In this series of articles, we provide an overview of issuers currently on our watchlist, including the latest developments and our commentary on each issuer.
Before that, we have curated a summary of prospective bond issuer that we are keen on.
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Company |
Latest Developments |
Related article |
Comment |
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JB Cocoa Sdn Bhd |
- Delivered exceptional strong performance in 1HFY2026, with revenue and profit before tax rising by 57.7% and 216.1% YoY respectively. This was primarily driven by higher selling prices and hedging gains. - Despite a slight increase in gearing, the company’s liquidity remains strong and comfortably covers its short-term obligations. - Issuance has been rescheduled to January 2026. Interested investors may consider its upcoming issuance if yield and tenure remain reasonable. |
Credit Update: JB Cocoa Posts Another Strong Half-Year Results Despite Wild Swings in Bean Price |
- Given JB Cocoa’s strong and supportive customer base, along with its strategic cost pass-through model. - We continue to maintain a positive outlook on the company. We believe it is well-positioned to sustain profitability and a healthy credit profile going forward. |
Moving on to the next segment, here are the latest updates on issuers we are closely monitoring, which is exhibiting elevated credit risk or even under financial distress. We have marked the changes from the previous update in bold.
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Company |
Latest Developments |
Related article |
Comment |
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Tan Chong Motor Holdings Berhad |
- In 3Q25, Tan Chong narrowed its net loss to RM60.25 million from RM90.28 million in 3Q24, supported by higher revenue and lower net foreign exchange losses, partially offset by higher impairment losses on receivables. -Liquidity has weakened, with cash declining to RM279.5 million from RM545.5 million as at Dec 2024, mainly due to repayments of financial obligations. - Following the partnership with China’s Wuling, Tan Chong has signed a Letter of Intent (LOI) with Perodua to provide ED coating and painting line services, as well as rental and use of certain designated assembly lines. |
- On a brighter note, Tan Chong is divesting its non-core assets to strengthen cashflow and its balance sheet. - However, we continue to remain cautious on Tan Chong given weak sales volumes and persistent competitive pressures in the automotive industry. |
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Cypark Renewable Energy Sdn Bhd |
- Cypark has proposed early full redemption of tranche 1 perpetuals, covering series 1 to 10.
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Sunshine after the storm: Cypark’s early redemption exercise |
- Resolution has been passed. - Can expect redemption to happen before next coupon distribution date (4 Mar 2026). |
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Pestec International Berhad |
- The issuer has deferred the perpetuals’ coupon payment for the period from 16 April 2025 to 16 October 2025. - As of 30 Sep 2025, Pestec’s group reported a net profit of RM20 million, driven by reversal of tax provision. Without it, the group will still be in the red. - Nonetheless, cash flow from operating activity for 6 months ended 30 Sep 2025 is still negative at RM72.5mil. Turnover remains distant. |
Nil |
- We are negative on Pestec’s ability to service coupon payments and principal redemption. - We believe that the company will involve perpetual holders in the restructuring plan, though timeline remains unknown. |
|
Tropicana |
- Tropicana narrowed its losses to RM60.95 million in 3Q25, compared with RM522.55 million in 3Q24, when results were hit by a one-off loss from the disposal of an investment property. - The group continues with its deleveraging, with gearing dropping from 58% in FY24 to 46% as of 30 September 2025. |
Is Tropicana’s upcoming 3Y bond with indicative yield of 5.8% still worth considering |
- Despite the losses, we hold a positive stance towards Tropicana in view that the company will be supported by its sizeable landbank. |
|
YNH Property Bhd |
- YNH has decided not to redeem its perpetual securities – Tranche 1 and Tranche 2: : Tranche 1: The next call date is in August 2025, marking the third consecutive non-call since August 2024. The group will pay a stepped-up coupon rate of 9.85%. : Tranche 2: The call date is in July 2025, marking the first non-call. The group will pay a stepped-up coupon rate of 8.85%. - Based on 1QFY26 (Sep 25), revenue increased significantly from RM26.3 million in 1QFY25 (Sep 24) to RM62.6 million, mainly due to the sale of its development land in Mont Kiara and the completion of the disposal of Aeon Seri Manjung. Gearing ratio stood at 88%. |
YNH Property quick update – The clock is ticking for the troubled property developer |
-YNH is still actively disposing its assets to repay its outstanding loans and fulfil working capital requirements. Its liquidity position remains poor, with RM204 mil debt maturing in the coming year. - We are negative on this issuer from an operational perspective. |
|
Country garden |
- On 11 April 2025, Country Garden announced its proposed restructuring plan, primarily on handling the Group’s offshore debt at the group level, excluding the debts of subsidiaries (in mainland China, Malaysia, and Thailand). - The plan includes five options: (1) Cash Tender Offer, (2) Mandatory Convertible Bonds A, (3) Mandatory Convertible Bonds A and Medium-Term Debt Instruments, (4) Mandatory Convertible Bonds B and Long-Term Debt Instruments and (5) Ultra-Long-Term Debt Instruments. |
Country Garden - Progress in Restructuring and Financial Results Announcement |
- Debt restructuring plan remains ongoing, with the scheme having been authorised by the court on 4 Dec 2025. - Implementation is still subject to the fulfilment of all required restructuring conditions. |
|
Evergrande |
- Evergrande has officially entered a forced liquidation, and Alvarez & Marsal is the liquidator to handle the asset disposal. - The adjournment of the hearing, which was intended to seek directions on the appointment and composition of a committee of inspection for the winding up of the company, may affect the progress of the liquidation.
- Evergrande’s shares has been delisted from Hong Kong Stock Exchange on August 2025. - Liquidation is still ongoing, with liquidator having filed proofs of debt on behalf of creditors. |
The court ordered the liquidation of China Evergrande |
- The liquidation process is still ongoing, and we posit that it will take a couple of years to complete due to its scale. |
|
Century Sunshine |
-Trading in CENSUN shares has been suspended since 1 April 2025 due to the company’s failure to release its 2024 Annual Report on time. -No dividend was declared for the second scheme year, as the proceeds from the share disposals were insufficient to cover the scheme costs. -Land title conversion for Shandong Land is still pending for soil remediation. -There is still no decision on whether the Zhangzhou Land should continue to be reserved for the bridging loan or be disposed of. |
Update on the Second Scheme Year for Century Sunshine
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-Listing status may be cancelled if the suspension remains in effect until 30 Sep 2025. Given that there are no other available assets, we hope the land title conversion of the Shandong Land will be successfully completed, as it is likely to unlock higher value when the land is disposed of after the conversion. |
In the next section, we will delve into the insights of the yield curves for Malaysian Government Securities (MGS), US Treasuries (UST), Singapore Government Securities (SGS) and Australia Government Securities (AGS).
Our view on MGS:
1) BNM keeps OPR steady at 2.75% in Nov 2025, marking the final policy decision for the year.
2) Expect BNM to implement between 0 to 1 rate cuts in 2026, as a response to easing monetary policy among regional peers, as well as if external headwinds and export deterioration weigh on economic growth.
3) Yield curve remains upward sloping.
4) Continue to prefer medium-term (5-7 years).
Chart 1: MGS Curve
Our view on UST:
1) The U.S. yield curve is expected to steepen gradually through 2026.
2) Longer-term bond yields are likely to remain elevated due to persistent inflationary pressures and fiscal risks.
3) Expected slow and measured pace of cuts in 2026 gives time to opportunistically reallocate to 5–7-year bonds.
Chart 2: UST Yield curve
Our view on SGS:
1) Sharp yield decline in 6-month T-bills this year has eroded their appeal, prompting us to step away from our prior outright preference.
2) See more value in medium term (5 to 10-year) where the yield pickup is higher.
2) See little incentive to take exposure beyond the 10-year tenor as the treasury curve is much flatter suggesting that the incremental yield pickup is unattractive
Chart 3: SGS Yield curve
Our view on AGS:
1) Australia’s yields climbed after inflation beats expectation (3.8% YoY) and Q3 GDP rose 0.4% (annual growth 2.1%), making markets to scale back rate-cut bets.
2) We expect RBA to hold rates in the near term but still see 1 to 2 rate cuts in 2H26, viewing current inflation numbers as partly seasonal.
3) For duration, we favour a longer duration play, possibly the 7 to 10 years.
Chart 4: AGS Yield curve
Some of the Credit Announcement by RAM & MARC (as of 30 November 2025)
RAM
1) Affirms Sarawak Energy’s AAA rating
2) Affirms RHB Bank’s AA1 rating
3) Affirms Bank Islam’s AA3 rating
https://www.ram.com.my/news-events/?tab=list-ratingannouncement
MARC
1) Affirms Penang Port’s AA- rating
2) Affirms OSK’s AA rating
3) Revise Guan Chong’s outlook from negative to stable, rating remains at AA-
https://www.marc.com.my/insights/rating-announcements/
For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) holds position in COGARD 6.500% 08Apr2024 Corp (USD), EVERRE 8.250% 23Mar2022 Corp (USD),CYPREN 6.500% Perpetual Corp (MYR) - Series 1,3,4,5,6, PESTMK 15.000% Perpetual Corp (MYR) - Series 1,3, DJCMK 6.250% 13Nov2028 Corp (MYR),DJCMK 10.000% Perpetual Corp (MYR), DJCMK 6.600% Perpetual Corp (MYR), JBCOCO 5.900% 18Mar2027 Corp (MYR) and JBCOCO 5.800% 12Nov2027 Corp (MYR) and the analyst who produced this report hold a NIL position in the abovementioned securities.
