PUBLIC INVEST TOP PICKS 2025...

Threading Water.

To navigate protectionism policies from the West, Malaysia is expected to focus on driving its domestic economy through continuous fiscal reform efforts and strengthening trade alliances with ASEAN and the Global South countries. Although Malaysian economy should remain robust in 2025, the local equities market may still be susceptible to external shocks. The heightened geopolitical risks and anti-globalisation rhetoric will introduce more uncertainties and volatility in the financial markets. Therefore, we do not think a gradual reversion to the long-term mean of 16x PER is possible. We peg our 2025 KLCI year-end target at 1,700 points based on 14.5x 2026F PER. With the market still being a trading-oriented one, we believe market-beating opportunities
will come from bottom-up approach and buying on weaknesses in a heightened risk premium environment. The data centre industry should continue to deliver positive newsflow in terms of new construction and infrastructure-related jobs as well as investments from foreign companies. Companies with exposure to this industry are Telekom, Tenaga, Gamuda and Cloudpoint. Meanwhile, consumer spending on non-discretionary products and services should also increase given a resilient labour market and economic conditions. We like Maybank, CCK, Focus Point and Optimax as their growth is more dependent on the domestic market.

$CLOUDPT / 0277 (CLOUDPOINT TECHNOLOGY BERHAD)
$TM / 4863 (TELEKOM MALAYSIA BERHAD)
$OPTIMAX / 0222 (OPTIMAX HOLDINGS BERHAD)