25/02/2026

BIZ & FINANCE WEDNESDAY | FEB 25, 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

LPI Capital’s FY25 net profit drops to RM367.78 million KUALA LUMPUR: LPI Capital Bhd’s net profit fell to RM367.78 million for the financial year ended Dec 31, 2025 (FY25), from RM377.09 million in FY24. Revenue, however, rose 9.6% to RM2.11 billion from RM1.92 billion previously, driven mainly by the general insurance segment. In a filing with Bursa Malaysia, the group said of the RM2.11 billion in revenue, RM2.06 billion was contributed by the general insurance segment, while RM47.9 million came from the investment holding segment. For the fourth quarter ended Dec 31, 2025, net profit slipped to RM71.81 million from RM73.86 million a year earlier, while revenue increased to RM540.18 million from RM487.64 million. In a statement, the group said its prospects in 2026 would hinge on expanding distribution channels, maintaining prudent underwriting discipline and effective risk management, as well as responding swiftly and strategically to evolving changes in the insurance landscape. It added that it aims to further grow market share by intensifying bancassurance cross-selling initiatives with Public Bank Group, supported by a dedicated joint working committee to enable a more coordinated, targeted and seamless branch-level marketing approach across the network. The group will also continue expanding and strengthening its agency force to enhance nationwide outreach and customer engagement, while tapping into foreign direct investment flows into Malaysia through its global partners’ network to capture new business opportunities and support sustainable long-term growth. – Bernama Kerjaya Prospek Group Bhd Outperform. Target price: RM3.10

THE ringgit closed lower against the US dollar yesterday as issues surrounding the US tariffs are affecting market sentiment, said an economist. However, the local note trended mostly higher versus major and Asean currencies. At 6pm, the ringgit eased to 3.8915/8980 versus the greenback from Monday’s close of 3.8885/8925. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said President Donald Trump has shown no signs of letting up and is seen aggressively looking for a different legal route to enact higher tariffs after the US Supreme Court struck down Trump’s International Emergency Economic Powers Act (IEEPA)-based tariffs policy. “Thus, the degree of market uncertainties has escalated despite a brief respite after the Supreme Court decision,” he told Bernama. At the close, the ringgit traded mostly higher against a basket of major currencies. It strengthened versus the Japanese yen to 2.4968/5011 from 2.5120/5147 at Monday’s close, rose against the euro to 4.5873/5950 from 4.5888/5935, however it edged down vis-a-vis the British pound to 5.2531/2619 from 5.2526/2580 previously. The local note also traded mostly higher against its Asean peers. The ringgit was marginally up versus the Singapore dollar to 3.0726/0780 from 3.0727/0761 at Monday’s close, rebounded against the Indonesian rupiah to 231.2/231.7 from 231.4/231.7 and climbed against the Philippine peso to 6.74/6.75 from 6.75/6.76 previously. Ringgit generally higher but slips against US dollar Kossan Rubber Industries Bhd Outperform. Target price: RM1.50

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9575 2.8000 3.1160 2.8790 4.6560 2.3590 3.1160 5.3300 5.1270 3.3010 57.4700 63.8900 50.9800 4.4300 0.0246 2.5710 42.3100 1.4700 6.9500 109.0700 106.2600 25.5200 1.3400 44.8800 13.3000 108.6400 N/A

3.8105 2.6850 3.0170 2.7970 4.5030 2.2710 3.0170 5.1570 4.9080

3.8005 2.6690 3.0090 2.7850 4.4830 2.2550 3.0090 5.1370 4.8930

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

102.9400 3.0600 55.0100 58.7600 48.4100

102.7400 2.8600 58.5600 48.2100 3.9100 0.0167 2.4410 38.7000 1.1100 6.3400 103.3400 100.6800 22.8400 0.9700 40.6400 11.3800 N/A N/A

4.1100 0.0217 2.4510

N/A

38.9000 1.3100 6.5400 103.5400 100.8800 23.0400 1.1700 40.8400 11.7800

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

Malaysia Marine And Heavy Engineering Holdings Bhd Buy. Target price: RM0.66

Feb 24, 2026: RM2.56

Feb 24, 2026: RM1.05

Feb 24, 2026: RM0.385

Source: PublicInvest Research

KOSSAN’S Q4’25 revenue decreased by 15.1% YoY to RM439.5 million, as lower contributions from its gloves (-16.5% YoY) and clean-room divisions (-26.3% YoY) were only partially offset by higher revenue from the technical rubber products (TRPs) division (+8.8% YoY). Management noted that the gloves division was partly impacted by port congestion, which deferred shipments. Had the delayed shipments amounting to RM35.6 million been delivered in Q4’25 (now expected to be recognised in Jan 2026), the gloves division would have recorded revenue of RM403.3 million. Even so, this would still represent an 8.4% YoY decline versus Q4’24, largely due to the strengthening of the Ringgit against the USD. Kossan reported a Q4’25 net profit of RM46.7 million, up 68.5% YoY from RM27.7 million in Q4’24, driven by lower production costs arising from improved operational efficiencies. After excluding non-operating items, Q4’25 core net profit rose 73.6% YoY to RM41 million from RM23.6 million in Q4’24. Kossan’s overall PBT margin improved to 10% in FY25 from 8.2% in FY24. Heading into FY26, we think that the clean-room division will remain stable, while the gloves and TRPs divisions continue to face challenging market conditions. Ongoing glove oversupply is expected to exert pressure on ASPs, and the stronger Ringgit may weigh on margins. Nevertheless, we remain positive on Kossan, underpinned by stable glove demand from the healthcare and industrial sectors, as well as the ongoing cost optimisation initiatives through automation and digitalisation. We believe Kossan’s strong net cash position of RM1.6bn provides a solid buffer against near-term headwinds. Outperform with RM1.50 TP. – PublicInvest Research, Feb 24

Source: PublicInvest Research

Source: Bloomberg

KERJAYA Prospek Group’s (KPGB) has secured a contract work worth RM502.3 million from its interested related-party, Eastern & Oriental (E&O), for the final phase reclamation and dredging works related to the Seri Tanjung Pinang Phase 2 (STP2) Phase 2B and 2C development. This job marks the group’s second contract win in 2026 and represents 35.2% of our FY26 job replenishment target of RM2 billion, in-line with our expectations. Based on our estimates, this project is expected to contribute approximately 5.6% per annum on average to the group’s earnings over the contracted period of 36 months. Works are scheduled to commence on March 12, with completion expected within 36 months. STP2, which has been branded as Andaman Island, is located across the waters to the east of the first phase and will cover an area of 760 acres of reclaimed island. It comprises two parts: the 253-acre STP Phase 2A, and the remaining 507-acre Phase 2B and 2C with an estimated GDV of over RM60 billion. KPGB’s outstanding order book grew 12.9% to RM4.4 billion, securing earnings visibility for the next three years. We estimate this project will contribute an average of RM5.6 million annually from FY26-29, assuming low-teen profit margins. As this contract was already factored into our FY26 order book replenishment assumption, we keep our earnings forecast unchanged. The group continues to strengthen its portfolio by leveraging its core construction expertise while expanding into higher-growth segments such as data centres and industrial developments. Outperform with RM3.10 TP. – PublicInvest Research, Feb 24

MMHE’S revenue rose 14% QoQ to RM581.7 million, driven mainly by higher conversion activity in the marine segment. As a result, operating profit jumped 76% QoQ to RM55.8 million – supported by the marine segment’s operating profit rising to RM25.2 million (from RM9.6 million), alongside favourable close-out adjustments from completed projects within the heavy engineering (HE) segment, which had a 44% QoQ operating profit increase. As at Q4;25, the group’s orderbook stood at RM4 billion (-17% QoQ), as revenue recognition continued to outpace replenishment from new contract wins. Recent awards include the EPCIC contract for two wellhead platforms for Vestigo – currently 65% and c.45% completed. Other ongoing projects comprise the Kasawari Carbon Capture and Storage (CCS) development (70% completed) and the offshore substation (OSS) high voltage direct current (HVDC) platform project (22% completed), while fabrication works for another OSS HVDC platform from the same client (Petrofac) are expected to commence in Q4’26. Meanwhile, MMHE’s tenderbook of RM14 billion provides a healthy pipeline of potential job wins. We lift our FY26-27 earnings forecasts by 96% and 80% – reflecting stronger execution and improving earnings visibility. Previously, we valued the stock on P/BV given its volatile earnings and history of losses. Following nine consecutive profitable quarters, we believe a PE-based approach is now more appropriate to reflect its strengthening profile. Buy with RM0.66 TP. – RHB Research, Feb 24