31/12/2025

BIZ & FINANCE WEDNESDAY | DEC 31, 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

Sunview buys 50MW Pahang solar plant for RM70m KUALA LUMPUR: Sunview Group Bhd’s wholly owned indirect subsidiary Solar Answer Manufacturing Sdn Bhd (SAM 2) has entered into a conditional sale and purchase agreement to acquire a large-scale solar photovoltaic power plant in Pekan, Pahang, for RM70 million. The plant has a capacity of 50 megawatts alternating current (MWac), Sunview said in a filing with Bursa Malaysia yesterday. It said the solar plant will be acquired from PKNP Power Suria Sdn Bhd, a 95%-owned subsidiary of Reneuco Bhd. The solar plant, developed under the Large Scale Solar 4 (LSS4) programme, is estimated to be approximately 79% completed, based on tender documents dated Sept 22, 2025, it said. Sunview said the rationale for the proposed acquisition is to leverage its strengths in design and cost optimisation while expanding its energy portfolio and enhancing execution capabilities. “By acquiring the solar plant under the LSS4 programme, the proposed acquisition represents another stride in Sunview’s expansion strategy, further solidifying the group’s commitment to growth,” it said. The solar plant has a power purchase agreement with Tenaga Nasional Bhd for a period of 21 years from its scheduled commercial operation date, which was previously extended by the Energy Commission to Dec 31, 2023. Sunview said the purchase consideration will be settled through internally generated funds, bank borrowings and/or future fundraising exercises, with the balance purchase price of RM63 million payable within 90 days from the date of the agreement. – Bernama

Ringgit ends firmer vs dollar, major currencies THE ringgit closed marginally higher against the US dollar and most other major currencies yesterday, supported by improved buying interest in the local unit. At 6pm, the ringgit rose to 4.0460/0505 against the US dollar, from 4.0580/0625 at Monday’s close. The US Dollar Index (DXY), which tracks the performance of the greenback against a basket of six major world currencies, was last seen at 97.96, easing 0.05% from the previous session. Meanwhile, market participants largely stayed on the sidelines as they awaited further clues on the policy outlook from the US Federal Open Market Committee’s December meeting minutes. At the close, the ringgit was traded higher against a basket of major currencies. It strengthened against the Japanese yen, rising to 2.5948/5978 from 2.5956/5987 at Monday’s close. The local note was also marginally higher versus the British pound at 5.4678/4738 compared with 5.4742/4803 previously, while it inched up against the euro to 4.7621/7674 from 4.7787/7840 on Monday. The local note was also firmer against its Asean peers. It advanced against the Singapore dollar to 3.1526/1566 from 3.1572/1610 on Monday. The local note also gained versus the Thai baht, improving to 12.8404/8620 from 12.8985/9190 previously. It further strengthened against the Indonesian rupiah to 241.2/241.6 compared with 241.7/242.1 earlier, and was also higher vis-à-vis the Philippine peso at 6.87/6.88 versus 6.90/6.91 previously. – Bernama

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1270 2.7720 3.2040 3.0060 4.8530 2.4000 3.2040 5.5670 5.2570 3.4290 59.1400 66.6100 53.4800 4.6800 0.0257 2.6600 42.0700 1.5300 7.1000 114.1600 110.9500 25.5700 1.4000 46.2500 13.6000 113.3900 N/A

3.9820 2.6600 3.1040 2.9220 4.6960 2.3120 3.1040 5.3920 5.0320 3.2050 56.6500 61.3000 50.8300 4.3500 0.0227 2.5390 38.7000 1.3700 6.6900 108.3800 105.3300 23.0900 1.2200 42.1200 12.0600 107.5100 N/A

3.9720 2.6440 3.0960 2.9100 4.6760 2.2960 3.0960 5.3720 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

107.3100

3.0050

N/A

61.1000 50.6300 4.1500 0.0177 2.5290 38.5000 1.1700 6.4900 108.1800 105.1300 22.8900 1.0200 41.9200 11.6600 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

Plantations Neutral

Kim Loong Resources Bhd Hold. Target price: RM2.47

CCK Consolidated Holdings Bhd Buy. Target price: RM1.62

Dec 30, 2025: RM2.35

Dec 30, 2025: RM1.23

Source: Bloomberg

KIM Loong Resources Bhd’s (KIML) Q3’26 results performance came in above our expectations, mainly supported by higher than-expected palm oil prices. Despite a 5.1% increase in revenue, the group recorded a 13.7% YoY drop in core net profit to RM42.7 million due to lower contributions from the milling business. For 9M’26, cumulative net profit fell 4.1% YoY to RM131.8 million, accounting for 84% of our full-year forecast and 80% of consensus estimates. Revenue rose 6.1% YoY to RM1.3 billion, primarily driven by higher production and stronger average selling prices. Meanwhile, profit margin in 2H’26 was softer, mainly impacted by weaker milling margins from lower OER, reduced CPO sales volume and increased financing costs. For 9M’26, the plantation division posted a profit of RM126 million, marking a 20% YoY increase. The stronger performance was supported by a 10.3% rise in the average FFB selling price to RM858/tonne, along with a 2.9% increase in FFB production to 248.3k tonnes. The milling division recorded a profit of RM83.3 million in 9M’26, down 19.8% YoY. The weaker performance was mainly due to lower processing margins and higher repair and maintenance expenses. The average CPO selling price rose 5% to RM4,300/tonne, partially offset 1.8% YoY decline in sales volume to 250k tonnes. The group declared a special single-tier dividend of 3 sen/share for the quarter under review, bringing the YTD dividend to 8 sen/share (vs. 10 sen/share a year ago). Management revised its FY26 FFB production growth estimate to 6-8% from earlier guidance of 5-10%, factoring in the improved age profile of young productive palms and the ongoing replanting programme. HOLD with RM2.47 TP. – TA Research, Dec 30

Source: PublicInvest Research

Source: Bloomberg

WE conducted site visits to Sarawak Plantation Bhd (SPB) and Sarawak Oil Palms Bhd (SOP) in Miri, Sarawak. Both companies are early pioneers of Sarawak’s oil palm industry and collectively account for 7% of the state’s planted area. A key takeaway from the visit is the strategic landbank exposure along the Pan-Borneo Highway, which presents medium- to long-term monetisation optionality. We had a fruitful meeting with Eric Kiu (Head of Downstream cum COO) and Wilson Wong (Investor Relations). Management has targeted a long-term replanting size of 4,000-5,000ha p.a. On FFB production growth, management expects a decline of 10% for FY25 but a low single-digit growth for FY26. It has approximately 5,000 acres located along the Pan Borneo Highway, which is slated for asset monetisation in the future. It has a 10,000ha plantable area that is catered for mixed crop planting. We visited the seed production centre and the EK weevil hatchery centre at Peninjau and Subis estates, Miri. The group is set to expand its oil palm seed production capacity by 61% to 2.57 million seeds p.a. in 2026 before hitting 4.4 million seed p.a. in 2030. The estate manager also guided on the use of insect pollinators to transfer pollen from male to female flowers, which could help induce fruit formation and boost production. The most interesting part of the visit was witnessing the performance of its new harvesting machine Lipan, which comes in 3-in-1 features (harvesting, loading, evacuation & dumping) and it could harvest more than 3mt/day (land coverage: 5ha/day). – PublicInvest Research, Dec 30

CCK Consolidated is positioned for an earnings inflection, driven by its dominant retail footprint in Sarawak and accelerating Indonesian expansion. With its Indonesian food processing plant already at optimal utilisation, CCK’s 60%-owned subsidiary Adilmart plans to triple capacity via a third facility, adding 3,000-4,000 tonnes of monthly capacity by Q1’26 to meet unmet demand and expand nationwide distribution. The plan is backed by a strong execution track record, having doubled capacity from 1,000 tonnes/month to 2,000 tonnes/month in 2020, alongside strong market absorption that saw Indonesia sales rise from RM116 million in 2020 to RM212.3 million in 2024. As Sarawak’s largest fresh mart operator, its scale and vertically integrated model support strong pricing power and cost efficiency, underpinning steady margins with GP improving from 18% in FY22 to 21% in FY24. With 73 outlets across East Malaysia and a planned rollout of two new stores annually, CCK’s defensive, cash-based consumer staples business is well positioned to grow alongside Sarawak’s GDP, which is projected to expand at an average 4.6% over 2026-2030 under the 13th Malaysia Plan. CCK benefits directly from rising household incomes and government support initiatives like the MyKasih programme, which sustain spending on essential food items. As a mass-market fresh food retailer with a broad reach and affordable pricing, it is well-positioned to capture incremental wallet share from lower- and middle-income households. This supports resilient SSSG and stable cash flow. BUY with RM1.62 TP. – RHB Research, Dec 30