17/03/2026

BIZ & FINANCE TUESDAY | MAR 17, 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

MBSB Investment Bank optimistic on REIT sector

THE ringgit ended higher against the US dollar and other major currencies at the close yesterday as major central banks, including the US Federal Reserve, hold their policy meetings this week amid high crude oil prices, driven by the ongoing Iran conflict. At 6pm, the local currency strengthened to 3.9260 /9310 against the greenback from last Friday’s close of 3.9365/9410. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Brent crude oil remained elevated at US$106.17 per barrel as the West Asia conflict rages on, raising concerns about oil and gas flows from the region. “There was a second attack in three days at the United Arab Emirates port of Fujairah while US President Donald Trump has called for other nations to assist in the safe passage of vessels in the Strait of Hormuz,” he told Bernama. SPI Asset Management managing partner Stephen Innes said the firmer ringgit reflected stabilising regional and global risk sentiment, which pushed the greenback to marginal softness amid easing safe-haven demand. The ringgit rose against the Japanese yen to 2.4639/4672 from 2.4683/4715 at last Friday’s close, appreciated versus the British pound to 5.2008/2074 from 5.2214/2273, and strengthened vis à-vis the euro to 4.4945/5002 from 4.5093/5144. The local currency was firmer against the Singapore dollar at 3.0650/0692 from 3.0730/0767 at last Friday’s close, bounced versus the Thai baht to 12.0644/0857 from 12.1862/2062, and edged up vis-à-vis the Indonesian rupiah to 230.9/231.3 from 232.1/232.5. The ringgit advanced against the Philippine peso to 6.55/6.56 from 6.59/6.60 previously. Ringgit higher against major currencies amid oil price surge

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

KUALA LUMPUR: MBSB Investment Bank Bhd is turning “positive” on the real estate investment trust (REIT) sector as it sees optimism in REITs in the short-term. It said REITs should remain favoured by investors during turbulent market periods due to their defensive nature and earnings stability, which would help keep their share prices supported. “Fundamentally, the retail industry is expected to remain resilient in 2026 due to strong shopper footfall and tenant sales,” the investment bank said in a research note yesterday. Meanwhile, it said the expected higher tourist arrivals from Visit Malaysia 2026 (VM2026) should improve hotel occupancy rates and benefit REITs with exposure to the hotel sector, namely Sunway REIT, KLCCP Stapled Group and Pavilion REIT. “We upgrade Pavilion REIT to ‘buy’ with an unchanged target price (TP) of RM2.00 as the recent share price weakness renders attractive upside. “We see a stable outlook for Pavilion REIT as the retail and hotel division of Pavilion REIT will benefit from higher tourist arrivals amid VM2026,” it said. The investment bank also has a “buy” call on Axis REIT, with an unchanged TP of RM2.17, due to a promising earnings outlook underpinned by resilient income from industrial assets. “Rental reversion for industrial assets is expected to remain positive due to healthy demand for industrial assets in Malaysia,” it added. – Bernama

1 US Dollar

4.0080 2.8170 3.1200 2.9140 4.5810 2.3270 3.1200 5.3040 5.0970 3.3300 58.3200 62.8400 51.5800 4.4100 0.0247 2.5300 42.0500 1.4900 6.7900 110.4900 107.6200 24.5700 1.3500 43.6700 12.8900 110.0400 N/A

3.8610 2.7030 3.0200 2.8310 4.4300 2.2400 3.0200 5.1330 4.8770 3.0870 55.8300 57.7900 48.9900 4.1000 0.0218 2.4110 38.6500 1.3300 6.3800 104.8900 102.1600 22.1800 1.1800 39.7500 11.4300 104.2900 N/A

3.8510 2.6870 3.0120 2.8190 4.4100 2.2240 3.0120 5.1130 4.8620

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

104.0900 2.8870 57.5900 48.7900 3.9000 0.0168 2.4010 38.4500 1.1300 6.1800 104.6900 101.9600 21.9800 0.9800 39.5500 11.0300 N/A 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

EG Industries Bhd Buy. Target price: RM1.70

Exsim Hospitality Bhd Buy. Target price: RM0.40

Technology sector Overweight

March 16, 2026: RM0.31

March 16, 2026: RM1.01

Source: Bloomberg, TA Research

LAST Friday, Exsim Concepto Sdn Bhd, a wholly-owned subsidiary of Exsim Hospitality Bhd (EH), secured a RM73.7mn subcontract from Binastra Builders Sdn Bhd, a wholly-owned subsidiary of Binastra Corporation Berhad (BNASTRA). The contract covers the supply and installation of building services as well as general building works. The contract is set to commence after shareholder approval for proposed diversification into general contracting, which will be sought at an extraordinary general meeting to be convened. Incorporating this latest win, EH’s cumulative FY26 YTD new job wins have risen to RM182.1mn, bringing its total unbilled order book to approximately RM255.9mn. This translates into a healthy order book cover of about 1.8x its FY25 interior fit-out construction segment revenue. Assuming a PBT margin of 15%, in line with the historical projects from the same client, we estimate the contract could generate approximately RM11.1mn PBT over the construction period. At the current replenishment rate, the order wins account for 72.8% of our FY26 new job replenishment assumption of RM250mn. We believe EH remains on track to replenish the remaining portion in the coming months. Our positive stance is backed by the healthy internal job flow from EXSIM’s robust development pipeline (cumulative GDV of more than RM30bn) as well as recurring job flow from its existing clientele such as BNASTRA. This also marks EH’s first general contracting-related job win following the group’s proposed diversification into general contracting, announced on Feb 10, with shareholder approval to be obtained at the upcoming EGM. We view this positively as it broadens EH’s construction segment beyond interior fit-out job. Maintain Buy and RM0.40 TP. – TA Research, March 16

Source: Company data, RHB Research

Source: Bloomberg, Phillip Capital Research

WE continue to view the sector as a preferred allocation in FY26F, particularly for Shariah funds, backed by strengthening fundamentals, solid growth prospects and favourable sector outlook. The sector trades at 20x forward P/E (-1SD from 5-year mean), offering attractive risk-reward against >30% FY26F earnings growth - driven by the global semiconductor upcycle and robust AI-related demand; notwithstanding the FX and rising geopolitical risks. Six companies delivered in-line results, while five missed forecasts due to weaker sales, margin compression, unfavourable product mix, FX and cost pressures. CORAZA was the sole outperformer, supported by margin expansion from economies of scale and robust revenue. Sector core PATAMI rose 1.3% YoY and 28.1% QoQ. Six companies posted stronger YoY earnings in 4Q25 while eight recorded better QoQ performance. We upgraded Inari Amertron (INRI) and Pentamaster Corp (PENT) to BUY. INRI’s sharp share price correction appears to have priced in the earnings weakness in FY26F, creating an opportunity to accumulate a quality, liquid technology name ahead of the next growth cycle beyond FY26. For PENT, valuation has turned more compelling after the pullback, with stronger growth expected into 2H26 and FY27, driven by advanced packaging, AI-driven automation and rising test complexity. On the US-Iran conflict, Malaysia has minimal direct exposure as trade with Iran and broader Middle East accounts for only 0.1% and 4.2% of total trade. However, higher energy costs and a prolonged conflict could indirectly slow the semiconductor capex cycle and dampen electronics demand in the medium term. Stay OVERWEIGHT on sector. – RHB Research, March 16

WE attended EG’s result briefing and came away positive on the group’s business outlook. Management reaffirmed strong demand for optical modules and 5G wireless access products. The ramp-up of 800G optical module production at its Batu Kawan facility remains firmly on track, positioning the group for stronger 2HFY26 earnings. The product mix is expected to shift towards higher-value 800G modules, with 400G product declining from 80% in 2QFY26 to 40%, while 800G module expand to 60% in 3QFY26. Production yields have also improved steadily to about 80%, indicating solid progress in operational execution. The improving yield and increasing contribution from higher-margin 800G modules and 5G wireless access are expected to drive stronger margin expansion (6MFY26 net margin: 6.8%) and earnings in 2HFY26. EG’s new active electrical cable (AEC) and direct attach copper (DAC) cables for high-performance computing (HPC) applications have successfully passed customer qualification audits, marking a step toward deeper involvement in the customer’s data centre ecosystem. The group has also secured a customer for these products, with contributions expected to commence in 4QFY26. The Thailand facility is on schedule for completion by end CY26, positioning the group to tap into growth opportunities in energy storage, EVs, and DC applications. Addressing concerns over the Middle East conflict, any impact is expected to be minimal, as raw material cost increases are typically passed through to customers and logistics costs are largely borne by customers under FOB terms. Reiterate BUY and RM1.70 TP. – Phillip Capital Research, March 16