25/12/2025

BIZ & FINANCE THURSDAY | DEC 25, 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

Selangor highest in basic expenditure for decent living PUTRAJAYA: Selangor recorded the highest Basic Expenditure of Decent Living (PAKW) indices across household sizes, while Kelantan, Kedah and Perlis were among the states with the lowest, according to the Cost of Living Indicators 2024 released today by the Department of Statistics Malaysia (DOSM). The PAKW Index is being introduced as a new indicator to measure the minimum level of expenditure required to maintain a decent standard of living across states, administrative districts and state capitals. The index uses Kuala Lumpur as the reference point, with a value of 100, against which all other locations are measured. Lower index values indicate a lower level of expenditure required to maintain a decent standard of living compared with the reference, while higher values reflect greater expenditure requirements. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the PAKW analysis for households in 2024 revealed clear disparities in the cost of living across states. “For single-person households, Selangor recorded the highest index at 92.0 points, followed by Penang at 84.2 points and the Federal Territory of Putrajaya at 83.1 points, while the lowest index values were recorded in Kelantan and Sarawak at 53.7 points each, and Kedah at 56.6 points. He said a similar pattern was observed for two-, three- and four person households, with Selangor consistently recording the highest index values, while Kelantan, Kedah, Perlis and Sabah registered lower levels, though still reflecting a decent standard of living. Based on the PAKW Index analysis, the reasonable cost of living for a single-person household in Kelantan is 46.3 per cent lower than that in Kuala Lumpur.

Ringgit continues to soar amid weak US consumer confidence THE ringgit ended stronger against the US dollar yesterday, touching 4.04, its highest level in nearly five years, after the latest data showed that consumer confidence in the United States remains weak. At 6pm, the local currency surged to 4.0425/0515 versus the greenback, from 4.0615/0665 at yesterday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US think tank, the Conference Board, reported that US consumer confidence fell to 89.1 points in December from 92.9 points in November, below consensus estimates of 91.7 points. “This indicates that the Fed might shift its monetary easing stance by more than 25 basis points in 2026,” he told Bernama. Mohd Afzanizam said the ringgit continued its appreciation trend today, with the US Dollar Index (DXY) slipping 0.08 per cent to 97.863 points. Meanwhile, Bursa Malaysia Bhd and its subsidiaries will be closed on Dec 25, 2025, in conjunction with Christmas Day, and on Jan 1, 2026, for the New Year’s Day holiday. However, the exchange said Bursa Gold Dinar primary marketplace and Bursa Suq Al-Sila will remain open for trading throughout the public holidays. At yesterday’s close, the ringgit traded higher against a basket of major currencies. It appreciated against the euro to 4.7697/7804 from 4.7901/7960 at Tuesday’s close, rose against the British pound to 5.4647/4768 from 5.4851/4918, and edged up against the Japanese yen to 2.5940/5999 from 2.6039/6072. CBH Engineering Holding Bhd Buy. Target price: RM0.61

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

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 3.2280 56.7800 61.4500 51.1800 4.3600 0.0229 2.5630 38.5700 1.3800 6.7600 109.2200 106.1200 23.2100 1.2300 41.9900 12.2200 108.3000 N/A

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

108.1000 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

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

Perak Transit Bhd Buy. Target price: RM0.46

Malaysia Strategy Neutral. 2026 KLCI target: 1,710

Dec 24, 2025: RM0.455

Dec 24, 2025: RM0.295

Source: Bloomberg, TA Research

Source: TA, RHB Research

Source: Bloomberg, Phillip Capital Research

CBHB has been awarded 2 contracts totalling RM130mn from an unnamed client (Customer A) for the design, engineering, construction, installation, testing and commissioning, as well as material supply, related to the extension of an existing 275kV Consumer Landing Station at a data centre in Johor. The contracts will be executed in three phases, with Phase 1 (upon signing of the letter of award) commencing on 23 December 2025 and targeted for completion by 30 April 2026. Phases 2 and 3 are to be completed within seven months from the date of Company A’s written instruction. Including this latest contract win, we estimate that CBHB’s FY25 YTD new job wins have increased to a record high of RM601.6mn, exceeding our FY25 order book replenishment assumption of RM500mn. This award lifts the group’s outstanding order book to approximately RM681.2mn, translating into a strong 2.9x cover of our FY25 revenue forecast and supporting near-term earnings visibility. Assuming a net margin of 15%, we estimate the contract to contribute approximately RM19.5mn to earnings over its execution period. Looking ahead, as FY25 draws to a close, we believe CBHB is poised to sustain its new order book replenishment momentum into the next financial year, supported by a robust tender book of around RM600mn. The group’s tender pipeline continues to be driven by resilient demand for power infrastructure works, particularly those linked to Malaysia’s rapidly expanding data centre ecosystem, which should provide a solid foundation for new job wins and earnings growth in FY26. We reiterate our Buy call and raise our TP to RM0.61. – TA Research, Dec 24

RECENTLY, Ptrans has established a RM1.5bn nominal value Sukuk Wakalah (Sukuk) program and appointed Maybank Investment as the principal adviser, lead arranger and facility agent. Prior to this, Ptrans launched RM500mn nominal value Sukuk Murabahah in 2019 and RM1.5bn nominal value Sukuk Wakalah in 2024. As of 30 September 2025, the company’s outstanding Sukuk stood at RM685mn, where only RM84.5mn is repayable over the next 12-month period. These existing Sukuks carry a profit rate of average 5.14%, which is benchmarked against the 1-month KLIBOR. We are neutral on the establishment of the new Sukuk programme. However, this, in our opinion, is a strong testament to the company’s sound long-term fundamentals, despite the recent sell down of its shares. Separately, Ptrans announced that the group has received a letter from Majlis Daerah Tanjong Malim, where in the council has principally agreed to the proposed collaboration with Ptrans to manage terminal Bas Tanjong Malim at a specified monthly rental payment for a period of thirty years. There is limited information as the negotiation between both parties is ongoing. We believe this collaboration will involve Ptrans to incur some capital expenditure to refurbish or expand the terminal; operating expenditure for the day-to-day operations; collection of fees from express bus operators and income from rental of shops and kiosks. All in all, we are mildly positive as this potential new terminal is expected to provide additional revenue to the group, albeit small. Maintain Buy and TP of RM0.46. – TA Research, Dec 24

EASING trade tensions, accommodative global monetary policy, a firm ringgit, and improved liquidity are expected to support domestic market performance in 2026 Introduce our year-end 2026 KLCI target at 1,710. Unchanged Overweight on eight sectors, including Banking, Construction, EMS, Healthcare, Industrial, O&G, Renewables, and Transportation. Strong domestic fundamentals, supported by a positive labour market and stable household spending, are expected to continue driving Malaysia’s economic growth in 2026. Further realization of investments will also play a key role in supporting GDP growth, with a record-high level of approved investment in 2025 suggesting that momentum is likely to remain strong in the near term. As a trade-dependent economy, Malaysia remains exposed to downside risks from global trade fragmentation, which could temper growth. We forecast real GDP growth to moderate to 4.5% in 2026E (2025E: 4.8%), reflecting the high base effect from front loaded activities in 2025. We see domestic market performance in 2026 being supported by a few key themes: i) rising FDI driven by trade diversion, ii) investment upcycles, iii) data centre expansion, iv) green energy transition, v) AI technology cycle, and vi) Visit Malaysia Year 2026. We maintain a Neutral stance on the market. Within large-caps, we made two changes: removing KLK and adding SD Guthrie and IHH, alongside our existing top picks CIMB, Frontken, Gamuda, and TM. Our small-cap top picks are Critical, MN Holdings, BM Greentech, Solarvest, Binastra, Uzma, Dayang, Armada, RGB and AGX. – Phillip Capital Research, Dec 24