22/12/2025

BIZ & FINANCE MONDAY | DEC 22, 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

Holiday lull keeps MGS yields rangebound: Kenanga KUALA LUMPUR: The Malaysian Government Securities (MGS) and Government Investment Issues (GII) yields were mixed last week, ranging from -3.1 to 2.0 basis points (bps). The 10-Y MGS rose 0.3 bps to 3.563%, while the 10-Y GII rose 0.6 bps to 3.566%. Kenanga Investment Bank Bhd said the local yields edged slightly higher last week, reflecting subdued demand at the reopening of the 10Y MGS auction, which cleared at a bid-to cover (BTC) ratio of 1.92x. “Expectations of a potential BoJ rate hike added to upward pressure, though supportive domestic fundamentals contained gains,“ the research firm said in a report. Kenanga said the domestic distributive trade sales rose 7.2%, and industrial production grew 6.0% in October, underscoring economic resilience. Tourism remained strong, with 216.0 million visitors and RM88.4 billion in spending over the first nine months of 2025. Further, local political stability was reinforced by the Cabinet reshuffle under PM Anwar Ibrahim. Investor confidence was further supported by plans to roll out MyRMK, an integrated monitoring system for 13MP implementation, signalling prudent governance ahead. Touching on flows and outlook, Kenanga said local bond yields are expected to remain rangebound this week, with focus on the trade data release and the upcoming CPI release. “Shorter trading days ahead of Christmas should keep activity subdued, while continued strength in the ringgit adds stability. “Attention also turns to the BoJ rate decision, where the market had widely expected a hike,“ Kenanga said.

Ringgit poised to see profit-taking this week

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit is expected to experience profit-taking this week, hovering between RM4.07 and RM4.09 against the US dollar after hitting a near six-year high on Friday. The local currency traded mostly higher last week, opening at the 4.09 level and trending upwards before settling at 4.07 at Friday’s close. At 6pm on Friday, the ringgit rose to 4.0740/0785 versus the greenback from 4.0840/0880 at Thursday’s close. The level was last seen on Jan 15, 2020, when the ringgit closed at 4.0740 to the US dollar. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that judging from technical indicators, the ringgit has entered into overbought territory which could lead to profit-taking activity. This week, the focus would be on the US gross domestic product for the third quarter of 2025 expected on Dec 23, he told Bernama. Last week, the local currency was mainly influenced by key US data, including the non-farm payrolls and Consumer Price Index, which were expected to provide a clearer direction on the US monetary policy outlook. On a weekly basis, the ringgit strengthened against the greenback, closing higher at 4.0740/0785. The local note strengthened against the Japanese yen to 2.5909/5940 from 2.6264/6304 a week earlier, climbed vis-a-vis the British pound to 5.4514/4574 from 5.4789/4869 previously, and appreciated versus the euro to 4.7715/7767 from 4.8037/8107. It gained versus the Indonesian rupiah to 243.2/243.6 from 245.9/246.4 at the previous Friday’s close and increased against the Singapore dollar to 3.1515/1553 from 3.1701/1750 a week earlier.

1 US Dollar

4.1580 2.7590 3.2170 3.0100 4.8680 2.4030 3.2170 5.5570 5.2570 3.4550 59.2900 66.8000 53.8700 4.6900 0.0260 2.6870 41.9200 1.5400 7.1900 115.0600 111.7800 25.7100 1.4100 46.1100 13.7800 114.2300 N/A

4.0120 2.6470 3.1150 2.9260 4.7100 2.3150 3.1150 5.3790 5.0320

4.0020 2.6310 3.1070 2.9140 4.6900 2.2990 3.1070 5.3590 5.0170

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

108.3000 3.2280 56.7800 61.4500 51.1800

108.1000 3.0280 61.2500 50.9800 4.1600 0.0179 2.5530 38.3700 1.1800 6.5600 109.0200 105.9200 23.0100 1.0300 41.7900 11.8200 N/A N/A

4.3600 0.0229 2.5630

N/A

38.5700 1.3800 6.7600 109.2200 106.1200 23.2100 1.2300 41.9900 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

Gamuda Bhd Outperform. Target price: RM6.20

Binastra Corporation Bhd Buy. Target price: RM2.85

United Malacca Bhd Buy. Target price: RM6.72

Dec 19, 2025: RM4.88

Dec 19, 2025: RM5.91

Dec 19, 2025: RM2.10

Source: Bloomberg, TA Research

Source: PublicInvest Research

Source: Bloomberg, TA Research

BNASTRA’S 9MFY26 core net profit of RM92.9mn accounted for 69.5% of our full-year estimate and 70.9% of consensus. We deem the result to be in line with expectations, as we anticipate a seasonally stronger 4QFY26 performance in consistent with its histrocial trend. YoY, 9MFY26 revenue and core net profit surged by 51.6% and 42.8%, respectively, driven by accelerated construction activities and stronger progress billings from ongoing projects, alongside contributions from its newly acquired 51%-owned subsidiary, LF Lansen Sdn Bhd, which delivered a robust double-digit PATAMI margin of 10.1%. Notably, 9MFY26 revenue of RM1bn and core net profit of RM92.9mn have already exceeded FY25 full-year levels (FY25 revenue: RM946.6mn; core net profit: RM90.1mn). QoQ, adjusted net profit rose 38.8% despite a slighlt 6.4% decline in revenue, underpinned by a stronger GP margin of 14.6% recorded in 3QFY26 (vs 10.0% in 2QFY26). The margin expansion was driven mainly by a higher contribution from high rise projects in 3QFY26, which carry better margins compared with the heavier mix of data centre and EPCC job burn in 2QFY26. Despite solid revenue growth, the PAT margin eased to 9.1% (from 9.6% in 9MFY25), owing to growing order book mix with more data centre construction and EPCC contracts (44%), which inherently carry lower margins. As at end-October 2025, BNASTRA’s total outstanding orderbook stood at RM4.6bn. This robust orderbook should support BNASTRA’s near-term earnings visibility. We reiterate our Buy recommendation on BNASTRA with an unchanged TP of RM2.85. – TA Research, Dec 19

GAMUDA has secured another two contracts worth approximately A$3bn (RM8bn) in Australia. The first contract, valued at A$2.7bn (RM7.3bn), is for the Sydney Metro West - Stations Package West. Meanwhile, the second contract, valued at A$265m (RM718m), is the balance of plant contract for the Carmody’s Hill Wind Farm project in the mid-north region of South Australia. Following these awards, we estimate that the group’s outstanding orderbook has risen to RM45.9bn, sustaining its growth trajectory. We maintain our earnings forecast as we have already incorporated these into part of our FY26 orderbook replenishment assumption of RM30bn by the end of CY26. The first contract represents Gamuda’s single largest project win in Australia to date. It was awarded by Sydney Metro, the procurement entity for the New South Wales state government, to Gamuda Engineering. The project involves the design and construction of five key underground metro stations: Westmead, North Strathfield, Burwood North, Five Dock, and The Bays. The scope of work includes station structures, entrances, full fit-outs, and integration with existing transport networks. The second contract is for the Balance of Plant contract for the Carmody’s Hill Wind Farm in South Australia, with a capacity of 256.2MW generated via 42 turbines. It was awarded by Georgetown Hills Renewable Energy Trust to DT Infrastructure. The contract covers civil works for the turbine foundations, internal access roads, drainage and erosion controls, crane hardstands, laydown areas and associated earthworks. Reiterate Outperform with unchanged TP of RM6.20. – PublicInvest Research, Dec 19

UMCCA 2QFY26 performance, underpinned by margin expansion and lower finance costs. Excluding exceptional items, 2QFY26 core net profit surged 93.8% YoY to RM53.8mn, driven by a 31.1% increase in revenue. On a cumulative basis, 1HFY26 core earnings rose 88.4% YoY to RM89.0mn, representing 73% and 83% of our and consensus’ full year estimates, respectively. Both Malaysian and Indonesian operations recorded stronger profitability compared to the same period last year. FFB production in 1HFY26 increased 17.1% YoY to 276.7k tonnes, driven by stronger output from both Malaysia (+14.9%) and Indonesian estates (+25.9% YoY). In Malaysia, the 1HFY26 average CPO price rose 3.2% YoY to RM4,180/tonne, while average PK prices surged 33.0% YoY to RM3,375/tonne. In contrast, Indonesia saw a marginal 1.1% YoY decline in average CPO prices to RM3,614/tonne, which was more than offset by a strong 36.7% YoY increase in PK prices to RM3,240/tonne. We have raised our FY26-FY28 earnings estimates by 4.0%- 12.6%, reflecting stronger-than-expected margin expansion and lower finance costs. Management maintained its FFB production guidance of 3-5% for FY26, supported by optimal oil palm age profile and improved operational efficiency. Upgrade UMCCA to BUY with higher TP of RM6.72. – TA Research, Dec 19 delivered a stronger-than-expected