Thursday, July 10th, 2025

Top Malaysian Stock Picks & Key Insights from Invest ASEAN-Malaysia 2025 Conference | Maybank IBG Report

Maybank Investment Bank Berhad
Date of Report: July 7, 2025

Invest ASEAN-Malaysia 2025: Top Stock Ideas, Company Takeaways, and Market Trends

Overview: Positive Momentum as Investors Seek Quality Amid Volatility

The Invest ASEAN-Malaysia 2025 conference, jointly organized with Bursa Malaysia, gathered significant interest from institutional investors across sectors, with over 30 listed companies presenting their outlooks, strategies, and financials. The event’s core themes centered on macroeconomic resilience, sectoral tailwinds, and actionable stock ideas to navigate the increasingly volatile 2H25 landscape.
The conference was marked by:

  • Strong demand for meetings with consumer, construction, and utility companies.
  • Investor interest in growth prospects, expansion strategies, and earnings resilience amid tariff concerns and geopolitical risks.
  • Government policy updates and industry trends, especially in AI and e-commerce, providing crucial context for positioning in Malaysian equities.

Key Sectors and Companies: In-Depth Analysis and Financial Snapshots

Alliance Bank Malaysia Berhad (ABMB MK, HOLD, TP MYR4.68)

  • SME loans constitute 30% of the portfolio, mainly from services, trading, and manufacturing.
  • Proceeds from a recent ~MYR600m rights issue will support accelerated loan growth, with an 8-10% loan growth target for FYE3/26E (FY25: 12%).
  • Net interest margin guidance: 2.40-2.45% for FYE3/26E (FY25: 2.45%).
  • ROE is expected to stay at 10% despite marginal dilution from the rights issue.
  • Growth drivers: robust loans, treasury, and investment banking income from more IPO mandates.
FYE Mar (MYR m) FY24A FY25A FY26E FY27E FY28E
Operating income 2,020 2,270 2,379 2,504 2,633
Pre-provision profit 1,047 1,181 1,250 1,323 1,397
Core net profit 690 751 748 790 835
Core FDEPS (MYR) 0.43 0.47 0.47 0.50 0.53
Net DPS (MYR) 0.22 0.19 0.19 0.20 0.21
ROAE (%) 9.9 10.1 9.5 9.6 9.5

Aurelius Technologies (ATECH MK, BUY, TP MYR1.19)

  • Expanding capacity at new P5 plant focused on automotive, with existing key clients expected to take up space.
  • Top three clients (IoT, industrial communications) contribute >70% of revenue.
  • 2Q25 is seasonally stronger; FX volatility managed through customer contracts.
  • Cost advantage over China remains; strategic account share gains targeted.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 386 604 666 707 767
EBITDA 53 75 107 117 130
Core net profit 38 57 74 79 89
Core EPS (sen) 9.7 14.2 5.7 6.1 6.8
Net DPS (sen) 4.9 8.7 3.4 3.7 4.1
ROAE (%) 13.7 14.9 14.9 15.2 16.0

Bursa Malaysia (BURSA MK, HOLD, TP MYR7.30)

  • New CEO targets execution of Strategic Roadmap 2024-2026.
  • Key priorities: Attract listings from national priority sectors, boost liquidity, enhance Shariah-compliant profiling, improve customer experience, and pursue tech-based non-trading revenues.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 616 784 705 732 776
EBITDA 355 446 390 402 430
Core net profit 252 310 267 273 290
Core EPS (sen) 31.2 38.3 33.0 33.7 35.9
Net DPS (sen) 29.0 44.0 31.0 31.5 33.5
ROAE (%) 31.4 36.6 31.8 33.5 34.6

Cypark Resources (CYP MK, HOLD, TP MYR0.94)

  • Refinancing exercise underway to lower debt cost from 6.8% to ~5.1–5.2%.
  • MYR3.5b tender book supports EPCC-driven revenue focus.
  • Key project catalysts: LSS5+, 500MW Kenyir Hybrid Hydro Solar (3QCY25), and WTE Phase 2, which could boost segment earnings.
FYE Apr (MYR m) FY24A FY25A FY26E FY27E FY28E
Revenue 184 158 402 532 531
EBITDA 30 52 166 196 197
Core net profit (48) (108) 5 29 29
Core EPS (sen) (5.9) (13.2) 0.6 3.5 3.5
ROAE (%) (14.9) (3.0) 0.6 3.3 3.4

Eco World Development (ECW MK, BUY, TP MYR2.23)

  • Focus: Strategic land sales, data centre deals (2024–2025), accelerated launches at Eco Radiance, Eco Botanic 3, and Eco Business Park VII.
  • Disciplined landbanking near existing projects to optimize costs.
  • Net gearing remains elevated, but data centre lease with Pearl Computing will provide stable recurring income.
FYE Oct (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 2,227 2,258 2,846 4,016 3,771
EBITDA 388 468 535 904 705
Core net profit 273 347 407 672 520
Core EPS (sen) 9.3 11.8 13.8 22.8 17.7
ROAE (%) 4.0 6.3 8.5 12.6 9.1

Eco-Shop Marketing (ECOSHOP MK, Not Rated)

  • Strong growth in Malaysia’s dollar-store segment; target to open 70+ new stores annually.
  • Distribution centre expansion to support store rollout through 2034.
  • Price per item increased to MYR2.60 (from MYR2.40) in April 2025; SSSG and sales volume discussed.
  • Challenges: Rising supplier costs, minimum wage, SST extension, and utilities.
FYE May (MYRm) FY22A FY23A FY24A
Revenue 1,574 1,991 2,404
EBITDA 147 255 368
Core net profit 27 107 183
Core EPS (sen) 0.5 1.9 3.2
P/BV (x) 17 14 13
ROAE (%) 12.8 22.2 32.9

Farm Fresh Berhad (FFB MK, BUY, TP MYR2.10)

  • Capacity expansion at Malaysian plants; exit from Australian farm ownership to focus on cost-efficient raw milk sourcing.
  • Milk powder price hedged through Dec 2025; farmgate prices in Australia a risk, but MYR appreciation may mitigate.
  • Consumer packaged ice-cream segment to scale with new Bandar Enstek hub.
  • Philippines expansion: New milk processing plant, launch of chilled and UHT milk products.
FYE Mar (MYR m) FY24A FY25A FY26E FY27E FY28E
Revenue 810 981 1,217 1,366 1,498
EBITDA 134 190 243 277 290
Core net profit 62 107 132 151 161
Core EPS (sen) 3.3 5.7 7.1 8.1 8.6
ROAE (%) 9.8 15.6 17.6 17.7 16.5

Gamuda (GAM MK, BUY, TP MYR5.37)

  • Targeting MYR40b–MYR45b orderbook by end-CY25E (current: MYR37b); confident even without new data centre contracts.
  • Potential job wins: Malaysian infrastructure, Australian metro and renewable projects, Taiwan MRT.
  • Property sales target: MYR5.0b (FY25E), MYR6.0b (FY26E); Vietnam property market benefits from lower US tariffs.
  • Long-term target: MYR50b orderbook, c.20% revenue CAGR to MYR30b by FY28E.
FYE Jul (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 8,220 13,347 18,598 23,776 27,030
EBITDA 868 957 1,454 2,037 2,109
Core net profit 815 912 974 1,367 1,486
Core FDEPS (sen) 15.1 16.2 16.1 22.5 24.5
Net DPS (sen) 25.0 8.0 10.0 11.0 12.0
ROAE (%) 6.5 8.2 8.4 11.3 11.5

IHH Healthcare (IHH MK, BUY, TP MYR7.97)

  • Recent Great Eastern pullback of pre-authorization facilities in two Singapore hospitals is isolated; cashless facility for affected patients retained.
  • Major expansion in India and Malaysia (+1,900/+1,410 beds by FY28E).
  • Regulatory and price pressures, as well as SST impact on foreign patients, closely monitored.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 20,935 24,383 26,565 29,365 32,185
EBITDA 4,644 5,439 5,913 6,710 7,304
Core net profit 1,935 2,193 2,135 2,571 2,864
Core FDEPS (sen) 22.0 24.9 24.1 29.1 32.4
Net DPS (sen) 18.6 10.0 10.5 12.5 14.0
ROAE (%) 10.7 9.0 6.9 8.0 8.5

IJM Corporation (IJM MK, BUY, TP MYR3.18)

  • Orderbook wins targeted at MYR6b-MYR8b for FY3/26E (FY3/25A: MYR2.7b), with MYR2.4b already secured from delayed projects.
  • Property sales target: MYR2.0b (FY3/26E), up from MYR1.5b (FY3/25A).
  • Port throughput growth expected from China investments and ECRL launch.
FYE Mar (MYR m) FY24A FY25A FY26E FY27E FY28E
Revenue 5,919 6,252 6,456 8,033 8,828
EBITDA 1,343 1,350 1,345 1,524 1,676
Core net profit 506 528 493 592 672
Core EPS (sen) 14.4 15.1 14.1 16.9 19.2
Net DPS (sen) 8.0 8.0 8.0 8.0 8.0
ROAE (%) 6.0 3.9 4.7 5.6 6.1

ITMAX System Bhd (ITMAX MK, BUY, TP MYR4.50)

  • Focus: Execute ongoing city CCTV and parking contracts in Kuala Lumpur, Johor Bahru, and Penang.
  • Kuala Lumpur CCTV count to double to 20k by 2028 via variation orders.
  • Johor Bahru: Plans for 34k CCTVs; outdoor parking concession up for renewal.
  • Active negotiations for maiden CCTV installations in other districts.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 150 220 245 323 348
EBITDA 95 122 160 215 230
Core net profit 64 80 94 131 140
Core EPS (sen) 6.2 7.7 9.2 12.7 13.6
Net DPS (sen) 1.2 1.5 1.8 2.5 2.7
ROAE (%) 20.3 21.7 21.5 24.8 22.0

KLCCP Stapled Group (KLCCSS MK, HOLD, TP MYR8.76)

  • Over 50% of PBT is from office segment via triple net leases (mainly with Petronas), ensuring high income visibility.
  • 98% of retail leases are fixed base rent, limiting exposure to consumer swings.
  • Minimal impact expected from 8% SST hike; cautious on indirect macro risks.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 1,619 1,711 1,845 1,890 1,959
Net property income 1,141 1,185 1,118 1,139 1,184
Core net profit 726 782 811 833 878
Core EPU (sen) 40.2 43.3 44.9 46.2 48.6
Net DPU (sen) 38.3 42.2 42.3 42.4 44.7
Net DPU yield (%) 5.4 5.2 4.8 4.8 5.1

KPJ Healthcare (KPJ MK, BUY, TP MYR3.24)

  • Sales and leaseback proposal, solid insurer relationships, and sectoral defensiveness (aging population) underpin optimism.
  • Delay of DRG regulation seen as a positive (uncaps earnings potential).
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 3,419 3,922 4,371 4,757 5,142
EBITDA 760 938 1,028 1,119 1,209
Core net profit 232 354 437 507 567
Core EPS (sen) 5.3 8.1 10.0 11.6 13.0
Net DPS (sen) 3.4 4.2 5.1 5.9 6.7
ROAE (%) 11.4 14.4 16.6 17.7 18.2

MR D.I.Y. Group (MRDIY MK, BUY, TP MYR1.85)

  • 70% of products sourced from China; MYR appreciation over CNY could boost margins.
  • Store expansion: +190 stores in FY25 targeted; review of 5-year plan in 2026.
  • Addressing cost pressures from wage hikes, SST, and utilities.
  • Update on KKV store rollout and performance.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 4,359 4,651 5,132 6,139 7,641
EBITDA 1,124 1,170 1,233 1,350 1,538
Core net profit 561 569 622 711 849
Core EPS (sen) 5.9 6.0 6.6 7.5 9.0
Net DPS (sen) 3.2 5.0 4.9 5.6 6.7
ROAE (%) 35.3 30.9 30.9 32.6 35.7

Nationgate Holdings (NATGATE MK, Not Rated)

  • Strong 1H25 outlook due to frontloading after US restrictions; 2H25 visibility less clear.
  • Sole elite partner for a key customer in Southeast Asia; scaling up with new US-listed client.
  • FY25 PAT guided to improve, with resilience in data centre and enterprise demand.
FYE Dec (MYRm) FY20A FY21A FY22A FY23A FY24A
Revenue 566.2 760.9 945.7 638.3 5,270.8
EBITDA 60.7 95.8 150.3 116.9 286.9
Net profit 30.6 57.3 85.3 60.8 160.2
EPS (sen) 1.5 2.5 3.7 2.5 7.0
Net DPS (sen) 0.0 0.0 1.0 1.0 2.0
ROAE (%) 33.9 42.6 43.5 16.3 17.5

Oriental Kopi (KOPI MK, Not Rated)

  • Overseas expansion, FMCG sales, and specialty store growth discussed.
  • Cost pressures from higher wages, rentals, and SST; new central kitchen and capex plans underway.
FYE Dec (MYRm) FY21A FY22A FY23A FY24A
Revenue 5.0 48.6 133.0 277.3
EBITDA 0.1 15.8 39.6 80.1
Core net profit (0.5) 9.6 20.0 43.1
Core EPS (sen) 0.0 0.5 1.0 2.2
ROAE (%) -33.6 54.1 58.9 80.6

Petronas Chemicals (PCHEM MK, SELL, TP MYR2.59)

  • Sector headwinds: regional capacity additions, trade war/tariff risk, subdued O&D spreads in 2H25.
  • Potential negative impact from USD/MYR currency moves due to headline revaluation effects.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 28,667 30,671 31,856 31,526 32,507
EBITDA 4,134 4,345 4,353 4,945 5,252
Core net profit 1,704 1,159 900 1,380 1,664
Core EPS (sen) 21.3 14.5 11.3 17.2 20.8
Net DPS (sen) 13.0 13.0 5.6 8.6 10.4
ROAE (%) 4.3 3.0 2.3 3.5 4.1

Press Metal Aluminium (PMAH MK, BUY, TP MYR5.64)

  • USD1b alumina refinery in Indonesia to reduce bauxite reliance; targets >70% value-added product contribution (currently 48%).
  • Aluminium prices seen as stable; 60%/45%/40% of FY25/FY26/FY27E sales hedged.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 13,805 14,910 14,550 15,240 14,775
EBITDA 2,344 2,636 2,916 3,126 3,419
Core net profit 1,243 1,853 1,857 2,088 2,292
Core EPS (sen) 15.1 22.5 22.5 25.3 27.8
Net DPS (sen) 7.0 7.0 9.0 10.1 11.1
ROAE (%) 17.9 22.8 20.5 20.4 19.8

SD Guthrie (SDG MK, BUY, TP MYR5.52)

  • Land value maximization: 10,000 acres identified for sales/JV development over 5 years.
  • Target: MYR500m–MYR1,000m annual income from new initiatives (e.g., Port Dickson Free Zone).
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 18,428 19,831 20,841 21,479 22,103
EBITDA 3,192 4,155 4,201 4,384 4,649
Core net profit 875 1,570 1,653 1,752 1,915
Core EPS (sen) 12.7 22.7 23.9 25.3 27.7
Net DPS (sen) 15.0 16.4 12.0 12.7 13.8
ROAE (%) 10.9 11.9 8.7 8.9 9.3

Solarvest Holdings (SOLAR MK, BUY, TP MYR2.28)

  • MYR1.24bn orderbook with strong revenue visibility through FY26–27E.
  • Shift to bundled energy solutions (solar, BESS, efficiency) as demand rises from corporates/industrials.
  • Recurring income from LSS4 and CGPP increasing; international growth (e.g., Vietnam) targeted.
FYE Mar (MYR m) FY24A FY25A FY26E FY27E FY28E
Revenue 493 537 950 980 996
EBITDA 62 96 129 138 140
Core net profit 32 52 76 88 89
Core EPS (sen) 4.4 7.1 10.3 12.0 12.1
Net DPS (sen) 0.0 0.0 2.6 3.0 3.0
ROAE (%) 15.2 17.7 19.6 19.7 17.3

Sunway (SWB MK, BUY, TP MYR5.31)

  • Main engines: Property and construction, especially Johor-Singapore SEZ launches.
  • Sunway Construction Group (54% owned) has resilient data centre orderbook; MYR3.5b YTD wins (54% DC-related).
  • Disciplined execution and ecosystem synergies are growth pillars.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 6,136 8,940 10,922 11,697 14,033
EBITDA 667 1,945 1,515 1,642 1,929
Core net profit 659 2,136 1,098 1,169 1,342
Core EPS (sen) 11.2 32.4 16.7 17.7 20.4
Net DPS (sen) 5.5 6.0 6.0 6.0 6.0
ROAE (%) 5.6 15.3 7.2 7.3 8.0

Sunway Construction Group (SCGB MK, BUY, TP MYR6.72)

  • MYR7.9b orderbook, MYR3.5b YTD job wins (51% of FY25E target), MYR14.8b tenderbook (90% DC-related).
  • Upcycle in data centre construction expected to last 2–3 more years.
  • SST and higher power tariffs will impact co-location data centre contracts, but demand remains robust.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 2,671 3,522 5,625 5,987 7,788
EBITDA 245 279 458 491 633
Core net profit 145 187 338 361 463
Core EPS (sen) 11.3 14.5 26.2 28.0 35.9
Net DPS (sen) 6.0 8.5 18.3 19.6 25.1
ROAE (%) 18.5 21.8 36.1 34.7 39.7

Tenaga Nasional (TNB MK, BUY, TP MYR15.50)

  • Facing MYR5.05b in outstanding tax disputes; pursuing investment allowance claims.
  • Capex schedule and RP4 spending under scrutiny.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 63,665 65,835 67,497 70,301 73,424
EBITDA 14,484 16,112 16,952 18,165 19,843
Core net profit 3,735 4,847 4,714 5,286 5,853
Core FDEPS (sen) 64.4 83.4 81.1 90.9 100.7
Net DPS (sen) 46.0 51.0 40.5 45.5 50.3
ROAE (%) 5.9 9.0 7.7 8.3 8.8

Westports Holdings (WPRTS MK, BUY, TP MYR5.84)

  • Tariff adjustment keeps terminal charges competitive.
  • CT10 expansion to add capacity from 2H28; volume growth expected in 2029.
  • Benefiting from transshipment demand due to Gemini alliance, but capacity constraints limit further transshipment pursuit.
FYE Dec (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 2,089 2,280 2,524 2,862 3,063
EBITDA 1,266 1,415 1,599 1,912 2,083
Core net profit 775 893 980 1,195 1,298
Core EPS (sen) 22.7 26.2 28.7 35.0 38.1
Net DPS (sen) 17.0 19.6 21.5 26.3 28.5
ROAE (%) 22.9 24.5 24.9 28.4 28.7

Yinson Holdings (YNS MK, BUY, TP MYR4.33)

  • FPSO Agogo’s early delivery could trigger bonus payment; more mid-sized FPSO/FSO jobs targeted.
  • Potential subsidiary US listing (Yinson Production) within 5 years.
  • Positioned for recurring income and orderbook growth.
FYE Jan (MYR m) FY24A FY25A FY26E FY27E FY28E
Revenue 11,646 7,605 6,079 5,841 5,841
EBITDA 2,914 2,605 4,018 4,407 4,407
Core net profit 982 553 652 1,000 1,075
Core EPS (sen) 33.4 17.4 20.5 31.4 33.8
Net DPS (sen) 3.0 4.0 6.0 8.0 8.0
ROAE (%) 20.4 23.4 11.9 16.4 15.6

YTL Power (YTLP MK, BUY, TP MYR4.20)

  • Main focus: AI Cloud and data centre business, including launch of ILMU, Malaysia’s sovereign LLM in Bahasa Melayu.
  • Optimism on ongoing data centre growth.
  • PowerSeraya (market-driven model) and Wessex Water (regulated return) also discussed.
FYE Jun (MYR m) FY23A FY24A FY25E FY26E FY27E
Revenue 21,893 22,321 21,403 21,648 21,969
EBITDA 4,847 6,604 5,517 5,524 5,595
Core net profit 1,918 3,180 2,491 2,454 2,391
Core EPS (sen) 23.7 39.2 30.4 29.9 29.2
Net DPS (sen) 6.0 7.0 7.0 7.0 7.0
ROAE (%) 13.0 18.8 11.8 10.7 9.6

Zuspresso (Not Listed)

  • Zus Coffee leverages tech-driven customer insights and has expanded overseas (Singapore, Brunei, Philippines), with further regional expansion planned.
  • FMCG push with ready-to-drink coffee products now available in convenience channels.

99 Speed Mart (99SMART MK, Not Rated)

  • Largest home-grown minimarket chain in Malaysia; eyes entry into Kelantan after Terengganu DC setup (currently 20 DCs nationwide).
  • Focus: Sustaining SSSG, store and DC expansion, cost management (utilities, fuel, SST, minimum wage).
  • Extended closing hours boost revenue, but 24-hour operation deemed uneconomical.
FYE Dec (MYR m) FY21A FY22A FY23A FY24A FY25A
Revenue 7,837 8,075 9,214 9,982 0
EBITDA 790 732 803 941 0
Core net profit 419 327 400 490 0
Core EPS (sen) 498.9 388.9 476.5 594.6 0.0
Net DPS (sen) 183.7 514.0 583.9 242.5 0.0
ROAE (%) 113.7 47.7 68.2 46.2 0.0

Conclusion: Stock Picking and Sector Focus Key for 2H25

The Invest ASEAN-Malaysia 2025 event demonstrated strong investor appetite for actionable ideas amid an uncertain global and domestic backdrop. Companies with clear growth strategies, resilient margins, and operational agility in the face of tariffs and rising costs stand out as potential winners. Sectors such as consumer, construction, utilities, and technology—backed by visible demand, government support, and transformative projects—remain in the spotlight for investors seeking to position ahead of expected market volatility in the second half of 2025.

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