Latest news with #NationalEnergyTransitionRoadmap
The Star
18 hours ago
- Business
- The Star
CIMB Securities cuts KLCI earnings forecasts by 5.6% after weak 1Q
KUALA LUMPUR: CIMB Securities has revised downward its earnings forecasts for FTSE Bursa Malaysia KLCI (FBM KLCI) constituents by 5.6 per cent for both 2025 and 2026, citing widespread underperformance in the first quarter ended March 31, 2025 (1Q 2025). The brokerage said the downgrade was primarily driven by lower earnings projections for the banking sector, Sime Darby Bhd , and Petronas Chemicals Group Bhd . "As a result, CIMB now forecasts KLCI core net profit growth at 3.4 per cent for 2025 and 6.5 per cent for 2026, down from 9.3 per cent and 6.6 per cent, respectively. CIMB Securities has also lowered its end-2025 FBM KLCI target to 1,560 points from 1,657, based on an unchanged price-to-earnings (P/E) multiple of 14.7 times. "The KLCI is trading at a 12-month forward P/E of 12.7 times with an attractive dividend yield of 4.2 per cent, but the upside may be capped by downside risks including the 10 per cent US import tariff, the end of the tariff reprieve on July 9, potential hikes in the Sales and Service Tax (SST) and RON95 fuel prices in the second half of 2025, and higher electricity tariffs expected in July. "These headwinds may be partially offset by strong domestic liquidity, a strengthening ringgit, and policy support from initiatives such as the National Energy Transition Roadmap (NETR), the Johor-Singapore Special Economic Zone (JS-SEZ), and the New Industrial Master Plan 2030 (NIMP 2030),' CIMB Securities said. The brokerage noted that only 7 per cent of companies under its coverage beat expectations in the first quarter, while 64 per cent missed, pulling the earnings surprise ratio down to 0.24 times, the weakest showing since the second quarter of 2020. It attributed the underperformance to lower-than-expected net interest margins for banks, weaker earnings in the oil and gas, consumer, and technology sectors, along with higher effective tax rates and foreign exchange losses. In terms of sector positioning, CIMB downgraded oil and gas and plantations to "neutral' from "overweight' due to a lack of near-term catalysts. It downgraded Petronas Chemicals Group Bhd and Sime Darby Plantation Bhd to "hold' from "buy.' Despite the cautious tone, the brokerage maintained its overweight stance on telecommunications, utilities, and construction. It added Maxis Bhd , IJM Corp Bhd , and IOI Corp Bhd to its top large-cap picks, alongside existing names such as CelcomDigi Bhd, Gamuda Bhd , Public Bank Bhd , RHB Bank Bhd, Tenaga Nasional Bhd , and 99 SpeedMart. In the small- and mid-cap space, Axis Real Estate Investment Trust (REIT) has been added to its list of recommended stocks, joining Malaysian Resources Corporation Bhd (MRCB), KJTS Group Bhd , Farm Fresh Bhd , and Mah Sing Group Bhd . - Bernama
New Straits Times
21 hours ago
- Business
- New Straits Times
Tariff, policy risks set to weigh on market in 2H25
KUALA LUMPUR: Market sentiment is expected to remain fragile heading into the second half of the year, as investors brace for a combination of external tariff risks and domestic policy shifts that could weigh on earnings and consumption. In its strategy note, CIMB Securities flagged several looming challenges that may limit upside for equities, despite supportive valuations and ample market liquidity. Chief among them is the scheduled end of the US 90-day tariff reprieve on July 9, which could see the reinstatement of elevated reciprocal tariffs between the world's two largest economies. "This adds another layer of trade friction to an already cautious global backdrop," the firm said. On the local front, investors are anticipating potential adjustments to the RON95 fuel subsidy, a move that could raise transport and logistics costs for businesses, while straining household budgets. CIMB Securities also cited the possible implementation of a higher sales and service tax and an expected increase in electricity tariffs in the second half of 2025. "Together, these measures could contribute to inflationary pressures and squeeze corporate margins," it said. "These headwinds may erode near-term earnings visibility and investor risk appetite, even as Bursa Malaysia trades at an undemanding 12.7 times forward price-to-earnings and offers a 4.2 per cent dividend yield." While acknowledging that policy reforms are necessary for long-term fiscal consolidation and subsidy rationalisation, it said the timing and communication of such measures would be critical to avoid unsettling investors. Still, the firm noted that downside risks may be partially cushioned by strong domestic liquidity and a strengthening ringgit. Additional support could come from long-term structural initiatives such as the National Energy Transition Roadmap, the Johor-Singapore Special Economic Zone, and the New Industrial Master Plan 2030.
New Straits Times
5 days ago
- Business
- New Straits Times
National Climate Change Bill to be tabled in August
GEORGE TOWN: The Natural Resources and Environmental Sustainability Ministry (NRES) will table the National Climate Change Bill in August, said its secretary-general Datuk Dr Ching Thoo. He said the bill has been completed and is being reviewed by the Attorney-General's Chambers. "The review process is being conducted after the NRES completed engagement sessions with state governments, as the implementation of the proposed law involves their jurisdictions. "We plan to table it in parliament during the next session in August. "It was previously postponed to June, but we needed time to fine-tune the bill," he told reporters after the launch of the Environmental Sustainability Road Tour 2.0 at Universiti Sains Malaysia (USM) yesterday. Regarding the use of renewable energy (RE) in the country, Ching Thoo stated that Malaysia is on a positive trajectory towards achieving its 70 per cent RE capacity target, in line with the goals outlined in the National Energy Transition Roadmap (NETR). "If we look at the current breakdown, it is largely dominated by solar panels, which I believe account for nearly 95 per cent. "According to the Energy Transition and Water Transformation Ministry's data, we have reached approximately 40 per cent," he added. – Bernama
The Sun
6 days ago
- Politics
- The Sun
NRES to table National Climate Change bill in August
GEORGE TOWN: The Natural Resources and Environmental Sustainability Ministry (NRES) will table the National Climate Change Bill in August, said its secretary-general Datuk Dr Ching Thoo. He said the bill has been completed and is being reviewed by the Attorney-General's Chambers. 'The review process is being conducted after the NRES completed engagement sessions with state governments, as the implementation of the proposed law involves their jurisdictions. 'We plan to table it in Parliament during the next session in August. It was previously postponed to June, but we needed time to fine-tune the bill,' he told reporters after today's launch of the Environmental Sustainability Road Tour 2.0 at Universiti Sains Malaysia (USM) here. In January, Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad stated that the ministry was finalising the bill with input from various stakeholders to ensure its comprehensiveness and relevance. Regarding the use of renewable energy (RE) in the country, Ching Thoo stated that Malaysia is on a positive trajectory towards achieving its 70 per cent RE capacity target, in line with the goals outlined in the National Energy Transition Roadmap (NETR). 'If we look at the current breakdown, it is largely dominated by solar panels, which I believe account for nearly 95 per cent. According to PETRA (Ministry of Energy Transition and Water Transformation) data, we have reached approximately 40 per cent,' he added.
The Star
6 days ago
- Business
- The Star
Ministry to table National Climate Change Bill in August
GEORGE TOWN: The Natural Resources and Environmental Sustainability Ministry will table the National Climate Change Bill in August, says its secretary-general, Datuk Dr Ching Thoo. He said the bill has been completed and was being reviewed by the Attorney-General's Chambers. "The review process is being conducted after the ministry completed engagement sessions with state governments, as the implementation of the proposed law involves their jurisdictions. "We plan to table it in Parliament during the next session in August. It was previously postponed to June, but we needed time to fine-tune the bill," he told reporters after Thursday's (May 29) launch of the Environmental Sustainability Road Tour 2.0 at Universiti Sains Malaysia (USM) here. In January, Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad stated that the ministry was finalising the bill with input from various stakeholders to ensure its comprehensiveness and relevance. Regarding the use of renewable energy (RE) in the country, Ching Thoo stated that Malaysia was on a positive trajectory towards achieving its 70% RE capacity target, in line with the goals outlined in the National Energy Transition Roadmap (NETR). "If we look at the current breakdown, it is largely dominated by solar panels, which I believe account for nearly 95%. According to the Energy Transition and Water Transformation Ministry data, we have reached approximately 40%," he added. – Bernama
