Key Indices
Top Stories
Strategy | Alpha Picks: Weathering Volatility With Quality Leaders And Selective Laggards
- Our Sep 26 Alpha Picks outperformed the FBMKLCI at +4.0%. For Oct 26, against the backdrop of the Middle East tensions, higher oil prices and elevated US Treasury yields, we favour high-quality, large-cap domestic leaders that offer resilient earnings, robust cash flows and defensive characteristics. We advocate selectively accumulating fundamentally sound laggards, prospective earnings outperformers and beneficiaries of secular growth trends. Oct 26 picks: CIMB, Coraza, Dialog, Gamuda, KPJ, Northeast, Petronas Dagangan, SD Guthrie, Sunway REIT and Solarvest.
Company Update | Telekom Malaysia (T MK/BUY/RM7.83/Target: RM8.60)
- We are more sanguine on the near-term prospects of TM, projecting 2027 earnings growth of 15% yoy thanks to: a) the absence of VSS, b) savings from 5G wholesale fees, and c) a strong TM Global project pipeline. The TMNxera 200MW fit-out is expected to start soon, and we value this DC project at RM1.30/share. By 2030, TM aims to build out 1GW of DC capacity. Upgrade from HOLD to BUY with a higher DCF-based target price of RM8.60, capturing TM-Nxera’s full valuation.
Market Spotlight
- The FBMKLCI closed marginally higher last Friday, adding 0.51pt to settle at 1,630.87.
- US stocks were higher after the close on Friday, as gains in the consumer goods, basic materials and technology sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
B.I.G. Industries | BIG MK
- Trading Buy Range: RM0.585-0.59
Censof Holdings | CSHB MK
- Trading Buy Range: RM0.225-0.23
Coraza Integrated Technology | CORAZA MK
- Trading Buy Range: RM1.15-1.18
Top Stories
Strategy | Alpha Picks: Weathering Volatility With Quality Leaders And Selective Laggards
- Our Sep 26 Alpha Picks outperformed the FBMKLCI at +4.0%. For Oct 26, against the backdrop of the Middle East tensions, higher oil prices and elevated US Treasury yields, we favour high-quality, large-cap domestic leaders that offer resilient earnings, robust cash flows and defensive characteristics. We advocate selectively accumulating fundamentally sound laggards, prospective earnings outperformers and beneficiaries of secular growth trends. Oct 26 picks: CIMB, Coraza, Dialog, Gamuda, KPJ, Northeast, Petronas Dagangan, SD Guthrie, Sunway REIT and Solarvest.
Company Update | Telekom Malaysia (T MK/BUY/RM7.83/Target: RM8.60)
- We are more sanguine on the near-term prospects of TM, projecting 2027 earnings growth of 15% yoy thanks to: a) the absence of VSS, b) savings from 5G wholesale fees, and c) a strong TM Global project pipeline. The TMNxera 200MW fit-out is expected to start soon, and we value this DC project at RM1.30/share. By 2030, TM aims to build out 1GW of DC capacity. Upgrade from HOLD to BUY with a higher DCF-based target price of RM8.60, capturing TM-Nxera’s full valuation.
Market Spotlight
- The FBMKLCI closed marginally higher last Friday, adding 0.51pt to settle at 1,630.87.
- US stocks were higher after the close on Friday, as gains in the consumer goods, basic materials and technology sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
B.I.G. Industries | BIG MK
- Trading Buy Range: RM0.585-0.59
Censof Holdings | CSHB MK
- Trading Buy Range: RM0.225-0.23
Coraza Integrated Technology | CORAZA MK
- Trading Buy Range: RM1.15-1.18
Key Indices
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
