20/01/2026

BIZ & FINANCE TUESDAY | JAN 20, 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

Xtep forms joint venture to accelerate Malaysia expansion KUALA LUMPUR: Running shoe brand Xtep has entered into a joint venture (JV) with Bonia, a Malaysia-based distributor with more than five decades of market experience, marking a strategic push to accelerate its growth in Malaysia and strengthen its position in Southeast Asia. The move signals a shift in Xtep’s local operating model from a single exclusive distributor to a multi-channel strategy, according to a statement. As part of the transition, former exclusive partner VGO will become a“non-exclusive distributor”and remain a key collaborator, leveraging its established strengths to deepen Xtep’s market reach. Bonia will focus on expanding Xtep’s presence in prime commercial districts and major running hubs across Malaysia, while VGO continues to support the brand through channels where it holds a competitive advantage. Malaysia is widely considered as Xtep’s launchpad for broader regional expansion, aligning with the company’s “Chinese Root, World-Class Running Shoes” strategy unveiled in 2022. Bonia’s regional footprint spans Malaysia, Singapore, Indonesia and Thailand, supported by long-standing relationships with major shopping centres and strong cross-border retail capabilities. The first flagship store under the Xtep–Bonia partnership has opened at Mid Valley Megamall in Kuala Lumpur. According to World Bank and Euromonitor International data, the country hosts Southeast Asia’s largest sportswear and footwear market, while a 2023 national survey found jogging to be the most popular sport among Malaysians, with the 2024 Kuala Lumpur Standard Chartered Marathon drawing over 40,000 participants. – Bernama

THE ringgit edged higher against the US dollar at Monday’s close and was mixed against its Asean peers, supported by signs of Malaysia’s economic resilience after advance gross domestic product expanded a stronger-than-expected 5.7 per cent in the fourth quarter of 2025. At 6 pm, the local currency inched up to 4.0520/0570 against the greenback from 4.0555/0605 at last Friday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the resilient growth outlook had encouraged traders to adopt a more constructive stance on the ringgit. “This is particularly as Bank Negara Malaysia’s Monetary Policy Committee decision on Thursday will be closely watched,” he told Bernama. Globally, he said the US dollar index remained elevated, though it eased 0.20% to 99.199 points. “Markets remain uneasy over the (US President) Trump administration’s economic policies, especially its continued use of import tariffs to pursue policy objectives,” he added. Against major currencies, the ringgit was mostly lower. It weakened against the Japanese yen to 2.5657/5692 from 2.5637/5670 on Friday and slipped versus the euro to 4.7100/7159 from 4.7076/7134, but edged up against the British pound to 5.4321/4388 from 5.4332/4399. The local note declined against the Singapore dollar to 3.1521/1562 from 3.1479/1521 and slid versus the Thai baht to 12.9623/9845 from 12.9115/9332. However, it strengthened against the Indonesian rupiah to 239.0/239.3 from 240.1/240.5. Ringgit firms against US dollar on economic resilience

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1240 2.7670 3.1990 2.9600 4.7900 2.3790 3.1990 5.5200 5.1860 3.4250 59.4200 65.7300 53.3000 4.6300 0.0255 2.6320 41.9500 1.5300 7.0300 114.0700 110.8800 25.9900 1.4000 46.1300 13.7400 113.3000 N/A

3.9780 2.6550 3.0980 2.8760 4.6350 2.2920 3.0980 5.3440 4.9640

3.9680 2.6390 3.0900 2.8640 4.6150 2.2760 3.0900 5.3240 4.9490

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

107.4000 3.2010 56.8900 60.4700 50.6400

107.2000 3.0010 60.2700 50.4400 4.1000 0.0175 2.5010 38.3800 1.1700 6.4200 108.0900 105.0600 23.2700 1.0200 41.8100 11.7700 N/A N/A

4.3000 0.0225 2.5110

N/A

38.5800 1.3700 6.6200 108.2900 105.2600 23.4700 1.2200 42.0100 12.1700

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

Farm Fresh Bhd Buy. Target price: RM3.26

Nestle (M) Bhd Buy. Target price: RM135

99 Speed Mart Retail Holdings Bhd Neutral. Target price: RM4.06

Jan 19, 2026: RM116

Jan 19, 2026: RM2.84

Jan 19, 2026: RM3.83

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

GROWING market liquidity and sustained interest in the sector as a defensive shelter should drive a further valuation rerating for Nestle (M), following its solid share price rally in 2025. Hence, we upgrade our valuation, as we believe consumer stocks that offer earnings visibility - supported by resilient consumption and a domestic-centric earnings base - will continue to be favoured by investors to avoid prevailing external risks. We raise our DCF-derived TP to RM135 after revising the risk assumptions to reflect the abovementioned valuation rerating drivers. Our TP, which includes an 8% ESG premium, implies 46x FY26F P/E, or +1SD from the stock’s 5-year mean. This is justified by its robust earnings growth outlook and positive investor sentiment on the consumer sector. We view NESZ’s ongoing resurgence as sustainable, premised on its effective marketing engagement efforts to stimulate consumer spending and normalise sentiment on its varied brands. On top of that, the fall in key commodity prices including that of cocoa, wheat, milk powder and sugar should propel its margin recovery, further bolstered by a stronger MYR. The higher budget allocation for the Sumbangan Asas Rahmah or SARA initiative bodes well for NESZ, in light of its entrenched market shares and brand equity, as well as its extensible range of staple product offerings. Overall consumption of staple food products should remain resilient, underpinned by wage growth and stable employment markets. This, together with NESZ’s quality product offerings and entrenched distribution channels, should provide earnings visibility - notwithstanding the global economic challenges. Maintain BUY, TP rises to RM135. – RHB Research, Jan 19

GROWING market liquidity and sustained interest in the consumer sector as a defensive shelter will drive a further valuation rerating, following solid share price rallies in 2025. Hence, we turn more aggressive with our valuation for Farm Fresh, as we believe consumer stocks that offer earnings visibility - supported by resilient consumption and a domestic-centric earnings base - will remain favoured by investors to avoid prevailing external risks. We raise our DCF-derived TP to RM3.26 after revising the risk assumptions to reflect the abovementioned valuation rerating drivers. Our TP, which has a 6% ESG premium built in, implies 36x FY27F P/E, which is at a 20% discount to the valuations ascribed to FFB’s larger cap consumer peers. This is justified by the company’s robust earnings growth outlook and positive investor sentiment on the sector. FFB’s deepening market penetration of new products to leverage on its brand equity and new ice cream production lines should continue to sustain its growth. Margins should remain elevated, with stable input costs and an improving product mix. We look forward to the completion of its Bandar Enstek, Negeri Sembilan ice cream plant (3x capacity), which is expected to contribute commercially by mid-2026. On the other hand, the group is making inroads into the Cambodia market, capitalising on the geopolitical tensions there - and the initial results are encouraging. This, together with the positive progress of its expansion in the Philippines, as well as its potential foray into the populous Indonesia market, should diversify and underpin FFB’s longer-term earnings growth prospects. Downside risks to our recommendation include major delays in fleshing out its expansion plans and a sharp rise in input costs. Maintain BUY, new TP of RM3.26. – RHB Research, Jan 19

WHILST we acknowledge 99 Speed Mart Retail’s strategic market position to capitalise on fiscal support programmes and capture the steady consumer spending, its lofty valuation may have largely priced in the positives. We raise our DCF-derived TP to RM4.06 after revising the risk assumptions to reflect the abovementioned valuation rerating drivers. The TP incorporates no ESG adjustments and implies 46x FY26F P/E, which is in line with the valuation we ascribed to its peer, Nestle (M). This is justified by its robust earnings growth outlook and the positive sentiment on the consumer sector. Outlook. The Government’s fiscal policy to increase the budget allocation for the Sumbangan Asas Rahmah or SARA initiative in 2026 is positive for 99SMART, considering its established market position and brand equity. It now has more than 2,000 outlets activated for initiative, and targets to add more participating stores. 99SMART is well-positioned to benefit from the rise in disposable income of the lower-income groups, as well as the downtrading consumption trends as a result of elevated inflationary pressures - given its extensive store network and consumers’ preference for mini-markets to shop for groceries. Meanwhile, we believe its longer-term earnings growth should be sustained by strategies to expand its addressable markets. These include diversifying its sourcing options to enhance its product offerings, developing its bulk sales platform, and expanding beyond the Malaysian market. Downside risks to our recommendation include reputational or brand risks, and unfavourable changes to the SARA initiative. The opposite of these would constitute upside risks. Cut to NEUTRAL from Buy, new TP of RM4.06. – RHB Research, Jan 19