12/01/2026

BIZ & FINANCE MONDAY | JAN 12, 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

Malpac appeal dismissed, to be delisted tomorrow KUALA LUMPUR: Malpac Holdings Bhd is scheduled to be delisted tomorrow. In a filing with the exchange, the company said its appeal for a further 12-month extension until Nov 28, 2026 to submit its regularisation plan to the relevant authorities for approval had been dismissed. Bursa Malaysia Securities Bhd said Malpac has not demonstrated, to the satisfaction of the exchange, material development towards the finalisation and submission of the company’s proposed regularisation plan to the relevant authorities since the last extension of time granted. “It includes the cancellation of the conditional Development Order (DO: Layout) approval granted by the Johor Bahru City Council earlier. “The company is required to resubmit the DO and revise the master development plan, where additional time of one to two years is required to effectively mobilise the company’s Johor Bahru Project, which is pivotal to rebuilding the company’s core business,” it said. It said that since the first announcement on Feb 17, 2020, Malpac had been given approximately five years and 10.5 months to regularise its condition in accordance with the Main Market Listing Requirements and Practice Note 17. “All affected listed issuers are required to regularise their condition expeditiously within the prescribed timeframes to ensure an adequate level of operations, preserve market integrity and safeguard investors’ confidence,” the exchange said. It further said that sufficient time and opportunity had been accorded to Malpac to regularise its condition. – Bernama

THE ringgit is expected to trade within the 4.04-4.07 range this week with the balance of risks tilted modestly towards a firmer currency as global investors rotate away from the US dollar and back into emerging-market carry and growth exposure, an analyst said. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan told Bernama that the ringgit’s direction will be shaped by how the latest United States non-farm payrolls (NFP) report feeds into US Federal Reserve expectations. He noted the December 2025 payroll growth came in at just 50,000 jobs, less than the consensus estimates of 60,000 jobs, while two-month net revisions subtracted 76,000 jobs, confirming that US labour-market momentum had weakened materially into year-end. The unemployment rate fell to 4.4%, reflecting tightening labour supply rather than stronger hiring, reinforcing the late-cycle slowdown narrative rather than a re-acceleration in growth, Mohd Sedek said. “With the NFP data undershooting consensus, it also aligns with our in-house view that the Fed is likely to skip a rate cut at this month’s meeting, while keeping the door open to easing later as labour conditions continue to soften. “Against this backdrop, Malaysia’s firm growth momentum, resilient trade position and steady domestic demand provide a solid foundation for the ringgit,“ he said. The Malaysian currency traded mostly lower against the US dollar last week, opening at 4.05 on Monday and easing to 4.06 on Friday morning. It closed the week at 4.07. Ringgit likely to trade within 4.04-4.07 range this week

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1400 2.7820 3.2140 2.9770 4.8180 2.3830 3.2140 5.5550 5.2020 3.4560 59.5200 66.1100 53.5500 4.6900 0.0257 2.6530 42.0200 1.5200 7.0800 114.5300 111.2900 25.9000 1.4100 46.1600 13.7300 113.7500 N/A

3.9920 2.6670 3.1120 2.8920 4.6600 2.2930 3.1120 5.3740 4.9770 3.2030 56.9700 60.7900 50.8500 4.3600 0.0227 2.5290 38.6200 1.3600 6.6600 108.7300 105.6500 23.3800 1.2300 42.0100 12.1600 107.7700 N/A

3.9820 2.6510 3.1040 2.8800 4.6400 2.2770 3.1040 5.3540 4.9620

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

107.5700 3.0030 60.5900 50.6500 4.1600 0.0177 2.5190 38.4200 1.1600 6.4600 108.5300 105.4500 23.1800 1.0300 41.8100 11.7600 N/A 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

T7 Global Bhd Hold. Target price: RM0.32

PGF Capital Bhd Buy. Target price: RM2.92

Plantation sector Neutral

Jan 9, 2026: RM0.31

Jan 9, 2026: RM1.83

Source: Bloomberg, RHB Research

Source: Bloomberg, TA Research

PGF Capital is expected to release its 3QFY26 results end of this month. We expect the quarterly profit to be little changed from 2QFY26’s RM5.9mn as demand for glass wool insulation products in Australia is expected to remain robust. However, PGF’s profitability would likely be dragged by the strong ringgit performance like 2QFY26. For 3QFY26, ringgit was flat at RM2.75/AUD compared to 2QFY26 but was 5% stronger than AUD over the past 12 months. With regards to the water issue for its development in Tg. Malim, the discussion with Lembaga Air Perak (LAP) will take place soon after the submission of a water concept plan. In essence, this plan would involve PGF spending approximately RM5-6mn for laying of water pipes, which is the missing piece of Phase 1 property launch in Tg. Malim. According to management, PGF can submit the housing development plan after resolving the water issue. It would take approximately 6 months to obtain the approval before the group can launch the project. As such, Nexel Group, a 50.1%-owned JV company, is on track to launch Phase 1 of the project with an estimated GDV of RM300mn in FY27. Upon achieving 80% take up rate, which would likely happen in 2027 (FY28), PGF can recognise a land sale gain of RM21mn. All in all, the property development in Tg Malim is also important, besides glass wool insulation, to the group’s future profitability and share price performance, we reckon. The successful launch of project would enable PGF to capitalise on the cheap land cost and recognise the tax credit, which will boost profit margins and cash flow. Maintain Buy and TP of RM2.92. – TA Research, Jan 9

FOR 2026, we highlight four main factors that could affect CPO prices in the near to medium term: La Niña – currently in place since mid-Dec 2025, albeit a weak one, is positive. So far, we have not seen any major impact in South America – Brazil’s planting of the 2025-2026 soybean crop is completed, while in Argentina, as at end-Dec 2025, farmers have planted 82% of the estimated 2025- 2026 soybean area, up from 64% in 2024. These next few weeks, however, would be crucial to determine if crop output deteriorates due to weather; B50 in Indonesia is positive. The Indonesian government continues to reiterate its stance that B50 will be implemented in 2026, albeit likely from 2H26 onwards. A full year implementation of B50 would mean 17-18m (+30% YoY) tonnes of CPO to be utilised for 2026F. China-US agreement on soybeans and how it pans out is negative. China has not kept up to its end of the agreement to buy 12m tonnes in 2025. Should it not buy the 25m tonnes p.a. in 2026-2027 and should US exports to the rest of the world slow down due to loss of price competitiveness with South American soybeans (US beans now at 12% price premium), it could translate to US soybean stocks remaining at extremely high levels in 2026. This could pressure soybean and soybean oil (SBO) prices, making CPO prices less competitive; US biofuel policy implementation delay is negative. The US Environmental Protection Agency is now weighing a plan to delay implementation in order to postpone the withdrawal of fiscal incentives for foreign feedstock/biodiesel until 2027 or 2028. Should this delay take place, the US SBO balance would be less tight and translate to lower SBO prices, affecting the competitiveness of CPO negatively. Stay sector NEUTRAL. – RHB Research, Jan 9

Source: Bloomberg, Phillip Research

T7G announced that its wholly-owned subsidiary, Tanjung Offshore Services Sdn Bhd has received a work order from Petronas Carigali Sdn Bhd (PCSB) for the provision of integrated wells plug and abandonment (P&A) services for Zuhal East well abandonment project. The work order period commences from Nov 17, 2025 to March 31, 2026. This follows its appointment as a Pan-Malaysia panel contractor (PAC) for five-years. The awarded work order is part of PCSB’s 53-well programme under the 3-year sub-package B3 of the PAC integrated workover contract, covering production enhancement and abandonment services. Based on our assumptions of 7 wells at RM9m per well and a 9% net profit margin, we estimate the contract could contribute RM64m revenue and RM6m in net profit. The work is expected to be carried out using the TSeven Enya jack-up rig, which we estimate will have an average full-year utilisation rate of 98% in 2026E. Management has indicated that 18 wells are slated for completion in 2025E (9M25: 15 wells), with a similar run-rate of 18 wells anticipated for 2026E. According to the PETRONAS Activity Outlook 2025-27E (PAO), 153 wells are planned for decommissioning over 2025-27, averaging 51 wells per annum, which underpins T7G’s potential to secure additional orders in 2026E and 2027E. We are awaiting the release of PAO 2026-2028 for clearer medium-term visibility. We keep our earnings forecast unchanged as this has been factored into our revenue assumption. We continue to see T7 as a beneficiary of robust domestic and offshore activities, underpinned by its healthy RM4bn order book. Reiterate HOLD with TP of RM0.32 – Phillip Research, Jan 9