29/12/2025

BIZ & FINANCE MONDAY | DEC 29, 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

Malaysia bond yields slip, US Treasuries trade mixed KUALA LUMPUR: The Malaysian Government Securities (MGS) and Government Investment Issues (GII) yields mostly declined last week, ranging between -5.5 to 0.5 basis points (bps). The 10-Y MGS eased 3.8 bps to 3.525%, while the 10-Y GII fell 1.8 bps to 3.548%. Kenanga Investment Bank Bhd said the local yields eased last week, supported by sustained foreign demand and improving sentiment. The firm said the IMF reaffirmed Malaysia’s robust 2025 growth outlook, citing resilient domestic demand and sound macro fundamentals. External engagement also improved, with deeper ties with the UAE and stronger trade links with Australia, reinforcing investor confidence and underpinning Malaysia’s medium-term prospects. “Yields are expected to remain stable next week, supported by a firm ringgit and continued foreign interest. “Trading activity is likely to stay subdued ahead of the New Year’s holiday, limiting volatility. That said, risks remain from expectations of gradual Bank of Japan policy normalisation, which could support higher JGB yields and influence global investor positioning,“ Kenanga said. Kenanga also said the upcoming PMI release may serve as a near term catalyst, offering fresh insights into manufacturing momentum. “Overall, steady macro fundamentals and a resilient currency performance should anchor local bonds and attract sustained inflows,“ it said. Meanwhile, the US Treasuries (UST) yields showed mixed movements last week, moving between -0.9 to 5.6 bps. The 10-Y increased 1.2 bps to 4.134%, while the 2-Y rose 4.1 bps to 3.501%.

Ringgit ends marginally lower against greenback

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit ended last Friday’s session marginally weaker against the US dollar. However, analysts said the local currency generally held on to its recent positive momentum, even attempting to break below the 4.03 level during the morning trade. At 6pm, the local currency edged down to 4.0470/0535 versus the greenback from 4.0425/0515 at Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit versus the US dollar went up to as high as 4.0318 during the morning session but later weakened to 4.0470 towards closing. “It appears that ringgit continues to remain firm as it attempts to breach the RM4.03 level,” he told Bernama. At Friday’s close, the ringgit traded higher against a basket of major currencies. It appreciated versus the euro to 4.7629/7706 from 4.7697/7804 at Wednesday’s close, while it rose against the British pound to 5.4570/4657 from 5.4647/4768 previously. At the same time, the ringgit edged higher against the Japanese yen, improving to 2.5866/5909 compared with 2.5940/5999 earlier. The local currency traded mixed against Asean peers. The ringgit also appreciated against several regional currencies. It strengthened versus the Thai baht to 13.0212/0484 from 13.0277/0639 previously, and it advanced against the Singapore dollar to 3.1497/1550 from 3.1506/1578. However, the local note eased against the Indonesian rupiah, slipping to 241.6/242.2 from 241.0/241.8, and it was likewise lower against the Philippine peso at 6.89/6.90 compared with 6.88/6.90 earlier.

1 US Dollar

4.1030 2.7720 3.1980 3.0030 4.8470 2.4060 3.1980 5.5360 5.2300 3.4360 58.9900 66.5200 53.3600 4.6800 0.0256 2.6390 42.1600 1.5300 7.0900 113.8400 110.6500 25.5000 1.4000 46.1900 13.8100 113.1000 N/A

3.9560 2.6590 3.0970 2.9180 4.6880 2.3170 3.0970 5.3570 5.0040

3.9460 2.6430 3.0890 2.9060 4.6680 2.3010 3.0890 5.3370 4.9890

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

107.1800 3.1860 56.4800 61.1800 50.6900

106.9800 2.9860 60.9800 50.4900 4.1400 0.0176 2.5070 38.5500 1.1600 6.4700 107.8700 104.8400 22.8200 1.0200 41.8500 11.8400 N/A N/A

4.3400 0.0226 2.5170

N/A

38.7500 1.3600 6.6700 108.0700 105.0400 23.0200 1.2200 42.0500 12.2400

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

Well Chip Group Bhd Buy. Target price: RM2.09

Semico Capital Bhd Not Rated

Auto & Autoparts Neutral

Dec 26, 2025: RM1.64

Source: Well Chip Group Bhd

Source: Company, TA Securities

Source: Company data, RHB

WCGB, founded in 2006, operates 27 pawnshops and four retail outlets, offering pawnbroking services with pledge-backed loans and high-margin interest rates. It also trades and retails gold and jewellery via outlets, and online channels, leveraging unredeemed pledges and customer purchases. Approximately 23.2% (RM40 million) of IPO proceeds were allocated to outlet expansion. With identified locations in Johor and Malacca, expected increase in outlet count would eventually translate to higher ticket volume, which all in all subject to KPKT approval. Based on our estimates, the new additions will add at least RM0.6 million in depreciation expenses p.a., subject to authority approval. Overall, expected double-digit revenue growth, coupled with commendable gross margin profiles, should offset the additional overhead costs. Gold prices are a strong tailwind. We believe the current elevated inflationary pressure should continue to act as a catalyst for a sustained uptrend in gold prices. As a result, WCGB should see revenue improvements in both pawnbroking and the trading of gold and gold jewellery, as WCGB will be able to sell gold items at a marked-up value, representing the difference between the increased prices and the procured cost. From 2024 to 2028, Protégé Associates estimates the 4%, underpinned by demand for immediate access to funds and demand from the underserved population. Conventional loans require strict criteria, namely credit scores, which may prevent capable customers from securing loans. Buy with RM2.09 TP. – Mplus Research, Dec 26

SEMICO is primarily engaged in the distribution of arcade and amusement machines and related services, as well as the operation and management of a family entertainment centre located in The Mines, Selangor. The group also acts as a wholesaler of toys and collectables from brands such as Pop Mart, Funism, Jotoys, and Toy City. Key established clients include Mix Metro (or Mastering Services, under the same shareholders), Aeon Fantasy, and Next Gen Themepark (1U) Sdn Bhd. As of FY25, the toys and collectibles segment accounted for 53.5% of the group’s revenue, with the remainder derived from its family entertainment products and services. This IPO entails a public issue of 92.7 million new shares and an offer for sale of 18 million existing shares. Collectively, the share offering accounts for 30.7% of the group’s enlarged issued share capital. In the absence of directly comparable listed peers in Malaysia, we benchmark Semico against selected regional players. Our analysis shows that its global peers are trading at an average PER of 14.9x CY26 EPS. After accounting for Semico’s smaller market capitalisation and lack of upstream manufacturing exposure, we apply a 20% discount to the peer average PER. Semico has established long-term relationships with both suppliers and customers. With over four years of experience in the arcade and amusement machine distribution industry, the group has secured exclusive distributorships for the Dreamfuns and Superwing brands in the Malaysian market.– TA Research, Dec 26

THE September quarter saw overall in-line earnings, with Sime Darby meeting estimates, while Tan Chong Motor’s numbers missed and MBM Resources’results tracked slightly above forecasts at 76% of our full-year projection. SIME’s Q1'26 (June) core profit of RM335 million (-8% YoY) came in largely within expectations, primarily driven by a surprise turnaround from the China motor segment, but offset by a weaker-than-expected performance from the industrial business. Its motor segment returned to the black with RM126 million in core PBIT, led by China (+RM20 million vs Q4'25: -RM102 million) – thanks to the special rebates received, narrowing discounts, and stronger sales (+8% QoQ). The industrial segment’s PBIT margin eased to 6.6% (Q4'25: 8.7%) due to: i) Delayed new equipment deliveries in Australia (now expected in Q2'26), and ii) likely lower after-sales contributions, which typically have higher margins. TCM recorded another loss-making quarter, no thanks to the weak sales volume and high fixed costs. We think this will continue, since management has yet to outline a clear strategy to address declining sales and mounting losses. We are also positive on TCM’s recent letter of intent with Perodua to rent out some of its assembly lines for the latter’s EV project, as this may help the group manage its fixed costs better by optimising the existing assembly plant’s capacity. For MBM, the positive deviation mainly came from higher-than expected Perodua sales volumes and share of associates. This brought 9M’25 core earnings to RM233 million (-1% YoY). Management guided that Perodua’s backlogs remained resilient at 89k (from 90k last quarter) and we have also lifted our sales volume assumptions for this marque accordingly. – RHB Research, Dec 26