*1Q25 Market Chat: Riding The Data Center Flywheel*
https://mplusonline.com/research-report/detail/650
β’ Donald Trump βELITESβ assembles could be a wild card for the US economic outlook. However, we expect persistent tariffs, imposing on China, corporate tax cuts, and reduced government spending going forward.
β’ Dollar index will be elevated at least for the near term, which will benefit export-driven sectors like Technology and Gloves in Malaysia.
β’ Moreover, we expect the data center and AI theme will continue as the investments from MNCs has just started in 2023-2024, and will book earnings going into 2025 onwards. Thus, we favour stocks in the Construction, Building Materials, Property, Utilities.
β’ Besides, we like selected O&G, Finance and Renewable Energy stocks, the latter will be riding on the NETR blueprint and electric tariff hike by the TNB recently.
1Q25 Stock picks
1. CLOUDPT (S: RM0.840-0.895, R: RM1.04-1.10, CL: RM0.820)
2. EG (S: RM2.24-2.36, R: RM2.90-3.0, CL: RM2.20)
3. KGB (S: RM3.45-3.62, R: RM4.0-4.20, CL: RM3.39)
4. NATGATE (S: RM2.40-2.52, R: RM2.90-3.0, CL: RM2.36)
5. VITROX (S: RM3.67-3.87, R: RM4.62-4.80, CL: RM3.61)
6. MNHLDG (S: RM1.05-1.11, R: RM1.40-1.50, CL: RM1.03)
7. SCGBHD (S: RM1.03-1.10, R: RM1.40-1.46, CL: RM1.01)
8. SMRT (S: RM1.18-1.25, R: RM1.50-1.60, CL: RM1.16)
9. SSB8 (S: RM0.560-0.590, R: RM0.720-0.750, CL: RM0.550)
10. SENDAI (S: RM0.530-0.570, R: RM0.780-0.850, CL: RM0.520)
11. OSK (S: RM1.65-1.72, R: RM2.0-2.10, CL: RM1.62)
12. HARTA (S: RM3.65-3.70, R: RM4.53-4.78, CL: RM3.59)
13. ARMADA (S: RM0.600-0.630, R: RM0.800-0.830, CL: RM0.590)
14. PEKAT (S: RM0.900-0.950, R: RM1.10-1.15, CL: RM0.880)
_S: Support, R: Resistance, CL: Cut loss_
_*Source: Bloomberg, M+ Online*_