18/12/2025

BIZ & FINANCE THURSDAY | DEC 18, 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

Apollo reports net profit of RM13.8m for 1H’26 KUALA LUMPUR: Apollo Food Holdings Bhd posted revenue of RM75.3 million, up 16% quarter-on-quarter in its financial results for the second quarter ended Oct 31, 2025 (Q2’26) from RM65.1 million in Q1’26, driven primarily by stronger export performance. Apollo and its subsidiaries are engaged in the manufacturing and distribution of chocolate confectionery products and layer cakes for both the domestic and export markets. The Apollo Group has established a strong and recognisable brand name as one of the leading homegrown chocolate confectionery and layer cake products in Malaysia. Correspondingly net profit increased by 17% QoQ to RM7.4 million, driven by stronger top line performance despite higher operating costs. For the cumulative six months ended Oct 31, 2025, the group achieved revenue of RM140.3 million and net profit of RM13.8 million. The group’s balance sheet remains strong, with net cash and cash equivalents of RM77 million as at Oct 31, 2025. Together with this set of results, the group declared its first interim dividend of 15 sen per share, payable on Jan 15, 2026. Managing director Cheah Jia Ming said: “We are encouraged by our Q2’26 performance, which showed QoQ improvements and provides early affirmation that our strategic direction is progressing on the right track. With the groundwork for our domestic route-to market transition largely completed, we are moving past the anticipated transitional impact on sales and are now observing signs of stabilisation. While the transition involved expected short term adjustments, domestic sales are stabilising, and our targeted brand engagement initiatives coupled with a refreshed portfolio of products are beginning to show positive results.”

Ringgit snaps four-day gains to end lower vs US dollar THE ringgit snapped four consecutive days of gains to close slightly lower against the US dollar yesterday as some traders took profit. At 6pm, the ringgit inched down to 4.0855/0940 against the greenback, from 4.0835/0875 at Tuesday’s close. Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid, said the ringgit performed extremely well yesterday, nonetheless, as it continued to gain against other currencies. “The ringgit appreciated against the Singapore dollar at the close yesterday. The next data point will be the US consumer price index (CPI), which will be published later,” he told Bernama. Mohd Afzanizam noted that the ringgit hit 4.0795 in the early morning session against the US dollar, its strongest showing in nearly five years, as traders and investors digested the mixed signals from the US labour market data overnight. At the close, the ringgit traded higher against a basket of major currencies. It gained against the British pound to 5.4439/4553 from 5.4760/4813 at Tuesday’s close, rose against the Japanese yen to 2.6267/6321 from 2.6372/6400, and edged up against the euro to 4.7866/7965 from 4.8014/8061. The local currency traded mostly lower against Asean peers. It appreciated against the Singapore dollar to 3.1614/1682 from 3.1657/1691, but weakened versus the Thai baht to 12.9657/9989 from 12.9532/9721, edged down against the Indonesian rupiah to 244.7/245.3 from 244.6/245.0 and dipped against the Philippine peso to 6.96/6.97 from 6.95/6.96 previously.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1550 2.7630 3.2170 3.0110 4.8750 2.4030 3.2170 5.5710 5.2460 3.4680 59.2400 66.8800 53.8300 4.6600 0.0260 2.7000 41.7900 1.5400 7.1600 114.6100 111.7000 25.6400 1.4100 45.9700 13.7500 114.1600 N/A

4.0080 2.6490 3.1150 2.9260 4.7160 2.3150 3.1150 5.3910 5.0210

3.9980 2.6330 3.1070 2.9140 4.6960 2.2990 3.1070 5.3710 5.0060

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

108.1900 3.2160 56.7200 61.5200 51.1300

107.9900 3.0160 61.3200 50.9300 4.1300 0.0179 2.5650 38.2200 1.1700 6.5400 108.6100 105.8300 22.9500 1.0300 41.6500 11.7900 N/A N/A

4.3300 0.0229 2.5750

N/A

38.4200 1.3700 6.7400 108.8100 106.0300 23.1500 1.2300 41.8500 12.1900

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

REITS Overweight

Power Overweight

Plantation Neutral

Source: TA Research, Bloomberg

WE believe the US Department of Agriculture (USDA)’s latest 2025/26 outlook points to a more constructive production backdrop. Stronger palm oil output, resilient soybean oil supply and a broader recovery across other vegetable oils should help cushion demand growth, reduce pressure on global inventories and support a more balanced vegetable oil market going forward. Based on the data, global vegetable oil fundamentals are expected to show a modest improvement in 2025/26, as production growth accelerates to a healthier +1.6% YoY, lifting total output to 233.3 million tonnes. This expansion is underpinned by a broad-based recovery across major oilseeds, marking a gradual shift away from the supply tightness seen in recent years. Soybean oil production is expected to remain resilient in 2025/26, although trade dynamics continue to be influenced by lingering geopolitical considerations. China still sources the majority of its soybeans from South America, particularly Brazil, which keeps processing activity high and ensures ample soybean oil supply globally. As a result, any recovery in US-China soybean trade is likely to be gradual rather than a full return to previous levels, meaning soybean oil prices may receive some support but are unlikely to increase sharply. At the same time, China has not formally confirmed these purchase commitments through official statements, highlighting that execution of the agreement remains uncertain. Nevertheless, we opine that there is a possibility that China could boost purchases later in the marketing year to meet seasonal or longer-term targets. If US soybeans remain price competitive against South American supplies or if China prioritises stock replenishment, this could lead to higher buying volumes. – TA Research, Dec 17

Source: PublicInvest Research

Source: Bloomberg, RHB

MALAYSIA’S power sector is set to sustain a broad-based upcycle into 1H’26, underpinned by accelerating renewable deployment, rising baseload capacity requirements and a structural step-up in electricity demand led primarily by hyperscale data centres. Energy build-out in 2026 will be driven by parallel momentum in renewables and gas-fired power. Renewable deployment remains anchored by NETR initiatives, with Solar ATAP set to replace NEM in 1H’26, alongside the anticipated rollout of LSS6 and continued allocations under SEDA’s FiT for biomass, biogas and small hydro. This sustains EPCC opportunities for solar and bioenergy players. In parallel, gas-fired power development is reviving after a decade, following the Energy Commission’s with estimated capacity of ~8GW tender (2025–2029), covering PPA extensions at existing plants and new-build capacity, favouring incumbents with established sites and infrastructure. Data centre demand is scaling rapidly, emerging as a key structural driver of electricity growth, with TNB securing 49 projects totalling 7.1GW and actual load ramping up to 850MW by October 2025. This momentum is supported by TNB’s enhanced Green Lane framework, which shortens connection timelines for higher-spec facilities. In parallel, accelerating demand is intensifying grid pressure, driving a step-up in RP4 infrastructure spending, with capex tracking RM15 billion in FY25 and RM42.8 billion over the RP4 period, reinforcing a multi-year grid investment upcycle. We maintain TNB as our top pick, underpinned by strong earnings visibility under the RP4 regulatory framework and an expanding multi-year capex programme. – PublicInvest Research, Dec 17

THE KLREI-10-year Malaysian Government Securities dividend yield spread is 170bps, in line with its long-term mean. We view this as supportive of M-REIT valuations, as government bond yields have eased amid ongoing rate cuts abroad. Separately, Bank Negara Malaysia has kept the Overnight Policy Rate steady after the July 25 bps cut, reinforcing a positive funding conditions for the sector. Of the eight stocks under our coverage, five met expectations while three surprised on the upside. Sunway REIT was the standout this quarter (net profit: +31% YoY), supported by strong retail and industrial performances (including contributions from newly acquired assets), alongside a RM21 million realised net gain from the disposal of Sunway University & College. We also take comfort that key fiscal reform overhangs such as minimum wage hikes, Sales & Service Tax (SST) expansion on rentals and the base electricity tariff appear manageable, with management continuing to guide for stable occupancy and positive rental growth outlook. We understand that the Malaysian REIT Managers Association has been engaging with authorities on a potential extension of the 10% WHT concession (expiring YA2025). The absence of any reference in the Finance Bill 2025 raises the risk that it may not be extended. If it lapses, M-REIT distributions to individual and foreign investors would revert to prevailing tax rates, potentially compressing net yields relative to the current concessionary treatment. Local corporates should see no change, as they are already taxed at the corporate level. – RHB Research, Dec 17