BIMB SECURITIES

*BIMB Securities Research’s Company Update Report*

*Datasonic Group Berhad (DSONIC): 5216 BUY 📈*

*Share Price:* RM0.395
*Target Price:* RM0.630 (+59.5%) 🚀

🔑 *Key Highlights:*

- *Contract Extension:* Datasonic secures a RM104.78mn contract extension from the Ministry of Home Affairs (MOHA), effective from 1st Dec 2024 to 30th Nov 2025. 📑
- *Scope of Work:* Includes supplying passport chips and various maintenance services for the Malaysian Immigration Department. 🛂💼
- *Earnings Forecast:* No change to earnings forecast as the extension aligns with expectations. 📊
- *Recommendation:* *BUY* with an unchanged target price of RM0.63, based on a 17x PER applied to FY25F EPS of 3.7sen. ✅

This extension supports Datasonic's positive outlook, maintaining growth and stability. 📈

📌 Click the link below for more info:

https://drive.google.com/file/d/1Z0elG85jnIdi1fD5Fq4DyjUoAPCMhd0H/view?usp=sharing

📞 If you need further assistance, you can contact Sarah at +60192066296

Best Regards,

Retail Dealing | BIMB Securities Sdn Bhd

*BIMB Securities Research’s Company Update Report*

*BURSA (1818) - 2024 Full of Records, 2025 Harder to Predict 📊*

🔑 *Key Highlights:*
- *2024 Performance:* Core EPS of 38.3sen (+23% YoY) met estimates, with revenue up 27.2% YoY. Good cost control improved cost-to-income ratio to 47.6% (-0.2 PPT YoY). However, a higher tax rate (24.8%) led to a 1.4 PPT drop in net income margin to 39.5%. 💵📉
- *DPS:* Total dividend of 44sen (+52% YoY), with 36sen ordinary and 8sen special, achieving a record 94% payout ratio. 🎉💰
- *Leadership Change:* Datuk Umar Swift retiring, Dato’ Fadl’ Mohamad to succeed as CEO. 👔

🔄 *Earnings Revision:*
- *No change to FY25-26F forecasts.*
- 2025 assumptions: Equities ADV of RM3.2bn, cost-to-income ratio of 47%, and a 24% tax rate. 📈

🔮 *Outlook for 2025:*
- *PBT guidance:* RM369-408m, flat to -10% lower vs. 2024. Cautious outlook due to global market volatility, but non-trading revenue forecasted to grow 5-7% YoY. 📉🌍
- *IPO Pipeline:* 60 IPOs (up from 55 in 2024). 🚀
- *1Q25 Caution:* Soft due to global events like Trump’s inauguration and CNY. Activity expected to pick up in 2Q25. 🎉📅

💼 *Maintain BUY (TP: RM11.10):* Target price derived from 26x FY25 PE, supported by strong ROE, net cash balance, and commitment to shareholder return. 🏆📈

📉 *Attractive Valuation:* Bursa is the cheapest stock among Asian peers on PE and P/FCF metrics, offering the highest ROEs and dividend yields. A bargain compared to developed markets. 💸🌏


📌 Click the link below for more info:

https://drive.google.com/file/d/1oLW-ugP8JuLOEE5Z5xCdnCkwBoX1ELvS/view?usp=sharing

📞 If you need further assistance, you can contact Sarah at +60192066296

Best Regards,

Retail Dealing | BIMB Securities Sdn Bhd

Photo from Nizam

*BIMB Securities Research’s Company Update Report*

📦 *Scientex Berhad (4731) - Landbank Purchase in Paya Rumput, Melaka*

🔹Scientex Berhad (Scientex) has entered into a conditional Sale and Purchase Agreement with Genting Plantations’ subsidiaries to acquire 528.49 acres of freehold land in Paya Rumput, Melaka for RM333.8mn. 🏡💼

🔹 This acquisition increases Scientex’s landbank to 10,806 acres, boosting its portfolio of developable properties and enhancing earnings visibility. 📈

🔹 The acquisition price of RM14.50/sqft is a 93.33% premium over a previous purchase price in Alor Gajah, but is deemed reasonable due to Paya Rumput's closer proximity to Melaka Tengah and ongoing development. 📊

🔹 No change to earnings estimates until further GDV guidance from management. 🔍

🔹 We upgrade our recommendation on Scientex to *BUY* from *HOLD*, maintaining a target price of RM4.50. With a P/E of 12x, the stock is undervalued and presents an attractive long-term opportunity. 💡📈

📌 Click the link below for more info:

https://drive.google.com/file/d/1Vd7FbTnOikPWhZRpIsEoIlsVTdfARgoH/view?usp=sharing

📞 If you need further assistance, you can contact Sarah at +60192066296

Best Regards,

Retail Dealing | BIMB Securities Sdn Bhd

*BIMB Securities Research’s Company Update Report*

🚢 *Westports Berhad - Record-Breaking Revenue* 🚢

- Amid persistent geopolitical uncertainties 🌍⚠️, we adopt a cautious outlook, with management projecting low single-digit growth (0-5%) for 2025 📊, in line with recent trends.
- Capacity constraints at 12.5mn TEUs ⚓ until 2027 will see the group target less than 500k TEUs annual growth, balancing flexibility, and demand 📈 until CT10’s completion in 2028.
- Local growth is expected to stabilize at mid-single digits 📊 as China+1 momentum eases, while transshipment growth is likely to remain in low single digits, reflecting subdued market sentiment 🌫️.
- We maintain a HOLD call 📌 with a TP of RM4.65 💰. Our valuation is based on the DDM methodology (WACC: 6.9%, TG: 2%), which implies a 16.55x PER for FY25F.

📌 Click the link below for more info:

https://drive.google.com/file/d/11yddBFG0RxO2ARhQSB-YXFhHWT4u--P6/view?usp=sharing

📞 If you need further assistance, you can contact Sarah at +60192066296

Best Regards,

Retail Dealing | BIMB Securities Sdn Bhd

*BIMB Securities Research’s Company Update Report*

🛑 *Infomina Berhad - Ceasing Coverage* 🛑

- Infomina’s 1HFY25 core PATAMI of RM16mn 📉 came in below both our in-house and consensus full-year forecasts, achieving only 37.7% and 39.6% of the respective estimates ❌.
- The deviation was primarily attributed to weaker-than-expected contracts from the Turnkey segment 📉 despite encouraging contributions from the Renewal segment 💼. In 2QFY25, revenue edged up by 0.9% QoQ, supported by higher contributions from the Renewal segment (revenue: +1.6% QoQ).
- However, this was offset by a decline in the Turnkey segment (revenue: -3.5% QoQ) 📉. At the same time, PBT fell by 1.5% QoQ mainly due to reduced contributions from the Renewal segment, where the operating margin dropped by 1.8ppt QoQ 📊.
- We have revised our recommendation for Infomina, from BUY to Not-Rated ⚖️. This adjustment is part of an internal restructuring of our stock coverage 🔄.

📌 Click the link below for more info:

https://drive.google.com/file/d/1TDzjk1lT66QTiPtCKSOkVArVpjg4tjw3/view?usp=sharing

📞 If you need further assistance, you can contact Sarah at +60192066296

Best Regards,

Retail Dealing | BIMB Securities Sdn Bhd

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🚀 *BIMB Securities Research’s Sector Update Report* 🚀

Palm Oil Economic R&O 2025 Conference

🌟 *MPOB's 2025 Outlook:*
Modest CPO production growth to 19.50mn MT, with CPO prices estimated between RM4,000–RM4,300/MT.

📊 *Our Forecast:*
In line with MPOB’s projections, we maintain an average CPO price target of RM4,100/MT for 2025.

🌐 *Supply:*
🇮🇩 Indonesia’s production is expected to recover, growing +4.21% YoY to 50mn MT as El Niño effects fade. Global supply is constrained by higher biofuel feedstock demand.

📈 *Demand:*
🌿 Indonesia’s B40 biodiesel mandate will add 2mn tonnes (+20% YoY) of CPO demand. 🇧🇷 Brazil’s biodiesel mandate increase from B13 to B14 will also pressure supply.

♻ *Higher Export of Used Cooking Oil (UCO):*
Malaysia's UCO exports, reaching 1.1mn MT in 2024, are forecasted to grow by 13% YoY to 1.25mn MT in 2025. Rising demand for sustainable aviation fuel (SAF) drives growth, with UCO’s low carbon intensity and tax benefits positioning it as a preferred SAF feedstock. Malaysia aims to produce SAF by 2027.

🌱 *Productivity Enhancement:*
Replanting ageing oil palms with high-yielding seeds, supported by RM100mn in government incentives. Modern planting materials and MPOB's SureSawit assay could boost oil production by RM4.1bn to RM6.5bn.

🌍 *Strengthen the Sustainability of Palm Oil:*
Malaysia's MSPO Certification Scheme promotes sustainability, with 87% of plantations and 90% of mills certified.
MSPO 2.0 requires full supply chain compliance, offering smallholders market access and ensuring traceability.
The Sawit Intelligent Management System (SIMS), launched in 2024, boosts transparency in palm oil transactions.

💼 Top Buys:
✅Hap Seng Plantations (TP: RM2.40)
✅Sarawak Plantation (TP: RM2.83)
✅IOI (TP: RM4.50)
✅KLK (TP: RM24.05)

📌 Click the link below for more info:
https://drive.google.com/file/d/1XaeL5P7-8SebK5-cGcOtvhiQqr3H2MLX/view

📞 If you need further assistance, you can contact Sarah at +60192066296

Best Regards,
Retail Dealing | BIMB Securities Sdn Bhd

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