Stock watchlist to focus

In the short to mid-term, we should focus on RGB (aiming for record profits) and Bahvest, capitalizing on the gold theme.

Exporters, particularly in the technology sector, are experiencing compressed profit margins due to the strengthening of the RM against the USD. We anticipate profit margins may decrease by 5% to 10%. However, companies that rely on imported components and raw materials may mitigate the impact of this decline, depending on the percentage of imports used. Generally, while sales volumes are increasing, they cannot offset the margin erosion caused by the stronger Ringgit.

There is typically a lag period before these companies can adjust selling prices when new models are launched.

Additionally, many are likely facing realized forex losses on outstanding foreign debtors from June 30 to September 30.

These factors may explain the significant decline in the prices of our tech stocks.

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Stock watchlist to focus

In the short to mid-term, we should focus on RGB (aiming for record profits) and Bahvest, capitalizing on the gold theme.

Exporters, particularly in the technology sector, are experiencing compressed profit margins due to the strengthening of the RM against the USD. We anticipate profit margins may decrease by 5% to 10%. However, companies that rely on imported components and raw materials may mitigate the impact of this decline, depending on the percentage of imports used. Generally, while sales volumes are increasing, they cannot offset the margin erosion caused by the stronger Ringgit.

There is typically a lag period before these companies can adjust selling prices when new models are launched.

Additionally, many are likely facing realized forex losses on outstanding foreign debtors from June 30 to September 30.

These factors may explain the significant decline in the prices of our tech stocks.

$KLSE-RGB $KLSE-BAHVEST

$BAHVEST / 0098 (BAHVEST RESOURCES BERHAD)