02/03/2026

BIZ & FINANCE MONDAY | MAR 2, 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

CPO futures expected to trade higher amid weak production KUALA LUMPUR: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade higher this week due to expected weak production. Iceberg X Sdn Bhd proprietary trader David Ng said CPO typically registers weaker production in February due to festivities like the Lunar New Year and a shorter working month, with lower harvesting and transportation activities. “We expect prices to trade between RM4,000 and RM4,130 per tonne next (this) week,” he told Bernama. Malaysia’s palm oil production for the Feb 1-20 period is expected to decline by 12.29 per cent by the Malaysian Palm Oil Association, while UOB Kay Hian has projected a 12-16 per cent drop versus the Jan -20 period. Interband Group of Companies senior palm oil trader Jim Teh has a differing view. He said CPO futures will be bearish this week because of Malaysia and Indonesia’s high stock position, and is expected to trade in the RM3,850-RM3,900 range, he said. Bearish prices will also help clear Malaysia’a CPO inventories, he said. On a Friday-to-Friday basis, the March 2026 contract declined RM74 to RM3,989 per tonne, April 2026 slipped RM57 to RM4,030, and May 2026 shrank by RM50 to RM4,042. The June 2026 contract decreased RM50 to RM4,046 per tonne, July 2026 lost RM57 to RM4,043, and August 2026 was down RM61 to RM4,038. The weekly trading volume rose to 313,593 lots from 194,724 last week, while open interest contracted to 227,706 contracts from 228,011 previously. Mega First Corporation Bhd Outperform. Target price: RM5.39

THE ringgit is expected to trade range-bound against the greenback this week ahead of key data points from the United States. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US labour market data will be in focus where Nonfarm Payroll and the unemployment rate will be closely monitored. “The Bank Negara Malaysia’s Monetary Policy Committee members will decide the Overnight Policy Rate on March 5, where most economists are expecting no change in the policy rate,” he told Bernama. Hence, he opined that the local note should see range-bound trade this week with USD/MYR likely to linger between RM3.88 and RM3.90. Last week, on a Friday-to-Friday basis, the ringgit ended firmer against the US dollar to close at 3.8910/8960 compared with 3.8995/9055 on Feb 20. The local note traded mostly higher against a basket of major currencies last week. It appreciated against the Japanese yen to 2.4930/4963 from 2.5092/5132, rose vis-a-vis the British pound to 5.2470/2538 from 5.2511/2591, however it slid versus the euro to 4.5898/5957 from 4.5882/5952 a week earlier. However, the ringgit traded lower compared with its Asean peers. It went down versus the Singapore dollar to 3.0742/0784 from 3.0724/0774, was lower compared with the Indonesian rupiah at 231.7/232.2 from 230.8/231.3, declined against the Philippine peso to 6.75/6.76 from 6.70/6.72, and edged down against the Thai baht to 12.5153/5370 from 12.4952/5216 previously. Ringgit likely to move range-bound against US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9625 2.8210 3.1260 2.8870 4.6670 2.3700 3.1260 5.3340 5.1420 3.3050 58.1100 64.0200 51.0200 4.4300 0.0247 2.5570 42.4300 1.4700 6.9600 109.5000 106.4200 25.6900 1.3400 45.0000 13.2700 108.7900 N/A

3.8145 2.7060 3.0250 2.8040 4.5120 2.2820 3.0250 5.1600 4.9200

3.8045 2.6900 3.0170 2.7920 4.4920 2.2660 3.0170 5.1400 4.9050

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

103.0600 3.0630 55.6100 58.8600 48.4300

102.8600 2.8630 58.6600 48.2300 3.9200 0.0168 2.4280 38.7800 1.1100 6.3400 103.7500 100.8300 22.9900 0.9700 40.7400 11.3600 N/A N/A

4.1200 0.0218 2.4380

N/A

38.9800 1.3100 6.5400 103.9500 101.0300 23.1900 1.1700 40.9400 11.7600

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

QL Resources Bhd Outperform. Target price: RM4.50

Tune Protect Group Bhd Buy. Target price: RM0.46

Feb 27, 2026: RM4.08

Feb 27, 2026: RM0.315

Feb 27, 2026: RM3.09

Source: PublicInvest Research

Source: Bloomberg, TA Research

Source: PublicInvest Research

QL Resources Bhd recorded a core PATAMI of RM120.2m in 3QFY26, down 4.6% YoY, mainly dragged by the lower contributions from the Integrated Livestock Farming (ILF) and Palm Oil and Clean Energy (POCE) and Convenience Store Chain (CVS) segments. 9MFY26 core PATAMI of RM337m came in within expectations, accounting for 74% of our and consensus estimates. Looking ahead, we expect growth to be driven by the expansion of its Marine Product Manufacturing (MPM) business and potential margin expansion in its ILF segment, supported by egg price recovery and lower feed costs. The MPM segment revenue came in flat, as the improved performance from fishmeal and surimi was offset by weaker aquaculture activities. The ILF segment saw revenue decline by 2%, on lower feed raw material trading prices. The POCE segment sales rose 1% YoY due to higher CPO sales tonnage delivered and stronger project delivery from BM Greentech. Despite recording a net increase of 51 stores and 40 FM Mini, FamilyMart sales continued to be affected by the soft consumer sentiment. We expect QL to post stronger earnings sequentially, driven by the recovery in fishing activities and improved surimi selling prices and demand. Furthermore, we foresee margin expansion in the ILF segment, following the recovery in egg prices in Malaysia and Indonesia, coupled with higher raw material trading volume. The POCE segment should continue to benefit from the rising demand for renewable energy from data centres and industrial growth. The CVS outlook remains challenging, however, given the stiff competition within the F&B market and the exclusion of CVS participation in the SARA programme. We upgrade our call to Outperform with an unchanged TP of RM4.50. – PublicInvest Research, Feb 27

TUNE Protect Group Bhd reported FY25 net profit of RM26.5mn, which fell short of our expectations, primarily due to lower-than anticipated insurance revenue and higher-than-expected operating expenses. On a QoQ basis, net profit declined by 9.6% to RM5.7mn despite an 8.4% increase in revenue to RM94.9mn. The weaker performance was mainly attributable to: (i) lower investment income, (ii) higher amortisation charges and (iii) higher operating expenses. On a positive note, FY25 remained a commendable year operationally. Net insurance service result surged to RM40.4mn, up significantly from RM9.7mn in FY24. The combined ratio improved by 8.6pp to 90.5%, supported by favourable motor and fire claims experience, a higher contribution from the travel segment and improved cost efficiency. The travel segment’s portfolio weightage increased to 44% from 34% in FY24, underpinned by a 17.8% rise in policy count and a 7.1% increase in average premium. Meanwhile, the motor loss ratio improved by 14.3pp YoY, reflecting a stronger focus on the more profitable private car segment. We cut FY26/27 earnings estimates to RM29/31.7mn (from RM33.1/36.5mn previously) after incorporating FY25 numbers into our model. In our projections, we anticipate the group would declare a dividend of approximately 1.5 sen per share for FY25, translating to a dividend yield of 4.6%. Management indicated that it is targeting top-line growth of over 20% in its key focus segments, particularly travel and fire policies, while remaining committed to prudent underwriting discipline. We maintain our Buy recommendation on Tune Protect with a TP of RM0.46. – TA Research, Feb 27

THE group ended FY25 with a lower core profit of RM437.2m, mainly dragged by a stronger Malaysian Ringgit and weaker earnings contributions from resources and packaging segments. Nevertheless, the results were in line with our and the street’s full-year expectations, making up 97% and 104%, respectively. The Don Sahong Hydropower Plant registered an Energy Availability Factor (EAF) of 83.1% for 2025 compared to FY24’s 86.8%, diluted by the new capacity from the 5th turbine. The group’s revenue climbed from RM341m to RM350m, as stronger sales contributions from resources (+7.9%) and packaging & labels (+16.4%) were partially offset by a decline in renewable energy sales (-5.1%) Renewable energy sales fell from RM171m to RM162m as Don Sahong hydropower sales suffered from a 5.7% adverse currency translation impact from a weaker USDMYR and a 3.6% decline in average tariff rates despite an increase of 18.6% in solar energy sales and a 3.9% increase in hydro energy generation volume to 639 GWh. Resources segment sales grew 8.1% to RM46.4m, lifted by a 18% increase in lime product sales volume, which mitigated the impact of weaker export currency values and a 31% decline in non-lime product sales. Packaging & label sales improved by 16.4% YoY to RM109.3m on higher plant utilisation. Stripping out the exceptional items, the group’s core earnings slipped from RM131m to RM112m, as weaker earnings from resources (-22.7%) were partially offset by stronger earnings contributions from renewable energy (+1.9%) and packaging & labels (+27.5%). The resources earnings fell from RM6.6m to RM5.1m, weighed by margin compression from higher freight charges and a stronger ringgit. Maintain Outperform with unchanged TP of RM5.39. – PublicInvest Research, Feb 27