27/01/2026

BIZ & FINANCE TUESDAY | JAN 27, 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

Mercury Securities positive on AGX Group earnings profile KUALA LUMPUR: Mercury Securities Sdn Bhd is positive about AGX Group Bhd’s direction, despite the company being cautiously optimistic about its earnings outlook amid US President Donald Trump’s ongoing tantrums. The research firm said AGX Group’s earnings profile continues to be underpinned by resilient intra-Asia trade flows, particularly within Southeast Asia, where economic activity remains supported by a relatively accommodative interest rate environment. Further, the lower borrowing costs across the region are conducive to trade financing, inventory replenishment, and consumer demand, which in turn supports logistics volumes. Coupled with AGX’s limited exposure to Europe-US trade lanes, this provides a stable demand backdrop and reinforces earnings visibility despite ongoing global geopolitical uncertainties. Mercury Securities said while Vietnam and Penang have some US-bound volumes, intra-Asia trade remains dominant, cushioning external shocks. Further, Mercury Securities noted that AGX Group’s aerospace logistics continues to be the key differentiator, underpinned by its 21-year track record and 24/7 control tower capabilities. The onboarding of new airline customers in Vietnam – new airline clients in Vietnam (e.g. VietJet-equivalent and Sun Phu Quoc Airlines) – and the expansion of supported aircraft fleets (+~51% to 365 aircraft) provide strong medium-term visibility for MRO (maintenance, repair and overhaul) and AOG (Aircraft-on Ground) - related demand, with AGX Group targeting aerospace logistics to account for ~50% of group revenue over time. “Expansion by existing airlines and new regional wins should drive strong MRO and AOG demand,“ Mercury Securities noted.

THE ringgit spiralled to breach the 4.00 psychological level at the close yesterday against the US dollar, as the currency extended its uptrend that began last week, reflecting improving sentiment toward the country’s economic fundamentals and policy stability. At 6pm, it was quoted at 3.9615/9670, slightly over one per cent higher than the greenback from 4.0045/0080 at last Friday’s close. It was last seen at this level in May 2018. “Policy consistency is now an asset,” IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said, citing Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) decision to maintain the Overnight Policy Rate (OPR) at 2.75% during its meeting last Thursday. He said markets see BNM as predictable, non-reactive and disciplined, which is interpreted as monetary policy no longer being viewed as a source of foreign exchange (FX) risk. “Malaysia is being quietly reclassified into that ‘quality Asian emerging market’ bucket. Markets are pricing Malaysia less as a ‘China proxy’ and more as a semiconductor and artificial intelligence adjacent manufacturing hub, as well as a beneficiary of supply-chain re-routing.” He added that what matters is not the FX call itself, but the recognition that Malaysia’s currency is now being supported by structural drivers, investments, exports and policy credibility, rather than external monetary cycles alone. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit continued to stage a commendable performance yesterday, with another reason being talks of possible intervention by the Japanese government and the Federal Reserve to stabilise the yen. – Bernama Ringgit breaches 4.00 against dollar for first time since 2018

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0500 2.8090 3.1800 2.9490 4.7940 2.4170 3.1800 5.5210 5.2260 3.3790 58.3700 65.7900 52.3400 4.5000 0.0251 2.6300 42.5700 1.5000 6.9400 112.0200 108.8700 26.0400 1.3700 46.7300 13.6300 111.2200 N/A

3.9050 2.6960 3.0800 2.8660 4.6380 2.3280 3.0800 5.3450 5.0030 3.1340 55.9100 60.5400 49.7400 4.1800 0.0222 2.5090 39.1500 1.3400 6.5400 106.3400 103.3500 23.5200 1.2000 42.5400 12.0800 105.4500 N/A

3.8950 2.6800 3.0720 2.8540 4.6180 2.3120 3.0720 5.3250 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

105.2500 2.9340 60.3400 49.5400 3.9800 0.0172 2.4990 38.9500 1.1400 6.3400 106.1400 103.1500 23.3200 1.0000 42.3400 11.6800 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

CIMB Bhd Buy. Target price: RM9.00

Press Metal Bhd Buy. Target price: RM8.50

Sentral REIT Buy. Target price: RM0.91

Jan 26, 2026: RM7.56

Jan 26, 2026: RM8.62

Jan 26, 2026: RM0.805

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

PRESS Metal is well-positioned for robust earnings growth in FY26F, underpinned by higher aluminium LME prices and a favourable aluminium-to-alumina cost ratio. We believe aluminium prices will remain supported in the near term amid a weaker USD, high copper prices, and tight supply. A structurally weaker USD in 2026 will be driven by expected rate cuts (50bps), ongoing de-dollarisation, and the liquidity surge into the US market. USD/MYR fell 9.3% YoY in 2025 to RM4.06, and now stands at RM4.02. Historically, USD/MYR is inversely correlated with aluminium prices (-0.73 over the past three years), suggesting further upside to aluminium prices. In-house estimates point to the USD/MYR moving towards RM4 by the year-end, while Bloomberg has a wider estimate of RM3.65-4.37. Aluminium prices are closely correlated with copper (+0.75 over the past three years), as both metals are key beneficiaries of electrification and energy transition themes, including investment in power grids, data centres (DCs), and EV infrastructure. Supply is expected to remain tight in 2026 following disruptions in Indonesia (c.4% of global output) and operational setbacks in Chile, while structural demand from AI-related infrastructure remains intact, providing a supportive backdrop for aluminium prices. Alumina prices have fallen 54% YoY to USD310/tonne, now making up 10-11% of aluminium prices. In 2026, we expect alumina prices to remain favourable, thanks to new capacity coming onstream in Bintan (4m tonnes). Meanwhile, bauxite prices (which make up 50% of alumina costs) also eased by 13% YoY in 2025 and -2% in YTD-2026. Keep BUY, new RM8.50 TP. – RHB Research, Jan 26

CIMB held its pre-closed period meeting on Jan 23. For its upcoming 4Q25 results (out on 27 Feb), our FY25F PATMI implies a low- to mid-single digit QoQ dip in earnings (lower non-II and higher opex, cushioned by lower loan impairments) but YoY could be flat. Management remains optimistic of achieving the 12-13% ROE target in 2027, supported by the strong performance from Malaysia and Singapore, aided by capital management from its earlier announced RM2bn capital return plan. Seasonal deposit competition in Malaysia was similar to the level seen last year, ie some banks raised campaign rates by 5 10bps vs pre-Oct 2025 campaign rates for retail term deposits. CIMB also launched a new campaign during that period. Management highlighted several positive developments: i) It picked up some deposit volume in 4Q25 but at similar rates as 4Q24; ii) a quicker normalisation in wholesale deposit rates post year end, which are back to pre-seasonal impact levels vs 1-2 months lag in the past; and iii) deposit repricing from the overnight policy rate cut started to be felt in 4Q. Regionally, Indonesia’s improved liquidity situation was sustained in 4Q but NIM should be lower QoQ from one-off uplifts in 3Q25 while the repricing of deposits from lower benchmark rates (Singapore and Thailand) and roll-off in campaign deposits (Singapore) should be positive for NIM sequentially. Good drawdown in wholesale banking pipeline in Malaysia in 4Q25. There was also good momentum noted in markets such as Singapore (wealth-related financing and commercial) as well as Indonesia (corporate banking), but the corporate loan momentum in Thailand was soft due to repayments and weaker demand. Keep BUY and RM9.00 TP. – RHB Research, Jan 26

WE trim FY26F earnings to reflect the non-renewal of a tenant’s lease at Sentral Building 2 (SB2), but believe the impact should be manageable. Arcoris Plaza, a newly acquired asset, should contribute to a full year of earnings in FY26, while proceeds from the Wisma Sentral Inai disposal will strengthen Sentral REIT’s balance sheet and provide capacity for yield-accretive acquisitions. Against a soft office sub-sector backdrop, its diversification into other asset classes is a sensible strategic response. SENTRAL’s FY25 core net profit of RM77.3m (-3.1% YoY) met 96% of our and 95% of consensus full-year estimates, while DPU declined to 6.2 sen (-3.3% YoY). Reported net profit, however, plunged by 25.6% YoY from a one-off disposal loss of RM17.9m arising from the disposal of Wisma Sentral Inai (RM135m consideration). Gearing remained stable at 46%. FY25 revenue declined 0.9% YoY to RM189.4m, mainly due to the lower occupancy rate at Menara Shell following the exit of a key tenant in 2024. Net property income (NPI) fell 1.9% YoY to RM143.9m, dragged by higher opex from one-off maintenance works undertaken during the year. Its core profit margin remained relatively stable, at 40.8% (FY24: 41.8%). We expect SENTRAL’s performance to improve this year, as the occupancy rate at Menara Shell should recover to 88% (from 82% in mid-2024 following a key tenant’s exit), supported by the onboarding of two new multi-national corporation tenants in 2H25, ie a global technology group and a flexible workspace operator. Together with a full-year earnings contribution from its newly acquired retail asset Arcoris Plaza (acquisition completed in Dec 2025, estimated to contribute 3-4% of NPI), this should make for an earnings uplift in FY26. BUY, new TP of RM0.91 TP – RHB Research, Jan 26