23/01/2026

BIZ & FINANCE FRIDAY | JAN 23, 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

PLCs’ governance ratings now available on MyBURSA KUALA LUMPUR: Bursa Malaysia Bhd announced that the independently assessed Corporate Governance (CG) Ratings for Public Listed Companies (PLCs) on the Main Market and ACE Market are now published on the MyBURSA platform. This enhancement enables investors and market participants to access each PLC’s CG Rating, further advancing market transparency and strengthening the appeal of Malaysian companies. The ratings are derived from assessments conducted by the Minority Shareholders Watch Group (MSWG), in its capacity as the Domestic Ranking Body, using the Asean Corporate Governance Scorecard methodology which is aligned with the G20/OECD Principles of Corporate Governance, and endorsed by the Asean Capital Markets Forum. This will enable investors to compare governance standards across markets in line with international standards and best practices. Bursa Malaysia chief regulatory officer Julian M Hashim said: “With the CG Ratings now accessible on MyBURSA, investors can evaluate the governance standards of PLCs alongside other key data points, enabling more holistic risk assessments and long term value analysis. For PLCs, the visibility of CG Ratings serves as a benchmark for continuous improvement and enhances their competitiveness in attracting domestic and global capital.” “By integrating the CG Ratings into MyBURSA, complementing the ESG ratings already available on the platform, Bursa Malaysia aims to elevate governance standards, encourage continuous improvement among PLCs, and enhance the attractiveness of Malaysia’s capital market to investors through the provision of comprehensive, decision useful and comparable information,” he added.

THE ringgit closed firmer against the US dollar yesterday, supported by improved market sentiment following Bank Negara Malaysia’s (BNM) decision to maintain the overnight policy rate (OPR). Earlier yesterday, BNM during its first Monetary Policy Committee (MPC) meeting of 2026, decided to maintain the OPR at 2.75%. At 6pm, the local currency rose to 4.0370/0415 against the greenback from 4.0445/0495 at Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that “the positive assessment by the BNM on the state of the economy after announcing their decision to keep the OPR steady at 2.75% also contributed positively to the ringgit strength.” “It appears that the ringgit could break the 4.00 level (against the greenback) at some point in the near future should the positive sentiment continue,” he told Bernama. The local note also ended mostly higher versus other major currencies. It appreciated versus the Japanese yen to 2.5440/5469 from 2.5598/5631 on Wednesday, gained versus the euro to 4.7205/7257 from 4.7337/7395, but it inched down vis-à-vis the British pound to 5.4273/4334 from 5.4237/4304 on Wednesday. The ringgit traded was mixed against Asean currencies. It rose against the Singapore dollar to 3.1441/1478 from 3.1502/1543 on Wednesday, and strengthened versus the Thai baht to 12.8587/8792 from 13.0086/0301. The local note remained unchanged against the Philippine peso at 6.82/6.83, but eased slightly vis-à-vis the Indonesian rupiah to 238.9/239.3 from 238.7/239.3. Ringgit breaks 4.04 after BNM holds key rate at 2.75%

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1230 2.7960 3.2020 2.9710 4.8090 2.4100 3.2020 5.5270 5.2020 3.4240 59.4400 65.9900 53.3000 4.5900 0.0254 2.6200 42.3700 1.5300 7.0400 113.7000 110.8200 26.2000 1.4000 46.5300 13.7300 113.2700 N/A

3.9750 2.6820 3.1000 2.8860 4.6500 2.3200 3.1000 5.3460 4.9780

3.9650 2.6660 3.0920 2.8740 4.6300 2.3040 3.0920 5.3260 4.9630

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

107.3200 3.1990 56.8900 60.6800 50.6100

107.1200 2.9990 60.4800 50.4100 4.0600 0.0174 2.4880 38.6900 1.1700 6.4300 107.7400 105.0000 23.4600 1.0200 42.1400 11.7600 N/A N/A

4.2600 0.0224 2.4980

N/A

38.8900 1.3700 6.6300 107.9400 105.2000 23.6600 1.2200 42.3400 12.1600

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

SD Guthrie Bhd Buy. Target price: RM6.95

Auto & Autoparts Neutral

AEON Co (M) Bhd Buy. Target price: RM1.52

Jan 22, 2026: RM1.20

Jan 22, 2026: RM5.66

Source: RHB, Company data

Source: Bloomberg

Source: Bloomberg

IN Dec 2025, the Malaysian Automotive Association (MAA) recorded a TIV of 90,716k units, bringing 2025 TIV to 820.7k units (+0.2% YoY), breaking the previous record of 818.7k units in 2024. The 2025 increase was mainly driven by non-national marques: Chery (+70% YoY), followed by BYD (+77% YoY), offset by Honda (-12% YoY) while Toyota recorded flattish sales YoY. On the local front, Perodua managed to deliver 359.9k units in 2025, marking is fourth consecutive years of record-high sales and a 0.5% increase from 2024’s 358.1k units. Proton saw a similar performance, recording a 3% volume increase YoY, likely boosted by the introduction of facelift/new models (MC3, Proton X50, etc). With this, national marques marginally expanded their market share to 62.3% vs 61.8% in 2024 – Perodua still maintaining its position as the market leader, accounting for 44%. According to MAA, EV sales rose 109% YoY to 30.8k units, making up 3.8% of total TIV for 2026. Figures from Road Transport Department data differs, with EV car registrations (including non MAA members) jumped 2x YoY to 44.8k units in 2025, accounting for 5.1% of total cars registered during the year, from 2.5% in 2024. The spike in EV numbers was led by BYD (14,407 units registered), followed by Proton (8,890 units) and Tesla (7,282 units). Looking ahead in 2026, we expect EV sales to skew towards CKD EVs given the absence of tax rebates for CBU EVs starting from Jan 1. However, we note that EV players have started planning for CKD production, such as Xpeng (commencing production at end-Q1’26), BYD (CKD plant to be completed in 2026), and e.MAS 7 EV (CKD introduction announced on Jan 20). – RHB Research, Jan 22

FOCUS on yield for upstream division. For this unit, management expects improvements in productivity from sufficient labour, good weather, improved efficiencies and improvements in yields as effects from the replanting of its GenomeSelect seeds come through. In FY26, SDG expects to see YoY FFB growth of 14% for its Indonesia segment, >5% growth for the Malaysia operation, and a 5% increase from its plantations in Papua New Guinea and the Solomon Islands. Differentiation is the key for downstream. This unit still faces margin pressure from oversupply in markets like Europe as well as increased competition. However, SDG continues to differentiate itself to its customers, given its credentials in supply chain security, sustainability, food safety and product innovation. With the commissioning of its new 450,000tpa refinery and specialty fats plant in Sei Mangkei Special Economic Zone in North Sumatra in mid-2026, this will enable SDG to leverage on its existing plantation in the region – as output from these areas are currently being sold to external parties for processing. SDG continues to highlight that its value-unlocking is in line with the federal government and state governments’ development agendas in West Malaysia – taking place in Selangor, Kedah, Perak, Malacca, Negeri Sembilan and Johor. As SDG has landbank in most of these areas, it is in a prime position to benefit from these developments. To date, it has announced plans to develop and/or sell 15,364 acres of land via 10 agreements that are in various states of progress. So far, only one land disposal was recognised in Q3’25. In 2026, SDG expects at least three land disposals to be recognised. BUY with RM6.95 TP. – RHB Research, Jan 22

WE expect a Q4’25 core net profit of RM45-50 million (-22% to -13% YoY). Note: Q4’24 core profit was adjusted for a material litigation provision of RM22.6 million and impairment of right-of-use assets of RM10.9 million. The negative YoY outcome largely reflects timing differences in Lunar New Year sales (2026: Feb 17 vs 2025: Jan 29). For FY25, we expect core earnings of RM140-145 million (-13% to - 10% YoY), a function of soft discretionary spending and drag from a larger-scale refurbishment drive last year. Retail performance is expected to strengthen in FY26, underpinned by an anticipated improving consumer sentiment. In FY25, AEON undertook large-scale renovations and expansions across several larger malls, with capex of RM190 million incurred in 9M’25 vs RM150 million in 9M’24. This has also led to relatively higher initial start-up costs and loss of sales from temporary closures (9M’25 earnings: RM95 million vs 9M’24 earnings: RM104 million). As these stores ramp up, management expects better sales capture and contributions, whilst the scale and number of major renovations in the FY26 pipeline is expected to normalise. AEON continues to maintain high occupancy (>95%) and expects to sustain healthy single-digit rental reversion. The SST reduction to 6% should further support rental negotiations, alongside ongoing tenant re-zoning initiatives that improve affordability whilst sustaining rental income growth. The KL Midtown mall is a key FY26 watchpoint, with opening targeted for Q4’26 and a more premium positioning that we think could improve rental yields – if executed well. In parallel, the AEON Style format (launched in Semenyih in Dec 2025) has seen encouraging early responses, with two more stores planned in FY26. BUY with RM1.52 TP. – RHB Research, Jan 22