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Quick Summary FY2025 core net profit up 11% to RM633m Same-store sales growth (SSSG) still weak at  -2% for full year Analysts downgrade on  store saturation and cannibalisation risks YTD share price up 22%, limiting upside Strong Earnings, But Growth Questions Emerge Shares of  Mr DIY Group (M) Bhd  are facing more cautious analyst views, even after delivering solid FY2025 earnings. FY2025 highlights: Core net profit:  RM633 million ( +11% YoY ) Gross margin expansion driven by: Lower procurement costs Stronger ringgit However: Full-year SSSG remained negative at -2% 4QFY2025 SSSG turned positive at  +1.4% , helped by festive demand and promotions Key issue:  Organic growth remains soft despite margin strength. Why Analysts Are Turning Cautious 1️⃣ Store Saturation Risk The group plans to open  155 new stores in FY2026 , raising concerns of: Sales cannibalisation Slower sales per square foot Market nearing maturity 2️⃣ Valuation No Longer Cheap S...

Quick Summary Boycott pressure remains a key overhang  on  Berjaya Food Bhd , despite recent operational improvements Losses are expected to persist for several years , according to  CIMB Securities Same-store sales improved , but competition and rising costs could weaken 2HFY2026 “Reduce” rating maintained  with a target price of  20 sen What CIMB Is Saying CIMB Securities warned that  ongoing local and nationwide boycotts  continue to cloud Berjaya Food’s outlook, even as the group posted  narrower quarterly losses . While  1HFY2026 results met expectations , the research house expects  a weaker 2HFY2026 , citing: Intensifying competition  in the F&B space Higher operating expenses , particularly from marketing and promotions needed to defend market share Key risk:  Any aggressive promotional push could  further strain margins . Financial Snapshot (2QFY2026) Net loss:   RM11.9m  (vs  RM14.6m  in 1...

Bursa Malaysia Bhd (KL:BURSA) could be heading for a stronger quarter ahead as market activities show signs of recovery — though analysts warn that the stock’s upside remains limited after recent gains. Momentum Builds as Trading Activity Picks Up Trading activity improved notably in the third quarter, with  average daily volumes jumping 13%  compared to the previous quarter. Analysts believe investors have now adjusted to the  market impact of US President Donald Trump’s policies , and momentum continued to build in October. “We expect trading activities to pick up further as investor sentiment improves on the back of potential US rate cuts and lower trade policy risks,” said MBSB Research. “However, much of the optimism may already be priced in,” it added. Stock Rally Faces Resistance Despite the positive momentum, Bursa’s stock dipped  3.4% on Friday , or  28 sen , after rallying more than  16% from its April lows . Analysts caution that valuations may n...

Velesto Energy Bhd (KL:VELESTO)  is set to deliver stronger operational results in the  second half of 2025 (2H2025) , but further share price upside appears limited, according to  Hong Leong Investment Bank (HLIB) . The research house said the recent rally has already  priced in higher rig utilisation rates and dividend prospects  following Velesto’s capital reduction exercise. HLIB downgraded the counter to a  “hold”  from  “buy” , citing  normalising earnings growth  under  lower day charter rate (DCR) assumptions  for the financial years ending  Dec 31, 2026 (FY2026)  and  FY2027 . Reflecting a more cautious outlook, HLIB  trimmed its FY2026 and FY2027 earnings forecasts by 6.2% and 1.1% , respectively, to factor in softer DCR expectations as  longer-term contracts  increasingly dominate the company’s portfolio. Stock Performance and Valuation Velesto’s shares have  more than doubled ...

Nvidia Leads Year-to-Date, Tesla Surges in September Nvidia ($NVDA) remains the top performer among the Magnificent 7 this year, while Tesla ($TSLA) delivered a remarkable  32% rally in September . With both stocks facing pivotal catalysts in the coming months, investors are weighing which name offers the stronger case into year-end. Nvidia: AI and Data Center Momentum Key Catalysts Ahead Oct 6: OpenAI DevDay  – Potential updates on model launches and inference costs could directly impact Nvidia’s AI ecosystem. Oct 13: Oracle AI World  – Focus on second-tier cloud and AI infrastructure partnerships. Oct 16: TSMC Q3 Earnings  – Market attention on CoWoS packaging capacity and N2 process ramp. Oct 28: Nvidia GTC Keynote (DC20)  – CEO Jensen Huang expected to update on GPU platforms, networking and public sector demand. Nov 19: Q3 FY26 Earnings  – Focus on  data center revenue , GB200 shipments, and gross margins. Technical Setup Nvidia recently broke abo...

 Aluminium Prices Hit One-Year High Maybank Investment Bank (Maybank IB) remains positive on  Press Metal Aluminium Holdings Bhd (PMETAL)  as aluminium prices climb to their highest in a year amid tight global supply. Prices on the London Metal Exchange (LME) rose to  US$2,737 per tonne in September , already exceeding Maybank’s year-end forecast of  US$2,550 per tonne . The research house highlighted that inventories remain near multi-decade lows, while sanctions on Russia and China’s 45 million tonne production cap continue to squeeze supply. High energy costs have also led to smelter shutdowns in some regions, adding to the deficit risk. U.S. Dollar Weakness a Key Earnings Headwind While a weaker greenback could support aluminium demand globally, Maybank IB cautioned that it poses a downside risk for Press Metal’s earnings. This is because the company  earns revenue in U.S. dollars but reports in ringgit . Maybank estimates that a  5% depreciation o...

IHH Seen as Sector Leader CIMB Securities has reaffirmed  IHH Healthcare Bhd (KL:IHH)  as its top choice in the healthcare sector, citing the group’s diversified international operations as a key strength against Malaysia’s regulatory headwinds. In a note on Friday, the research house highlighted IHH’s  attractive valuation , resilient earnings profile, and strong recovery prospects, particularly in Singapore. The division is expected to deliver a meaningful rebound in  4Q2025 , following the completion of renovation works at Mount Elizabeth by the third quarter. “We like IHH for its execution strategy, established regional footprint, and focus on high-income clients, which collectively support earnings resilience,” CIMB said. Regulatory Pressures in Malaysia Malaysia’s private healthcare sector has faced  margin pressure in 1H2025 , driven by tighter insurer reimbursement terms. Inpatient visit growth contracted to low single digits, with CIMB expecting payor p...

Profit Miss Sparks Downgrades Poh Huat Resources Holdings Bhd (KL:POHUAT) saw its stock tumble on Friday after reporting quarterly results that fell short of market expectations. Net profit for the nine months ended  July 31  came in at just about half of analysts’ full-year forecasts. The shortfall prompted  TA Securities  to downgrade the counter to  sell , while  Public Investment Bank  ceased coverage altogether. Tariff Pressures Weigh on Outlook The weaker performance comes amid uncertainty in the  US furniture market , Poh Huat’s key export destination. Analysts flagged the ongoing  US government investigation into furniture imports , which could worsen existing reciprocal tariffs already affecting demand. “Furniture exports to the US are already under tariff pressure, and demand is expected to stay subdued,” TA Securities said. Stock Performance Shares of Poh Huat fell as much as  6% to 94 sen , giving the company a market value o...

Key Takeaways: Funds from operations-to-debt ratio  forecast at  22%-24% through 2026 , down from 23.5% in 2024. Weaker-than-expected 1H performance dragged by  Singapore and Las Vegas operations . New York casino licence bid  (US$5.5b Queens project) a key  event risk , with outcome expected  by Dec 1, 2025 . Sluggish Operations Pressure Rating Buffer S&P Global Ratings flagged that  Genting Bhd’s weaker-than-expected performance  in the first half of 2025 is narrowing its credit buffer. The ratings agency projects the group’s  funds from operations-to-debt ratio  to stay within  22%-24% through 2026 , compared with  23.5% in 2024 . Operational softness came mainly from Genting’s  Singapore and Las Vegas properties , where both earnings and profitability lagged expectations. Singapore and Las Vegas Headwinds In Singapore, Genting’s operating profit was affected by: Higher costs  linked to ongoing brownfield const...

Key Takeaway:  Malaysia Smelting Corporation Bhd ( KL:MSC ) is expected to stage a strong earnings rebound in 2026 on the back of rising tin prices and improving smelter operations, according to Apex Securities, which has initiated coverage with a “buy” call. Earnings Outlook Apex Securities forecasts that  net profit will moderate in 2025  due to lower feedstock availability and downtime at MSC’s  Pulau Indah smelter . However, once production normalises, earnings are projected to  jump by 50% in 2026 . The research house expects output to stabilise and gradually improve by 2027, supported by higher plant utilisation and better input supply. Analyst Coverage and Valuation Apex Securities initiated coverage with a  “buy” rating  and a  target price of RM1.51 . UOB Kay Hian is the only other research house covering the stock, also with a “buy” call but at a slightly lower  target price of RM1.37 . Shares of  MSC  have already gained...

Genting Malaysia Bhd (KL:GENM) saw its stock rise on Friday following a sharp earnings rebound, but analysts warn that cost pressures and overseas uncertainties could cap further upside. Earnings and Market Reaction Earnings:  Quarterly profit surged more than fivefold, though first-half results remained largely in line with consensus estimates. Stock Move:  Shares gained over 5% in morning trade, hitting RM2.08 before easing to RM2.02 at the midday break. Market Cap:  At last trade, Genting Malaysia was valued at  RM12 billion . YTD Performance:  Shares are still down about 10% in 2025, weighed by concerns over its acquisition of loss-making  Empire Resorts Inc . Key Headwinds Rising Costs: Expansion of the sales and service tax (SST). Higher electricity tariffs. Mandatory employer pension contributions for foreign workers. Foreign Operations:  Volatility and challenges abroad continue to present risks for Malaysian earnings, despite the recovery in 2...

Star Media Group Bhd (KL:STAR) may be heading toward full-year losses, as analysts warn of an impending earnings vacuum following the completion of its flagship property project and continued headwinds in its traditional media segments. Earnings Gap Widening Without Property Boost Star Media’s net profit for 1HFY2025 plunged 98.9% year-on-year to just  RM83,000 , amounting to a mere  1% of full-year consensus estimates . This drastic underperformance has prompted analysts to sharply revise earnings projections. Kenanga Investment Bank now expects  full-year losses , citing a potential earnings vacuum without the launch of new property projects to succeed the completed  Star Business Hub  in Shah Alam. The industrial development had been the group’s main earnings driver in recent years. “An earnings gap looms if no new property projects are launched… the loss of this key profit driver could push the group into the red in upcoming quarters,” Kenanga cautioned. Med...

Shares of  Swift Haulage Bhd (SWIFT)  fell over  3%  to  41.5 sen  on Friday, extending Thursday’s losses, after the logistics group’s first-half earnings came in below market expectations. Earnings Miss Net profit for the first six months accounted for only  ~45%  of consensus full-year forecasts. The shortfall prompted at least one research downgrade, while most analysts held off changes pending the upcoming analyst briefing. Analyst Concerns Margins & Overheads:  Maybank Investment Bank flagged volatility in margins, elevated overhead costs, and competition-driven volume pressure as potential drags on performance. Market Position:  Kenanga Investment Bank, the sole “underperform” call, warned Swift is losing its leading position in Malaysia’s haulage market. Warehousing Expansion Costs:  While warehousing has “tremendous” growth potential from the e-commerce boom, significant start-up costs are expected to weigh on near-term ...

DBS Group Holdings Ltd has launched a S$3 billion (US$2.25 billion) share buyback following strong third-quarter results driven by wealth management fees and markets trading income. The Southeast Asian bank’s robust capital position supports this buyback, marking a continued commitment to returning capital to investors, a strategy championed by outgoing CEO Piyush Gupta. DBS shares surged nearly 6% in Singapore on Thursday, outperforming rivals OCBC and UOB, with the stock up over 36% this year. Analysts at Morgan Stanley noted that while the buyback is positive, the high valuation—DBS trades at 1.7 times book value—limits value creation. DBS reported a 15% increase in net income to S$3.03 billion, surpassing analyst estimates of S$2.74 billion, with wealth management contributing significantly, echoing trends at global banks like HSBC and Standard Chartered. The bank also announced an interim dividend of 54 Singapore cents, yielding 5.5%. Looking ahead, DBS expects a glob...

  Nintendo Co shares rose by as much as 3.9% on Monday after a senior executive from Saudi Arabia’s Public Investment Fund (PIF) suggested the fund is open to increasing its stake in Japanese game companies , including Nintendo. The stock saw its largest gain in over a week , outpacing the broader market, after Kyodo News reported that the Arab Gulf nation's PIF is considering deploying more capital to Nintendo and other gaming sector peers. Prince Faisal bin Bandar, vice-chairman of PIF subsidiary Savvy Games Group , indicated that the fund would favour such moves with the backing of the companies themselves. Saudi Arabia, aiming to diversify away from its oil-dependent economy, is focusing on becoming a global player in the gaming industry . The kingdom has committed US$38 billion (RM162.32 billion) to its ambitions, betting on its potential to become a hub for video gaming. The PIF, with US$760 billion in assets under management , already holds an 8.6% stake in Nintendo and...

Analysts predict that the asset quality of Bank of Chengdu, in which Hong Leong Bank Bhd holds a 19.76% stake, will remain robust due to its strict risk management policies and proactive measures. Key Takeaways: Strong Risk Management Practices : According to CIMB, Bank of Chengdu has adopted a conservative risk culture, performing thorough assessments of location, developer reputation, project viability, and management integrity before financing property projects. The bank closely monitors early warning signals like construction progress, sales progress, budget overruns, and fund usage by developers to mitigate potential risks. Proactive Measures Against Property Slowdown : The bank's precautionary measures allowed it to reduce exposure to problematic property loans and exit risky loans before China's property market slowdown. This conservative approach is expected to benefit Hong Leong Bank by minimizing potential asset quality concerns. Continued Optimism and Buy Recommendat...

Nomura Holdings Inc. has advised investors to reduce their holdings in Chinese equities and redirect their investments towards Indonesia and Malaysia. The move is based on the view that these Southeast Asian markets will benefit more from anticipated cuts in US interest rates. As part of this strategy, Nomura has upgraded Malaysian and Indonesian stocks to 'overweight' from 'neutral,' while downgrading MSCI China to 'neutral' from 'overweight.' Key Takeaways: Rationale for the Shift : Nomura's strategists, led by Chetan Seth, believe that Indonesian and Malaysian markets are better positioned to capitalize on the expected US interest rate cuts. This shift comes amid rising interest from foreign investors in these markets, which are seeing a second consecutive month of inflows. Chinese Market Concerns : China's equity markets have struggled recently, with the MSCI China index down around 3.6% since the end of May. Concerns over China's falteri...

Petronas Chemicals Group Bhd (PetChem) is expected to experience weaker earnings in the second half of the financial year ending Dec 31, 2024 (2HFY2024), due to declining average selling prices (ASPs) in the olefins and derivatives segment as regional supply increases following the end of shutdowns, according to analysts. Key Highlights: Earnings Pressure: CIMB Research noted that the fertilisers and methanol segment is also expected to face challenges, particularly with China lifting its export restrictions on urea, which will likely depress urea prices further as ammonia costs decline. Operational Challenges: Planned plant turnarounds, including those at PC Ethylene and Polyethylene in Kertih in 3QFY2024 and Asean Bintulu Fertilizer in 4QFY2024, are anticipated to reduce utilisation, production, and sales volumes, adding to the downward pressure on earnings. Losses at PIC: PetChem's 2QFY2024 core earnings were impacted by higher-than-expected losses at the Pengerang Integrated...