stock levels after assessing actual year-end demand. While the market is looking for an earnings uplift in 2H25 as Philippine losses narrow on higher volumes, we remain cautious given still-soft consumer demand and a weaker USD, which may temper the recovery trajectory. With limited room to lift margins through pricing, the group is focusing on internal restructuring to address its loss-making divisions. HT Press losses have been narrowed from RM4m per quarter to RM2.4m in 1Q26, while losses in the moulding division have fallen to Management guided the upcoming 2QFY26 to see a weaker sales performance, as brands owner opts for a low inventory strategy in December. We see this as a move for brand owners to recalibrate their stock levels after assessing the year-end sales festival. This is in line with our view that December’s year-end sales is deemed an important yardstick for consumer demand outlook. For now, management retains its RM4.2bn FY26 sales target with a net profit margin guidance of 2.5%-3.0%. Maintain HOLD with an unchanged TP of RM0.49. – HLIB Research, Dec 12

THE domestic macroeconomic outlook appears well resolved supporting RHB Economics forecasts for domestic GDP growth of 4.7% for 2025 and 2026. The global macroeconomic backdrop however is much more fluid, notwithstanding our US GDP growth forecast of 1.9% and 2% for 2025 and 2026. Growing irrational exuberance in the US continues to see negative news drive markets higher as rate cut probabilities increase despite rising real world concerns on affordability issues. Spiking inflation trends alongside weakening jobs data will complicate the US Federal Reserve’s monetary policy response while the Donald Trump administration’s efforts to stack the Federal Open Market Committee with interest rate doves could result in an unpredictable reaction from the bond market at the perceived loss of the US Fed’s independence. Long-term de-dollarisation trends look well entrenched although the establishment of the CNY as an alternative will take time. Watch out for the US Supreme Court ruling on the legality of “Liberation Day” tariffs and implications of the US mid-term elections. We remain constructive on the outlook for equity markets going into 2026 although over-riding risks suggests that the 2026 investment playbook ought to be more measured. With robust domestic liquidity, any realisation of event risks will likely be well supported by investors buying into dips. A defensive stance to begin the year would be appropriate although 2026 is looking increasingly like a trading market requiring investors to be nimble. We remain OVERWEIGHT on banks, energy, consumer, healthcare, property, basic materials, construction, M-REITs and technology. – RHB Research, Dec 12

BNASTRA is scheduled to release its 3QFY26 results next week. We project core net earnings to come in within the RM35- RM40mn range, representing 66.0% to 69.9% of our full year forecast. We view the anticipated performance to be broadly in line with expectations as we expect a seasonally stronger 4QFY26, consistent with BNASTRA’s historical earnings profile where the final quarter typically captures peak progress billings in line with the S curve of construction project execution. BNASTRA’s YTD new job wins amounted to roughly RM2bn, bringing its total outstanding order book to approximately RM5.1bn. This translates into a solid 3.3x cover against our FY26F revenue forecast. Although current new order book replenishment only accounts for 50% of our FY26F new order book replenishment assumption of RM4.0bn, we believe the group remains well on track to achieve the balance over the coming months. Our positive view is supported by a robust pipeline of prospective jobs, including an estimated RM2.0bn opportunity from recurring clients Exsim and Maxim for upcoming high rise residential projects in Johor (combined estimated value of RM3.3bn) as well as RM200-RM300mn of potential awards from LSS5 related solar projects, based on an assumed construction cost of RM3.5mn per megawatt. In addition, BNASTRA continues to actively tender for external residential projects totalling about RM500mn. Taken together, these opportunities reinforce our confidence that BNASTRA is poised to sustain its strong order book momentum through FY26. We reiterate BUY with TP of RM2.85. – TA Research, Dec 12