Latest news with #CIMBSecuritiesSdnBhd
New Straits Times
11 hours ago
- Business
- New Straits Times
US tariff plan may spark semiconductor front-loading
KUALA LUMPUR: The United States' plan to impose a 100 per cent tariff on semiconductors is expected to trigger a wave of front-loading activity across the global supply chain, according to CIMB Securities Sdn Bhd. Analyst Mohd Shanaz Noor Azam said the activity could provide a temporary boost to demand, followed by a potential slowdown once the tariff comes into effect, though no implementation date has been confirmed. He said the potential implementation of the semiconductor tariff would be negative for the sector, although he did not rule out possible exemptions for certain multinational corporations (MNCs) that could renegotiate terms through strategic investment commitments in the US. "Among Malaysian names, automated test equipment (ATE) makers could face the most direct near-term impact given their relatively high US revenue exposure. "That said, some may benefit over the longer term from increased domestic capacity build-up in the US," he said. Mohd Shanaz said among local ATE players, players, Greatech Technology Bhd and Genetec Technology Bhd are the most exposed to the US market, with 65 per cent and 76 per cent of their FY24 revenue derived from US customers, respectively. Meanwhile, outsourced semiconductor assembly and test (OSAT) players such as Unisem (M) Bhd and Malalysian Pacific Industries Bhd derive about 67 per cent and 20 per cent of their FY24 revenue from US customers. Inari Amertron has minimal direct US exposure at less than one per cent, as most of its products are shipped to customer facilities in Malaysia and Singapore. "Overall, we estimate that less than 10 per cent of the OSAT sector's revenue is ultimately shipped to the US, as most production volumes are routed through downstream assemblies in China, Mexico, or India, catering to demand in China, Europe and the rest of Asia. "Within the electronics manufacturing services (EMS) segment, VS Industry Bhd and SKP Resources Bhd derive around 50 per cent and 20 per cent of their revenue, respectively, from US customers," Mohd Shanaz added. Beyond demand risks, he said the uncertainty surrounding US tariff policy could delay new investments and expansion plans in Malaysia, especially for MNCs whose operations are closely tied to US end-demand. He said a prolonged overhang from potential tariffs may prompt US-based semiconductor and electronics firms to pause or reallocate capital expenditure. Exports of electrical and electronic products to the US reached RM119.9 billion in 2024, accounting for about 20 per cent of Malaysia's total E&E exports. Notably, semiconductor exports to the US stood at RM60.6 billion, equal to roughly 20 per cent of Malaysia's total semiconductor export value in 2024.
Malay Mail
30-07-2025
- Business
- Malay Mail
Bursa Malaysia shares dip after weaker Q2 earnings
KUALA LUMPUR, July 30 — Stock exchange company Bursa Malaysia Bhd shares slip in early trade following a lower business performance recorded in the second quarter ended June 30, 2025 (2Q 2025). At 10.09am, the counter lost three sen to RM7.63 with a total of 103,300 shares traded. In a filing with Bursa Malaysia yesterday, the exchange said its 2Q 2025 net profit fell to RM57.06 million versus RM80.45 million in the same period a year ago, mainly due to lower operating revenue. Revenue also slipped to RM172.58 million from RM199.94 million previously. 'The securities market recorded a segment profit of RM85.3 million in 2Q 2025, a 24.4 per cent decrease against RM112.8 million in 2Q 2024, on the back of lower operating revenue of RM110.3 million compared to RM141.4 million,' it said. In a note today, CIMB Securities Sdn Bhd said the exchange is cautiously optimistic about its outlook, with expectations of improved market sentiment and trading activity in the second half of 2025 (2H 2025). 'Bursa Malaysia views 2H 2025 as a potential turning point for Malaysia, premised on the anticipated resolution of tariff-related uncertainties, which could help restore investor confidence and bring additional liquidity into the market,' it said. The investment bank maintains a 'Hold' rating on Bursa Malaysia with a target price of RM7.40 per share. — Bernama
Barnama
28-07-2025
- Business
- Barnama
CIMB: National Semiconductor Strategy Gains Investor And Regional Backing
BUSINESS KUALA LUMPUR, July 28 (Bernama) -- CIMB Securities Sdn Bhd expects Malaysia's National Semiconductor Strategy (NSS) to continue gaining traction among investors, institutions, and regional stakeholders. In a research note, CIMB Securities said Malaysia's transition from a traditional back-end assembly base to a full-fledged, design-to-packaging semiconductor hub is still underway. It said the country is positioning itself as a neutral and indispensable node in the global chip supply chain, underpinned by RM63 billion in committed investments, the emergence of more local champions, and closer ASEAN alignment. 'We see this as one of the key advantages in ensuring Malaysia remains an attractive destination for semiconductor manufacturing globally,' the firm said. CIMB Securities noted that since its launch, the NSS has attracted RM63 billion in investments, comprising RM58 billion in foreign direct investment and RM5.2 billion in domestic direct investment, driven by high-impact projects. It said these investments reflect growing investor confidence in Malaysia's semiconductor ecosystem. Launched in May 2024, the NSS aims to shift Malaysia beyond a 'Made in Malaysia' model to a 'Made by Malaysia' approach, by strengthening domestic capabilities in integrated circuit design, research and development, and advanced packaging, while nurturing homegrown champions across the value chain. CIMB Securities added that as ASEAN Chair in 2025, Malaysia is leading the ASEAN Integrated Semiconductor Supply Chain Framework to harmonise talent flows, fiscal incentives, and infrastructure across the region. A memorandum of understanding signed by the semiconductor associations of Malaysia, Singapore, Vietnam, Thailand, and the Philippines aims to establish a unified regional chip ecosystem.
Malaysian Reserve
24-07-2025
- Business
- Malaysian Reserve
Petronas Dagangan retains Hold, with discounted-cash flow based target price of RM20.90
WE maintain our earnings forecasts, Hold call, and discounted-cash flow-derived target price of RM20.90 for Petronas Dagangan Bhd, as the pump price adjustment for RON95 appears to be primarily aimed at easing cost-of-living pressures, rather than driving a meaningful uplift in fuel demand for retailers like Petronas Dagangan. Consequently, we anticipate the earnings impact to be largely neutral. Our base case assumes FY25–27F retail volumes to decline by 0.5 1.0% year-on-year primarily owing to a drop in diesel sales volume due to the full-year implementation of diesel subsidy rationalisation since Jun 10, 2024. Although Petronas Dagangan's 1Q25 performance was strong, supported by robust margins in the commercial segment, we believe this trend is unlikely to be sustained owing to slower economic activity and persistently soft market conditions, which may weigh on commercial fuel profitability. – CIMB Securities Sdn Bhd (July 24, 2025) (Calls by analysts tracked by Bloomberg: 4 Buy, 5 Hold, 2 Sell; Consensus target price: RM20.69)
Barnama
23-07-2025
- Business
- Barnama
Latest Fiscal Support Measures Positive For Consumer Sector -- CIMB Securities
BUSINESS KUALA LUMPUR, July 23 (Bernama) -- The latest fiscal support measures announced by Prime Minister Datuk Seri Anwar Ibrahim are expected to bolster Malaysia's consumer sector by reinforcing near-term spending, particularly on essential goods and value-based retail, said CIMB Securities Sdn Bhd. CIMB Securities, however, is keeping its earnings forecasts unchanged at this juncture, noting that the measures would underpin existing revenue growth assumptions for the stocks under its coverage. 'Within the consumer sector, we continue to advocate focusing on companies benefiting from inelastic demand for daily necessities and those well-positioned to capture consumer downtrading trends by targeting the mass-market segment,' it said. CIMB Securities highlighted that food and beverage (F&B) manufacturers, such as Nestle, F&N, QL Resources, and Farm Fresh, are likely to benefit from stronger demand for basic food and beverage products, many of which are likely to be eligible for purchase using the RM100 credit. It opined that other retailers such as Mr DIY ('Buy' call), Padini (Buy), Aeon (Buy), Yoong Onn (Buy), Bonia (Hold), Berjaya Food and SEM (Reduce) could see improved footfall and higher spending per customer as disposable incomes increase, amplified by the recent 25 basis points overnight policy rate cut to 2.75 per cent. 'As such, we maintain our 'Neutral' call on the sector. We believe valuations are fair at this juncture, reflecting the ongoing soft consumer sentiment and higher sales tax on discretionary goods, the impact of boycott activities on selected consumer names and cost pressures from the expanded Sales and Service Tax (SST) on rental costs,' it said. Earlier today, Anwar unveiled a new round of fiscal support measures aimed at alleviating living costs, stimulating domestic consumption, and boosting household spending ahead of the upcoming Merdeka Day and Malaysia Day celebrations. Key measures include a one-off RM100 e-credit via MyKad (SARA scheme), doubling the Rahmah Madani Sales programme budget to RM600 million for 2025, a public holiday on Sept 15, 2025, to encourage domestic travel, a toll rate freeze for 2025 and maintaining RON95 subsidies, with the subsidised price to be reduced from RM2.50 per litre to RM1.99 per litre for all Malaysians. -- BERNAMA
