04/03/2026

BIZ & FINANCE WEDNESDAY | MAR 4, 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

TM says DNB termination notice within contractual rights KUALA LUMPUR: Telekom Malaysia Bhd (TM) has upheld its termination notice regarding the existing 5G wholesale network access arrangement (AA) with Digital Nasional Bhd (DNB), stressing that the termination remains valid and reserving all its rights. In a statement yesterday, TM said it exercised its contractual rights under the 5G AA strictly in compliance with the specific conditions governing early termination and applicable requirements, which are related to the implementation of the 5G dual network model. “This decision was made following a thorough analysis of all legal rights and obligations as per the AA. “The AA provides mechanisms for resolving any differences in interpretation between the parties, and TM will pursue the appropriate processes under the agreement,” said TM. The telecommunications company stated that its priority remains to ensure uninterrupted service for customers while managing this transition in a phased and orderly manner. It was reported that DNB has formally rejected Telekom Malaysia’s (TM) notice seeking to terminate its 5G access agreement, maintaining that the long-term contract remains legally valid and fully enforceable. According to DNB, the agreement is scheduled to run until October 2032 and contains clearly defined provisions outlining the circumstances and procedures for early termination. The company emphasised that TM had not invoked its early termination rights in compliance with those stipulated conditions, and therefore the agreement continues to stand in full force and effect. – Bernama

Ringgit ends lower as risk aversion boosts US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit ended lower against the US dollar yesterday as risk aversion strengthened the greenback, with investors remaining cautious amid the escalating conflict in the Middle East. At 6pm, the ringgit eased to 3.9440/9495 against the US dollar at the close from 3.9225/9295 on Monday. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the focus remains on the ongoing conflict in the Middle East, involving Iran, Israel, and the US. He noted that Qatar’s decision to stop LNG exports has led European natural gas prices to shoot up by 20% in one day. In the same vein, Brent crude is now hovering at US$82.48 per barrel as two drones reportedly attacked the US embassy in Riyadh, Saudi Arabia. “Essentially, the risk-off mode is centred on the oil and gas industries, where disruption to supplies is the key risk to the global economy. Following this, the US Dollar Index (DXY) rose 0.45% to 98.822 points,” he told Bernama. At the close, the ringgit traded mostly higher against a basket of major currencies. It strengthened versus the euro to 4.5778/5842 from 4.6031/6113 on Monday’s close and was slightly higher against the British pound at 5.2451/2524 from 5.2460/2553. However, it edged down vis-à-vis the Japanese yen to 2.5010/5048 from 2.4984/5032. The local note traded mostly lower against its Asean peers. It edged down versus the Singapore dollar to 3.0863/0909 from 3.0854/0912, slipped against the Indonesian rupiah to 233.7/234.2 from 232.5/233.0, and fell versus the Philippine peso to 6.75/6.76 from 6.74/6.76.

1 US Dollar

4.0000 2.8470 3.1340 2.9160 4.6670 2.3790 3.1340 5.3510 5.1500 3.3370 58.3200 64.0400 51.5200 4.4500 0.0247 2.5550 42.8100 1.4800 6.9600 110.2800 107.4000 25.7000 1.3600 44.9000 13.2700 109.8500 N/A

3.8540 2.7310 3.0340 2.8340 4.5150 2.2910 3.0340 5.1790 4.9290

3.8440 2.7150 3.0260 2.8220 4.4950 2.2750 3.0260 5.1590 4.9140

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

104.1000 3.0940 55.8400 58.9100 48.9400

103.9000 2.8940 58.7100 48.7400 3.9300 0.0169 2.4260 39.1500 1.1300 6.3400 104.4900 101.7500 23.0000 0.9800 40.6700 11.3600 N/A N/A

4.1300 0.0219 2.4360

N/A

39.3500 1.3300 6.5400 104.6900 101.9500 23.2000 1.1800 40.8700 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

Aurelius Technologies Bhd Buy. Target price: RM1.17

HE Group Bhd Buy. Target price: RM0.46

YTL Hospitality REIT Buy. Target price: RM1.35

March 3, 2026: RM0.71

March 3, 2026: RM0.31

March 3, 2026: RM1.15

Source: Maybank Investment Bank

Source: Maybank Investment Bank

Source: Maybank Investment Bank

HEXATECH Engineering Sdn Bhd is a Malaysian mechanical, electrical & process contractor established in 1995. They provide turnkey solutions with a strong core in electrical & mechanical engineering to industry, building services, energy, automation and semiconductors companies aiming to grow in Southeast Asia. HEG near-term earnings visibility will be supported by its RM84.7 million orderbook, comprising data centre (DC) (63.6%), electronic products (14.9%), semiconductor (9.5%), medical services (4.4%), and others (7.6%). Particularly, 1H’26 earnings momentum should be driven by the completion of a RM56.6 million power distribution system contract for a DC in Cyberjaya, which is slated for completion by May 2025. Tenderbook saw a notable 43% QoQ increase to RM1 billion, with 95% of on-going tenders related to DC projects and the remaining 5% attributed to semiconductor and medical services clients. The group is bidding for 5 DC projects and expects the bulk of ongoing tenders to be finalised in Q2-Q3’26, supporting replenishment prospects for 2H’26. Its tender prospects from the semiconductor sector remain largely confined to equipment retrofitting works for existing clients, as clients are still adopting a wait-and-see stance toward new greenfield investment plans. With the robust tender prospect in DC, HEG is targeting to achieve an orderbook level of RM200 million in 2026, broadly in line with our replenishment assumption of RM180 million for 2026. Elsewhere, HEG is at an early stage of exploring renewable energy (RE) asset investment specifically in solar+BESS projects to build up recurring income base, with a targeted ROI of 5-7 years. BUY with RM0.46 TP. – Maybank Investment Bank, Feb 3

ATECH Group is a medium size world class Electronics Manufacturing Services provider with 32 years of experience in the industry and with specialisation in high mixed-low volume product. They provide multicomponent semiconductor module, PCBA, sub-assembly, box build and system build services to MNC’s worldwide. Despite the impact of USD weakness, ATECH’s P1–P3 plants continue to operate at high utilisation of 90%, notwithstanding still-muted demand from its key O&G customer. The shortfall is expected to be progressively offset by the automotive customer ramp-up at P5. We also understand that Customer F intends to sustain its expansion into 2026, with plans to introduce an eighth production line. In parallel, management is in discussions with customers on FX-related cost pass-throughs, with a gradual recovery envisaged through quarterly pricing revisions. We expect P5 utilisation to reach 30% by end-2026, underpinned by three automotive marquees transitioning into conditional and non-conditional mass production for its automotive customer, with potential qualification of a fourth marquee by year-end. Encouragingly, P5 utilisation has improved to 20% for two consecutive quarters (vs. 15% in Q3’25), indicating steady ramp-up traction. At the current pace, we believe ATECH could fully utilise the first floor earlier than anticipated and begin preparatory works to activate the second floor by 2H’26. We keep forecasts unchanged, recognising that near-term growth may be constrained by USD headwinds, unless a swifter than-expected cost pass-through. BUY with RM1.17 TP. – Maybank Investment Bank, Feb 3

THE AUD-denominated borrowings maturing in June is a key focus. We understand that management is actively engaging lenders and intends to refinance the facility for a further two years, amid ongoing regulatory and tax changes in Australia, particularly under the revised thin capitalisation regime, which restricts interest deductibility for tax purposes. The loan quantum is expected to remain unchanged, preserving funding continuity while allowing flexibility to reassess the optimal debt structure once there is greater clarity on the practical application of these rules. Management remains constructive on the Australian portfolio, supported by sustained occupancy and pricing momentum. ADR and RevPAR reached post-pandemic highs, supported by strong demand and event-driven tourism. While fundamentals remain robust, FX translation (stronger MYR vs AUD) has tempered reported earnings. Forward bookings remain healthy, though management is monitoring near-term travel disruptions. Australia continues to be the key earnings driver into 2H’26. Ahead of Visit Malaysia 2026, management noted encouraging Chinese New Year travel flows and resilient Asean demand, while monitoring European arrivals amid geopolitical disruptions. Master lease income remains stable, with AC Hotel Puchong set to commence rental contribution from April 2026. Meanwhile, 24% of master lease NPI is due for expiry at end-2026, with renewal options in place and an estimated 5% rental step-up upon renewal. Separately, development works at Moxy Niseko in Japan are progressing, with completion targeted for 2H’27 (Jan 2027), providing medium-term growth visibility. BUY with RM1.35 TP. – Maybank Investment Bank, Feb 3