29/01/2026

BIZ & FINANCE THURSDAY | JAN 29, 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

Kinergy partners Thailand’s B.Grimm for gas turbine project KUALA LUMPUR: Kinergy Advancement Bhd has formalised a strategic partnership with Thailand’s B.Grimm Power Public Co Ltd, which will be investing RM41.52 million to acquire a 49% stake in Kinergy’s investment vehicle Jati Cakerawala Sdn Bhd for a proposed full-new built gas turbine power plant. In a filing with Bursa Malaysia yesterday, Kinergy said it will retain a 51% controlling interest in Jati. It stated that the partnership marked the group’s evolution into an independent power producer (IPP) from an engineering, procurement, construction and commissioning (EPCC) contractor. “The Kinergy-led consortium, where B.Grimm Power strengthens the platform through its IPP-scale technical, engineering and operating expertise, is tasked with the development of a new combined cycle gas turbine (CCGT) power plant,” it said. Kinergy said that work on the plant is expected to commence in the first quarter of 2027, setting the stage for Phase 1 commercial operations by the end of 2029. Kinergy’s executive deputy chairman and group managing director Datuk Lai Keng Onn said the choice of partner is important when developing a national asset that must operate reliably for decades. “B.Grimm’s decision to invest at this early stage reflects a shared view on the long-term value of the site and the discipline required to develop it properly. “For Kinergy, this marks a clear step from executing projects for others towards building and owning assets with lasting value,” he said. Kinergy said that during the construction period, Kinergy expects to participate in EPCC activities. – Bernama

THE ringgit jumped to a seven-year high to close at 3.9175 versus the US dollar yesterday as improved risk sentiment and a softer greenback continued to support the local currency, which rose for the third consecutive day this week. At 6pm, the ringgit bounced to 3.9175/9235 versus the greenback from 3.9500/9555 at Tuesday’s close. This was the strongest closing level since it hit 3.9150 in April 2018. Compared to the same time last year, the ringgit has increased by 10.77% against the greenback. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit’s rise has been underpinned by growing expectations that the US Federal Reserve may adopt a more accommodative policy stance following recent signs of economic moderation in the US. “Weaker US economic indicators, particularly the January consumer confidence data, have reinforced expectations that the Federal Open Market Committee meeting later tonight could deliver a more dovish policy tone. This could provide room for emerging market currencies, including the ringgit, to strengthen further in the near term,” he told Bernama. Against other major currencies, the ringgit appreciated vis-à vis the British pound to 5.4011/4093 from 5.4103/4178, climbed against the euro to 4.6955/7027 from 4.6958/7023, and gained versus the Japanese yen to 2.5652/5692 from 2.5691/5730 at Tuesday’s close. It strengthened vis-à-vis the Singapore dollar to 3.1072/1122 from 3.1174/1219, advanced versus the Thai baht to 12.6135/6389 from 12.7247/7478, and firmed against the Indonesian rupiah to 234.2/234.7 from 235.5/236.0. Ringgit surges to seven-year high against US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9940 2.8060 3.1610 2.9270 4.7920 2.4120 3.1610 5.5120 5.2510 3.3320 57.6300 65.7900 51.5800 4.4500 0.0248 2.6320 42.6300 1.4800 6.8600 110.4100 107.3100 25.9900 1.3500 46.7300 13.4600 109.6700 N/A

3.8470 2.6910 3.0590 2.8440 4.6340 2.3210 3.0590 5.3330 5.0240 3.0890 55.1700 60.5000 48.9800 4.1300 0.0219 2.5100 39.1800 1.3200 6.4600 104.8200 101.8700 23.4700 1.1800 42.5200 11.9200 103.9200 N/A

3.8370 2.6750 3.0510 2.8320 4.6140 2.3050 3.0510 5.3130 5.0090

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

103.7200

2.8890

N/A

60.3000 48.7800 3.9300 0.0169 2.5000 38.9800 1.1200 6.2600 104.6200 101.6700 23.2700 0.9800 42.3200 11.5200 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

RCE Capital Bhd Hold. Target price: RM1.16

Power & Utilities Overweight

MN Holdings Bhd Buy. Target price: RM2.27

Jan 28, 2026: RM1.17

Jan 28, 2026: RM1.64

Source: TNB, TA Research

DRIVEN by strong demand from data centres, Peninsular Malaysia’s electricity peak demand in 2025 grew at its strongest pace in the past 8 years. Coupled with scheduled net outgoing capacity between 2027-2029 as per the 2021-39 Power Generation Development Plan, we estimate reserve margins could tighten significantly going forward. Against this projection, the latest Request for Proposal (RFP) for gas power generation capacity by the Energy Commission is timely in our opinion, potentially bringing online up to 8GW by 2029 via a mix of short-term Power Purchase Agreement extensions and greenfield development. This should provide a strong catalyst for domestic IPPs in the near to medium-term. Beyond the RFP-driven capacity, gas-based power plants are expected to play a critical role as future baseload to replace the country’s outgoing coal capacity with the National Energy Transition Roadmap outlining a potential doubling in the country’s gas power generation capacity by 2050. This in turn, is expected to drive significant growth in gas consumption by the power sector, necessitating expansion in domestic gas supply infrastructure. Although nuclear is an option, at this point, the government has yet to reach a final policy decision. In terms of Renewable Energy (RE), we expect the momentum to sustain moving into 2026 underpinned by execution of an aggregate 4GW LSS5 and LSS5+ projects. Further out, we estimate up to 10.5GW RE projects to come online by 2030, providing a solid EPCC project pipeline for domestic RE players. The grid is a critical component in accommodating RE intermittence, underpinning a doubling in grid capex under Regulatory Period 4. – TA Research, Jan 28

Source: Maybank Investment Bank

Source: Maybank Investment Bank

WE caught up with RCE following the second round of civil service salary hike. Effective Jan 2026, civil servants will receive another salary hike of 7% after an 8% salary hike in Dec 2024. Given the historically strong correlation between government emoluments and RCE’s financing receivables, we were underwhelmed that RCE did not provide any guidance on financing receivables growth for the second consecutive year. RCE stated that this is because competition remains intense and the creditworthiness of new applicants for financing remains less than desired. Recall that RCE’s Q2FY3/26 NPF ratio eased to 4.7% from the recent Q1FY3/26 high of 4.8% in and Q2FY3/26 credit cost eased 17% YoY and 54% QoQ thanks to moderating bankruptcies, resignations and early retirements among civil servants ostensibly due to the 8% civil service salary hike in Dec 2024. RCE expects both NPF ratios and credit costs to continue moderating which we gather can be attributed to the recent 7% civil service salary hike. We maintain our earnings estimates which are premised on gross financing receivables growth of 2% p.a. (end-Q2FY3/26: +2% YoY), NPF ratio of 4.6% (end-Q2FY3/26: 4.7%) and credit cost of RM38 RM39 million pa (6MFY3/26: RM16.6 million). RCE stated that it will have a better gauge of financing receivables growth going forward in May 2026 when it reports Q4FY3/26 results. Meanwhile, investors can rely on dividend yields of >5% pa premised on 75-80% DPR. RCE Capital is principally involved in the provision of general financing services. Being a non-bank financial institution, RCE does not have a large environmental footprint. HOLD with RM1.16 TP. – Maybank Investment Bank, Jan 28

WE anticipate MN Holdings (MNH) to record sustained earnings momentum in Q2’26, driven by expected completion of several data centre (DC) projects. Outstanding orderbook stood at RM918.1 million following the recent RM122.7 million DC related new win. We expect Q2’26 earnings momentum to be primarily driven by the completion of 2 DC substation design-and-build projects for Customer C (RM169.6 million) and Customer E (RM180 million). MNH’s tender book saw a notable pickup in Jan 2026 increasing 172% to RM2.8 billion from RM1 billion as at Nov 2025. This was driven by new tenders in TNB (+390%) and DC (+146%) projects. We understand that the new TNB tenders relate to high voltage (132kV-275kV) grid infrastructure upgrading works to support the robust DC pipeline in Johor. On the DC front, MNH is tendering for 5-6 projects (RM1 billion), including 3 projects with its key Customer A, collectively worth RM600 million, for Customer A’s DC development pipeline across Johor and Klang Valley. MNH is also seeing increasing tenders being flowed out from the solar sector in relation to interconnection facilities works for LSS5, LSS5+ and CRESS projects. We anticipate majority of its RM2.8 billion tender book to be finalised in 2H’26, underpinning a robust replenishment prospect for MNH to achieve its RM500 million order replenishment target (FY26 YTD new wins: RM194 million) which is in line with our forecast. We continue to favour MNH for its strategic exposure across DC, TNB, and solar segments. MN Holdings engages in the provision of infrastructure utilities, construction services, and solutions. BUY with RM2.27 TP. – Maybank Investment Bank, Jan 28