17/02/2026

BIZ & FINANCE TUESDAY | FEB 17, 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

Hextar Capital denies link to Opcom in MACC report SHAH ALAM: Hextar Capital Bhd (HCB) has issued a formal clarification in response to a recent news article titled “MACC report filed over RM214 million fibre optic project”, which referenced Opcom Sdn Bhd in connection with the alleged project. In a statement filed with Bursa Malaysia yesterday, the company explained the background of its corporate structure to address any potential confusion arising from the report. HCB noted that Hextar Group acquired Opcom Holdings Bhd in 2021 as part of its corporate expansion exercise. Following the acquisition, the company underwent a rebranding and was subsequently renamed Hextar Capital Bhd in 2023. Since then, a new management team has been appointed to lead the group. HCB stressed that Opcom Sdn Bhd is not owned by Hextar Capital Bhd and is neither a subsidiary nor a related entity of the group. The company said the Opcom Sdn Bhd referred to in the article is a privately held company owned by individuals with no relation to HCB. HCB also noted that the alleged project award cited in the article dates back to 2003, predating Hextar’s acquisition of Opcom Holdings. As a public-listed company on Bursa Malaysia, HCB reiterated its commitment to upholding high standards of corporate governance, transparency and regulatory compliance in all its operations. The company also stated that its management stands ready to extend full cooperation to any relevant regulatory authorities, if required, in relation to the matter.

THE ringgit closed higher against the US dollar yesterday, following the stronger-than-expected GDP announcement last Friday, an economist said. At 6pm, the ringgit rose to 3.8945/9055 versus the greenback from Friday’s close of 3.9060/9115. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the current official GDP forecast of 4 4.5% for 2026 is likely to be revised upward, supported by the country’s resilient economy amidst external uncertainties. “This would mean that the overnight policy rate would be kept steady in 2026 as there is no urgency to overstimulate the economy,” he told Bernama. At the close, the ringgit traded higher against a basket of major currencies. It appreciated versus the Japanese yen to 2.5356/5430 from 2.5435/5474 at last Friday’s close, strengthened against the euro to 4.6204/6335 from 4.6325/6390 last week, and rose vis-à-vis the British pound to 5.3137/3287 from 5.3211/3286 previously. The local note also traded higher against its Asean peers. The ringgit improved versus the Singapore dollar to 3.0860/0949 from 3.0904/0950 last Friday, was higher versus the Thai baht at 12.5205/5619 from 12.5607/5849, edged up against the Indonesian rupiah to 231.4//232.2 from 231.9/232.4 at last Friday’s close, and was firmer against the Philippine peso at 6.71/6.74 from 6.73/6.74 previously. Bursa Malaysia Bhd and its subsidiaries will be closed on Feb 17 (Tuesday) and Feb 18 (Wednesday) in conjunction with the Chinese New Year public holiday, and will resume operations on Feb 19 (Thursday). Ringgit ends higher vs greenback on stronger-than-expected GDP SAM Engineering & Equipment Bhd Hold. Target price: RM3.40

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9775 2.8200 3.1410 2.9110 4.7090 2.4010 3.1410 5.4170 5.1920

3.8285 2.7040 3.0390 2.8270 4.5520 2.3100 3.0390 5.2370 4.9660

3.8185 2.6880 3.0310 2.8150 4.5320 2.2940 3.0310 5.2170 4.9510

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

109.2100

103.4300 3.0830 59.3900 48.6600 4.1500 0.0218 2.4900 39.2800 1.3200 6.5400 104.3300 101.4000 23.2600 1.1800 41.5600 11.8000 N/A N/A

103.2300 2.8830 59.1900 48.4600 3.9500 0.0168 2.4800 39.0800 1.1200 6.3400 104.1300 101.2000 23.0600 0.9800 41.3600 11.4000 N/A N/A

3.3030

N/A

64.6100 51.2600 4.4700 0.0246 2.6120 42.8200 1.4800 6.9500 109.9000 106.8200 25.7800 1.3500 45.8100 13.3300 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

CPE Technology Bhd Buy. Target price: RM0.66

Wasco Greenergy Bhd Buy. Target price: RM0.85

Feb 16, 2026: RM0.435

Feb 16, 2026: RM0.675

Feb 16, 2026: RM3.26

Source: Maybank Investment Bank

Source: Maybank Investment Bank

Source: Maybank Investment Bank

WE expect Q4’26 earnings to remain subdued amid weak semiconductor demand and relocation costs. Following the results briefing, we believe that relocation costs within the aerospace segment will continue to face margins pressure through CY27. Although aerospace volumes are improving, a full ramp-up remains capped by ongoing supply chain bottlenecks. On the equipment side, growth is expected to return from Q1’27 onwards, albeit gradually, supported by AI and memory-related demand. We note that its orderbook eased QoQ to RM5 billion (vs RM5.1 billion in Q2’26), largely due to USD translation effects. Based on channel checks, we understand that SAM has secured additional projects from both new and existing customers, which are currently undergoing qualifications. However, contributions are not expected to be material in CY26 27. Separately, SAM plans to invest in Class 100 and Class 1k cleanroom facilities to support future front-end semiconductor opportunities. The new BB3 plant has completed construction and commenced relocation of SG production. We cut FY27–28 forecasts by 15–28% on a more conservative recovery prospect and sustained margin pressure from elevated costs. SAM is currently trading at a discount to peers such as UWC (NR) exposed to global WFE makers. We see potential for rerating towards +0.5SD (34x) should semiconductor recovery strengthen. SAM is a contract manufacturer and is a key player in precision machining and equipment integration for the aerospace and semiconductor industries. The company is an indirect subsidiary of Temasek, a unit of Singapore’s sovereign wealth fund. HOLD with RM3.40 TP. – Maybank Investment Bank, Feb 16

CPE is a contract manufacturer and a key player in precision machining for semiconductor, life science, sports equipment industries, and others. The company is expanding its specialisation within the IGS supply chain for US and JP markets as more wafer fabs are being constructed globally. From its results briefing, near-term demand remains uneven across key customers, with order visibility still limited. Although operating at full capacity, about 1/3 of utilisation is allocated to non-revenue generating qualification projects. We believe that some of these projects could transition to mass production as early as 1H’26, though the potential revenue is unclear. The current orderbook stands at RM33 million (vs. RM50 million in Q2’25), while orderbook has slowed, we expect a pick-up in 2H’26, in line with the global WFE upcycle. Based on channel checks, CPE is exploring a potential collaboration with a Japanese partner to exchange technical expertise, leveraging the partner’s secondary processing know-how in return for CPE’s CNC capabilities. We believe this could enhance CPE’s ability to meet higher-complexity customer requirements, with potential upside to margins. We understand the collaboration could be formalised by Q1’26. We leave our forecasts unchanged pending clearer visibility on potential mass production from Q1’27 onwards. Near to mid-term visibility from key customers remains limited, although several projects are expected to transition into mass production, but the full earnings impact still uncertain. BUY with RM0.66 TP. – Maybank Investment Bank, Feb 16

WG’s 4Q4’25 core net profit of RM10 million (+26% QoQ, +27% YoY) brought FY25 core earnings to RM29.3 million (+27% YoY). The results came in above expectations, beating our FY25 full-year forecasts by 25%. There are no consensus estimates. Key variance against our forecast was mainly due to stronger-than-expected GPMs of 29.2% in FY25 (vs. our estimates of 25.7%) – likely due to improved cost management and improved efficiencies. As at end-Dec 2025, WG’s outstanding orderbook stands at RM241.3 million. This will provide some near-term revenue and earnings visibility and we expect >90% (RM222.9 million) of this amount to be recognised in FY26 – minimizing downside risks to our forecasts. Also, a DPS of 2 sen was declared, translating to a DPR of 50% for FY25 (above our expectations of 1.4 sen @ 30% payout). To be more conservative, we maintain our assumptions of a 30% payout ratio in FY26-28. At current valuations of 10.6x PER on FY26 EPS, we believe WG presents an opportunity to investors to gain exposure to a growing RE sector. Budget 2026 has also announced plans to introduce another 300MW of quota for bio-energy and hydro projects under FiT2.0. While details are scarce at this juncture, we believe that this development could further raise WG’s total addressable market for biomass EPCC projects. Wasco Greenergy stands as a comprehensive renewable energy systems provider, specialising in customised steam energy and steam turbine generator solutions. It holds a leading market share in steam turbine generator systems, with 17% market share of Malaysia and 22% in Indonesia. BUY with RM0.85 TP. – Maybank Investment Bank, Feb 16