23/02/2026

BIZ & FINANCE MONDAY | FEB 23, 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 bonds steady as strong growth anchors yields KUALA LUMPUR: Foreign appetite for Malaysian bonds improved at a measured pace, while equity inflows continued to build. In a report, Kenanga Investment Bank Bhd said moving to this week, domestic bond yields should remain anchored as the domestic macro narrative stays firm. “Friday’s trade data showed external risks remain. Ongoing Iran-US tensions continue to elevate geopolitical uncertainty. “Markets will also watch for signs that (Japan Prime Minister Sanae) Takaichi’s administration may raise debt issuance to fund spending and tax measures, which could lift JGB yields and affect regional rate dynamics.“ Malaysian Government Securities (MGS) and Government Investment Issues (GII) showed mixed trends across the curve last week, ranging from -2.4 to 4.9 basis points (bps). The 10-year MGS declined 2.4 bps to 3.524%, while the 10-year GII fell 1.0 bps to 3.535%. Kenanga said despite a strong Q4 2025 GDP print of 6.3% YoY and full-year growth at 5.2%, the 10-year MGS moved only marginally. Kenanga said the muted response suggests a curve twist rather than classic growth-driven bear steepening. “Market appear to have reaffirmed policy credibility without aggressively repricing rates.” Yields edged lower following firm demand at the 20-year GII auction (2.90x BTC). Kenanga said the MGS continues to trade within the global rates environment. “Stable UST yields, measured foreign inflows and positioning helped anchor the curve. Strong growth has compressed the term premium, particularly in the belly,” Kenanga said.

THE ringgit is expected to trade cautiously this week ahead of key data points in the United States, including the Conference Board consumer confidence index and producer price index, as well as speeches by several Federal Reserve officials. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said he expects sentiment among currency traders to remain cautious. “The ringgit could still be lingering within a range of RM3.90 to RM3.93, with RM3.90 continuing to remain the psychological barrier,” Mohd Afzanizam told Bernama. Last Friday, the ringgit closed higher against the US dollar, supported by cautious market sentiment amid ongoing negotiations between the US and Iran regarding the nuclear programme. On a week-on-week basis, the ringgit ended firmer against the US dollar to close at 3.8995/9055 compared with 3.9060/9115 the previous Friday. The local note traded higher against a basket of major currencies last week. It appreciated against the Japanese yen to 2.5092/5132 from 2.5435/5474, rose vis-a-vis the British pound to 5.2511/2591 from 5.3211/3286 and gained versus the euro to 4.5882/5952 from 4.6325/6390 a week earlier. The ringgit traded mostly higher compared with its Asean peers. It went up versus the Singapore dollar to 3.0724/0774 from 3.0904/0950, was higher compared with the Indonesian rupiah at 230.8/231.3 from 231.9/232.4, improved against the Philippine peso to 6.70/6.72 from 6.73/6.74, and edged up against the Thai baht to 12.4952/5216 from 12.5607/5849 previously. Ringgit likely to trade cautiously this week ahead of key US data D&O Green Technologies Bhd Neutral. Target price: RM0.54

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9830 2.8160 3.1310 2.9000 4.6780 2.3780 3.1310 5.3510 5.1540

3.8370 2.7020 3.0330 2.8180 4.5260 2.2910 3.0330 5.1790 4.9330

3.8270 2.6860 3.0250 2.8060 4.5060 2.2750 3.0250 5.1590 4.9180 103.460 2.8810 58.8400 48.5700 3.9400 0.0167 2.4510 38.9900 1.1200 6.3400 104.3300 101.380 22.7900 0.9800 40.8800 11.3800 N/A N/A

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

109.3600

103.6600

3.3220

3.0810

N/A

N/A

64.1800 51.3400 4.4500 0.0246 2.5810 42.6400 1.4800 6.9500 110.1100 107.0000 25.4600 1.3500 45.1300 13.2900 N/A

59.0400 48.7700 4.1400 0.0217 2.4610 39.1900 1.3200 6.5400 104.5300 101.5800 22.9900 1.1800 41.0800 11.7800 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

Sarawak Plantation Bhd Hold. Target price: RM3.25

Econpile Holdings Bhd Buy. Target price: RM0.44

Feb 20, 2026: RM3.54

Feb 20, 2026: RM0.23

Feb 20, 2026: RM0.535

Source: Bloomberg, Phillip Capital Research

Source: PublicInvest Research

Source: Bloomberg, RHB Research

DESPITE the challenging landscape in China’s automotive industry, which contributes more than 45% to D&O’s revenue, the group is eyeing an average capacity utilisation of 65-70% this year. In contrast to the usual peak momentum in 4Q for the global car industry, we understand that the situation was not the same in 4Q2025 due to intensified competition and oversupply of older versions of EVs in the market, resulting in price cuts and a slowdown in new production. China’s car sales in Jan fell at the fastest pace in nearly 2 years as competition intensifies in the cutthroat market, where automakers are grappling with fading government subsidies, softening demand and tighter regulations. Car sales dropped 19.5% YoY to 1.4m vehicles, the steepest fall since Feb 2024. Retail sales of electric cars and plug-in hybrids, a sector known as New Energy Vehicles (NEV), which has been the key growth driver for the auto industry, retreated by 22.9% YoY last month. A revised government trade-in policy has curtailed subsidies for lower-priced cars that make up the bulk of new car sales, setting the stage for flattish growth this year. Despite the challenging outlook, management expects a 10% sales growth for 2026, led by i) ambient lighting smart LED (+70%), ii) Rear Combination Lights (RCL) Spiceplus 2520 (+20%), iii) Infotainment (+15%) and iv) head lamp (+10%) LED products with key markets in China, EU, India and South Korea. On the IC chip design, it has set up a centre in China for customer qualification purposes. It expects to see some orders to kick in by 1Q 2027. Maintain Neutral call with lower TP of RM0.54. – PublicInvest Research, Feb 20

WE came away from a recent meeting with SPLB feeling upbeat about the group’s production recovery trajectory, as 2025 FFB production came in at 361k MT, within management’s initial target of 355-363k MT. Operationally, SPLB recorded its strongest quarter in 4Q25, with FFB production rising to 116k MT (3Q25: 91k MT), lifting total 2025 production to 360,993 MT. The stronger performance was attributable to a shift in peak crop from 3Q to 4Q. Total hectarage stands at 20.6k ha, of which 20,134 ha are mature with an average tree age of 8.5 years. Looking ahead, 1Q26 production is expected to normalise sequentially from the exceptionally strong 4Q25 due to a seasonal slowdown. Nevertheless, structural cost improvements, easing replanting requirements, and stable logistics costs should support earnings resilience. CPO production cost averaged RM2,700/MT in 2025 (4Q25: RM2,500/MT), inclusive of PK credit of RM700/MT for the year. Management expects unit production cost to decline to RM2,400/MT in 2026E and RM2,200/MT in 2027E on higher production volumes and improved operating efficiency. Fertiliser application is expected to increase by more than 20% in 2026, primarily driven by higher application intensity rather than a sharp escalation in fertiliser prices. Ongoing production recovery, improved cost visibility and better fruit quality in 2026 should support the earnings trajectory. Nonetheless, near-term earnings remain exposed to crop seasonality and input cost normalisation. Key risks include production volatility, price swings in palm products, cost inflation, and regulatory uncertainties. Maintain HOLD and RM3.25 TP. – Phillip Capital Research, Feb 20

ECON has clinched around RM337m worth of new jobs in YTD-FY26 (vs its internal new job win target of RM400m for the same year), which is not too far from its FY25 (full-year) job wins of RM390m. Meanwhile, our calculations indicate that ECON’s latest remaining orderbook has reached RM700m - a level not seen since 2QFY22. We expect ECON to benefit from upcoming infrastructure project rollouts, given its solid track record in railway and highway-related projects. Also, ECON also has been involved in various works awarded by Ahmad Zaki Resources. This involves the RM65m job for road upgrading works in Cameron Highlands (secured in CY24) and a RM40m contract (won in CY25) to build a bridge in Kampung Binjai, Kuala Lipis in Pahang. Therefore, we do not discount the possibility of ECON being the frontrunner for any work packages from AZRB’s latest contract win of RM430m for the construction of a new bypass and upgrade of existing federal roads in Cameron Highlands, Pahang. While we view the Sungai Klang Link (SKL) project (worth RM300-500m for piling works) to be a rerating catalyst, the rollout may come later in FY27 - especially with the MoU between ECON and the developer of SKL having been extended (on a mutual basis) to Feb 2027, from Feb 2026. We trim FY26-28F earnings by 2%, 3% and 5% as we impute a more conservative job replenishment value of RM450m (from RM600m) for FY26. Additionally, we ascribe a lower target P/BV of 1.8x (from 2.1x) – this is pegged to FY27F BVPS, to reflect a potentially delayed timeline for projects that could rerate the stock, namely the SKL project. Keep BUY with new TP of RM0.44. – RHB Research, Feb 20