KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaway: Two brokers believe Cheeding Holdings Bhd offers more than double its IPO value, citing its niche in high-voltage transmission projects, strong margins, and exposure to Malaysia’s and ASEAN’s power grid expansion.
Utilities engineering services firm Cheeding Holdings Bhd could be worth far more than its initial public offering (IPO) price of 36 sen per share, according to research houses ahead of its ACE Market debut on Oct 7.
Apex Securities, which initiated coverage with a ‘buy’ call, values the company at 73 sen — implying a potential return of 103%. The broker highlighted Cheeding’s unique qualifications in high-voltage works, making it a direct proxy for Malaysia’s national grid expansion and the broader ASEAN Power Grid initiative.
Public Investment Bank echoed this view, noting Cheeding’s status as the only listed company in Malaysia focusing on overhead transmission projects — a segment that typically delivers stronger margins compared to underground or substation works. Cheeding has consistently maintained net margins of 22%-23%, nearly double the industry average of around 12%.
The company’s client list is led by Tenaga Nasional Bhd (TNB), which has been cleared to spend almost RM43 billionon accelerating the nation’s energy transition plan. Regionally, the ASEAN Power Grid could require investments of up to US$100 billion (RM420.6 billion) to connect cross-border electricity systems, providing long-term opportunities.
Cheeding’s competitive advantage is further supported by its lean cost structure, focus on overhead infrastructure, and a net cash balance sheet that minimizes financing costs. Analysts believe these factors give the company a strong profitability profile and position it well to capture rising capital expenditure in the power sector.
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