17/12/2025

BIZ & FINANCE WEDNESDAY | DEC 17, 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

Palm oil sector to focus on productivity in 2026: Johari BANGI: Malaysia’s palm oil industry is expected to remain stable and competitive next year, driven by continued emphasis on research and development (R&D), yield improvements and sustainable practices in line with global market requirements, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. The minister said the industry’s direction for 2026 will no longer depend on opening new planting areas but will instead focus on increasing productivity within the roughly 5.7 million ha already under cultivation, in line with the country’s commitment to halt deforestation and ensure environmental sustainability. “We are no longer opening new areas (for planting). The world today wants sustainable palm oil. So our focus is on raising yields through the use of quality planting material, good agricultural practices and technology that can reduce dependence on foreign labour,” he told reporters after attending the Malaysian Palm Oil Board Excellence Awards 2025 yesterday. Johari said this strategy will continue to be supported by R&D to explore new applications for palm oil, not only in the food sector but also in non-food products, thereby expanding the commodity’s uses and added value globally. Johari emphasised that continuity in R&D is crucial to ensure the palm oil industry continues to grow, with applications that keep expanding and can be commercialised effectively. He said that as a result of those efforts, the country’s palm oil exports have reached around RM95 billion annually from 2022 to 2024, opening broad economic opportunities for local people, not only in employment but also in entrepreneurship. – Bernama

Ringgit rises against dollar ahead of US payrolls data THE ringgit continued its upward momentum yesterday, closing against the greenback at the 4.08 level ahead of the release of US nonfarm payrolls (NFP) data later. At 6pm, the ringgit bounced to 4.0835/0875 against the greenback, from 4.0930/0980 at Monday’s close. Bank Muamalat Malaysia Bhd’s chief economist Dr Mohd Afzanizam Abdul Rashid, told Bernama that the NFP data could provide a clearer direction on the US monetary policy outlook. “Should the NFP turn out to be lower, it will raise the odds for more (US) rate cuts in 2026,” he said. The ringgit jumped to the 4.08 level against the US dollar at yesterday’s opening, marking its strongest performance in nearly five years. Domestically, Mohd Afzanizam said the latest cabinet reshuffle by Prime Minister Datuk Seri Anwar Ibrahim should be viewed positively for the economy. “This (latest cabinet reshuffle) will ensure policy continuity and consistency following a number of ministerial vacancies that has occurred for a number of months,” he added. At the close, the ringgit traded higher against a basket of major currencies. It gained against the British pound to 5.4760/4813 from 5.4793/4860 at Monday’s close, rose against the Japanese yen to 2.6372/6400 from 2.6410/6444, and edged up against the euro to 4.8014/8061 from 4.8064/8123. The local currency traded mainly higher against Asean peers. It gained against the Singapore dollar to 3.1657/1691 from 3.1746/1787, strengthened versus the Thai baht to 12.9532/9721 from 13.0201/0422.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1650 2.7720 3.2230 3.0160 4.8890 2.4110 3.2230 5.5640 5.2520

4.0180 2.6590 3.1210 2.9300 4.7290 2.3210 3.1210 5.3850 5.0280 3.2240 56.8100 61.7200 51.2500 4.3400 0.0230 2.5770 38.6200 1.3800 6.7300 109.4000 106.2500 23.1600 1.2300 42.0100 12.2200 108.4600 N/A

4.0080 2.6430 3.1130 2.9180 4.7090 2.3050 3.1130 5.3650 5.0130

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

114.4400 3.4770 59.3400 67.1000 53.9500 4.6700 0.0261 2.7010 14.3000 42.0000 1.5400 7.1500 115.2400 111.9200 25.6600 1.4100 46.1500 13.7800

108.2600

3.0240

N/A

61.5200 51.0500 4.1400 0.0180 2.5670 38.4200 1.1800 6.5300 109.2000 106.0500 22.9600 1.0300 41.8100 11.8200 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

Solarvest Holdings Bhd Buy. Target price: RM3.67

Gagasan Nadi Cergas Bhd Not Rated

Binastra Corporation Bhd Buy. Target price: RM2.85

Dec 16, 2025: RM2.05

Dec 16, 2025: RM3.10

Source: Bloomberg

BINASTRA Atlantic Sdn. Bhd., a consortium comprising Binastra Green Energy Sdn. Bhd. (51%) and Solarvest Holdings Bhd’s subsidiary Atlantic Blue Sdn Bhd (49%), was awarded solar EPCC contracts by Maya Jaya Sdn Bhd under Malaysia’s LSS5 programme. The contracts carry a combined value of RM171.7 million, translating to an effective RM87.6 million for BNASTRA, and involve the development of a total 56.5MWac of solar photovoltaic capacity across three sites in Kuala Langat, Selangor, and Sungai Lalang, Kedah. The contracts are scheduled to commence on Dec 15, 2025, with completion and full commissioning targeted for June 26, 2027. With this latest job win, BNASTRA’s FY26 YTD new job wins have risen to RM2.1 billion, lifting its total outstanding orderbook to RM5.2 billion. This represents a solid 3.3x cover of our FY26 revenue forecast. Although current replenishment only accounts for 53% of our FY26 new order book replenishment assumption of RM4 billion, we believe the group remains well on track to achieve the balance over the next month. Our positive stance is supported by a robust pipeline of potential awards, including an estimated RM2 billion from recurring clients Exsim and Maxim for upcoming high-rise residential developments in Johor, alongside an external residential tender book of about RM500 million. We continue to like BNASTRA for its (i) long-standing relationships with major clients that provide steady project flow, (ii) strategic positioning as a key beneficiary of the property and construction upcycle, and (iii) robust earnings visibility and growth prospects, supported by a resilient and expanding order book. BUY with RM2.85 TP. – TA Research, Dec 16

Source: Maybank Investment Bank

Source: Bloomberg

PROPERTY development turnaround becomes GNCB’s key earnings driver from FY25 onwards as it rolls out over 7,500 Rumah Idaman units across Kwasa Damansara and City of Elmina (Elmina), with a combined GDV of RM3.2 billion. Kwasa Damansara Phase 1 has achieved an 81% take-up rate within two years, supported by strong first-time homebuyer demand, Meanwhile, the group’s 172.6 acres of development-rights landbank provides sustained launch visibility. Kwasa Damansara Phase 2 (>2x the size of Phase 1) will launch in 1Q26 and is expected to mirror Phase 1’s strong uptake. Two Elmina projects (total GDV: RM414 million) will also launch in Q1’26, with Elmina 5 to be immediately acquired by the Selangor Housing & Real Estate Board or LPHS, enabling revenue recognition to start in Q1’25. As of Sept 30, GNCB commands a RM221 million external orderbook alongside an in-house mandate to build 15,000 affordable housing units (GDV:RM3.8 billion) over eight years. This brings its total orderbook to 32x FY24 construction revenue, underpinning strong earnings visibility and a sustained project pipeline. Its in-house construction arm will also help the group, in our view, capture end-to-end project development value by optimising cost efficiencies. GNCB holds two 20-year student hostel concessions – International Islamic University Malaysia (IIUM) in Kuantan (until 2034; RM246.7 million receivables) and Universiti Teknikal Malaysia Melaka (UTeM) (until 2037; RM305.5 million receivables) – as well as a 30-year concession for Datum Jelatek Mall (until 2051), which covers chilled water and electricity distribution. – RHB Research, Dec 16

SOLARVEST involves in solar turnkey EPCC for large-scale solar PV, residential, commercial and industrial property projects and provides O&M services. Binastra Atlantic, a JV consortium between Binastra Corp (51%) and Solarvest (49%), has secured letters of award relating to 3 solar farm projects collectively totaling 56.54MWac under LSS5 for a total contract value of RM171.7 million from Maya Jaya Sdn Bhd. The project is expected to be completed by June 2027. Under the collaboration, Solarvest will lead the technical execution, while Binastra Corp will oversee project funding. We are positive on the strategic collaboration as it enables Solarvest to leverage on Binastra Corp’s expanding project pipeline in green energy solutions. Based on its 49% effective stake in the consortium, the projects are expected to contribute RM84.1 million to Solarvest’s effective order book, increasing its total outstanding orderbook to RM1.7 billion (equivalent to 3.8x FT25 EPCC revenue). Inclusive of this contract win, YTD new wins totalled RM1.3 billion representing 51% of our FY26 replenishment assumption of RM2.5 billion. While we anticipate the EPCC contract finalisation for its 20% owned 470MWac LSS5+ project with Malakoff to add RM1-1.2 billion to its order book by end FY26. We continue to like Solarvest for its leading position (>30% market share) in the solar renewable energy sector and as a key beneficiary of the nation’s energy transition goals. The company is listed on the Main Market of Bursa Malaysia, and operates in the Philippines, Taiwan, Indonesia, Vietnam, Singapore, and Thailand. BUY with RM3.67 TP. – Maybank Investment Bank, Dec 16