05/02/2026

BIZ & FINANCE THURSDAY | FEB 5, 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

Banking sector to sustain capital invesment in 2026 KUALA LUMPUR: Malaysia’s banking sector is expected to sustain capital investment in 2026, amid strong dividend visibility and potential return on equity (ROE) expansion, according to CIMB Securities Sdn Bhd. In a research note, the brokerage firm said banks could step up dividends by turning to effective capital-optimisation strategies amid improving earnings visibility and supportive macro tailwinds. “Sector fundamentals remain resilient, underpinned by strong capital and liquidity buffers (Common Equity Tier 1 (CET1) of 14.2%, liquidity coverage ratio of 155%, loan loss reserve of 128.7% (as at Dec 2025) providing downside support. “Despite a slower GDP growth expectation of 4.4% for 2026, domestic demand remains firmly anchored by steady income levels and an overall expansion in economic activities through foreign direct investments (FDI) and key domestic projects,“ it said. Overall, CIMB Securities said that it sees a balance between macro-led credit momentum and capital strength vis-à-vis marginal net interest margins upside, supporting a steady earnings growth profile. The brokerage said banking system loan growth moderated to 4.9% year-on-year (y-o-y) in Dec 2025, underpinned by the tapering of business loan growth to 3.7% y-o-y, reflecting softer small and medium enterprise lending, while large corporate and investment related loans continued to underpin system credit growth. CIMB Securities said loans for industrial buildings and factories rose 11.6% y-o-y in December 2025, while financing for land acquisition, purchase of shops, and construction also gained traction. – Bernama

Ringgit holds steady on geopolitical caution

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit held steady against the US dollar at the close yesterday, supported by positive business indicators across Asia, including Malaysia, but tilted down slightly amid cautious market sentiment due to heightened geopolitical risks. At 6pm, the local note eased to 3.9305/9345 against the greenback from Tuesday’s close of 3.9295/9360. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said purchasing managers’ index (PMI) data showed that Asian economies, including Malaysia, have exhibited a positive trend, indicating improving business sentiment despite uncertainties over US tariff policies and heightened geopolitical risks. The United States said it had shot down an Iranian drone as Middle East tensions escalated. “The ongoing rewiring of global supply chains has made private firms increasingly resilient in the face of global uncertainties. This may have translated into improved business sentiment, as indicated by the PMI data,” he told Bernama. At the close, the ringgit traded mostly lower against other major currencies. It depreciated vis-à-vis the British pound to 5.3887/3942 from 5.3704/3793 and slipped against the euro to 4.6443/6490 from 4.6341/6417, but it gained versus the Japanese yen to 2.5091/5118 from 2.5210/5253 at Tuesday’s close. However, the local note traded higher against its Asean peers. It was slightly higher vis-à-vis the Singapore dollar at 3.0912/0946 from 3.0919/0973, strengthened versus the Thai baht to 12.4206/4391 from 12.4584/4845, firmed against the Indonesian rupiah to 234.2/234.6 from 234.5/235.0 and rose against the Philippine peso to 6.66/6.67 from 6.67/6.68 previously. Coraza Integrated Technology Bhd Buy. Target price: RM0.83

1 US Dollar

4.0035 2.8170 3.1440 2.9240 4.7210 2.4200 3.1440 5.4720 5.1760 3.3400 57.9000 64.8000 51.6100 4.5100 0.0249 2.5820 42.5200 1.4800 6.8700 110.6500 107.5500 25.9300 1.3600 46.2100 13.1800 109.9400 N/A

3.8555 2.7020 3.0430 2.8410 4.5650 2.3300 3.0430 5.2950 4.9520

3.8455 2.6860 3.0350 2.8290 4.5450 2.3140 3.0350 5.2750 4.9370

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

104.1500 3.0950 55.4100 59.5800 49.0100

103.9500 2.8950 59.3800 48.8100 3.9900 0.0170 2.4510 38.8700 1.1300 6.2700 104.8400 101.9000 23.2100 0.9800 41.8500 11.2700 N/A N/A

4.1900 0.0220 2.4610

N/A

39.0700 1.3300 6.4700 105.0400 102.1000 23.4100 1.1800 42.0500 11.6700

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

Westports Holdings Bhd Buy. Target price: RM6.89

Malakoff Corporation Bhd Buy. Target price: RM0.93

Feb 4, 2026: RM0.555

Feb 4, 2026: RM0.785

Feb 4, 2026: RM5.95

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

WATER fabrication equipment (WFE)/automated test equipment (ATE) upcycle. In Dec 2025, Semiconductor Equipment and Materials International raised its 2026 forecast for semiconductor equipment sales to US$145 billion (from US$138 billion, +9% YoY). WFE continues to be the key driver, as chipmakers step up capex to support artificial intelligence (AI)-related chips amid tight memory supply, strong AI accelerator demand, and global fabrication builds. ASML posted record orders and delivered an upbeat 2026 guidance, alongside Applied Materials, Lam Research and KLA Corp. In ATE, Advantest beat expectations and raised its profit guidance, pointing to another record year in FY26. About 80% of revenue is tied to the semiconductor supply chain, with 40-50% exposure to the front-end segment, which often carries more stringent requirements. Backed by bullish guidance from major WFE/ATE customers, Coraza is well positioned to chalk a record performance in FY26. Growth visibility should be further enhanced by an expanding total addressable market, new in-house secondary process capabilities, and capacity expansions (Plants 3 and 5), enabling deeper front-end penetration and new automation project wins. Meanwhile, as an AS9100-certified manufacturer, the aerospace segment — off a low base — is poised for exponential growth. While the USD weakness vs the MYR is a headline negative for exporters, market concerns are excessive. The impact should be cushioned by strong revenue growth, higher utilisation rates (operating leverage), process improvements and repricing initiatives (especially for new projects). BUY with RM0.83 TP. – RHB Research, Feb 4

FY25 core PATAMI of RM1 billion (+12.2% YoY) are in line with our and Street full-year estimates, at 103%. Note: We adjusted RM381 million in construction revenue, which reflected the ongoing container terminal (CT) 10-13 dredging and land reclamation activities, and a RM9.6m impairment loss on trade receivables. Q4’25 operational revenue came in at RM680 million (+1.9% QoQ, +10.7% YoY), bringing the FY25 total to RM2.5 billion (+11.6% YoY), driven by record-high throughput. Westports’ Q4’25 core earnings climbed 6.9% YoY (+4% QoQ) to RM284 million, lifting FY25 core earnings to RM1 billion, as a result of stronger volume and a 15% tariff uplift adjustment. Q4’25 throughput stood at 2.9 million TEUs (+1% QoQ, +0.7% YoY), bringing the FY25 figure to 11.3m TEUs (+3.3% YoY), i.e. at 100% of our full-year estimate. Growth was mainly driven by a 7.4% YoY rise in transhipment volumes as a result of economic growth – this was partially offset by a 1.8% YoY dip in gateway volumes, due to the restriction on unauthorised inbound waste products. We expect Westport’s earnings trajectory to remain robust, backed by a 10% tariff increase in Jan 2026. Operationally, the transitory congestion issues observed in Dec 2025 to early Jan 2026 have been fully resolved, with its yard utilisation rate now hovering at a healthy 70%. Looking ahead, we anticipate throughput growth to remain balanced across both the gateway and transhipment segments, as the loss related to inbound waste products (200k TEUs) was largely in the books by end-CY25. Regarding global trade routes, we do not forecast a significant recovery in Suez Canal transits during 1H’26, although a shift – if any – may occur in 2H’26. BUY with RM6.89 TP. – RHB Research, Feb 4

TANJUNG Bin Energy (TBE) resumed operations on Jan 28, following a 3-month closure due to a fire incident in Oct 2025. Management had previously guided for a RM100 million revenue loss in Q4’25, from this incident. More importantly, the unscheduled outage rate (UOR) for TBE, has been reset this year, which should result in full-capacity payments. Hence, we forecast TBE’s revenue to return to the FY24 level of RM2.1 billion – contributing 23% of our FY26 group revenue forecast. We expect the coal supply transport operations to resume this month, following reinstatement works at Tanjung Bin’s coal jetty. Factoring in power purchase agreement (PPA) extensions for three gasfired plants. Last Friday, MLK announced that it secured PPA extensions for three gas-fired plants (Segari, Prai and GB3) until 2029. Note that these three plants account for 2.1GW of 50% of its gas-fired plants in Malaysia, and have potential extensions to meet 4-5GW of the demand shortfall by 2030. We have factored in extensions for the three plants until end-2029, which should contribute 13% of group revenue annually. We expect the Energy Commission (EC) to announce the successful bidders for the 6-7GW new gas plants tender in Q1’26. We believe MLK is a frontrunner, as it had reserved 2x700MW turbines in agreement with Mitsubishi Power. Assuming it wins a bid to build a 1,400MW gas-fired plant (RM5.6 billion capex, 70% debt funding, WACC: 8.2%), we estimate a 12% project IRR and RM0.40 (+43%) accretion to our TP. Note that the new power plant would be timely to replace its 2,100MW TBP coal-fired plant, which will be decommissioned in 2031. BUY with RM0.93 TP. – RHB Research, Feb 4