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.
But before that, we have also provided a summary of several issuers that we are keen on:
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Company |
Latest Developments |
Related article |
Comment |
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Tropicana |
- In 2Q25, Tropicana recorded a 14.2% YoY decrease in revenue and a lower profit before tax of RM10.65 mil. - The group attributed this to the completion of divestment of several properties, resulting in reduction of recurring income. - The group’s deleveraging effort is on track, with gearing dropping from 72% in FY23 to 57% as of 30 June 2025. - Tropicana has indicated its preference not to redeem its perp on 25 Sep 25 (call date). Coupon distribution is eventually step up to 10%. - Tropicana is planning to issue a 3-year bond with a tentative coupon rate of 5.8% and an issuance size of up to RM200 million. The bond will be secured with a 1.5x security cover, backed by land charges in the Subang and Genting areas with an indicative market value of RM304 million. |
Article is expected to be published by 17 Oct |
- Despite the lower revenue and profitability, we hold a positive stance towards Tropicana in view that the company will be supported by its sizeable landbank. We opine that the issuer chose not to redeem the perpetual as the stepped-up coupon remains manageable, and it aims to spread its financial commitments more evenly. Its upcoming 3Y issuance with an IPG of 5.8% appears relatively attractive, while the 1.5x security cover offering extra cushion against the downside risk. |
|
Sunsuria |
-A listed company with diversified operations spanning across property development, construction, healthcare and more. -In 3QFY25, revenue declined slightly to RM462 million (3QFY24: RM476 million) due to fewer project completion. Nonetheless, operating profit margin remains stable at 18% -Credit profile remains healthy with net gearing ratio of 33% and interest coverage ratio of 3.5x. -Earning visibility is supported by unbilled sales of approximately RM900 million (as of Sep 2024) and upcoming development with estimated GDV of RM492 million. |
Article is expected to be published by 17 Oct |
Overall, we view Sunsuria’s operations remain solid, supported by ongoing development projects and a robust financial position. Investor may consider its upcoming 5-year bond issuance at 5.3%, rated A+ by MARC. |
|
JB Cocoa Sdn Bhd |
- Issuing 5Y bond with an IPG of 5.30% - 5.50%. - Delivered exceptional strong performance in FY25, with revenue increasing by 178.2% due to higher selling prices across all products. - However, net margin remains thin at 1.4%, as persistent high bean prices and foreign exchange losses continued to weigh on profitability. - Credit profile remains healthy as its marketable assets (receivables + inventories) are more than sufficient to fulfill its short-term obligations. - Total Debt/EBITDA improved significantly from 11 times in FY2023 to 2.6 times in FY2025, underpinned by strong earnings growth. - Issuance has been rescheduled to end-November as counterparts await the release of JB Cocoa’s full credit rating report. |
JB Cocoa tapping the market with indicative yield of 5.30%-5.50% |
-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 |
|
Tan Chong Motor Holdings Berhad |
- Tan Chong has partnered with China’s Wuling to launch its first EV model in Q4 2025. The company will assemble Wuling vehicles in Malaysia via semi-knocked-down (SKD), enabling pricing below RM100k which is not permitted for fully imported EVs. - Tan Chong reported net loss of RM60.5 million in 2Q25, reflecting softer consumer sentiment and intensified competition in the market. - On 10 July 2025, Tan Chong, through its subsidiary, has entered into an agreement to dispose of nine freehold land plots for RM148.8 million. The proceeds will be utilised to strengthen the group’s working capital position. |
- We continue to remain cautious on Tan Chong given its declining revenue and sustained losses, driven by lack of attractive models and intensifying competition in Malaysia automotive market. It is unlikely for the Wuling EV to be priced below RM50k; however, if it is true, it can potentially boost Tan Chong’s sales |
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|
Cypark Renewable Energy Sdn Bhd |
- Cypark has proposed early full redemption of tranche 1 perpetuals, covering series 1 to 10. - The passing of scheme requires not less than 75% consent from sukukholders, in its upcoming EGM dated 7 October 2025.
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Sunshine after the storm: Cypark’s early redemption exercise |
- We believe investors will be better off by voting favourably, recovering the principal and redeploy the capital elsewhere |
|
Pestec International Berhad |
- Facing liquidity issues due to mismanagement of projects. - The group has secured waiver from being classified as PN17 (PN17 - classification for financially distressed companies listed on the Main Market of Bursa Malaysia) - As of 30 June 2025, Pestec’s group reported a net profit of RM134 million, driven by higher gross margin of 17% from project execution. Nonetheless, cash flow from operating activity for 1Q25 is still negative at RM37.2 mil. Turnover remains distant. - The issuer has deferred the perpetuals’ coupon payment for the period from 16 April 2025 to 16 October 2025. |
- |
- 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, but timeline unknown. |
|
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%. - As at 30 June 2025, the group recorded RM395 mil in revenue for FY2025 (as of 30 June 2025), while registered net loss of RM84.4 mil due to one-off impairment on receivables. Gearing ratio stood at 112%. - Weighted average borrowing costs stood at 8.44%, which is on the high side. - Entered into a JV to develop residential project with an estimated GDV of about RM333 million. |
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 RM348 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. - Debt restructuring plan still in progress, the group is yet to reach an agreement with bondholders on how to pay the compensation to Bank Coordination Committee. |
Country Garden - Progress in Restructuring and Financial Results Announcement |
- Bondholders could consider joining the RSA and opt for a combination of Options 2, 3 and 5, which we believe are relatively attractive. - Alternatively, bondholders who do not want to participate in CA can also opt to sell their bonds (currently priced at $7-$8). |
|
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 liquidation process is still ongoing, and we posit that it will take a couple of years to complete due to its scale. |
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|
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. -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) Continue to prefer medium-term (5-7 years)
2) Yields across the different tenors are expected to remain range-bound throughout the year
3) Yield curve remains upward sloping
Our view on UST:
1) Still prefer ultra-short-term with roll-over strategy (e.g., six-month treasury)
2) Yield curve will steepen in the coming 6-9 months with expectation of Fed rate cuts.
3) Longer term bond yields may face slight upward pressure due to persistent inflation risks and fiscal risks.
Chart 2: UST Yield curve
Our view on SGS:
1) Prefer short-term SG sovereign bonds.
2) Singapore rates may face further downward pressure, but expect the pace of decline to slow.
Chart 3: SGS Yield curve
Our view on AGS:
1) RBA has cut rates on Feb 25 and May 25, and August 2025, bringing down cash rate by 75bps.
2) Prefer the “belly” of the curve as we foresee RBA to cut 2 to 3 times over 2025 and 2026, but staying cautious on the long-end due to volatility and inflation risk.
Chart 4: AGS Yield curve
Some of the Credit Announcement by RAM & MARC (as of 30 September 2025)
RAM
1) Affirms Yinson’s A1 senior ratings and A3 perpetual programme rating
2) Exsim Capital fully redeems Tranche 3 IMTN on expected maturity date
3) Affirms BNP Paribas Malaysia’s AA1 rating
4) Assigns AAA/Stable/P1 final ratings to Pantai’s IMTN/ICP programmes
5) Assigns preliminary ratings to Al-Salam REIT’s maiden proposed Guaranteed Senior and Perpetual Sukuk
6) Assigns highest rating, AAA to IGB REIT and its debt securities under IGB REIT MVS Capital
https://www.ram.com.my/news-events/?tab=list-ratingannouncement
MARC
1) Assigns preliminary rating of MARC-1IS to Sunsuria’s proposed RM500.0 million Islamic Commercial Papers
2) Affirms YNH’s rating at BBIS with negative outlook
3) Assigns preliminary ratings of MARC-1IS and AAAIS to Pantai Holdings’ ICP and IMTN Programmes
https://www.marc.com.my/insights/rating-announcements/
Declaration: 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) Trading without Accrued Interest and TCMMK 5.580% 16Mar2027 Corp (MYR), and the analyst who produced this report hold a NIL position in the abovementioned securities.
