12/03/2026

BIZ & FINANCE THURSDAY | MAR 12, 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

Manufacturing growth may ease in near term: Kenanga KUALA LUMPUR: Seasonal festive-related closures and the recent escalation of US-Iran conflicts may limit manufacturing momentum in the near term. “However, we expect the E&E sector to remain resilient, supported by robust global demand for AI, 5G/6G, EVs and data centre expansion,“ Kenanga Investment Bank Bhd said in a report. The research firm said growth may ease in 2H’26 due to a high base, moderation in the tech cycle, geopolitical risks and potential supply disruptions that could raise cost pressures for manufacturers. Notably, Malaysia’s latest Manufacturing PMI slipped back into contraction in February at 49.3 from 50.2 in January, an eight-month low, highlighting continued fragility in the sector. Malaysia’s Industrial Production Index (IPI) grew 5.9% year-on year in January, up from 4.8% in December and above market expectations, mainly driven by stronger manufacturing output. The improvement was supported by sustained double-digit growth in the electrical and electronics (E&E) segment, which expanded 15.3% for a fourth straight month. On a month-on-month basis, IPI rose 0.7%, well above the long-term average of 0.2%, indicating solid momentum. Manufacturing output climbed 7.3% year-on-year, the highest in 18 months, lifted largely by robust E&E production. Domestic-oriented industries also picked up, supported by higher output in beverages, recorded media, food processing and fabricated metal products. Export-oriented sectors continued to grow, driven by stronger demand for electronics and vegetable and animal oils.

THE ringgit strengthened against the US dollar, other major currencies, and Asean peers at yesterday’s close following news that the International Energy Agency (IEA) has proposed releasing oil reserves, which could help stabilise global crude oil prices. At 6pm, the local currency rose to 3.9175/9230 against the greenback from Tuesday’s close of 3.9200/9260. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the IEA proposal comes amid concerns that a closure of the Straits of Hormuz would compromise crude oil supplies. “The situation largely depends on how long the military conflict continues. Hence, de escalation is something the world needs at the moment,” he told Bernama. At the time of writing, the price of Brent crude rose 4.24% to US$91.52 per barrel. At the close, the ringgit rose against the Japanese yen to 2.4719/4755 from 2.4859/4899 at Tuesday’s close, climbed against the British pound to 5.2545/2619 from 5.2744/2824, and was firmer against the euro at 4.5412/5475 from 4.5668/5738. The local note also traded higher against most Asean currencies. It edged up against the Singapore dollar to 3.0754/0800 from 3.0806/0855, gained against the Thai baht to 12.3386/3637 from 12.3941/4205, and was slightly higher against the Indonesian rupiah at 232.0/232.4 from 232.4/232.9. The ringgit climbed against the Philippine peso to 6.62/6.64 from 6.65/6.67 on Tuesday. Ringgit ends higher against dollar, other major currencies

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9960 2.8580 3.1340 2.9330 4.6350 2.3720 3.1340 5.3580 5.1530 3.3260 58.3100 63.6000 51.4500 4.4300 0.0247 2.5420 42.4100 1.4900 6.8600 110.2600 107.2900 25.4300 1.3500 44.8200 13.2000 109.7400 N/A

3.8500 2.7420 3.0340 2.8510 4.4840 2.2830 3.0340 5.1860 4.9320 3.0840 55.8300 58.5000 48.8700 4.1100 0.0218 2.4250 38.9900 1.3200 6.4600 104.6800 101.8500 22.9500 1.1800 40.8000 11.7000 104.0000 N/A

3.8400 2.7260 3.0260 2.8390 4.4640 2.2670 3.0260 5.1660 4.9170

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

103.8000

2.8840

N/A

58.3000 48.6700 3.9100 0.0168 2.4150 38.7900 1.1200 6.2600 104.4800 101.6500 22.7500 0.9800 40.6000 11.3000 N/A

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 Hold. Target price: RM4.25

Plantations Neutral

Mi Technovation Bhd Outperform. Target price: RM4.35

March 11, 2026: RM2.99

March 11, 2026: RM3.91

Source: PublicInvest Research

Source: PublicInvest Research

PALM oil inventories registered their second straight monthly decline, falling 4% MoM to 2.7m mt, as the contraction in production outweighed the softer demand from export and domestic markets. This also marked the lowest inventory level since Nov 2025. However, the stock-to usage ratio rebounded from 12.7% to 15.3%, mainly due to a sharp decline in exports and weak domestic consumption. Exports tumbled 22.5% MoM to 1.1m mt, the lowest level since Apr 2025. The weaker demand was mainly due to lower exports to India (-32.7%), the Middle East (-81.4%), and the US (-74.8%), partially offset by stronger demand from China (+44.5%) and the EU (+25.4%). Meanwhile, domestic demand was also softer, down 11.9% MoM to 344k mt as local consumption declined during the fasting month. The Middle East, which is embroiled in geopolitical tensions, accounted for 5.4% of Malaysia’s palm exports in the first two months. CPO production declined for the fourth consecutive month, falling 18.6% MoM to 1.2m mt, as both Peninsular Malaysia and East Malaysia down 16.3% and 21.1%, respectively. It is also the lowest production level in a year. FFB yield weakened from January’s 1.38mt/ha to 1.14mt/ha likely due to a long holiday break and shorter working month. Palm oil’s premium to gasoil has narrowed drastically to around US$41/mt, the lowest since Jan 2024, as the escalating Middle East tensions lifted energy prices. That compared with an average of US$293/mt in the past year and US$329/mt at the beginning of 2026. A tight Palm Oil-Gas oil (POGO) spread boosts biodiesel’s competitiveness, making discretionary blending more attractive. – PublicInvest Research, March 11

TAIWAN (39.1%) remains the top sales market, followed by China (28.5%), SEA & India (18.6%), South Korea & Japan (7.6%) and North America (6.2%). Mobility & Wearables (72.2%) made up the largest application, followed by HPC & Memory (22.2%) and Automotive & Renewable Energy (5.6%). Under the SEBU segment, Malaysia, China, and others contributed a PAT of RM75 million, RM6.9 million, and RM7.6 million, respectively. Mi Korea’s losses halved to RM4.5 million. It delivered a total of 151 units of equipment, with the Mi series (die sorter) making up 86.8% (Mi Quantum contributed 42%), followed by the Si series (7.3%), the Vi series (4.6%), and the Ai series (1.3%). Management maintains a bullish outlook with strong momentum for Q1’26. A notable development is the unveiling of the new Vehicle Technologies Business Unit (VTBU) under the subsidiary Ohima International. VTBU will focus on the electric powertrain system that lies at the heart of the electric heavy-duty truck value chain. Its current generation powertrain capability would focus on the 120-550 kW range for rated main drive power. Its primary markets include heavy-duty electric trucks, as well as electric buses requiring a 10m or larger main drive and auxiliary systems, along with construction machinery such as mining trucks, wheel loaders, and excavators. Under the value chain, its powertrain system accounts for over 1/3 of the total vehicle costs. Management has targeted strong double-digit growth for the Q1’26, mainly driven by both SEBU and SMBU units. Lastly, it has set aside a capex of US$25 million (RM100 million) for this year, with SMBU nearly making up 50%, followed by VTBU (35%), STBU (10%), and SEBU (6%). Outperform with RM4.35 TP. – PublicInvest Research, March 11

Source: Maybank Investment Bank

QLG’S MPM earnings contribution should be stable in the near term on expectations for better fish landing in Q4’26, and margin support from price increases to certain surimi-based products from Jan 2026. That said meaningful MPM earnings growth is capped by production constraints, and should only materialise when PT Hasil Laut accelerates production (30% utilisation rate currently), and its QL Innofood Park in Hutan Melintang, Perak, is completed. Note that QL Innofood Park will be developed in phases over the course of 10 years and will lift QLG’s downstream annual production capacity to 180,000 tonnes p.a. (2.5x its current capacity). Concerns over freight cost spikes amid the Middle East conflict could revolve around QLG’s ILF segment, particularly for imports of feed materials (corn & soybean). The group has a cost-pass through mechanism in place for its feed trading business but will monitor the need to raise egg ASPs according to domestic supply demand dynamics. In terms of its POCE segment, QLG’s court settlement with its Indonesia plantation partners brings its long standing legal dispute to a close, and clears a path for it to fully divest its palm oil business – though no disposal timeline was shared. Subdued contributions for BM Greentech may also continue given the expiry of the NEM 3.0 programme but partially mitigated by higher solar and BESS project deliveries in Q4’26. The challenging outlook for the CVS segment is expected to persist. Heightened competition within F&B retail has driven sales momentum down, while segmental margins may also remain supressed given higher store operating costs. Hold with RM4.25 TP. – Maybank Investment Bank, March 11