26/02/2026

BIZ & FINANCE THURSDAY | FEB 26, 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

MBSB Bank provides dairy project with RM95.8m facility KUALA LUMPUR: MBSB Bank Bhd has provided a structured financing facility of RM95.8 million to Jemaluang Dairy Valley Sdn Bhd for the development of Tier-1 dairy infrastructure. The financing includes the acquisition of 1,000 high-yield A2 Jersey Friesian dairy cows and the construction of a processing facility capable of producing up to 14 million litres of milk annually by 2027. MBSB Bank group CEO Rafe Haneef said the bank views food security as a critical asset class that demands large-scale capital, as reflected in its RM1 billion Agro-ESG mandate. “This RM95.8 million facility serves as a commitment to anchor Johor’s first fully integrated dairy ecosystem, creating a tech enabled, environmental, social and governance-compliant infrastructure that is vital to strengthening Malaysia’s domestic self-sufficiency,” he said in a statement yesterday. Jemaluang Dairy is a strategic joint venture between Kulim (Malaysia) Bhd and A2 Fresh Holdings Sdn Bhd. According to the statement, this initiative directly addresses a critical gap arising from the country’s heavy reliance on imported dairy products, while supporting the national agenda for food resilience and supply security. By strengthening local production capabilities and encouraging greater industry collaboration, it aims to transform a traditionally fragmented sector into a more integrated, high-output and technology-driven industry capable of meeting growing domestic demand. This landmark commitment catalyses Johor Corporation’s mandate to industrialise Malaysia’s agritech sector, positioning the East Coast Economic Region as a high-yield regional food hub, said the bank. – Bernama

THE ringgit held steady against a strong US dollar, closing little changed from Tuesday’s level, driven by positive economic resilience as reflected in the Leading Index (LI) data. At 6pm, the ringgit traded at 3.8900/8955 against the greenback, slightly higher from 3.8915/8980 at Tuesday’s close. According to the Department of Statistics Malaysia (DOSM), Malaysia’s economy is expected to remain resilient for the second quarter of 2026, supported by the performance of the LI in December 2025, which recorded a marginal increase of 0.1% to 114 points from 113.9 points in the same period last year. The LI provides an early indication of turning points in the business cycle and the near-term direction of the economy. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Conference Board Consumer Confidence Index (CCI) rose to 91.2 points in February from 89 points in the preceding month. He told Bernama that data from the US indicates consumer confidence remains weak, with the rising cost of living being the main concern according to survey responses. At the close, the ringgit traded mostly higher against a basket of major currencies. It strengthened versus the Japanese yen to 2.4848/4885 from 2.4968/5011 at Tuesday’s close, rose against the euro to 4.5855/5920 from 4.5873/5950, and it edged down vis-a-vis the British pound to 5.2585/2659 from 5.2531/2619 previously. The local note traded mostly lower against its Asean peers. The ringgit was marginally down versus the Singapore dollar to 3.0736/0782 from 3.0726/0780 at Tuesday’s close, and weakened against the Indonesian rupiah to 231.5/231.9 from 231.2/231.7. Ringgit closes little changed against US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9670 2.8140 3.1230 2.8860 4.6620 2.3690 3.1230 5.3440 5.1450 3.3090 57.8200 63.9600 51.0800 4.4400 0.0246 2.5580 42.4400 1.4700 6.9500 109.3400 106.5300 25.6500 1.3400 45.0900 13.3000 108.9200 N/A

3.8200 2.6990 3.0230 2.8040 4.5090 2.2810 3.0230 5.1710 4.9230

3.8100 2.6830 3.0150 2.7920 4.4890 2.2650 3.0150 5.1510 4.9080

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

103.2100 3.0670 55.3400 58.8300 48.5100

103.0100 2.8670 58.6300 48.3100 3.9300 0.0167 2.4290 38.8100 1.1100 6.3400 103.6000 100.9300 22.9600 0.9700 40.8300 11.3800 N/A N/A

4.1300 0.0217 2.4390

N/A

39.0100 1.3100 6.5400 103.8000 101.1300 23.1600 1.1700 41.0300 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

MISC Bhd Buy. Target price: RM9.77

Petronas Gas Bhd Neutral. Target price: RM19.10

Solarvest Holdings Bhd Buy. Target price: RM3.49

Feb 25, 2026: RM18.48

Feb 25, 2026: RM2.32

Feb 25, 2026: RM8.09

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

FY25 recurring earnings dropped by 7% YoY, mainly due to: i) A higher effective tax rate of 25% in Q4 (vs 11% a year earlier), caused by the non-recognition of the investment tax allowance (ITA); ii) higher opex at the gas transportation unit for restoration works and mitigating measures; and iii) a decreased contribution from the utilities segment as a result of lower Regulatory Period 4 (RP4) electricity tariffs. Nevertheless, management maintained absolute DPS at 72 sen, premised on 84% of reported EPS. We expect FY26 earnings to improve by 17% YoY on stable electricity tariffs, while lower Malaysia Reference Prices (MRP, the weighted average price for exported LNG, which determines the prices of PTG’s internal gas costs) should result in wider margins. We forecast MRP to decline by 15% and 6% in FY26 and FY27, in tandem with lower Brent oil prices and a firmer MYR (vs USD). Also, the recently approved 2% base tariff hikes for Regulatory Period 3 (RP3) should support earnings for the regasification and gas transportation divisions. The potential award of the third regasification terminal (RGT3) could boost our TP by 4%, according to our estimate. Given the government’s target of commissioning this facility by 2030, we believe the RGT3 project could be announced this year. We trim FY26-27 EPS by 1% each following housekeeping adjustments, and introduce our FY28 net profit projection in this report. Lower gas costs make for a key upside risk (sensitivity test: a 10% reduction in gas costs will improve EPS by 2%), while key downside risks include the implementation of a carbon tax (3% impact to FY26-27 EPS, based on a RM10/tonne carbon tax) and higher gas costs. NEUTRAL with RM19.10 TP. – RHB Research, Feb 25

MISC’S FY25 reported core net profit of RM2.3 billion (+8.1% YoY) came in within expectations, at 97% of our and 96% of consensus estimates. A fourth DPS of 14 sen was declared (Q4’24: 12 sen), which brings total DPS to 38 sen for FY25. Core net profit for Q4’25 rose 12% YoY to RM564.9 million, supported by stronger contributions across most segments except LNG. The offshore segment underwent a turnaround, chalking an EBIT of RM177.9 million from a loss of RM135.1 million in the corresponding quarter, mainly reflecting the transition of FPSO MDdC from construction to the operational phase. EBIT of its petroleum segment increased 11% YoY to RM391.6 million, driven by firmer freight rates and higher earning days. Subsidiary Malaysia Marine and Heavy Engineering posted an EBIT of RM55.5 million (vs RM26.8 million in the corresponding quarter), supported by higher conversion activities. EBIT from the LNG unit declined sharply to RM0.5 million (-99.7% QoQ), mainly on lower construction revenue recognition, fewer earning days following contract expiries, vessel disposals and lay-ups, as well as softer charter rates during the quarter. MISC’s earnings visibility remains underpinned by its contracted revenue base, with about 98% of LNG vessels on term charters, thereby shielding the segment from spot market volatility. Petroleum exposure to spot markets is also contained at roughly 20-25% of the fleet, limiting downside risks related to fluctuations in freight rates. Meanwhile, offshore project contributions – including Kelidang and Papua New Guinea – are expected to be back-loaded, with meaningful earnings likely only from FY27 onwards. BUY with RM9.77 TP. – RHB Research, Feb 25

9M’26 revenue of RM488.4 million translated into a core PATAMI of RM60.1 million, tracking at 77.5% and 77.6% of our and Street full year estimates. Q3’26 revenue climbed 33.8% YoY or 6.9% QoQ to RM181.2 million, underpinned by progress billings for utility-scale Corporate Green Power Programme (CGPP) projects and the commencement of the Large Scale Solar (LSS) 5 plants. This delivered core PATAMI of RM22.7 million (+40.1% YoY, +12.2% QoQ). 9M’26 net margin improved to 12.3% (vs 10.7% in 9M’25). Outstanding orderbook lifted 16% QoQ to RM1.5 billion as at 9M’26 – 87% utility-scale contracts and 13% commercial, industrial, and residential jobs. It aims to further grow its orderbook by securing additional packages under LSS5, LSS5+, Corporate Renewable Energy Supply Scheme (CRESS), and the Solar Accelerated Transition Action Programme (ATAP). We understand that 30% (600MW) of the 2GW blanket order secured will be exposed to the 9% VAT. However, this impact is expected to be largely within the budgeted EPCC budget and mitigated by the strengthening MYR (currently at 3.89), given that Solarvest submitted its LSS5 bid in July 2024 when the FX rate was 4.6-4.7. For the remaining 1.4GW, Solarvest will pass through/factor in the higher module procurement costs (if any) into new EPCC contracts or financial modelling in any new bidding. Panel prices have historically been volatile without leading to widespread defaults or precedent cases. More importantly, Solarvest has multiple suppliers that are top-tier, China-listed manufacturers with long operating track records. For these players, reputational, legal and long-term relationship considerations are likely to outweigh any relatively small short-term financial upside. BUY with RM3.49 TP. – RHB Research, Feb 25