06/03/2026

BIZ & FINANCE FRIDAY | MAR 6, 2026

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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

Automakers operating in M’sia asked to boost local sourcing KUALA LUMPUR: Automotive manufacturers operating in Malaysia must deepen their localisation efforts by integrating local vendors and small and medium enterprises (SMEs) into their global supply chains, said Deputy Investment, Trade and Industry Minister Sim Tze Tzin. He said Malaysia hopes to see more local companies participate in the automotive supply chain as global manufacturers continue to expand their presence and operations in the country, creating greater opportunities for domestic firms to integrate into regional and global production networks. “True success is not just about sales volume; it is also about local content development. We want to see Malaysian vendors and SMEs integrated into your global supply chain,” he said at the launch of the Jaecoo J5 yesterday. Sim urged automakers to play a more active role in strengthening Malaysia’s automotive ecosystem through greater technology transfer, talent development and increased sourcing of components and services from local suppliers. He said manufacturers should share their expertise and technical know-how with local component makers to help them develop the capabilities needed to become global suppliers, while also investing in training programmes for Malaysian engineers and technicians to manage increasingly sophisticated automotive technologies. “When our local vendors grow stronger, the entire automotive ecosystem becomes more competitive, enabling companies to build a more efficient and cost-effective global supply base,” he said. – Bernama

THE ringgit remained in a narrow trade and closed lower against the US dollar yesterday, as heightened tensions in the Middle East weighed on market sentiment and supported the greenback. At 6pm, the ringgit eased to 3.9415/9480 versus the greenback from 3.9395/9465 at Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said global tensions surrounding the escalating conflict involving the US, Israel and Iran remained high on traders’ agenda, which affected sentiment negatively. He noted that Bank Negara Malaysia yesterday decided to hold the Overnight Policy Rate (OPR) at 2.75% but at the same time acknowledged the geopolitical risk emanating from the Iran war. “What it means is that BNM is assessing the situation and the OPR should remain steady in the near term. That should be positive for the ringgit in the near term,” he told Bernama. Earlier, the central bank said that at the current OPR level, the Monetary Policy Committee (MPC) considers the monetary policy stance to be appropriate and supportive of the economy amid price stability. At the close, the ringgit traded mostly lower against a basket of major currencies. It strengthened versus the British pound to 5.2635/2722 from 5.2640/2733 on Wednesday, but fell against the euro to 4.5808/5884 from 4.5738/5819 at the last close and slipped vis-à vis the Japanese yen to 2.5080/5124 from 2.5062/5108 previously. The local note traded mixed against its Asean peers. The ringgit appreciated vis-a-vis the Thai baht to 12.4711/5016 from 12.5246/5541 on Wednesday but slid versus the Singapore dollar to 3.0885/0938 from 3.0864/0921 on Wednesday. Ringgit closes lower as Mideast conflict lifts US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0015 2.8400 3.1320 2.9240 4.6490 2.3780 3.1320 5.3430 5.1570 3.3380 58.2200 63.7900 51.5700 4.4200 0.0247 2.5650 42.5400 1.4900 6.9400 110.5400 107.4200 25.3100 1.3500 44.8600 13.2200 109.8900 N/A

3.8555 2.7250 3.0330 2.8420 4.4970 2.2910 3.0330 5.1710 4.9360

3.8455 2.7090 3.0250 2.8300 4.4770 2.2750 3.0250 5.1510 4.9210

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

104.1400 3.0950 55.7400 58.6800 48.9800

103.9400 2.8950 58.4800 48.7800 3.9100 0.0168 2.4370 38.9100 1.1300 6.3300 104.7400 101.7700 22.6500 0.9800 40.6400 11.3200 N/A N/A

4.1100 0.0218 2.4470

N/A

39.1100 1.3300 6.5300 104.9400 101.9700 22.8500 1.1800 40.8400 11.7200

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

Steel Hawk Bhd Buy. Target price: RM0.41

IOI Corporation Bhd Neutral. Target price: RM4.18

Binastra Corporation Bhd Buy. Target price: RM2.72

March 5, 2026: RM0.29

March 5, 2026: RM3.93

March 5, 2026: RM2.10

Source: Bloomberg

THROUGHOUT FY25, the expanded EPCC segment has contributed significantly to the group, accounting for 77% (RM94 million) of FY25’s total revenue. However, this contribution is expected to decline to around 45-55% in FY26 as oil & gas activities gains traction. Management has also shifted its focus back towards the oil & gas segment, anticipating potential contract awards of up to RM150 million within FY26 as industry activity improves. Within the oil & gas segment, the group’s exposure remains predominantly in the downstream segment (85–90%), reflecting its stronger positioning in maintenance and plant-related services. As of Dec 31, 2025, the expanded EPCC segment’s orderbook stood at RM138.1 million, which is expected to be recognised across FY26–27, providing near-term earnings visibility for the group. Beyond this, the group maintains a healthy pipeline of opportunities across segments. Within oil & gas, Steel Hawk has a tender book of RM120 million across six projects alongside two call-out contracts, while its CMW orderbook currently stands at RM30 million with seven projects shortlisted. In the utilities space, the group is also bidding directly for RM18 million worth of TNB projects, further supporting its near-term project pipeline. To recap, the group has secured a mechanical and electrical (M&E) works contract for a data centre project in Johor, valued at approximately RM35 million, with completion expected by July 2026. In addition, management indicated that the group is currently bidding for two additional data centre-related M&E contracts, which could potentially enhance its project pipeline if secured. Nonetheless, further details on these tenders remain undisclosed at this juncture as the bidding processes are still at an early stage. Buy with RM0.41 TP. – TA Research, March 5

Source: PublicInvest Research

Source: Bloomberg

AFTER registering an 8% uptick in the 1H’26, FFB production is expected to see a seasonal drop of 20% MoM in February before seeing a 10% rebound in March. Overall, management expects a FFB production growth of 5-8% for FY26. The recent drought in Johor and flood in Sabah have little impact on the production. Meanwhile, fertiliser application has reached 60% of the target as of 1H’26. Meanwhile, replanting is on track to reach a wider size of 10,000ha this year due to some carried forward from last financial year. Production cost is expected to be lower by RM200/mt in FY26, led by improving FFB yield, better OER performance and a decline in fertiliser cost (3-5% YoY). To mitigate the impact of negative refining margin, the group has been penetrating high-value-added CPO products, namely, i) low-contaminant refined CPO, ii) RSPO-certified CPO (US$35 40/mt premium), iii) organic CPO (US$400-500/mt on top of CPO price) and iv) Mineral Oil Saturated Hydrocarbons products. IOI Corp’s downstream segment saw a big improvement in the 1H’26 on the back of stronger performance from oleochemicals in the Q1’26, led by a sharp decline in PKO prices. Going forward, while both the refinery and oleochemical remains challenging, there will be incremental earnings contribution coming from its 20%-owned specialty fats associate Bunge Loders Croklaan following the completion of the 2nd new plant in New Orleans (+5-10% YoY) for a range of specialty fats including cocoa butter equivalents and cocoa butter replacers as well as maiden contribution from the new state-of-the-art plant in Amsterdam with phase 1 completion by Sept 2026. Neutral with RM4.18 TP. – PublicInvest Research, March 5

THE Cyberjaya data centre (DC) job was BNASTRA’s fourth DC package and is worth RM250 million. Awarded in Feb 2025, it has a 10.5MW capacity. Timeline-wise, the DC job for MYT DC3 was to be completed in sections between June 2025 and Dec 2025. Based on our observation in late Dec 2025, progress seems to be on track, with the job’s completion seen as likely. In Nov 2025, BNASTRA later clinched a RM188.5 million job from MYT DC3 for the mechanical & electrical (M&E) fit-out works for the same DC in Cyberjaya – this is slated for completion within four months from the commencement date. During our previous visit in June 2025, progress was between 25% and 30%. We consider this as quite commendable at the time, as BNASTRA had only been awarded the job in Feb 2025 – essentially, the group had managed to build 3 floors of a 6-floor structure in around four months. BNASTRA deployed Bubbledecks in the structure, which reduces the usage of concrete and facilitates quicker installation with less formwork required. BNASTRA’s 51% stake in LF Lansen enables the group to have better expertise in relation to thermal energy storage and distribution DC cooling equipment, as well as heating, ventilation, and air conditioning among others. We note that the DC job awarded by MYT DC3 is set to have 8 buffer tanks placed on the roof of this facility, which would be facilitated by LF Lansen. To date, BNASTRA has secured RM1.9 billion worth of DC jobs (across six contracts). Based on our estimate, this makes up approximately 10-15% of the group’s RM7 billion outstanding orderbook. Buy with RM2.72 TP. – RHB Research, March 5