NAVIGATING Trump 2.0 would be a task in 2025 although Malaysia could catch some attention as it has been a beneficiary of trade diversion.
Domestically, Malaysia is seeing an investment upcycle wave with non-trade growth engines including tourism, data centres and ASEAN Economic integration as growth supports, according to Maybank IB Research.
“We list five themes to play in 2025, mostly centric on consumption and investment realisation. We have a 2025 year-end FBM KLCI target of 1,740 (15 times 2026E price-to-earnings ratio) driven mainly by banks which is our key OW overweight),” projected the research house in its 2005 outlook.
The five themes to look out for in 2025 are:
- External disruptions: Maybank IB Research sees opportunities in a shift of trade diversion to trade diversification which would benefit manufacturing and tech plays;
- Domestic secular plays: Hedging uncertainties externally, the research house sees positive trends to benefit banks, consumer and tourism (including REITs);
- State-driven activities: Following through from Johor, Sarawak and Penang which will continue to see investment action, the research house would also be watching out for developments in Sabah, Kedah and Perlis in the energy and EV (electric vehicle) space;
- Investment realisation: After receiving strong approved investments since 2023, Maybank IB Research expects positives from tech, construction and industrial properties to spread to second order beneficiaries such as consumer, retail and offices;
- Corporate restructuring: The research house expects a stepping-up of GLC (government-linked company) reinvigoration given new head honchos on board. Separately, it expects the Finance Ministry’s GEAR-uP initiatives to take shape in 2025.
Aside from the banking sector which it is bullish with, Maybank IB Research is also “overweight” with the consumer and healthcare sectors while selectively positive on construction data centre plays), oil & gas (floating production storage and offloading or FPSOs) and tech (electronics manufacturing services).
“Other key sectors such as property, plantations, telcos and utilities are ‘neutral’ while petrochemicals is our only ‘underweight’,” noted the research house.
“Our ‘buys’ are AMMB Holdings Bhd, CIMB Group Holdings Bhd, Gamuda Bhd, YTL Power International Bhd, Hartalega, Holdings Bhd, KPJ Healthcare Bhd, V.S Industry Bhd, Frontken Corp Bhd, AEON Co (M) Bhd and Solarvest Holdings Bhd.”
On the contrary, the top ‘sells’ are Lotte Chemical Titan Holdings Bhd, Astro Malaysia Holdings Bhd, Tan Chong Motor Holdings Bhd, Berjaya Food Bhd and RCE Capital Bhd. – Dec 17, 2024
Main image credit: Philip Invest
