Sharing from remisier

2025 Market Strategy

Positive on MY equity market outlook. However, potential risks from additional US tariffs and stronger US$ could slow foreign fund inflows into EMs, which has historically been a determinant on KLCI return

US-China trade tensions and tariffs will be a key theme to watch for next year, likely leading to some market volatility. However, we view this as opportunity to accumulate on winners, especially if market overreacts to perceived negative effects

Stocks benefiting from the trade conflict, with strong earnings visibility, are particularly attractive. Small/mid caps which are still recovering from the sharp sell-off in Aug look appealing at current level. With a more risk-on sentiment expected, coupled with strong domestic liquidity, clear thematic drivers, and supportive govt policies, we expect SC to outperform in 2025

⭐️ 2025 FOCUS THEMES
✨ Sustained FDI growth
✨ Acceleration of infra spending
✨ Rapid AI adoption
✨ Rising focus on local green energy
✨ Expanding DCs infra
✨ Tariff-driven glove sector recovery

🌟 2025 CONVICTION BUYS 🌟
SMALL MID CAPS
🛫 AGX (TP: RM0.84)
🛢️ Armada (TP: RM0.93)
🏗️ Binastra (TP: RM2.30)
♻️ BM Green (TP: RM2.65)
⚙️ Critical (TP: RM1.65)
🛢️ Dayang (TP: RM4.50)
⚡️ HEGroup (TP: RM0.84)
☀️ Pekat (TP: RM1.15)
⚡️ MN (TP: RM1.45)
📲 OCK (TP: RM0.85)

LARGE CAPS
🏦 CIMB (TP: RM9.30)
💻 Frontken (TP: RM6.00)
🏗️ Gamuda (TP: RM5.55)
🧤 Hartalega (TP: RM4.55)
🤖 NatGate (TP: RM3.00)

🇲🇾 2025 Macro Forecast
🎯 KLCI target: 1,750
💲 US$/RM: RM4.30
🏦 GDP: 5.1%
🏦 OPR: 3%
🛢️ Brent: US$80

We're Overweight on 12 sectors that align with our thematic ideas, supported by strong conviction BUYs. Feel free to reach out and have a chat on our market outlook/ideas

$FRONTKN / 0128 (FRONTKEN CORPORATION BERHAD)
$PEKAT / 0233 (PEKAT GROUP BERHAD)
$OCK / 0172 (OCK GROUP BERHAD)