19/12/2025

BIZ & FINANCE FRIDAY | DEC 19, 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

Yinson Renewables to build wind farm in New Zealand KUALA LUMPUR: Yinson Holdings Bhd’s renewables busi ness unit Yinson Renewables has acquired the rights to the Mt Cass Wind Farm from MainPower New Zealand Ltd. In a filing with Bursa Malaysia, Yinson said that construction activities are expected to commence in early 2026, with the project slated to begin operations in 2028. “Mt Cass is designed for a total installed capacity of 94.6MW and, once operational, is expected to generate over 300GWh of electricity annually — enough to supply approximately 40,000 households,” it said. Mt Cass will be Yinson Renewables’ first wind farm under construction and its first project in New Zealand. The wind farm holds important strategic value, adding much-needed generation capacity to the upper South Island and supporting New Zealand’s decarbonisation goals. Yinson Renewables CEO David Brunt said the Mt Cass Wind Farm represents a significant expansion of the company’s footprint in New Zealand. “We are privileged to be the first global independent power producer to own and construct a wind farm in the country — an important step for Yinson Renewables, both strategically and in our mission to deliver sustainable solutions that support New Zealand’s energy transition,“ he said. Meanwhile, Yinson Renewables country manager for New Zealand Trevor Nash said he is looking forward to working with key stakeholders on the project to bring more clean energy initiatives online and contribute to the nation’s decarbonisation goals. – Bernama

Ringgit edges higher against dollar, eyes on US inflation data THE ringgit closed marginally higher against the greenback yesterday as market participants awaited the release of the US consumer price index (CPI) report. At 6pm, the ringgit climbed to 4.0840/0880 against the US dollar, from 4.0855/0940 at Wednesday’s close, after having opened at the 4.07 level in the morning session. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US November CPI is expected to rise 3.1% from 3% in September based on consensus estimates. “The core CPI is anticipated to remain at 3%. All in all, the inflation rate is expected to climb as the effect of the higher US import tariffs starts to creep in. Hence, this could complicate how the market sees the US Federal Reserve with respect to interest rate decisions going into next year,” he told Bernama. At the close, the ringgit traded mostly lower against a basket of major currencies. It fell against the British pound to 5.4513/4567 from 5.4439/4553 at Wednesday’s close, edged down against the euro to 4.7869/7915 from 4.7866/7965, but rose against the Japanese yen to 2.6188/6217 from 2.6267/6321. The local currency also traded mostly lower against Asean peers. It depreciated against the Singapore dollar to 3.1620/1653 from 3.1614/1682, weakened versus the Thai baht to 12.9750/9935 from 12.9657/9989, dipped against the Philippine peso to 6.97/6.98 from 6.96/6.97, but improved against the Indonesian rupiah to 244.2/244.5 from 244.7/245.3 previously.

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1630 2.7570 3.2180 3.0120 4.8830 2.4030 3.2180 5.5610 5.2600 3.4750 59.3500 67.0000 53.9400 4.6900 0.0260 2.6940 41.7900 1.5400 7.1800 114.8500 111.9200 25.6600 1.4100 46.0600 13.7800 114.3900 N/A

4.0170 2.6450 3.1180 2.9280 4.7240 2.3150 3.1180 5.3830 5.0340

4.0070 2.6290 3.1100 2.9160 4.7040 2.2990 3.1100 5.3630 5.0190

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

108.4300 3.2230 56.8300 61.6400 51.2500

108.2300 3.0230 61.4400 51.0500 4.1600 0.0180 2.5600 38.2300 1.1800 6.5600 108.8300 106.0400 22.9800 1.0300 41.7400 11.8200 N/A N/A

4.3600 0.0230 2.5700

N/A

38.4300 1.3800 6.7600 109.0300 106.2400 23.1800 1.2300 41.9400 12.2200

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

Top Glove Corporation Bhd Neutral. Target price: RM0.64

Scientex Bhd Neutral. Target price: RM3.60

Gamuda Bhd Buy. Target price: RM7.00

Dec 18, 2025: RM0.665

Dec 18, 2025: RM3.47

Dec 18, 2025: RM4.95

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

Q1'26 core profit came in at RM37.4 (+48% QoQ), meeting our (23.3%) and consensus (24%) full-year estimates. Revenue was largely flat (-0.7% QoQ, -0.3% YoY) despite a 4% QoQ increase in sales volume (+17% YoY), as blended ASP declined to US$17.3/1,000 pieces (-4% QoQ, -11% YoY). Operating margins expanded to 4.6% (+0.8ppt QoQ), driven by cost optimisation and efficiency gains, with bottomline further aided by a lower effective tax rate of 14.7%. Latex remained the primary growth driver (+7% QoQ), supported by aggressive pricing strategy. Latex powdered and powder-free ASPs declined 12% and 9% vs Q3'25 averages, while nitrile ASPs were more resilient (-4% vs Q3'25) with flat QoQ volumes. As a result, the sales mix shifted to 54% nitrile and 36% latex (from 56%:35% in Q4’25). Meanwhile, sequential volume growth into Asia (+20% QoQ) and Latin America (+9% QoQ) were largely latex-driven, while the other regions saw a marginal decline QoQ. That said, the higher utilisation across both latex and nitrile lines also drove a larger QoQ decline in cost per carton than ASP, preserving cost savings. Re-activating of idle capacity will require RM20 million in capex and 800 additional workers, with management expecting incremental margin support from better fixed-cost absorption as utilisation normalises. Meanwhile, management has guided for a gradual ASP improvement in Q2’26 (+2–3% MoM), although management continues to characterise the pricing environment as competitive. Overall, management reiterated its 30% volume growth target for FY26 (vs our +24% YoY forecast), while maintaining a cautious stance on execution and cost discipline. NEUTRAL with RM0.64 TP.– RHB Research, Dec 18

GAMUDA via DT Infrastructure (DTI) (through a 50:50 JV with Samsung C&T was awarded with a RM2.7 billion (GAM’s share: RM1.3 billion) contract from Marinus Link for the Marinus Link Stage 1 – Balance of Works (BOW) Package). The Marinus Link Stage 1 – BOW package is the final major construction tender for the first stage of the Marinus Link project, covering civil, structural, and electrical infrastructure. It includes constructing the converter station buildings, performing land cable civil works, and other onshore installation tasks that follow the awarding of the main cable and converter equipment contracts. We estimate PBT margin for the BOW package to be around 5%. With GAM’s latest balance orderbook at RM37.9 billion and imputing a burn rate of RM0.6 billion for the second half of December, GAM should have an outstanding orderbook of RM37.3 billion by end-CY25 if no new jobs were secured. Hence, GAM would need at least RM3 billion worth of new jobs to hit the lower end orderbook target of RM40 billion. Highly anticipated potential wins by end CY25 in our view include; i) Sydney Metro West stations package (estimated at A$2-3 billion for GAM’s share), and ii) the Carmody’s Hill Wind Farm (estimated at RM1 billion for GAM’s share). GAM is potentially looking at a target orderbook level of between RM50 billion and RM55 billion by end-CY26. Conservatively assuming that GAM’s orderbook stands at RM40 billion as of end-CY25 with an annual burn rate of RM15 billion – the group needs to replenish RM25-30 billion worth of new jobs during CY26 to hit the RM50-55 billion orderbook level by end-CY26. BUY with RM7.00 TP. – RHB Research, Dec 18

Q1'26 core profit slightly declined 2% QoQ (+9% YoY) to RM141 million. This is in line with expectations, at 24-25% of our and Street full-year estimates. Net gearing stayed manageable at 0.49x (FY25: 0.48x), and management continues guidin g for net gearing to remain below 0.5x, assuming no major land acquisitions. The packaging segment’s revenue improved 3% QoQ (flattish YoY), while utilisation rate improved slightly QoQ (Q4’25: 60%). Meanwhile, EBIT rose by a larger 10% QoQ (+50% YoY), driven by a favourable sales mix, as well as operational efficiency initiatives. This brought Q1'26 margin to 7.4% (FY25: 6%; Q4’25: 6.9%). On the property side, the segment posted a 9% and 8% YoY increase for its sales and EBIT on the back of steady construction progress for ongoing projects. On a QoQ basis, sales fell 9%, leading EBIT to decrease by 7% – largely within estimates, given the bulk of SCI’s property launches are recognised in Q4. While SCI believes the demand for the packaging segment will slowly recover, it maintains its cautious outlook amid subdued market sentiment and intense competition. Management is keeping its margin target of 6-7% for FY26, underpinned by lower raw material costs (-7% to -11% YoY in Q1'26) and improved efficiencies, while aiming to grab market share by increasing volume. Note: The packaging segment makes up 54% and 23% of group revenue and EBIT in Q1'26. Meanwhile, SCI launched its 708-acre Scientex Jawi township and unveiled the 1,094-acre Scientex Muar in Q1'26, with launching target in Q2’26, along with Scientex Pulai 4 (350 acres, though no details on GDV yet). NEUTRAL with RM3.60 TP. – RHB Research, Dec 18