Latest news with #RM11.2
The Star
13 hours ago
- Business
- The Star
Rakuten Trade lowers FBM KLCI 2025 target to 1,630 amid earnings downgrade
Bursa Malaysia building in Bukit Kewangan, KL on October 29.—AZMAN GHANI/The Star KUALA LUMPUR: Rakuten Trade Sdn Bhd has revised its year-end target for the FTSE Bursa Malaysia KLCI (FBM KLCI) to 1,630 from its earlier projection of 1,730, in line with the recent downgrades in corporate earnings, said its head of research Kenny Yee Shen Pin. He noted that foreign investors have yet to return to Malaysian equities, despite attractive valuations across Southeast Asian markets, further weighing on the overall market sentiment. "In view of the short-term stance among foreign funds, coupled with recent earnings downgrades, we have lowered our 2025 target for the FBM KLCI to the 1,630 level, based on a 16.0 times price-to-earnings ratio (PER) for the calendar year 2025 ' he said during a webinar today. He noted that at present, the FBM KLCI is trading at a PER of between 12 and 13 times, which remains below both its historical average and valuations of regional peers. He described foreign fund flows as "disappointing' after recording net outflows of RM4 billion in 2024, with the situation deteriorating further this year with net foreign outflows reaching RM11.2 billion so far. "This level (of foreign outflows) is quite perplexing, especially since Malaysia is quite steady both fundamentally and politically, yet we are seeing a diminishing foreign interest in the local market,' he said. He added that non-US-based funds are expected to gradually reduce their exposure to the US markets and shift their focus back to Asia, which could support a rebound in foreign fund inflows in the near term. Notwithstanding the massive foreign outflows, Yee highlighted that foreign shareholding in the local bourse surprising remains decent at 19.44 per cent as of June 2025. "We can only deduce that long-term foreign investors may be returning, while the majority of those who exited were short-term participants. For now, the Hong Kong market will still be their primary destination,' he said. Meanwhile, Yee projected that the US dollar will continue to weaken against the basket of major currencies, with the ringgit likely to strengthen to the 4.10-4.20 range by year-end, supported by the US recessionary concerns that could trigger interest rate cuts. "As many of you know, the US Dollar Index (DXY) has already dropped by 10 per cent year-to-date against major currencies. Hence, moving forward, many expect the dollar index to continue to weaken further --along the way, we may see the ringgit performing better against the US dollar,' he added. On domestic policy, Yee proposed that the government take a measured approach to the rationalisation of RON95 fuel subsidies, especially in light of ongoing geopolitical tensions in the Middle East. "We may see only a partial rationalisation of RON95, depending on how high or how much crude oil prices go,' he suggested. As of this morning, the ringgit traded higher at 4.2490/2700 against the US dollar, while the FBM KLCI climbed 0.22 per cent to 1,504.79 at lunch break. - Bernama
The Sun
14 hours ago
- Business
- The Sun
Rakuten lowers FBM KLCI target to 1,630 amid earnings cut
KUALA LUMPUR: Rakuten Trade Sdn Bhd has revised its year-end target for the FTSE Bursa Malaysia KLCI (FBM KLCI) to 1,630 from its earlier projection of 1,730, in line with the recent downgrades in corporate earnings, said its head of research Kenny Yee Shen Pin. He noted that foreign investors have yet to return to Malaysian equities, despite attractive valuations across Southeast Asian markets, further weighing on the overall market sentiment. 'In view of the short-term stance among foreign funds, coupled with recent earnings downgrades, we have lowered our 2025 target for the FBM KLCI to the 1,630 level, based on a 16.0 times price-to-earnings ratio (PER) for the calendar year 2025 ' he said during a webinar today. He noted that at present, the FBM KLCI is trading at a PER of between 12 and 13 times, which remains below both its historical average and valuations of regional peers. He described foreign fund flows as 'disappointing' after recording net outflows of RM4 billion in 2024, with the situation deteriorating further this year with net foreign outflows reaching RM11.2 billion so far. 'This level (of foreign outflows) is quite perplexing, especially since Malaysia is quite steady both fundamentally and politically, yet we are seeing a diminishing foreign interest in the local market,' he said. He added that non-US-based funds are expected to gradually reduce their exposure to the US markets and shift their focus back to Asia, which could support a rebound in foreign fund inflows in the near term. Notwithstanding the massive foreign outflows, Yee highlighted that foreign shareholding in the local bourse surprising remains decent at 19.44 per cent as of June 2025. 'We can only deduce that long-term foreign investors may be returning, while the majority of those who exited were short-term participants. For now, the Hong Kong market will still be their primary destination,' he said. Meanwhile, Yee projected that the US dollar will continue to weaken against the basket of major currencies, with the ringgit likely to strengthen to the 4.10-4.20 range by year-end, supported by the US recessionary concerns that could trigger interest rate cuts. 'As many of you know, the US Dollar Index (DXY) has already dropped by 10 per cent year-to-date against major currencies. Hence, moving forward, many expect the dollar index to continue to weaken further --along the way, we may see the ringgit performing better against the US dollar,' he added. On domestic policy, Yee proposed that the government take a measured approach to the rationalisation of RON95 fuel subsidies, especially in light of ongoing geopolitical tensions in the Middle East. 'We may see only a partial rationalisation of RON95, depending on how high or how much crude oil prices go,' he suggested. As of this morning, the ringgit traded higher at 4.2490/2700 against the US dollar, while the FBM KLCI climbed 0.22 per cent to 1,504.79 at lunch break.
The Sun
14 hours ago
- Business
- The Sun
Rakuten Trade lowers FBM KLCI 2025 target to 1,630 amid earnings downgrade
KUALA LUMPUR: Rakuten Trade Sdn Bhd has revised its year-end target for the FTSE Bursa Malaysia KLCI (FBM KLCI) to 1,630 from its earlier projection of 1,730, in line with the recent downgrades in corporate earnings, said its head of research Kenny Yee Shen Pin. He noted that foreign investors have yet to return to Malaysian equities, despite attractive valuations across Southeast Asian markets, further weighing on the overall market sentiment. 'In view of the short-term stance among foreign funds, coupled with recent earnings downgrades, we have lowered our 2025 target for the FBM KLCI to the 1,630 level, based on a 16.0 times price-to-earnings ratio (PER) for the calendar year 2025 ' he said during a webinar today. He noted that at present, the FBM KLCI is trading at a PER of between 12 and 13 times, which remains below both its historical average and valuations of regional peers. He described foreign fund flows as 'disappointing' after recording net outflows of RM4 billion in 2024, with the situation deteriorating further this year with net foreign outflows reaching RM11.2 billion so far. 'This level (of foreign outflows) is quite perplexing, especially since Malaysia is quite steady both fundamentally and politically, yet we are seeing a diminishing foreign interest in the local market,' he said. He added that non-US-based funds are expected to gradually reduce their exposure to the US markets and shift their focus back to Asia, which could support a rebound in foreign fund inflows in the near term. Notwithstanding the massive foreign outflows, Yee highlighted that foreign shareholding in the local bourse surprising remains decent at 19.44 per cent as of June 2025. 'We can only deduce that long-term foreign investors may be returning, while the majority of those who exited were short-term participants. For now, the Hong Kong market will still be their primary destination,' he said. Meanwhile, Yee projected that the US dollar will continue to weaken against the basket of major currencies, with the ringgit likely to strengthen to the 4.10-4.20 range by year-end, supported by the US recessionary concerns that could trigger interest rate cuts. 'As many of you know, the US Dollar Index (DXY) has already dropped by 10 per cent year-to-date against major currencies. Hence, moving forward, many expect the dollar index to continue to weaken further --along the way, we may see the ringgit performing better against the US dollar,' he added. On domestic policy, Yee proposed that the government take a measured approach to the rationalisation of RON95 fuel subsidies, especially in light of ongoing geopolitical tensions in the Middle East. 'We may see only a partial rationalisation of RON95, depending on how high or how much crude oil prices go,' he suggested. As of this morning, the ringgit traded higher at 4.2490/2700 against the US dollar, while the FBM KLCI climbed 0.22 per cent to 1,504.79 at lunch break.
The Sun
26-05-2025
- Business
- The Sun
WTEC Group targets operational efficiency, long-term growth post IPO
KUALA LUMPUR: Manufacturer of foam and non-foam products, WTEC Group Bhd reported a revenue of RM11.2 million for the first quarter (Q1) ended March 31, 2025 (FY25), with its core manufacturing segment contributing approximately 89.7% and trading activities accounting for the remaining 10.3%. The company achieved a gross profit (GP) of RM3.6 million, translating into a stable GP margin of approximately 32.5%. There are no comparative figures for the preceding corresponding quarter and period, as this is the company's first interim financial report, which is being announced in compliance with Bursa Malaysia's ACE Market Listing Requirements. WTEC Group's profit before tax (PBT) was RM1.5 million, while profit after tax (PAT) was RM1.1 million, translating to a PBT margin of approximately 13.5% and a PAT margin of approximately 10.2%. On an adjusted basis, after excluding one-off listing expenses of RM0.2 million, WTEC Group's adjusted PBT and PAT amounted to RM1.7 million and RM1.3 million, respectively. This represents an adjusted PBT margin of approximately 14.8% and an adjusted PAT margin of approximately 11.5%. Group managing director Tan Kok Kheng said following the recent listing, the company is committed to strengthening its position in the manufacturing sector by enhancing both its manufacturing capacity and operational efficiency. 'The continued expansion of Malaysia's automotive, electrical, and electronics industries provides a supportive backdrop for demand in our foam and non-woven fabric products. 'To capitalise on this growth, we are investing in a new ready-built manufacturing facility that will consolidate multiple facilities to improve efficiency, streamline production, and provide the space needed to install new machinery and equipment we plan to purchase. 'The new facility is targeted to commence operations in the second quarter of 2026. 'At the same time, we acknowledge the global trade uncertainties stemming from the recent imposition of reciprocal tariffs by major economies. 'However, our exposure remains limited. Most of our revenue is derived from the Malaysian market, while most international orders are not destined for the US market. 'This domestic-centric revenue base provides insulation against global tariff impacts and supports our continued pursuit of stable, long-term growth,' Tan said. To recap, WTEC Group was listed on the ACE Market of Bursa Malaysia on April 29, 2025 and had successfully raised RM22.5 million through its initial public offering exercise. WTEC Group was listed on the ACE Market of Bursa Malaysia on April 29, 2025 and had successfully raised RM22.5 million through its initial public offering exercise.
Daily Express
21-05-2025
- Daily Express
Five arrested in RM300,000 graft case over fraudulent loan approvals
Published on: Wednesday, May 21, 2025 Published on: Wed, May 21, 2025 Text Size: SANDAKAN: The Malaysian Anti-Corruption Commission (MACC) has arrested five men, including a former officer of a financial institution, suspected of receiving RM300,000 in bribes to facilitate fraudulent loan approvals. The suspects, aged between their 20s and 40s, were detained between 2pm and 7pm today at the MACC office here. Initial investigations revealed they had been involved in approving RM11.2 million in loans for 39 applicants between 2022 and 2024 using forged supporting documents. Sabah MACC Director Datuk S Karunanithy confirmed the arrests, saying the case is being investigated under Section 16(a)(A) of the MACC Act 2009 for accepting bribes concerning official duties. He added that the operation was carried out in collaboration with an internal audit unit of a local financial institution, and remand applications will be made at the Sessions Court here tomorrow (Thursday). * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
