01/01/2026

BIZ & FINANCE THURSDAY | JAN 1, 2026

20

MARKETS/FROM THE BROKERS

SUNBIZ presents extracts of a selection of commentaries and research reports received from stockbrokers on counters that could be of interest to investors.

DISCLAIMER: The information is extracted from stockbrokers’ commentaries and research reports and do not represent the views or opinions of Sun Media Corporation Sdn Bhd. It is not a solicitation, recommendation or an offer to buy or sell the equities featured. Sun Media Corporation shall not be liable or responsible for any consequences resulting from usage of the information.

[ Compiled by SunBiz Team

Signature Alliance bullish on 2026 with RM297m orders KUALA LUMPUR: Signature Alliance Group Bhd (SAG) said it is “entering 2026 with a positive outlook,” supported by an unbilled order book of RM297.4 million from 83 ongoing projects that provide it revenue visibility for the next 12 to 24 months. The interior fit-out specialist noted that it also maintains a tender book of more than RM1 billion with a targeted conversion rate of between 15% and 20%, supporting its growth plans for the coming year. SAG group CEO Darren Chang said the group’s focus for next year is to scale responsibly while maintaining margin discipline. “We are focused on delivering our existing projects well, bidding selectively for larger-value contracts, and strengthening our operational platform. With a visible order book and a healthy balance sheet, we are well-positioned to pursue growth without compromising quality or margins,“ he said in a statement. The group expects demand for interior fit-out services to remain resilient across commercial, institutional, and industrial segments, driven by continued corporate investment, healthcare and rehabilitation facilities, education-related developments, and selected industrial expansions. Regarding its medium-term plans, SAG said it is progressing with the regional expansion, with the group currently at the land acquisition and approval stage for its proposed new headquarters and production facility in Selangor. “Meanwhile, the group is expanding its Penang operations and plans to establish a Johor branch within the next 12 to 24 months, strengthening its presence in key growth corridors,“ it added. – Bernama

Ringgit ends day lower but posts strong gains for the year THE ringgit closed lower against the greenback on the last day of 2025 yesterday on profit-taking after the release of minutes from the US Federal Open Market Committee (FOMC) December meeting showed a hawkish tone, but rounded off the year as one of the best-performing currencies in the region. At 6pm, the ringgit dropped to 4.0580/0620 against the US dollar from 4.0460/0505 at Tuesday’s close, with analysts expecting the Malaysian currency to appreciate even further this year, bolstered by the strong domestic economy. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit fell against the US dollar after the FOMC minutes released overnight indicated that the US Federal Reserve (Fed) remains cautious about inflation risks heading into this year. “Be that as it may, the ringgit has performed exceptionally well this year, ending higher overall and widely regarded as one of the best-performing currencies in Asia in 2025,” he told Bernama. At the close, the ringgit traded higher against a basket of major currencies. It strengthened against the Japanese yen to 2.5907/5934 from 2.5948/5978 on Tuesday, rose versus the British pound to 5.4531/4585 from 5.4678/4738, and appreciated against the euro to 4.7617/7664 from 4.7621/7674. The local unit traded lower against its Asean peers. It fell against the Singapore dollar to 3.1550/1584 from 3.1526/1566, declined against the Thai baht to 12.8560/8756 from 12.8404/8620, depreciated against the Indonesian rupiah to 243.2/243.6 from 241.2/241.6, and fell versus the Philippine peso to 6.88/6.90 from 6.87/6.88. CAB Cakaran Corporation Bhd Buy. Target price: RM0.89

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1260 2.7720 3.2060 3.0040 4.8400 2.3920 3.2060 5.5480 5.2310 3.4280 59.2100 66.4300 53.4400 4.6800 0.0257 2.6530 42.0300 1.5300 7.1000 114.0500 110.8400 25.6900 1.4000 46.1400 13.6700 113.3600 N/A

3.9750 2.6550 3.1010 2.9160 4.6770 2.3000 3.1010 5.3630 5.0030 3.1990 56.6300 61.0400 50.7100 4.3500 0.0227 2.5280 38.6000 1.3600 6.6800 108.2700 105.2200 23.1900 1.2200 41.9600 12.1000 107.3200 N/A

3.9650 2.6390 3.0930 2.9040 4.6570 2.2840 3.0930 5.3430 4.9880

1 Australian Dollar 1 Brunei Dollar 1 Canadian Dollar 1 New Zealand Dollar 1 Singapore Dollar 1 Sterling Pound 1 Swiss Franc 100 UAE Dirham 100 Bangladesh Taka 100 Chinese Renminbi 100 Danish Krone 100 Hongkong Dollar 100 Indian Rupee 100 Indonesian Rupiah 100 Japanese Yen 100 New Taiwan Dollar 100 Norwegian Krone 100 Pakistan Rupee 100 Philippine Peso 1 Euro

107.1200

2.9990

N/A

60.8400 50.5100 4.1500 0.0177 2.5180 38.400 1.1600 6.4800 108.0700 105.0200 22.9900 1.0200 41.7600 11.7000 N/A

100 Qatar Riyal 100 Saudi Riyal

100 South Africa Rand 100 Sri Lanka Rupee 100 Swedish Krona

100 Thai Baht

Source: Malayan Banking Bhd/Bernama

SumiSaujana Group Bhd Buy. Target price: RM0.18

Banking Overweight

Dec 31, 2025: RM0.115

Dec 31, 2025: RM0.60

Source: Bloomberg

Source: Malacca Securities

Source: TA Research, BNM

CAB Cakaran Corporation Bhd’s wholly owned subsidiary CAB Cakaran Breeding Farm Sdn Bhd, was affected by a fire at its poultry farm in Juru, Penang on the night of Dec 29. The incident involved one chicken coop housing about 9k chickens, of which around 7,200 chickens were killed, while the remainder 1,800 survived with smoke exposure. The fire resulted in an estimated 50% damage to the internal structure of the particular affected coop, with no injuries reported and no impact on surrounding facilities. Firefighting operations were completed within the same night, and the case has been handed over for investigation. We view the incident as having a very minimal impact on CAB’s operations and earnings. The affected 9,000 chickens represent only ~0.1% of CAB’s upstream monthly production capacity of 6.5 million birds. The damage was confined to part of the facility rather than the entire plant, and repair and maintenance works are expected to be completed within 1-3 month(s), after which operations can resume normally. The estimated repair cost of RM200–300k is manageable and fully covered under insurance, with insurance claims expected to be received within 4–6 months. As such, we do not expect any material disruption to the production and financial performance of our overall investment thesis on CAB. As this fire incident has very minimal impact to the company’s earnings and is covered by insurance, we maintained our earnings forecast. Buy with RM0.89 TP. – Malacca Securities, Dec 31

SUMI is primarily engaged in the manufacturing of O&G specialty chemicals and trading of industrial chemicals. Leveraging on its business relationships with global O&G services players such as Baker Hughes to supply drilling fluids, the group has grown significantly, serving customers not only in Malaysia, but also across various regions, including Asia-Pacific, the Middle East, Africa, Europe, and the Americas. SUMI’s main cost component is the import of fatty acids, making up >30% of total purchases in FY24. In recent months, the prices of fatty acids were volatile due to uncertainties from US President Donald Trump’s tariffs and Middle East tensions, which have increased freight costs by 60% in eight weeks. However, we believe costs will slowly come off in 2026 from lower freight costs and fatty acid prices following the subsiding geopolitical risks. We have already seen ocean freight rates decrease by 45% since early June. We also think fatty acid prices should remain stable too on expectations of lower vegetable oil prices in 2026. In Q3’25, SUMI delivered its first batch of emulsifiers into the US via a toll-manufacturing agreement with two partners, delivering 30-40 containers/month. It intends to further grow the US market by setting up JV with local players (to be finalised by Q1’26). At the same time, SUMI has also entered into an MoU with CoolisT Group (CoolisT) in Dec 2025 to deliver new, bio-based products starting Q1’26, with first stage delivery consisting of 2-4 containers monthly. This will add about RM4-5 million pa to the group’s revenue in the early stages. Buy with RM0.18 TP – RHB Research, Dec 31

LOAN growth in 2025 began sluggishly but rebounded following US tariff adjustments. By October, business lending had expanded 5.3% YoY, with YTD growth outpacing 2024 levels of 2.8%. Momentum was strongest among SME-focused and mid-market banks, while wholesale and large corporate banking delivered more uneven results. Household loan demand remained resilient, though it moderated slightly to 5.4% YoY. The sector continues to lean toward mortgages, unsecured lending, and credit cards, and banks are expected to pivot further into high-margin segments in 2026 to protect profitability. Overall loan growth is projected at 5.7% in 2026, underpinned by 5.8% growth in consumer lending and 5.5% growth in business loans. Average Net interest margin (NIM) contracted in 9M 2025 to 1.98%, weighed down by BNM’s policy rate cut and intensifying competition. Looking ahead to 2026, effective liability management and the pursuit of low-cost deposit growth will be critical to margin preservation. Larger banks are expected to continue expanding their current account and savings account (CASA) share, while smaller banks focus on targeted deposit initiatives to remain competitive. Our forecast anticipates a modest 3 bps YoY narrowing to an average of around 1.95% in NIM for 2026, assuming no further reductions in current Overnight Policy Rate of 2.75%. In 2026, non-NII is projected to grow by 9.6%, supported by cross-sell strategies, trading and investment gains, and structural initiatives that leverage client relationships, market volatility, and specialised segments. – TA Research, Dec 31