AMMB Holdings: Navigating Positive NIM Trajectory
AMMB Holdings recorded a robust 2QFY25 performance, slightly exceeding expectations. The strong performance was primarily driven by a positive net interest margin (NIM) recovery, indicating improved financial health. The company’s 2QFY25 earnings rose by 6.6% year-on-year (yoy), backed by a 14 basis points NIM expansion, although it’s partially constrained by a 23% drop in non-interest income. Notably, AMMB’s CET1 ratio improved significantly, reflecting a strong capital position, paving the way for enhanced capital management and potential dividend increases. The stock is recommended as a HOLD with a target price of RM5.74, reflecting a 4.6% upside.
IJM Corporation: Construction Segment Shines Amidst Challenges
IJM Corporation’s 1HFY25 results surpassed expectations, primarily due to higher-than-expected construction earnings. Despite the property segment facing delays and infrastructure reporting losses, the construction milestones are expected to bolster margins. With a commendable order book and promising tenders in the pipeline, IJM maintains a BUY rating with a target price of RM3.60. The company’s focus on key projects like the Iskandar data centre and Penang electronics warehouse ensures a bright outlook.
Kerjaya Prospek Group: Thriving on High Construction Revenue
Kerjaya Prospek Group delivered stellar earnings growth, fueled by high construction revenue. Although margins faced slight compression due to external jobs, the future remains promising with a robust order book and targeted replenishments. The company has maintained a BUY recommendation, albeit with a slightly lower target price of RM2.44. The strategic focus on property sales and a diversified workforce further strengthens its market position.
NationGate Holdings: Growth Positioned, Yet Market Reflects Positives
NationGate Holdings is poised for a growth spurt, driven by expanded production from new server business ventures. Despite the impressive trajectory, the current share price reflects these positives, leading to a downgrade to HOLD with a target price of RM2.10. The company’s commitment to enhancing its operational capabilities and exploring new customer collaborations underscores its strategic growth initiatives.
TIME dotCom: Capital Management Takes Center Stage
TIME dotCom’s 3Q24 results align with expectations, driven by a stable revenue stream and strategic capital management. The company’s focus on maintaining lower capital expenditure while offering an attractive dividend yield highlights its robust financial health. With a BUY recommendation and a target price of RM6.00, TIME dotCom remains a lucrative prospect for investors seeking dividend stability and growth.
Gabungan AQRS: Facing Challenges with Strategic Adjustments
Gabungan AQRS reported disappointing 1QFY25 results, primarily due to lower construction revenue. The company is grappling with project completion delays, impacting its financial performance. Despite these challenges, strategic replenishment opportunities exist. Consequently, the stock has been downgraded to HOLD with a target price of RM0.31, reflecting a cautious outlook amidst current operational hurdles.
Genting Plantations: Riding on Strong CPO Prices
Genting Plantations’ 3Q24 performance met expectations, supported by higher CPO prices despite a drop in FFB production. The downstream business faces challenges, but the upcoming Jakarta Premium Outlets offer a promising outlook. The HOLD recommendation with a target price of RM5.15 reflects a balanced view amidst fluctuating market conditions and production challenges.
Inari Amertron: Positioned for Rebound Despite Forex Challenges
Inari Amertron’s 1QFY25 results were impacted by unexpected forex fluctuations, yet the company is poised for a rebound. Strategic partnerships in China and a focus on RF segment growth offer promising prospects. With a continued BUY recommendation and a revised target price of RM3.40, Inari remains a key player in the technology sector.
Malaysian Resources Corporation: Challenges Amidst Property and Construction
Malaysian Resources Corporation faced a challenging 3Q24, with weaker earnings in property development and construction. Despite the setbacks, strategic project launches and a robust tender book offer potential future growth. The stock maintains a BUY rating with a target price of RM0.62, emphasizing cautious optimism for recovery and expansion.
RGB International: Strategic Dividends and Promising Future
RGB International’s 3Q24 performance aligns with expectations, bolstered by strong SSM and TSM operations. The declaration of a special dividend underscores management’s confidence in future growth. With a BUY recommendation and a target price of RM0.66, RGB is set for a record earnings year, driven by strategic order fulfillment and robust financial management.
