08/01/2026

BIZ & FINANCE THURSDAY | JAN 8, 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

RHB IB sees stronger bank earnings in 2026 KUALA LUMPUR: RHB Investment Bank Bhd expects the Malaysian banking sector’s net profit growth to strengthen to 5% year-on-year (y-o-y) in fiscal 2026, from 2% in 2025, supported by sustained loan growth alongside stabilising net interest margins (NIM) and credit costs. The investment bank said there are several upside risks to its earnings estimates. “That includes better-than-expected NIM should deposit competition prove milder than anticipated. stronger-than expected non-interest income, as well as lower-than-expected credit costs if delinquencies moderate and asset quality improves, potentially allowing banks to reverse part of the overlays previously built up,” it said in a note. RHB IB said that on the downside, weaker-than-expected NIM, non-interest income, and asset quality could weigh on earnings. “Higher-than-expected operating expenses arising from an inflationary environment, business expansion, and increased tech spending may also pressure bottom-line performance,” it added. Looking ahead, RHB IB said themes for NIM expansion in 2026 could emerge, with brighter net interest income (NII) prospects for the banking sector this year. It noted that the non-household loan pipeline remains healthy, and improving business confidence should translate into stronger loan demand and drawdowns. “The outlook for NIM is also, unusually, promising in our view,” it said. The investment bank also expects the overnight policy rate to remain stable. While regional policy and benchmark rates could ease further, the extent of easing is likely to be less severe than in 2025, with much of the impact on asset yields already felt last year. – Bernama

THE ringgit ended lower against the US dollar yesterday as markets adopted a cautious stance ahead of key US economic data releases, an analyst said. At 6pm, the local currency fell to 4.0560/0610 versus the greenback from Tuesday’s close of 4.0445/0495. IPPFA Sdn Bhd’s director of investment strategy and country economist, Mohd Sedek Jantan, said US labour data such as the ADP and JOLTS, as well as the US ISM Services Purchasing Managers’Index, will be closely watched for labour market tightness and services sector momentum. “Strong prints would reinforce the dollar’s yield advantage and keep the ringgit on the defensive into tomorrow’s Asian session, while any downside surprise would quickly unwind dollar support and allow regional currencies to recover,“ he told Bernama. At the close, the ringgit traded lower against a basket of major currencies. It depreciated against the Japanese yen to 2.5920/5954 from 2.5865/5899 at Tuesday’s close, weakened vis-à-vis the euro to 4.7394/7453 from 4.7373/7432, and inched up versus the British pound to 5.4732/4799 from 5.4742/4810. The local note traded mostly lower against Asean peers. The ringgit climbed up vis-à-vis the Indonesian rupiah to 241.7/242.1 from 243.1/241.7 on Tuesday, and was unchanged against the Philippine peso at 6.83/6.84, the same as Tuesday’s close. However, it dipped against the Singapore dollar to 3.1641/1682 from 3.1608/1649 and dropped versus the Thai baht to 12.9630/9852 from 12.9383/9592 previously. Ringgit eases against dollar ahead of US data releases

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1250 2.7800 3.2140 2.9760 4.8140 2.3870 3.2140 5.5610 5.2060 3.4430 59.3000 66.0500 53.3900 4.6600 0.0257 2.6480 42.0000 1.5300 7.0500 113.7700 110.8800 26.0600 1.4000 46.1100 13.7800 113.3300 N/A

3.9780 2.6670 3.1120 2.8920 4.6570 2.2990 3.1120 5.3820 4.9810 3.1920 56.7700 60.7500 50.7100 4.3300 0.0227 2.5260 38.5600 1.3500 6.6400 108.0100 105.2600 23.5300 1.2200 41.9700 12.2100 107.4000 N/A

3.9680 2.6510 3.1040 2.8800 4.6370 2.2830 3.1040 5.3620 4.9660

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

107.2000

2.9920

N/A

60.5500 50.510 4.1300 0.0177 2.5160 38.3600 1.1500 6.4400 107.8100 105.0600 23.3300 1.0200 41.7700 11.8100 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

Telekom Malaysia Bhd Buy. Target price: RM8.90

SBS Nexus Bhd Not Rated

Pekat Group Bhd Buy. Target price: RM1.98

Jan 7, 2026: RM1.69

Jan 7, 2026: RM7.80

Source: Bloomberg

Source: Maybank Investment Bank

Source: Company data

SBSNXS is principally involved in providing offline branding solutions (out-of-home media, public relations services and event management) and digital branding solutions (online marketing, digital-out-of-home (DOOH), mobile/web applications (apps)). The group leverages its house brand ShangHai, a 46-year-old Mandarin-language business media brand that is well-known among Chinese SMEs in Malaysia. SBSNXS’revenue mix is broken down into: Digital branding (57%), offline branding (37%), and business leads generation (6%). Post-IPO, SBSNXS plans to penetrate the BM-speaking SME community through its new MyUsahawanMedia initiative, targeting the underserved bumiputera entrepreneur segment. This represents significant a total addressable market or TAM expansion beyond its traditional Mandarin-speaking SME base. SBSNXS’s revenue grew robustly to RM29.9 million in FY24 from RM11.6 million in FY22, representing a 61% CAGR. Its topline is predominantly led by the digital branding segment, which contributed 57% of FY24 revenue, followed by the offline branding (37%) and business leads generation (6%) units. Within the digital branding business, the key contributors are DOOH & online media (29% of FY24 revenue) and mobile/web apps & website development (17%). Digital branding is the dominant profit contributor, consistently accounting for 56-71% of total gross profit across all periods, with RM9 million or 60% of total gross profit in FY24. Offline branding has grown its profit contribution from just 9% in FY22 to 38-41% in FY24/FPE25. – RHB Research, Jan 7

TM’S Klang Valley Data Centre (KVDC) and Iskandar Puteri Data Centre (IPDC) expansions (10MW each) are now operational, while the 64MW Nxera data centre is 15% complete and on track for commissioning in Q3’26. Domestic connectivity continues to drive TM Global, accounting for 80% of revenue through 4G/5G backhaul and High Speed Broadband (HSBB) access, with the balance from international Indefeasible Right of Use (IRU), submarine cables, and hyperscaler DC services. We forecast TM Global revenue growth of 2.3-3.6% YoY over 2025-27, driven by sustained domestic network expansion aligned with the government’s 2030 5G coverage target of 98%. We expect TM’s Q4’25 revenue to increase on higher TM Global contributions, supported by year-end seasonality from major project deliveries. TM One should see modest sequential improvement from beyond-connectivity offerings such as cybersecurity and cloud-adjacent services. At the same time, Unifi consumer revenue is expected to remain flattish, given muted subscriber net adds amid the competitive landscape. Despite the stronger revenue, we expect Q4’25 core net profit to decline QoQ to RM500-550 million (Q3’25: RM691 million; Q424: RM511 million), reflecting a normalisation of the effective tax rate from Q3’25’s low base of 4.5% following tax liability reassessments. We maintain a positive long-term view on TM, backed by its fixed broadband leadership, rising wholesale fibre revenue from the DNB 4G/5G rollout, and growing data centre exposure to hyperscaler demand. BUY with RM8.90 TP. – Phillip Capital Research, Jan 7

PEKAT’S company’s exposure in the solar PV segment has been driven by its expanding presence in the C&I and residential rooftop segments to focus on better profitability. The recently revised TNB tariff structure has accelerated the adoption of solar+BESS in the C&I segment to mitigate maximum demand charges, while the introduction of Solar ATAP is expected to rejuvenate demand for residential rooftop solar. Notwithstanding this focus, Pekat is also selectively participating in utility-scale solar projects to capture incremental opportunities from LSS5+, LSS6, and CRESS. Pekat’s dominant >50% market share in local ELP market, positions it well to benefit from Malaysia’s 7.1GW data centre (DC) pipeline as more DC progress into M&E fit-out stage in 2026-27E. While its newly acquired EPE Switchgear is fast emerging as a key revenue driver (26%-35% of group 2025-27 revenue), supported by its 40% market share among TNB’s MV switchgear suppliers. We believe Pekat is well positioned to ride on Malaysia’s accelerating grid infrastructure upgrade which aligns with the nation’s growing RE adoption and increase in electricity demand. We project a robust 3-year profit CAGR of 45%, underpinned by its robust RM745.6 million orderbook (representing 2.6x 2024 revenue) and margin expansion from operating leverage and higher margin power distribution segment. We like Pekat for its strong presence in high-growth sectors which position the group well to benefit from Malaysia’s evolving energy landscape. BUY with RM1.98 TP.– Maybank Investment Bank, Jan 7