16/03/2026

BIZ & FINANCE MONDAY | MAR 16, 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

Propel secures additional work order for data centre project KUALA LUMPUR: Propel Global Bhd’s wholly owned subsidiary, Propel CMT Sdn Bhd, in joint venture with China State Construction Engineering (M) Sdn Bhd (CSCEM), has been awarded an additional work order valued at up to RM59.04 million (exclusive of tax) for a data centre development in Johor Bahru. The additional work order compromise the construction of the Consumer Landing Station including all associated works and completion of Infrastructure Works for ancillary buildings. The works which began on Jan 22, 2026 is expected to be completed by May 30, 2026. In a statement, Propel Global said the award follows the Group’s earlier involvement in the project and reflects continued confidence in the joint venture’s technical capabilities, project execution standards, and safety compliance. It added that the works will be carried out in strict adherence to tender specifications, regulatory requirements, and industry best practices, with safety management remaining a key priority throughout the project duration. Group CEO Angeline Lee said: “This additional work order underscores our growing track record in delivering specialised infrastructure works for data centre developments. “It reflects our clients’ continued confidence in our execution capabilities, project governance and safety standards. As digital infrastructure investment accelerates across Malaysia, we remain focused on disciplined delivery while strengthening our presence in this high-growth segment.” The company said the additional work order is expected to contribute positively to the group’s earnings and net assets for the financial year ending June 30, 2026.

THE ringgit is expected to trade in a range between RM3.93 and RM3.98 this week as investors will keep a close watch on the trajectory of crude oil prices. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the traders and investors would continue to monitor the war in Iran this week. Sharing the same view, Kenanga Investment Bank Bhd expects investors to remain defensive and reduce exposure to high beta emerging market assets. “Despite Malaysia’s LNG windfall providing partial insulation, the ringgit should stay capped and trade sideways with a mild weakening bias at RM3.93-RM3.95 against the US dollar. “Our baseline assumes no swift de-escalation and continued vulnerability of critical West Asia supply routes. “Elevated energy prices should keep global inflation risks and bond yields biased higher, tightening financial conditions and reducing the scope for near-term Fed easing,” Kenanga IB said in a research note on Friday. On a Friday-to-Friday basis, the ringgit ended the week higher against the US dollar to close at 3.9365/9410 compared with 3.9425/9535 previously. The local note traded higher against a basket of major currencies last week. It edged up versus the Japanese yen to 2.4683/4715 from 2.4973/5044 a week earlier, strengthened vis-a vis the British pound to 5.2214/2273 from 5.2530/2676 and rose against the euro to 4.5093/5144 from 4.5634/5762 previously. It gained versus the Singapore dollar to 3.0730/0767 from 3.0779/0867 a week earlier and strengthened versus the Thai baht to 12.1862/2062 from 12.3392/3810. Ringgit seen moving within 3.93-3.98 against US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0010 2.8420 3.1230 2.9270 4.6020 2.3450 3.1230 5.3360 5.1160 3.3240 58.4500 63.1500 51.5000 4.4100 0.0247 2.5290 42.2300 1.4900 6.8100 110.5900 107.4400 24.7200 1.3500 44.0400 12.9600 109.8600 N/A

3.8550 2.7270 3.0240 2.8450 4.4530 2.2580 3.0240 5.1650 4.8970

3.8450 2.7110 3.0160 2.8330 4.4330 2.2420 3.0160 5.1450 4.8820

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

104.1100 3.0820 55.9700 58.0900 48.9100

103.9100 2.8820 57.8900 48.7100 3.9000 0.0168 2.4020 38.6200 1.1300 6.2100 104.7900 101.7900 22.1100 0.9800 39.8900 11.0900 N/A N/A

4.1000 0.0218 2.4120

N/A

38.8200 1.3300 6.4100 104.9900 101.9900 22.3100 1.1800 40.0900 11.4900

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

Banking sector Overweight

Bermaz Auto Bhd Buy. Target price: RM0.95

Coastal Contracts Bhd Buy. Target price: RM1.97

March 13, 2026: RM0.895

March 13, 2026: RM1.13

Source: Company data, RHB Research

BANKS ended 2025 positively - quarterly earnings growth up 4% YoY on stronger operating income and benign credit cost. Rising geopolitical tensions has likely caused volatility to the outlook but for now, we stay constructive amid positive macroeconomic backdrops, stronger operating income momentum from NII (loan growth pickup while NIM prospects look promising), and steady non-II rise. Dividend yields are attractive with upside from some banks’ potential capital management initiatives. Seven out of nine banks under our coverage posted results that met our and consensus expectations. BIMB beat our and consensus estimates thanks to chunky gains realised from the disposal of property, while MBSB missed both our and Street estimates due to a lumpy financing impairment charge plus further NIM slippage. On dividends, there were some positive surprises. BIMB’s dividend was higher than expected thanks to the earnings outperformance, although its 60% payout ratio was in line. Affin’s dividend was also higher than expected, thanks to a better-than-expected 40% payout ratio (vs our 30% assumption). We note some optimism on NIMs, with a few banks guiding for stable to improving NIM this year on continued liability management initiatives as last year’s policy rate cut filters through to deposit costs. Loans growth was guided to be stable, while banks that were adversely impacted by a stronger MYR last year are expecting loans growth to pick up. Asset quality should hold steady with credit cost expected to be well behaved. On the upcoming changes to the capital framework for credit risk that banks under the Standardised Approach are set to adopt, the smaller banks guided for an uplift to CET-1 ratios of ź +50bps while the uplift for the relevant mid-to larger-banks are +60bps to +100bps (PBK). Stay Overweight. - RHB Research, March 13

Source: Bloomberg, RHB Research

Source: Bloomberg, TA Research

BERMAZ Auto’s 3QFY26 (Apr) core profit beat estimates. We reiterate our positive outlook for the near term, although we may see a slight moderation in its numbers in 4QFY26, due to the lower number of working days during that period. Our thesis for the stock remains intact - premised on a sales recovery towards FY25 levels, Kia exits, and a stronger MYR. BAUTO is trading at a compelling 7.7x CY27F P/E, which is largely within the vicinity of its 5-year historical average, while the FY27F dividend yield of 9% may support its share price. 3QFY26 core profit jumped 94% QoQ (-24% YoY) to RM32m, bringing 9MFY26 earnings to RM57m (-58% YoY). This came in above expectations, accounting for 76% and 82% of our and Street full-year estimates. The positive deviation was mainly due to higher-than-expected sales volumes (led by the Mazda 3), lower-than-expected opex, and higher-than-expected interest income. BAUTO announced a 3QFY26 DPS of 1.75 sen, bringing 9MFY26 DPS to 3.75 sen (core payout ratio: 76%) Moving forward in 4QFY26, we might see a moderation in sales volume due to the lower number of working days due to two main festive seasons happening, alongside weakened sentiment amid global geopolitical uncertainties. That said, looking ahead in FY27F, we are positive on BAUTO’s turnaround plan. Its Mazda order backlog stands at 3,500 units (Mazda 3: 2,500 units, CX-60: 240 units), with steady Mazda 3 deliveries of about 300-500 units/month. Given the healthy backlog, we believe Mazda Motor Corp may allocate additional Mazda 3 units to BAUTO, which should further support the latter’s sales growth. Keep BUY and RM0.95 TP. - RHB Research, March 13

COASTAL provided an update on the 2nd Papan plant and the Emergency Work Instruction (EWI) for the 2nd Perdiz plant. Construction progress for the 2nd Papan plant currently stands at ~12%, with the commercial operation date (COD) expected in 4QFY26. Meanwhile, the 2nd Perdiz plant has reached 56% completion and remains on track to achieve COD by end-April or early May. Management highlighted that PEMEX is still finalising the trust structure, including the terms and conditions of the trust agreement linked to the contract value of the 2nd Perdiz plant. Nevertheless, management remains confident that the agreement will be executed ahead of the targeted COD timeline. Operationally, COASTAL’s gas processing facilities are currently running at full capacity. The Papan Plant is producing at 345 mmscfd (4QFY25: 353 mmscfd; 3QFY25: 348 mmscfd), while the Perdiz Plant is operating at 185 mmscfd (4QFY25: 189 mmscfd; 3QFY25: 182 mmscfd). The Perdiz Plant contract expires in Dec 2027, though management anticipates potential extensions beyond 2027, supported by increasing gas production from the Ixachi field. COASTAL’s JUGCSU has remained idle since Nov 2023 and has not contributed to earnings. Management has begun actively marketing the asset and has initiated preliminary discussions with potential buyers. However, the disposal timeline remains uncertain, as negotiations are still at an early stage. In the meantime, COASTAL is undertaking limited refurbishment works, mainly on the turbine systems, to ensure the unit remains inspection ready. Management guided that the remaining refurbishment cost will not exceed RM10mn, with the expenditure expected to be incurred within 1QFY26 and 2QFY26. Maintain Buy with RM1.97 TP. - TA Research, March 13