06/02/2026

BIZ & FINANCE FRIDAY | FEB 6, 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

Manufacturing PMI signals steady conditions: Kenanga IB KUALA LUMPUR: The Manufacturing Purchasing Managers’Index (PMI), which inched up to 50.2 in January this year, point to broadly steady operating conditions despite earlier concerns over the impact of higher US tariffs. In a report, Kenanga Investment Bank Bhd (Kenanga IB) said this resilience reflects robust demand for E&E products, which remained exempted from tariffs measures. “Domestic-oriented industries also continue to benefit from firm household spending, ongoing fiscal support and steady momentum from the Visit Malaysia 2026 campaign.” PMI edged up slightly to 50.2 in January compated to 50.1 recorded in December last year, marking a third consecutive month of expansion, supported by higher production driven by rising orders and improved business confidence, even as hiring remained muted. Output grew modestly, recording its strongest expansion since July 2022, while factory orders stabilised, pointing to improving operating conditions at the start of the year. New export orders also rose for the first time in five months, reaching their strongest level since July 2024, while purchasing activity climbed to a 45-month high in line with increased production and firmer expectations for future demand. Kenanga IB noted that domestic input prices decrease for the first time in 68 months, driven by the stronger ringgit, which reduced the cost of imported materials. However, output prices continued to rise but remained modest and below historical averages. Kenanga IB said confidence in future output improved, supported by expectations of new contracts and signs of firmer demand.

THE ringgit eased against the US dollar at yesterday’s close, weighed by renewed strength in the greenback as global markets shifted to a more defensive stance. At 6pm, the local note slid to 3.9440/9535 against the greenback from Wednesday’s close of 3.9305/9345. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said expectations that the US Federal Reserve will remain cautious on near-term rate cuts, amid lingering inflation concerns, have further supported the dollar’s resilience. “Heightened volatility across US equities and precious metals reinforced safe-haven demand for the dollar. Notably, the Asia Dollar Index also declined, signalling that the pressure was broad-based rather than Malaysia-specific,” he told Bernama. Mohd Sedek said that, in this environment, regional and risk-sensitive currencies, including the ringgit, experienced mild but widespread depreciation. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local note weakened against the greenback as the US Dollar Index (DXY) gained momentum, amid signs of profit-taking following mixed US economic data. The ringgit gained versus the Japanese yen to 2.5068/5130 from 2.5091/5118 and appreciated vis-à-vis the British pound to 5.3496/3625 from 5.3887/394, but it slipped against the euro to 4.6460/6572 from 4.6443/6490 at Wednesday’s close. The local note strengthened versus the Thai baht to 12.3955/4320 from 12.4206/4391 and firmed against the Indonesian rupiah to 234.1/234.8 from 234.2/234.6. However, it declined vis-à-vis the Singapore dollar to 3.0943/1020 from 3.0912/0946. Ringgit eases vs US dollar, mixed against other currencies

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0090 2.8150 3.1420 2.9240 4.7230 2.4090 3.1420 5.4620 5.1770 3.3440 57.9500 64.8200 51.7000 4.5100 0.0249 2.5690 42.4300 1.4900 6.8800 110.8100 107.7000 25.7900 1.3600 45.8600 13.1600 110.0900 N/A

3.8610 2.7000 3.0410 2.8410 4.5660 2.3190 3.0410 5.2830 4.9530 3.1000 55.4700 59.6000 49.0800 4.1900 0.0220 2.4490 38.9900 1.3300 6.4700 105.1900 102.2400 23.2800 1.1900 41.7300 11.6600 104.2900 N/A

3.8510 2.6840 3.0330 2.8290 4.5460 2.3030 3.0330 5.2630 4.9380

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

104.0900 2.9000 59.4000 48.8800 3.9900 0.0170 2.4390 38.7900 1.1300 6.2700 104.9900 102.0400 23.0800 0.9900 41.5300 11.2600 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

UOA Development Bhd Buy. Target price: RM2.10

Binastra Corporation Bhd Buy. Target price: RM2.72

AME REIT Buy. Target price: RM1.95

Feb 5, 2026: RM1.89

Feb 5, 2026: RM1.71

Feb 5, 2026: RM2.10

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

Source: Bloomberg, RHB Research

BINASTRA Corporation announced that it has secured a RM503m contract from Exsim Sri Permai for a data centre (DC) in Jalan Sri Permaisuri, Kuala Lumpur. While its involvement in DCs is relatively smaller vs other listed contractors, we think that the company’s appetite to venture beyond bread-and-butter residential property projects could pave the way for it to garner other types of jobs (not just limited to DCs). This is already evident, through the awards related to sewage treatment plants and solar projects. This is BNASTRA’s first job in FY27 (Jan) and is also its sixth DC contract secured. It is to be completed 20 months from Feb 19. In fact, this is the second DC job clinched within a 3-month timeframe. Based on our estimates, the latest DC contract win would have a capacity of 10M-20MW. With the latest job package covering main building works, we envisage BNASTRA to potentially secure the mechanical and electrical (M&E) portion for the same DC later on. This was the case for DC1 Bukit Jalil DC and MYT DC3’s DC in Cyberjaya This latest job win brings BNASTRA’s outstanding orderbook to RM7bn which translates into an orderbook-to-revenue cover ratio of 7.4x, based on FY25 revenue. With that, FY27 should be a year of executing BNASTRA’s existing jobs on hand. YTD FY27 wins stand at RM503m vs our FY27F job replenishment target of RM3bn. To date, BNASTRA has secured RM1.9bn worth of DC jobs (across six contracts), which makes up approximately 10-15% of the group’s RM7bn outstanding orderbook, based on our projections. Maintain BUY and RM2.72 TP. – RHB Research, Feb 5

WE believe UOA Development’s maiden project in Johor Bahru, Aethera Residences (GDV RM800m), will be well-received. After the attractive rebate, the net price for the units would be below the current market price for primary launches near the Rapid Transit System (RTS) link area. During the current preview, the non-bumiputera units were already almost fully taken up. The successful sales of Aethera should contribute to UOAD’s earnings from FY27 onwards. Properties near the RTS are still selling like hot cakes. While some investors are wary about the incoming supply of high-rise units near the RTS terminal in Johor Bahru, the recent soft launch by UOAD was met with an overwhelming response. We believe this was due to: i) Its strategic location; ii) the 25% rebate offered for early birds; iii) the covered walkway connected to the RTS station; and (iv) UOAD’s strong branding. With the rebate, the ASP for Aethera would be about RM1,100 psf, and UOAD also structured the rebate so that the down payment will be fairly affordable. We also gather that the units are partially furnished. About 20 floors were released during the soft launch, and most of the non-bumiputera units attracted many local investors - Singaporeans, as well as Malaysians working in Singapore. The project will be officially launched in 1Q26, and the rebate will be reduced. We do not discount the possibility that UOAD may acquire more land parcels in Johor Bahru for developments. In the Klang Valley, Bamboo Hills saw strong sales in 2Q25 3Q25, with most non-bumiputera units taken up. UOAD is raising the selling price for the remaining non-bumiputera units to RM850psf (from RM650psf when these were first launched). Maintain BUY, new RM2.10 TP. – RHB Research, Feb 5

AME REIT’s 9MFY26 results are in line with expectations, largely driven by income contributions from newly acquired assets and sustained positive rental reversions. We continue to like the stock, given management’s guidance on ongoing yield-accretive acquisitions, its assets’ high occupancy rates, and visible mark-to-market rental upside as old leases are gradually repriced. 9MFY26 core earnings of RM32.8m (+11% YoY) came in at 73% and 75% of our and consensus full-year forecasts. 3QFY26 DPU stood at 2.06 sen (3QFY25: 1.89 sen), bringing cumulative 9MFY26 DPU to 6.18 sen (+10% YoY). Gearing increased to 31% following debt-funded acquisitions, but remains within a comfortable range, with a RM173m headroom for further inorganic growth. 9MFY26 revenue grew by 21% YoY to RM45.8m, mainly driven by contributions from six newly acquired industrial properties that were completed over the past 12 months, on top of assets’ full occupancy rates and positive rental reversions. NPI margin remained resilient at 91% (9MFY25: 92%) while financing costs increased to RM7.6m (9MFY25: RM4.1m) from higher borrowings undertaken to fund acquisitions We remain positive on both organic and inorganic growth prospects. Management reiterated its commitment to the RM100m annual acquisition target, with its focus shifting to Klang Valley assets in FY27. We also expect occupancy to remain near full, driven by sustained demand for its Johor industrial portfolio. On organic growth, we see further upside optionality as portfolio rents remain held back by legacy leases signed at lower rates. BUY, new TP of RM1.95. – RHB Research, Feb 5