KUALA LUMPUR (June 12): Despite its more cautious market outlook, Rakuten Trade has recommended 10 stocks that it believes are well positioned to weather market volatility.
The brokerage has recommended five blue-chips stocks following a virtual media briefing on Friday, namely 99 Speed Mart Retail Holdings Bhd (KL:99SMART), CIMB Group Holdings Bhd (KL:CIMB), Gamuda Bhd (KL:GAMUDA), Malayan Banking Bhd (KL:MAYBANK) and Tenaga Nasional Bhd (KL:TENAGA).
99 Speed Mart with a target price (TP) of RM4.24: The retail giant continues to gain traction in its international expansion, with six outlets currently operating in Fuzhou, China, while its net profit is expected to grow to RM707.2 million for the financial year ending Dec 31, 2026 (FY2026), and RM784.7 million for FY2027, versus a net profit of RM614.2 million it posted in FY2025.
CIMB with a TP of RM8.45: The bank is expected to deliver a sector-leading dividend yield of 6.5%, with prospects supported by an improving net interest margin via efforts to strengthen its current account savings account (CASA) and pivot towards higher-yielding products
Gamuda with a TP of RM5.30: The construction group is backed by a sizeable outstanding order book of RM55.4 billion, providing earnings visibility while benefitting from domestic infrastructure projects and overseas expansion.
Maybank with a TP of RM12.30: The banking group has a leading dividend yield of 6.1%.
Tenaga with a TP of RM17: The utility giant is expected to benefit from rising electricity demand, particularly from data centres, with its dividend yield expected to be at 3.5%.
For small-and mid-cap selections, the research firm highlighted the following:
Crest Builder Holdings Bhd (KL:CRESBLD) with a TP of 81 sen: Earnings have rebounded significantly post-Covid and prospects are supported by a RM1.93 billion outstanding order book.
EG Industries Bhd (KL:EG) with a TP of RM2.28: Positioned to benefit from robust demand for optical modules and network switches, driven by hyperscale data centre expansion.
Kee Ming Group Bhd (KL:KEEMING) with a TP of RM1.30: The mechanical and electrical engineering firm’s prospects are bolstered by its unbilled order book of RM151.9 million and strategic ties with its major shareholder Solarvest Holdings Bhd (KL:SLVEST).
Northeast Group Bhd (KL:NE) with a TP of RM1.37: The precision component manufacturer would benefit from rising photonics demand and supply-chain relocation to Southeast Asia.
VSTECS Bhd (KL:VESTECS) with a TP of RM2.42: The ICT distributor is expected to benefit from rising demand for artificial intelligence (AI)-related infrastructure deployments.
