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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.