Mah Sing Group

Mah Sing Group stands as one of Malaysia’s prominent property developers, renowned for its swift project turnaround strategy. In the first nine months of 2024, Mah Sing achieved property sales worth RM1.85 billion, representing 74% of its annual sales target. The group’s unbilled sales have surged to RM2.8 billion, showcasing an impressive 1.3x cover ratio. This reflects a growth in sales outpacing revenue, attributed to many projects being in early construction stages.

The group’s 3Q24 results aligned with expectations, with core net profit rising by 6% quarter-on-quarter and 26% year-on-year. A disciplined approach to project finalization has facilitated a 2.5ppt improvement in net profit margins. Mah Sing’s ventures into data centers and its expansion in the plastic manufacturing sector further bolster its growth prospects. Analysts maintain a “Buy” recommendation with a target price of RM2.29, appreciating the diverse growth catalysts and solid financial performance.

Press Metal Aluminium Holdings

Press Metal Aluminium Holdings has delivered above-expectation results for 9M24, driven by its associate PT Bintan’s robust profitability amidst rising alumina prices. The company reported a core net profit of RM1,406.9 million, a significant 55% increase year-on-year. The strong performance owes to higher aluminum prices and enhanced sales volumes.

The company remains well-positioned to leverage ongoing demand recovery and lower raw material costs, especially in China. Press Metal is also making strategic moves, such as establishing a new integrated alumina refinery in Indonesia, to ensure a steady supply of alumina. With a positive outlook for 2025, analysts have upgraded the earnings forecast and maintain a “Buy” recommendation with a target price of RM6.30.

Public Bank

Public Bank’s 3Q24 results were slightly above expectations, thanks to provision writebacks and strong non-interest income. The bank’s net profit for the quarter increased by 12.4% year-on-year, supported by robust fee income and treasury gains. Public Bank’s disciplined approach to fixed deposit pricing has contributed to a 5bps expansion in the net interest margin.

With a stable loan growth trajectory and a resilient asset quality, the bank is poised to meet its financial targets for 2024. Analysts maintain a “Buy” recommendation with a target price of RM5.35, citing the bank’s undervaluation and strong provision buffers as key positives.

RHB Bank

RHB Bank reported a net profit of RM833.2 million for 3Q24, marking a notable 28% year-on-year increase. The bank’s strong performance was driven by a 26% rise in non-interest income and a stable net interest margin. Despite challenges in the lending landscape, RHB Bank’s robust capital position and strategic initiatives position it favorably for future growth.

Analysts have maintained a “Buy” rating and have raised the target price to RM7.30, reflecting the bank’s strong capital management potential and the expectation of continued earnings growth.

Velesto Energy

Velesto Energy’s 3Q24 results were a pleasant surprise, with better-than-expected utilization rates. However, the outlook for 2025 appears challenging, as several operators are deferring drilling programs to the latter half of the year. The company faces potential early terminations, which could impact its rig utilization rates in the near term.

Despite the positive results for 2024, analysts have downgraded the forecast for 2025 and 2026 and maintain a “Hold” recommendation, adjusting the target price to RM0.17.

Bank Islam Malaysia

Bank Islam Malaysia’s 3Q24 earnings were dampened by higher financing costs, leading to a 7% decline in net profit year-on-year. The bank’s earnings were below expectations, impacted by increased finance costs due to new Sukuk issuance. Although lower provisions helped to cushion the earnings dip, the bank faces challenges in maintaining its growth trajectory.

Analysts have revised earnings forecasts downward and maintain a “Hold” rating with a target price of RM2.43, reflecting the bank’s current valuation and growth prospects.

QL Resources

QL Resources reported a 2QFY25 core net profit of RM128.3 million, aligning with expectations. The company’s diverse business segments, including marine products and integrated livestock farming, continue to perform well, despite currency fluctuations impacting margins.

Despite a strong year-to-date performance, analysts have downgraded the stock to “Hold” due to its current valuation, with a target price of RM4.80, citing stable but unexciting growth prospects.

Syarikat Takaful Malaysia Keluarga

Syarikat Takaful Malaysia Keluarga delivered solid 3Q24 earnings, driven by higher contribution releases and a positive dividend surprise. The company declared a higher DPS, reflecting its robust financial health and commitment to shareholders.

Forecasting steady earnings growth, analysts maintain a “Buy” recommendation with a target price of RM4.98, appreciating the company’s leadership in the Islamic insurance sector and its strong market positioning.