02/02/2026

BIZ & FINANCE MONDAY | FEB 2, 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

Domestic bond yields likely to stay rangebound in near term PETALING JAYA: Domestic bond yields are likely to remain largely rangebound in the near term as foreign investors trimmed Malaysian government bond holdings by around RM1.5 billion last week, bringing year-to-date outflows to roughly RM5.1 billion, while foreign equity investors remained net buyers. Kenanga Investment Bank Bhd said underlying domestic strength, supported by upcoming Purchasing Managers’ Index readings and a stable ringgit, should help anchor yields. “Global focus will remain on US labour data and President Donald Trump’s announcement of the next Fed chair nominee, which could inject additional volatility into rates,” the firm said in a note. Malaysian Government Securities (MGS) and Government Investment Issues (GII) mostly eased across the curve between -4.2 and 0.9 basis points (bps) last week. The 10-Y MGS declined 1.5 bps to 3.498%, while the 10-year GII fell 3.4 bps to 3.529%. MGS yields softened modestly amid persistent global risks. The recent 30-year MGII auction attracted solid demand, achieving a 2.07 times bid-to-cover (BTC) ratio, supporting appetite for long-duration risk. Kenanga IB noted that the domestic confidence was further anchored by resilient tourism. External sentiment improved amid progress on the EFTA Malaysia free trade agreement and France’s push for deeper collaboration in the rare-earth value chain. “That said, the decline in yields remained limited as recent Fed signals kept a slightly hawkish tone, while heightened US-Iran tensions capped risk appetite,“ Kenanga IB said.

THE ringgit is expected to maintain its momentum and trade within a range of 3.93 to 3.96 against the US dollar this week, as investors shift their focus to key US economic data for direction. Early last week, the ringgit strengthened to breach the 4.00 psychological level against the US dollar, as the currency extended its uptrend that began the week before. On Tuesday, Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour said policy certainty, ongoing government reforms and supportive external factors have contributed to the ringgit’s steady appreciation to levels last seen in 2018. He said that while both external and domestic factors play vital roles, domestic factors remain the key focus. He said strengthening economic fundamentals, enhancing competitiveness and sustaining reform measures supportive of long-term growth are the drivers for the ringgit going forward. “These things are very important, and if we get them right, the outcome is the ringgit becoming more attractive and investments flowing into the country,” he told Bernama in an interview recently. The ringgit rebounded to 3.9175 against the US dollar on Wednesday, marking its strongest closing level since April 2018. On a year-on-year basis, the local currency has appreciated 10.77% against the greenback. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants will be closely monitoring upcoming US economic data, particularly the non-farm payroll report, the unemployment rate and the Institute for Supply Management indices for the manufacturing and services sectors. He expects the ringgit to remain well supported within the range of 3.93 to 3.96 to the US dollar. Ringgit set to hold firm in 3.93-3.96 range vs US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0060 2.8250 3.1560 2.9570 4.7750 2.4310 3.1560 5.5120 5.2480 3.3420 57.8600 65.5500 51.7000 4.4400 0.0249 2.6250 42.9100 1.4900 6.8700 110.7600 107.6300 26.2700 1.3600 46.6900 13.3200 110.0100 N/A

3.8600 2.7100 3.0560 2.8740 4.6190 2.3410 3.0560 5.3370 5.0220

3.8500 2.6940 3.0480 2.8620 4.5990 2.3250 3.0480 5.3170 5.0070

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

104.2700 3.0990 55.4000 60.3000 49.1100

104.0700 2.8990 60.1000 48.9100 3.9300 0.0170 2.4930 39.2400 1.1300 6.2700 104.9500 101.9700 23.5200 0.9900 42.3000 11.4100 N/A N/A

4.1300 0.0220 2.5030

N/A

39.4400 1.3300 6.4700 105.1500 102.1700 23.7200 1.1900 42.5000 11.8100

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

Bursa Malaysia Bhd Buy. Target price: RM9.95

CTOS Digital Bhd Buy. Target price: RM1.11

UUE Holdings Bhd Outperform. Target price: RM0.73

Jan 30, 2026: RM0.50

Jan 30, 2026: RM9.04

Jan 30, 2026: RM0.90

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

Source: PublicInvest Research

CTOS Digital closed FY25 within expectations, delivering core PATAMI of RM89m (-17.2% YoY). The softer YoY performance was primarily due to a higher cost base. That said, we expect earnings growth to resume in FY26, supported by new product launches, product enhancements, continued customer acquisition, and cost optimisation initiatives. At below-mean valuation, we believe the share price is positioned for a recovery as CTOS executes its multi-pronged growth strategy and restores earnings momentum in FY26. FY25 core PATAMI accounted for 100% and 105% of our and consensus full-year forecasts, respectively. Despite solid revenue growth of +7% YoY, earnings were weighed down by margin compression, with GPM contracting to 68% (FY24: 72%). This was mainly driven by higher contribution from lower-margin international business, alongside elevated costs stemming from prior product investments and headcount expansion. Strong associate contributions (+18.5% YoY) partially mitigated the margin pressure. Key accounts rebounded (+13.0% YoY, -3.7% QoQ to RM29.3m) on resilient recurring revenue and stronger uptake of alternative scoring and analytics solutions. International business recorded robust growth (+37.2% QoQ, +41.4% YoY), driven by eight new clients and project implementations in the Philippines. Commercial revenue rebounded (+3.7% YoY, +6.5% QoQ) on seasonal bulk orders, while the Direct-to-Consumer (D2C) segment maintained strong growth (+29% YoY) supported by a 5m user base and rising subscription services. However, core PATAMI fell 15.3% YoY due to higher admin costs. Stay BUY and RM1.11 TP. – RHB Research, Jan 30

BURSA Malaysia’s FY25 results broadly met our and consensus estimates, as well as its 2025 financial KPIs. While it is still early days, we believe Bursa would be one of the beneficiaries from the positive liquidity inflow trends so far. Securities average daily value (SADV) has already got off to a good start with the YTD value at MYR3.3bn. Bursa’s 4Q25 net profit of RM61m (-5% QoQ, -12% YoY) brought FY25 PATMI to RM250m (-19% YoY) - at 96-97% of our and consensus’ FY25F earnings. Despite an improvement in operating revenue, PATMI fell QoQ due to seasonally higher opex (higher staff costs and business development expenses) while on a full-year basis, softer securities trading revenue coupled with higher opex led to a drop in earnings. 4Q25 SADV ticked higher to RM3bn, vs RM2.8bn-2.9bn in 3Q25 and 4Q24. The sequential rebound was aided by improved investor sentiment following greater clarity on global tariffs, among others. Meanwhile, the derivatives market also picked up sequentially, with average daily contracts (DADC) traded of 97.4k in 4Q25 (+7% QoQ, -9% YoY) on higher FCPO and FKLI contracts. Bursa also saw 19 new IPOs in 4Q25 (3Q25: 9) for a total of 60 new IPOs in 2025 (2024: 55) - meeting its target of 60 IPOs for the year. Bursa’s headline 2026 financial KPIs are: i) ROE of 27-30% (2025: 30%); and ii) non-trading revenue growth of >10%, while its non-financial KPIs include a total IPO market capitalisation of RM28bn in 2026 - partly aided by the spillover of IPOs delayed from 2025. Bursa said the recent news over MSCI’s action in Indonesia is specific to the market there and there are no similar concerns for Malaysia. Bursa highlighted that its focus is to boost the attractiveness and vibrancy of the local market. Upgrade to BUY with new RM9.95 TP. – RHB Research, Jan 30

EXCLUDING RM12.6m of one-off ESOS expenses, UUE Holdings recorded a core PATAMI of RM6.4m in 3QFY26, increased by 3.9% QoQ, driven by stronger contribution in underground utilities engineering segment, mainly in Singapore. However, on a YoY basis, core PATAMI declined by 11.7%, likely due to cost overruns in engineering segment despite a 30.3% increase in segmental revenue. Consequently, 9MFY26 core PATAMI came in at RM14.2m, representing only 50.3% and 55.9% of our and consensus full-year FY26 estimates. On this note, we cut our FY26F earnings forecast by 29.7%, reflecting margin pressure in 3QFY26 from cost overrun project, as well as seasonally softer revenue in 4QFY26 despite improving margins. That said, we maintain our FY27F-FY28F forecast as we view the cost overruns as project specific rather than structural, with project activity to ramp up from 1QFY27 onwards. Underground utilities engineering segment drove the Group’s revenue to RM60.1m in 3QFY26 (4.1% QoQ, 30.3% YoY). On QoQ basis, Revenue from Singapore surged 78.7% to RM9.1m, underpinned by two subcontract works awarded in April 2025 and November 2025 with a combined value of RM95.4m. This lifted Singapore’s order book to an all-time high of RM111.5m. Meanwhile, Malaysia’s contribution rose 36.5% YoY, supported by a record TNB order book of RM344m as at August 2025 following the securing of multiple 2+1 contracts. Activity may moderate in 4QFY26 due to the festive season, driven by more restrictive permit requirements and heightened safety concerns. We maintain our Outperform call with unchanged TP of RM0.73. – PublicInvest Research, Jan 30