26/03/2026

BIZ & FINANCE THURSDAY | MAR 26, 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

NuEnergy share spike prompts query from ASX

Ringgit eases as tensions over Iran remain in focus

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit weakened against the US dollar and other major currencies at yesterday’s close on cautious sentiment as investors await clearer signs of de escalation in the Iran war. At 6 pm, the local currency eased to 3.9620/9670 against the greenback from Tuesday’s close of 3.9530/9585. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said foreign markets appeared defensive as traders and investors eyed clearer signs of a de escalation in the West Asia conflict. “The prevailing conditions were not unique to the ringgit, as regional currencies also depreciated against the greenback. Despite this, the US Dollar Index remains below 100 points, currently hovering at around 99.348,” he told Bernama. The ringgit closed lower against a basket of other major currencies. It fell versus the Japanese yen to 2.4935/4969 from 2.4916/4954 at Tuesday’s close, edged down against the British pound to 5.3087/3154 from 5.2982/3056, and depreciated vis-à-vis the euro to 4.5963/6021 from 4.5835/5899, previously. The local currency also trended mostly lower against Asean currencies. It dropped against the Singapore dollar to 3.0965/1007 from 3.0909/0955 and fell against the Indonesian rupiah to 234.2/234.6 from 233.9/234.3 at Tuesday’s close. However, the ringgit was marginally higher versus the Thai baht at 12.1336/1557 from 12.1373/1613, and was unchanged vis-à-vis the Philippine peso at 6.59/6.60 from 6.59/6.61 previously.

KUALA LUMPUR: A sharp spike in the share price and trading volume of Globaltec Formation Bhd’s subsidiary NuEnergy Gas Ltd yesterday prompted a query from the Australian Securities Exchange (ASX), with the company attributing the move to external factors rather than undisclosed developments. The stock, which closed at A$0.039 on March 24, surged to an intraday high of A$0.087 the next day, alongside a significant increase in volume. The unusual activity triggered an ASX price query, a routine measure when trading deviates from recent patterns. In a filing to Bursa Malaysia, Globaltec said NuEnergy is not aware of any material information that has yet to be disclosed, which could explain the rally. Instead, NuEnergy pointed to positive third-party commentary and broader sector trends. It cited a recent article by analyst and investor Craig Dickson, published in outlets including The Daily Telegraph and The Courier-Mail , that portrayed the company favourably. NuEnergy also noted renewed investor interest in energy stocks, driven by escalating tensions in the Middle East and their impact on global energy prices. “Such macro developments have, in recent weeks, injected fresh momentum into oil and gas-linked equities, particularly smaller-cap names that tend to react more sharply to shifts in sentiment,” it said. The company confirmed it is in compliance with ASX continuous disclosure requirements, adding that its response was authorised by the board. While such queries are not uncommon, they draw attention to stocks seeing a sharp re-rating.

1 US Dollar

4.0190 2.8190 3.1390 2.9120 4.6640 2.3480 3.1390 5.3880 5.1230 3.3390 58.5200 63.9800 51.7300 4.3500 0.0247 2.5460 42.4400 1.5000 6.7800 110.8500 107.8800 24.5900 1.3400 44.4400 12.8900 110.3800 N/A

3.8720 2.7040 3.0390 2.8300 4.5100 2.2600 3.0390 5.2130 4.9020 3.0960 56.0100 58.8400 49.1300 4.0400 0.0218 2.4270 39.0200 1.3300 6.3900 105.2300 102.4100 22.2000 1.1700 40.4500 11.4200 104.5800 N/A

3.8620 2.6880 3.0310 2.8180 4.4900 2.2440 3.0310 5.1930 4.8870

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

104.3800

2.8960

N/A

58.6400 48.9300 3.8400 0.0168 2.4170 38.8200 1.1300 6.1900 105.0300 102.2100 22.0000 0.9700 40.2500 11.0200 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

Healthcare Overweight

Westports Holdings Bhd Buy. Target price: RM6.89

Ta Ann Holdings Bhd Outperform. Target price: RM6.42

March 25, 2026: RM5.01

March 25, 2026: RM5.99

Source: Company data, RHB

Source: PublicInvest Research

Source: Bloomberg

THE group’s FFB production rebounded by 3% YoY to 686,538mt, the highest level since 2022, as FFB yield improved significantly from FY24’s 15.95mt/ha to 16.95mt/ha. Meanwhile, the Oil Extraction Rate reached 20.1%, the highest level since 2018. As of end-FY25, total planted area stood at 48,257ha with mature area accounting for 89%. The plantation’s average age was 13 years, indicating that the group will continue its aggressive replanting programme in the coming years. In the timber business, log production recovered 13.3% YoY, driven by a strong increase in natural forest logs. Similarly, plywood production grew strongly, up 29% YoY. However, both logs and plywood recorded selling prices in Malaysian ringgit were down by 2.4% and 10%, respectively, mainly due to the US dollar’s depreciation and the weaker yen. Management guided a FFB production growth of 13% YoY, helped by a new mature area of 2,170ha. A new palm oil mill with a capacity of 45mt/ha is set to be commercially operational in 2028, which will see FFB processed increasing to 1.9 million mt from FY25’s 1.5m mt. The group has sufficient fertiliser stocks until July 2026. The fertiliser costs it has locked in (MOP: 35%, compound: 20%) have increased by about 10% YoY. In view of the unfavourable translation in USD/MYR and a projected decline in logs production (-17% YoY), we expect another challenging year for the timber segment. To mitigate its heavy dependence on the Japanese market, the group has diversified its plywood exports to Yemen as demand for building materials rises following regional conflicts. Outperform with RM6.42 TP. – PublicInvest Research, March 25

THE sector continues to serve as robust defensive shelter amid heightened global geopolitical volatility and inflationary pressure. While valuations appear stretched relative to historical mean, we see this as a fundamental structural re-rating of Malaysian healthcare assets, as seen by domestic-focused players’ widening valuation gap vs regional peers. Our picks for defensive refuge. Our preference for KPJ as a sector Top Pick is anchored by three structural tailwinds. Firstly, its relatively smaller exposure to medical tourism (6% of revenue vs peers’ 14-15%) makes the group a pure-play defensive refuge within Malaysia, while any increase in international patient flows provides a larger incremental boost to its smaller base. Secondly, amongst the large listed healthcare service providers, we view KPJ’s secondary care hospitals as the primary beneficiaries of the upcoming medical and health insurance/takaful spillover. The base plan coverage standardisation bodes well for the group’s secondary network, which can absorb volume from the price sensitive M40 segment while limiting exposure to potential insurance-driven downtrading. Lastly, KPJ’s COE uplift plans provide high visibility for revenue intensity growth, ensuring the group moves towards high complexity, high-margin care. Beyond the hospital space, we add DBB and LACMED to our Top Picks. Having initiated coverage on LACMED in Jan 2026, we continue to view the group as a key beneficiary of the ongoing capex cycle in Malaysia’s healthcare infrastructure, supported by its growing recurring income moats. – RHB Research, March 25

DIRECT exposure to the Middle East conflict is minimal, as only 5% of Westports’ container volume is exposed to the region, despite Asia-Europe routes accounting for 16% of overall throughput. Management confirmed that all eight services calling from the Middle East remain active. Notably, some liners are diverting cargo at alternative hubs like Westports due to Strait of Hormuz limits. However, the group rejects boxes with unclear destinations to keep yard density at 70–80% and avoid congestion. Rising fuel cost could weigh on Westports’ earnings. Based on our sensitivity test, every 10% increase in fuel costs could weigh on Westports’ FY26 earnings by 1%, though the duration of the conflict will ultimately dictate the severity of this impact. Hence, we believe the current environment presents an appropriate window for the government to establish price mitigation mechanisms to cushion these costs. Suez Canal reopening likely shelved. Note that shipping carriers had been gradually returning selected east-west services to Suez Canal transits in recent months, after previously detouring around the Cape of Good Hope since late 2023 due to attacks by Houthi militia. These plans are now expected to be shelved, which could make the freight rate more volatile. Key risks. A prolonged regional conflict could dampen global demand, leading to slower-than-expected container growth. While RHB Economics maintains a 1.8% inflation forecast for 2026, escalating conflicts may drive crude oil prices higher, potentially fuelling inflationary pressure. Buy with RM6.89 TP. – RHB Research, March 25