External broker reports(aggregated public sources), Hong Leong Investment Bank Berhad

Hong Leong Investment Bank Berhad

External broker reports(aggregated public sources)

Hong Leong Investment Bank Berhad operates as an investment banking company. The Company provides debt and equity funding, private debt securities issuance, merger and acquisitions, initial public offerings, corporate restructuring, and stockbroking services. 

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Equity Bottom-Up

Dksh Holdings Malaysia / Equity Bottom-Up

DKSH Holdings Malaysia Berhad is principally an investment holding company. The principal activity of the Group is the provisioning of Market Expansion Services, which range from marketing, to sales force management, distribution and logistics, invoicing and credit management, inventory and returned goods management, and other services.

<ul><li>Overall in 1H24 Consumer Goods performance was flat YoY, while Healthcare and Others segment registered growth.</li><li>Despite softened demand for some international brands due to the “boycott sentiment” following the conflict in the Middle East, DKSH observed a strong pick up in local products.</li><li>Healthcare momentum continues to be strong, with the on-boarding of six new clients in 2Q24 and management reiterates its confidence that this segment will perform well for the remainder of the year. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Overall in 1H24 Consumer Goods performance was flat YoY, while Healthcare and Others segment registered growth.Despite softened demand for some international brands due to the “boycott sentiment” following the conflict in the Middle East, DKSH observed a strong pick up in local products.Healthcare momentum continues to be strong, with the on-boarding of six new clients in 2Q24 and management reiterates its confidence that this segment will perform well for the remainder of the year. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DKSH Holdings - Strong Healthcare Momentum

OSK Holdings Berhad is an investment holding company. Through its subsidiaries, the Company provides retail and institutional broking in equities, futures and fixed income, underwriting and placement of securities, corporate finance and advisory, commercial and wholesale banking, asset management, trustee services and issues derivatives and structured products.

<ul><li>OSK’s 97.47%-owned subsidiary, Olympic Cable, is acquiring Universal Cable's assets, including two manufacturing facilities producing low, medium, and highvoltage cables for RM85m.</li><li>We view this acquisition positively given (i) the attractive acquisition price at 41.8% discount to book value, (ii) entry into the growing high voltage cable segment, (iii) enhanced cost efficiencies through economies of scale, and (iv) a faster time to market compared to building a new facility.</li><li>Additionally, this expansion is timely given the growing demand for cables driven by solar projects, data centres, and grid expansion initiatives. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

OSK’s 97.47%-owned subsidiary, Olympic Cable, is acquiring Universal Cable's assets, including two manufacturing facilities producing low, medium, and highvoltage cables for RM85m.We view this acquisition positively given (i) the attractive acquisition price at 41.8% discount to book value, (ii) entry into the growing high voltage cable segment, (iii) enhanced cost efficiencies through economies of scale, and (iv) a faster time to market compared to building a new facility.Additionally, this expansion is timely given the growing demand for cables driven by solar projects, data centres, and grid expansion initiatives. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

OSK Holdings - Acquisition to Double Cable Capacity

TRC Synergy Berhad is an investment holding company. Through its subsidiaries, the Company operates as general contractors carrying out construction works, sells construction materials, and develops property. TRC Synergy also hires and services vehicles and manufactures concrete piles and ready-mixed concrete.

<ul><li>TRC’s 1HFY24 core PATAMI of RM5.5m was within expectations. We had earlier slashed FY24 forecasts by -46%.</li><li>Net cash per share has dwindled down to RM0.55 from RM0.65. Unbilled orderbook is decent at RM1.0bn.</li><li>Ara Sentral Ph 2 launch has been delayed to 2Q26 from 1Q25. We have also adjusted downwards FY24 construction replenishment assumptions to RM1.0bn (from RM1.5bn) due to delays in government infra timelines. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TRC’s 1HFY24 core PATAMI of RM5.5m was within expectations. We had earlier slashed FY24 forecasts by -46%.Net cash per share has dwindled down to RM0.55 from RM0.65. Unbilled orderbook is decent at RM1.0bn.Ara Sentral Ph 2 launch has been delayed to 2Q26 from 1Q25. We have also adjusted downwards FY24 construction replenishment assumptions to RM1.0bn (from RM1.5bn) due to delays in government infra timelines. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sam Engineering & Equipment / Equity Bottom-Up

Sam Engineering & Equipment (M) Bhd manufactures production equipment and aerospace products.  The Company produces manufacturing machinery including test handlers, laser mark handlers, material handling systems, vision inspection and automation solutions; and offers metal machining and sheet metal fabrication services.

<ul><li>SAMEE reported 1QFY25 core earnings of RM10m (-68% QoQ, -43% YoY) which missed expectations impacted by weaker-than-expected sales and EBITDA margin.</li><li>We are positive on SAMEE as: (i) the global semiconductor industry is gradually recovering from the inventory correction cycle; and (ii) aerospace is turning around strongly as global air passenger travel has recovered to &gt;99% of pre-pandemic level.</li><li>While the group's Thailand expansion will take time before breaking-even, we are encouraged by the narrowing losses in each subsequent quarter. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SAMEE reported 1QFY25 core earnings of RM10m (-68% QoQ, -43% YoY) which missed expectations impacted by weaker-than-expected sales and EBITDA margin.We are positive on SAMEE as: (i) the global semiconductor industry is gradually recovering from the inventory correction cycle; and (ii) aerospace is turning around strongly as global air passenger travel has recovered to &gt;99% of pre-pandemic level.While the group's Thailand expansion will take time before breaking-even, we are encouraged by the narrowing losses in each subsequent quarter. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SAM Engineering & Equipment - A Disappointing Start

<ul><li>OSK reported 2Q24 core PATAMI of RM128.7m (+4.8% QoQ; -1.6% YoY), which brought 1H24’s sum to RM251.5m (+2.1% YoY).</li><li>The results were within our expectation, making up 50% of full-year forecast.</li><li>Property sales were slower in 1H24, but is expected to pick up in 2H24 following several big launches in Jun/Jul. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

OSK reported 2Q24 core PATAMI of RM128.7m (+4.8% QoQ; -1.6% YoY), which brought 1H24’s sum to RM251.5m (+2.1% YoY).The results were within our expectation, making up 50% of full-year forecast.Property sales were slower in 1H24, but is expected to pick up in 2H24 following several big launches in Jun/Jul. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.