20/02/2026

BIZ & FINANCE FRIDAY | FEB 20, 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

Lendlease REIT’s H1 distributable income increases to S$48.6m KUALA LUMPUR: Lendlease Global Commercial Trust Management Pte Ltd, the manager of Lendlease Global Commercial REIT (Lendlease REIT), reported first-half (H1) financial results for FY26 distributable income of S$48.6 million (RM150 million), up 11.7% year-on-year (YoY), or a distribution of 1.85 cents per unit. Gross revenue was S$101.9 million, down 1.6%, and net property income S$74 million, down 1.2%, largely due to the divestment of the Jem office and the replacement of Cathay Cineplexes with Shaw Theatres. “Our first-half distribution reflects the resilience of our repositioned portfolio and disciplined execution of our strategy. With 90% of our assets anchored in Singapore, we are well positioned to continue delivering stable returns for our unitholders,” said CEO Guy Cawthra in a statement. The REIT completed the acquisition of a 70% stake in PLQ Mall in November 2025, while divesting Jem office, positioning approximately 90% of portfolio value in Singapore, with 63% concentrated in suburban retail. On a like-for-like basis, excluding the Jem office divestment, gross revenue and net property income grew 0.6% and 1.1%, respectively, while property operating expenses improved by 2.7% YoY, mainly due to lower maintenance requirements at the Milan assets. Gross borrowings were S$1.18 billion, with a gearing ratio of 38.4% and no refinancing risks for FY26. Sustainability-linked financing accounted for 93% of total committed debt. The manager also secured a two-year energy tariff contract for the Singapore portfolio, effective July 1, 2026, expected to reduce electricity expenses by roughly 15% per annum. – Bernama

KUALA LUMPUR: Government-backed impact investment firm VentureTECH Sdn Bhd has invested RM28 million into Delta Spike Asia Sdn Bhd and IX Telecom Sdn Bhd, reinforcing Malaysia’s cybersecurity and cross-border digital infrastructure capability. In a statement, it said the investment in Delta Spike will support the continued development of Delta Spike’s cybersecurity platform, strengthen operational capacity, and support regional expansion, reinforcing Malaysia’s cybersecurity ecosystem amid increasingly complex digital threats. As for the investment into IX Telecom, it said this will support IX Telecom’s regional scaling and platform commercialisation, strengthening Malaysia’s position as a regional digital connectivity hub while enabling enterprises to access seamless cross-border connectivity. VentureTECH CEO Ahmad Redzuan Sidek said these investments reflect the company’s focus on building strong, Malaysian-owned companies that address real industry needs and are positioned to scale sustainably. “Both Delta Spike and IX Telecom operate in sectors that are critical to national resilience – from strengthening cybersecurity readiness to enabling seamless digital connectivity across borders. “By supporting bumiputera-owned companies with clear commercial pathways and scalable capabilities, VentureTECH plays a catalytic role in strengthening Malaysia’s long-term capacity, while positioning local companies to compete regionally and globally,” he said. – Bernama VentureTECH invests RM28m in cybersecurity, digital resilience

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9900 2.8210 3.1410 2.9040 4.6950 2.3810 3.1410 5.3750 5.1830

3.8410 2.7050 3.0390 2.8200 4.5390 2.2910 3.0390 5.1990 4.9580

3.8310 2.6890 3.0310 2.8080 4.5190 2.2750 3.0310 5.1790 4.9430

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

109.5600

103.7600

103.5600

3.3280

3.0840

2.8840

N/A

N/A

N/

64.4300 51.4400 4.4700 0.0247 2.5920 42.8600 1.4800 6.9700 109.9600 107.1600 25.6800 1.3500 45.3900 13.3000 N/A

59.2200 48.8200 4.1500 0.0218 2.4700 39.3600 1.3200 6.5600 104.3800 101.7300 23.1800 1.1800 41.2800 11.7800 N/A

59.0200 48.6200 3.9500 0.0168 2.4600 39.1600 1.1200 6.3600 104.1800 101.5300 22.9800 0.9800 41.0800 11.3800 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

LAC Med Bhd Buy. Target price: RM1.14

Gamuda Bhd Buy. Target price: RM6.26

Duopharma Biotech Bhd Buy. Target price: RM1.65

Feb 19, 2026: RM1.55

Feb 19, 2026: RM4.21

Feb 19, 2026: RM1.09

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

ACCORDING to a report in The Edge , Sarawak Energy’s (SEB) request for proposal (RFP) for the construction of five dams in the state has attracted the interest of companies including Gamuda. The five dams, under the Cascading Power Sources (CPS) initiative – in the Tutoh, Belaga, Danum, Balui and Gaat basins – are located in the central and northern parts of the state and near the Kalimantan border. The feasibility study (stage 1) is expected to begin in March, while the final investment decision and construction (stage 3) is targeted start in Q1’28 before commencement in CY34/35. While construction is set to begin only two years from now, we expect such projects to retain GAM’s footprint of local projects (which are of higher margins vs that of its overseas jobs). From our benchmarking exercise based on cascading dams in Europe and Vietnam, the cost per MW to invest in a cascading dam would be in the range of RM8 million and RM13 million per MW. The five basins identified for the CPS in Sarawak have a total potential capacity of between 1,550MW and 1,970MW and therefore, may translate to total minimum and maximum investments of RM12.4 billion and RM25.6 billion respectively, based on our estimates. While the state’s current generation capacity is 5.9GW (on track to achieve 10GW by 2030), 15GW of total generation capacity is required by 2035 while maintaining at least 60% from renewable energy sources. In 2025, hydropower made up 3.6GW or 60.4% of Sarawak’s generation capacity, while by 2035, this is expected to rise to 5.8GW. BUY with RM6.26 TP. – RHB Research, Feb 19

WITH a 21-year operating track record and presence in 58% of Malaysian hospitals, LAC has built a scale and reputation that form meaningful barriers to entry. Reliability is vital in the medical equipment industry, where assets typically have 8-12-year lifespans and require consistent long-term technical support. Furthermore, distribution partnerships are often managed on a short-term renewal basis (typically 1-2 years), with principals retaining the right to terminate agreements in the event of underperformance. Against this backdrop, LAC’s long-standing relationships reflect a strong track record of operational reliability and principal trust. Coupled with its AELB licence and longstanding relationships with well-recognised principals such as Philips and Samsung, LAC has attracted additional principals, with five new ones onboarded in 2025. Product portfolios are carefully curated to avoid competition between brands they carry. Instead, new offerings are either complementary in nature or address market segments where LAC previously had limited or no presence, thereby maximising cross-selling opportunities while preserving principal relationships. LAC is allocating RM8 million or 14.4% of IPO proceeds to scale its Indonesian operations, tapping into the country’s sizeable and underpenetrated healthcare market. Currently, operations focus on a single principal Alpinion – South Korea’s second largest ultrasound brand. With key regulatory approvals and licences already secured, we expect Indonesia to contribute meaningfully over time (FY26-27: 7-8% of total revenue). BUY with RM1.14 TP. – RHB Research, Feb 19

WE view positively the latest wins include two insulin-related supply contracts: i) An extension, ii) a separate contract. The first contract (RM65.1 million), represents an extension of the existing insulin supply arrangement that previously expired on Oct 28, 2025, as it maintains the three-way partnership between the government, Duopharma Marketing (distributor), and Biocon (manufacturer). Secured via direct negotiations with MOH, it formalises the supply previously covered by local purchase orders (LPOs) post contract expiry due to the lack of alternative suppliers. The contract covers recombinant human insulin under the Insugen® brand R, N and 30/70 formulations manufactured at Biocon’s Johor facility. While the duration is only three months till May 15, 2026, the value is similar to that of a six month contract. The second contract, secured via Duopharma (M), involves supplying insulin injections to MOH facilities. Despite a smaller value (RM52.5 million), the contract spans a longer period ending Feb 5, 2028. We note that this arrangement is separate from the Biocon insulin partnership, and given that it is not structured as a distributor-led project, we think this could carry a higher margin. Key downside risks: Lower-than-expected sales volume, the USD strengthening against the RM, and higher-than-expected operating costs. We continue to highlight the possibility of a dual supplier outcome (from a single supplier arrangement). Should MOH decide to split the contract equally between DBB and its competitors, we estimate a potential 5% earnings impact on our FY26F, assuming a 10% net profit margin. BUY with RM1.65 TP. – RHB Research, Feb 19