Saham: KLSE-POLY - PT. Poly Glass Fibre (M) Berhad

TA SECURITIES TOP PICKS 2025

Shifting Into High Gear.

This year has laid a strong foundation for economic recovery, setting the stage for continued growth in 2025,
which should positively impact the equity market. Key factors underpinning a positive outlook for equities include: 1) A stronger domestic economy and improving fundamentals, supported by a resilient global economy, 2) Increased foreign and domestic investments, 3) Structural reforms backed by a strong government, boosting the country’s finances and investor confidence, 4) Continuous growth in corporate earnings, supporting expansion in valuation multiples, and 5) A net inflow of foreign funds. However, we anticipate several downside risks that could undermine investor confidence next year: 1) Geopolitical tensions, 2) Trade wars, and 3) Deflationary pressures in China. There could be some volatility in the local equity
market during the early periods of Donald Trump’s second presidency, but in our view, Malaysia has its own merits in remaining resilient and eventually emerging stronger. Our 2025 FBMKLCI target is 1,845, based on a CY26 PER of 15.5x, still undemanding compared to its 5-year (2020-2024) average of 17.0x.

Maintaining our cautiously optimistic outlook on local equities and anticipating a potential 15.5% upside for the FBMKLCI, we recommend the following key investment themes for 2025:
1) Growth Stocks (BNASTRA & PGF): Focus on agile small cap players poised to seize opportunities and deliver strong earnings growth.
2) Disruptive Technologies and Digital Economy (INARI. TM & YTLPOWR): Significant investments in the E&E sector, data centres, and related infrastructure will drive this theme.
3) Domestic Spending and Resilient Economy (AEON,FFB, FOCUSP, GAMUDA, SUNCON, MAHSING, IOIPG, SIMEPROP, CIMB, MAYBANK & PBBANK): Benefiting from a strong labour market, higher disposable income, improving tourism and related industries, robust investments, greater capital market activities and the largestever allocation under Budget 2025.
4) Energy Transition (SAMAIDEN & TENAGA): Aligning with sustainable development goals.
5) Stronger Ringgit (ASTRO & LHI): Favouring companies with high domestic business and import content.

$IOIPG / 5249 (IOI PROPERTIES GROUP BERHAD)
$POLY / 8117 (POLY GLASS FIBRE (M) BERHAD)
$FOCUSP / 0157 (FOCUS POINT HOLDINGS BERHAD)

TA INVEST TOP PICKS Q4 2024...

Investment Strategy – Buy on Weakness. Savings from government subsidy rationalisation, multi-billion public spending on infrastructures, foreign direct investments and domestic direct investments in renewable energy and growth sectors identified under the long-term plans are catalysts for domestic sectors. Thus, our top picks are closely associated with the Banking, Construction, Consumer, Healthcare, Power, Property and Telco sectors. The strong growth in the E&E exports driven by the “China Plus One” strategy and demand for advanced technologies, electric vehicles, data centres, etc., are expected to sustain interest in the Technology sector while benefitting Power and Telco players as well.

$YTLPOWR / 6742 (YTL POWER INTERNATIONAL BHD) $IOIPG / 5249 (IOI PROPERTIES GROUP BERHAD) $POLY / 8117 (POLY GLASS FIBRE (M) BERHAD) $FOCUSP / 0157 (FOCUS POINT HOLDINGS BERHAD) $SIMEPROP / 5288 (SIME DARBY PROPERTY BERHAD)

“Sell Shovel and Jeans During Gold Rush” – A Data Centre Beneficiary

Share price chart of PGF Capital Berhad.

PGF Capital Berhad (“PGF”), a niche company with the business of manufacturing glass mineral wool and owns a substantial landbank adjacent to Proton City, had some exciting announcements for loyal investors.

Just today, PGF had entered into a five-year distributorship agreement with Centria Building Material Manufacturing (Shanghai) Co., Ltd.

What’s so special about this agreement?

Centria International is a well-known company globally in terms of providing advanced building materials and solutions, where some of their products are adopted by Fortune 500 companies, in the field of industrial, commercial buildings and data centres.

With energy becoming a key concern for data centre players, Centria Interntional’s mineral wool sandwich panels are able to act as thermal insulators, which means it could lower energy consumption and enhance indoor comfort.

In the context of data centres, lower energy consumption means better efficiency and yield, an important edge over other competitors.

Most importantly, PGF is not someone fresh in the field of mineral wool.

This collaboration will allow PGF to effectively support the data centre industry, without taking on the significant capital expenditure risks.

In fact, prior to this announcement, TA Securities had already initiated a coverage of PGF with a target price (TP) of RM2.76, hinting a strong upside just by their growing manufacturing segment, and the substantial 1,311 acres of landbank adjacent to Proton City, which is ready for development.

With this announcement, it is very likely that PGF will experience another re-rating to above RM3.00 in terms of valuation.

Perhaps, now is a good chance for investors to jump onto PGF!

$POLY / 8117 (POLY GLASS FIBRE (M) BERHAD)

Additional Listing Announcement /Subdivision of Shares [POLY]

Additional Listing Announcement /Subdivision of Shares

TA SECURITIES TOP PICKS 2ND HALF 2024...

Investment Strategy – Buy This Market. Savings from government subsidy rationalisation, multi-billion public spending on infrastructures, foreign direct investments and domestic direct investments in renewable energy and growth sectors identified under the long-term plans are boosters for domestic sectors. Thus, our top picks are closely associated with the Banking, Construction, Consumer, Healthcare, Power, Property and Telco sectors. The strong growth in the E&E exports driven by the “China Plus One” strategy and demand for advanced technologies, electric vehicles, data centres, etc. are expected to sustain interest in the Technology sector while benefitting Power and Telco players as well.

Buy Picks. In line with the above views, our top big-cap picks are PBBANK, YTLPOWR, TM, GAMUDA, INARI and IOIPG. Top small and mid-cap stocks are INTA, PGF, IBRACO, ABLEGLOB, SCOMNET, FFB, SUNCON, ABMB and SIMEPROP.

$INTA / 0192 (INTA BINA GROUP BERHAD) $IOIPG / 5249 (IOI PROPERTIES GROUP BERHAD) $POLY / 8117 (POLY GLASS FIBRE (M) BERHAD) $IBRACO / 5084 (IBRACO BERHAD) $YTLPOWR / 6742 (YTL POWER INTERNATIONAL BHD)