Investment Highlights

• We maintain HOLD call on EQ8 DJ Islamic 25 with a slight higher fair value (FV) of RM1.17 (from RM1.16 previously based on our FVs (for stocks under our coverage) an consensus FVs (for stocks not under our coverage). Our F currently offers a 13% upside to the ETF’s market price.

• The ETF’s 1HFY24 results turned around with a rebound t a net gain of RM7.9mil from a loss of RM8.2mil in 1HFY2 This positive shift is primarily due to favorable investmen gains and reduced expenditures.

• On a sequential comparison, investment income increase by 6.8% to RM8.2mil from RM7.7mil in 2H2023 (includin 9.7% increase in dividend and 6% increase in investmen gains gains). Additionally, expenditure reduced by 19.6% t RM372k from RM464k.

• The oil and gas (O&G) sector remains the larges contributor to NAV, accounting for 21% of total NAV weigh We remain OVERWEIGHT on this sector, driven by robus earnings growth in large-cap companies due to high o prices which are sustained by persistent supp disruptions and prior under-investment. Companies wit direct involvement in upstream production and the FPS subsector are particularly well-positioned to benefit fro the current favourable oil price environment.

• Nevertheless, we maintain a NEUTRAL outlook on both th telecommunications and plantation sectors, whic represent 18% and 17% of NAV respectively. Our NEUTRA position on telecommunications is due to the potenti impact of higher operating expenses resulting from Digit Nasional's fixed 5G annual wholesale capacity charges o cellular operators. Similarly, we are NEUTRAL on th plantation sector as crude palm oil (CPO) prices are like to be constrained by increased palm oil supply in Malays and Indonesia.

• Our in-house economist forecasts a better performance i 2H2024 with full-year 2024 GDP potentially reaching up t 5.0% YoY, exceeding our earlier estimate of 4.5%.

Source: AmInvest Research - 2 Sep 2024