The Weak Ringgit Strong Dollar … Winners & Losers…

The Winners …

Top Glove: Almost all of its revenue is in US$ and 70% of its total costs are in US$. Strengthening US$ is positive for it.

MISC: Almost all of its revenue is in US$, but so is operating costs, kike bunker, crewing , docking etc …

Tanjong: Egyptian power plant earnings in US$.

Asiatic: Prices mainly in US$, no borrowings but fertilizer costs in US$.

KLK: Sell 15-20% of CPO in US$, rest in RM and Rip. Refined product mostly sold in US$. Borrow primarily in US$ but fertilizer costs in US$.

IOI: Fairly neutral impact. Sell 15 – 20% of CPO in US$, rest in RM. Refined product mostly sold in US$. Borrow primarily in US$ but fertilizer cost in US$.

Sime Darby: Price mainly in US$, few borrowings but fertilizer cost in US$.


The Losers …

MAS: Given MAS’s high operating leverage, earnings are highly sensitive to jet fuel cost which is denominated in US$.

Ann Joo: 70-80% of revenue are from domestic market but input costs are mainly quoted in US$.

Kinsteel: 70-80% of revenue are from domestic market but input costs are mainly quoted in US$.

Astro: Programming cost (50-60% in US$), accounts for 45% of operating cost.

Tenaga: Interest expense on US$ loans (26% of total loans) coal and oil costs in US$.

UMS: Toyota CKD is purchased in US$.

Media Prima: Programming cost (40-50% in US$), accounts for 45-50% of operating cost.

TM: Interest expense on US$1.1 billion bonds.

TMI: Interest expense on US$480 million debts.