Malayan Banking Berhad (Maybank) has demonstrated a robust financial performance, positioning itself as a noteworthy consideration for investors. 

Investment Recommendation:

Analyst consensus leans towards a positive outlook for Maybank. As of October 3, 2024, Bloomberg data indicated 12 analysts recommending a “buy,” seven suggesting a “hold,” and one advising a “sell.” The average 12-month target price was RM11.42, indicating potential upside from the RM10.54 closing price on that date. Analysts cited factors such as a declining gross impaired loan ratio, high loan loss coverage, and strong non-interest income momentum as supportive of this optimism. 

Financial Performance and Near-Term Outlook:

In the second quarter ended June 30, 2024, Maybank reported a net profit of RM2.53 billion, an increase from RM2.34 billion in the same quarter the previous year. This growth was driven by higher non-interest income from stronger treasury and markets income. Additionally, the bank declared a dividend of 29 sen per share for this quarter.  

Net Interest Margin (NIM) Considerations:

Maybank’s NIM experienced a two basis point improvement to 2.02% in the second quarter of FY2024, following six consecutive quarters of decline. However, analysts remain cautious about sustaining this improvement due to potential impacts from U.S. Federal Reserve interest rate cuts and competitive deposit markets, particularly affecting Maybank’s Singapore operations. 

Dividend Policy and Future Payouts:

Maybank has consistently upheld a dividend payout policy ranging between 40% and 60% of net profit. For FY2023, the bank declared a total dividend of 60 sen per share, reflecting a payout ratio of approximately 77%. Analysts anticipate that Maybank will maintain its dividend per share at least at the FY2023 level, with potential for adjustments based on earnings momentum and capital preservation strategies.   

Conclusion:

Maybank’s solid financial performance, commitment to shareholder returns, and strategic initiatives suggest a favorable outlook. While short-term market fluctuations may occur, the bank’s fundamentals and proactive management indicate potential for recovery and growth in the coming quarters. Investors are encouraged to consider Maybank as a viable option for both capital appreciation and dividend income, while remaining mindful of broader economic conditions and interest rate environments that may influence future performance.

Scientex Berhad has demonstrated robust financial performance recently, particularly in its property division. In the financial year ended July 31, 2024 (FY24), the company reported a 24.4% increase in net profit to RM545.2 million and a 9.8% rise in revenue to RM4.5 billion. This growth was largely driven by a 29.7% surge in the property segment’s revenue, reaching RM1.9 billion, attributed to higher sales, strong demand for new launches, and steady progress in ongoing projects across Peninsular Malaysia.  

In the first quarter of FY25, ending on October 31, 2024, Scientex maintained consistent group revenue of RM1.1 billion. The property division continued its upward trajectory with a 6% increase in revenue to RM483.7 million, fueled by steady construction progress and strong take-up rates in regions including the northern, central, Malacca, and Johor areas. However, the packaging division experienced a slight decline of 3.8% in revenue to RM625.7 million, impacted by softer export demand and unfavorable foreign currency exchange movements.  

Analysts have maintained a positive outlook on Scientex following its solid FY24 results. BIMB Securities, for instance, highlighted the company’s strong position in affordable housing and its commitment to sustainability. They maintained a ‘hold’ call with a target price of RM4.50, citing encouraging earnings growth prospects driven by property expansion and strategic land acquisitions. However, they also advised caution regarding the packaging segment due to weaker demand. 

Given the company’s consistent earnings and strategic focus on affordable housing—a sector with enduring demand—Scientex appears well-positioned for continued growth. However, the packaging division faces challenges that could impact overall performance. Market conditions, investor sentiment, and broader economic factors will also influence the stock’s performance in the coming days and weeks.  

It’s advisable to monitor ongoing developments in both the property and packaging sectors, as well as any company-specific news. Consulting with a financial advisor can provide personalized insights tailored to your investment goals and risk tolerance.

Scientex Berhad’s recent share price decline can be attributed to several factors impacting its packaging segment. In the first quarter ended October 31, 2024 (1QFY2025), the company reported a 6.7% decrease in net profit to RM128.6 million, primarily due to challenges in the packaging division, including unfavorable foreign exchange movements and softer export market demand. 

Property Segment Performance:
The property division demonstrated resilience, with revenue increasing by 6.0% to RM483.7 million in 1QFY2025. This growth was driven by steady construction progress and strong take-up rates across various regions, including Selangor, Penang, Perak, Malacca, and Johor. The company plans to launch 8,000 affordable homes annually starting in FY2025, aligning with its goal of delivering 50,000 affordable homes by 2028.   

Packaging Segment Performance:
The packaging division faced a 3.8% decline in revenue to RM625.7 million, attributed to softer export demand and unfavorable currency exchange rates. Despite these challenges, Scientex is focusing on innovation and sustainability, including developing customized, value-added packaging solutions with an emphasis on incorporating recycled materials. 

Segment Contributions:
In 1QFY2025, the property segment contributed approximately 43.6% of total revenue, while the packaging segment accounted for about 56.4%. 

Upcoming Quarter Results:
While specific forecasts for the upcoming quarters are not detailed, analysts anticipate that the property division’s robust performance will help offset challenges in the packaging segment. The company remains optimistic about sustained demand for affordable housing and is committed to enhancing its packaging offerings to navigate market challenges.  

Target Price:
Analyst opinions on Scientex’s target price vary. BIMB Securities maintains a “hold” call with a target price of RM4.50, while TA Securities has a “buy” call with an unchanged target price of RM5.48 per share. The consensus 12-month target price stands at RM4.75, offering a potential upside of 8.7% from its last traded price. 

In summary, Scientex’s share price decline is largely due to challenges in the packaging segment. However, the strong performance and positive outlook of the property division may help mitigate these issues. The company’s strategic focus on affordable housing and sustainable packaging solutions positions it to navigate current market challenges effectively.

Epf is a buyer n also a sell

Expecting to hit lower at 2.50

4.8-5.16 trading range

Public Bank Berhad (PBB) has demonstrated strong financial performance recently, contributing to its notable stock price appreciation on Bursa Malaysia.

Financial Performance and Contributing Factors:
• Third Quarter 2024 Results: PBB reported a 12% increase in net profit for Q3 2024, reaching RM1.91 billion. This growth was driven by a 5% rise in net interest income and a 6.5% increase in income from Islamic banking operations. Additionally, non-interest income, including fees and commissions, climbed 18%. 
• Nine-Month Performance: For the nine months ending September 30, 2024, PBB’s net profit rose by 6% to RM5.35 billion, with revenue growing by 7.6% to RM20.2 billion. The bank’s total loan portfolio expanded at an annualized rate of 5.2% to RM414.5 billion, with domestic loans increasing by 6.2% to RM390.1 billion. 
• Non-Interest Income: There was a 9.8% increase in non-interest income during the first nine months of 2024, attributed to strong growth in unit trust and stockbroking income, which rose by 13.6% and 61.6%, respectively. 

Analyst Upgrades and Stock Performance:
• RHB Investment Bank: On April 19, 2024, RHB upgraded PBB to a “buy” rating with a target price of RM4.80, citing the bank’s earnings stability and defensive qualities amid global market volatility. 
• MIDF Research: In November 2024, MIDF maintained a “buy” rating for PBB, setting a target price of RM5.16, reflecting optimism about the bank’s growth prospects and strategic acquisitions. 

Outlook and Stock Price Projection:

As of December 16, 2024, PBB’s stock was trading at RM4.54.  While analysts have set target prices ranging from RM4.80 to RM5.16, these projections are typically based on a 12-month outlook. Predicting short-term stock movements, such as surpassing RM5 in the coming days or weeks, is challenging due to market volatility and unforeseen factors. Investors should consider these aspects and conduct thorough research or consult financial advisors before making investment decisions.

If RM 11 can take profit first

PBB shall perform much better this qtr n expecting March div shall be within thevecoected done

Most probably shall be 25 c same as last year the same period