*IBs Budget 2025 Reports Summary*
*Report Titles*:
- *HLIB*: A Mixed Budget Bag
- *Kenanga*: No Sashimi, No Biggie
- *MIDF*: Turning Fiscally Conservative
- *Affin Hwang*: Moving Towards Fiscal Responsibility
- *TA Securities*: Pragmatic Budget to Sustain Economic Resilience
- *UOBKH*: Embraced Stricter Fiscal Consolidation
- *CIMB*: New Dividend Tax
- *Phillip*: Building Stronger Foundations
- *RHB*: Revitalising The Economy, Driving Transformation, Advancing Public Well-Being
- *Maybank*: Fortifying MADANI Economy
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*Overall Tone*:
- *HLIB*: Cautiously positive, with a focus on fiscal consolidation but concerned about higher costs and new taxes.
- *Kenanga*: Cautiously optimistic, appreciating the government's focus on fiscal discipline and green initiatives.
- *MIDF*: Balanced, highlighting the government’s fiscal prudence and continued support for key sectors.
- *Affin Hwang*: Cautiously positive, reflecting optimism for long-term fiscal consolidation, tempered by concerns over subsidy rationalization and higher wage costs.
- *TA Securities*: Positive, viewing the budget as pragmatic and focused on sustaining economic resilience.
- *UOBKH*: Neutral to slightly negative, noting stricter fiscal discipline but modest expansionary measures that set the foundation for sustainable growth.
- *CIMB*: Neutral to slightly negative, due to new taxes on dividends and increased labor costs for certain sectors.
- *Phillip*: Neutral, with a cautious outlook and minimal excitement for equities.
- *RHB*: Neutral to slightly positive, highlighting fiscal discipline, subsidy rationalization, and key infrastructure investments.
- *Maybank*: Positive on fiscal consolidation and pro-growth, with no major surprises for businesses.
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*KLCI Target*:
- *HLIB*: 1,700 (no revision)
- *Kenanga*: 1,760 (no revision)
- *MIDF*: 1,750 (no revision)
- *Affin Hwang*: 1,730 (no revision)
- *TA Securities*: 1,690 (no revision)
- *UOBKH*: 1,735 (no revision)
- *CIMB*: 1,732 (no revision)
- *Phillip*: 1,700 (no revision)
- *RHB*: 1,700 (no revision)
- *Maybank*: 1,720 (2024 no revision), 1,840 (2025 no revision)
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*Winners*:
- *HLIB*: Construction (Gamuda, IJM), consumer (AEON, PADINI), ESG (Solarvest, Samaiden), REITs (SunREIT).
- *Kenanga*: Consumer (MR DIY, AEON, Padini), ESG (BURSA, SLVEST), property (Mah Sing), construction (Gamuda).
- *MIDF*: Construction, consumer, healthcare, renewable energy sectors.
- *Affin Hwang*: Construction (Gamuda, IJM), consumer (MR D.I.Y.), ESG sectors (SLVEST, Press Metal).
- *TA Securities*: Construction (Gamuda, IJM), consumer (AEON, PADINI), healthcare (Duopharma, KPJ), insurance.
- *UOBKH*: Consumer (Mr DIY, 99 Speedmart), construction (flood mitigation projects, Penang LRT), and green/ESG sectors (carbon tax).
- *CIMB*: Construction, healthcare, property, and gaming sectors.
- *Phillip*: Technology, gaming (GENM), renewable energy (Solarvest, PEKAT), EMS (NationGate), and healthcare (KPJ).
- *RHB*: Construction (Gamuda, Sunway Construction), property (Sime Darby Property, Mah Sing), consumer (Mr DIY), and REITs (omission of luxury goods tax).
- *Maybank*: Construction (Penang LRT, East Malaysia projects), property (JSSEZ, Forest City), consumer (B40 benefit from subsidies), renewable energy (solar, carbon initiatives), aviation, gaming.
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*Losers*:
- *HLIB*: Labor-intensive sectors like EMS and gloves due to wage cost pressures.
- *Kenanga*: Tech and glove sectors due to higher labor costs.
- *MIDF*: Labor-intensive industries facing challenges with subsidy rationalization.
- *Affin Hwang*: Labor-intensive industries like plantations and technology may face margin pressures due to wage increases and upcoming carbon taxes.
- *TA Securities*: Labor-intensive sectors like plantations and manufacturing due to wage hike pressures.
- *UOBKH*: Labor-intensive sectors (plantations, technology) and steel, iron, and energy sectors (carbon tax impact in 2026).
- *CIMB*: Plantation, technology, and rubber glove sectors due to higher minimum wage and foreign worker costs.
- *Phillip*: EMS, plantation, and manufacturing sectors face challenges from labor costs.
- *RHB*: Utilities (TNB, Malakoff, PetGas, and MISC due to carbon tax), Oil & gas (PetDag on targeted subsidy of RON95), plantation (higher foreign worker levies), and technology sectors facing cost pressures from higher labor costs.
- *Maybank*: Technology (OSAT and EMS face margin compression from labor costs), plantation (higher labor cost), oil & gas (potential capex deferrals).
$GAMUDA / 5398 (GAMUDA BERHAD) $IJM / 3336 (IJM CORPORATION BERHAD) $AEON / 6599 (AEON CO. (M) BHD) $MRDIY / 5296 (MR D.I.Y. GROUP) $SLVEST / 0215 (SOLARVEST HOLDINGS BERHAD)