27/03/2026

BIZ & FINANCE FRIDAY | MAR 27, 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

SC’s innovation lab to drive Islamic capital market growth KUALA LUMPUR: The Securities Commission Malaysia (SC) has launched the ICM Innovation Lab, or FIKRALab, as part of efforts to drive the next phase of growth in the Islamic capital market (ICM). The platform introduced under the Capital Market Masterplan 2026–30 is designed as a co-creation and applied research hub to develop new Shariah-compliant financial products and solutions. It builds on earlier initiatives such as the FIKRA fintech accelerator, but expands the focus beyond fintech to include broader industry collaboration in product design, research and pilot testing. FIKRALab will prioritise innovations aligned with Maqasid al Shariah, with an emphasis on delivering real economic value and wider social impact. The SC said the aim is to strengthen the role of Islamic finance in supporting sustainable and inclusive growth, while ensuring closer links to the real economy. A key component of the initiative is the introduction of Maqasid al-Shariah Clinics, which will bring together regulators, industry players and Shariah experts to review and enhance existing ICM products. These sessions are intended to improve value propositions and reinforce the social and economic contributions of Islamic financial instruments. The programme will be rolled out in phases. A pilot project is currently underway in collaboration with a financial institution, focusing on developing a new instrument to unlock Shariah derived income within mixed-activity groups. The first intake for FIKRALab is expected to open in the fourth quarter of 2026, with annual cohorts planned thereafter. Initial focus areas include next-generation ICM products, Islamic social finance and sustainability-linked solutions.

Ringgit slips as risk-off sentiment grips markets

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit weakened against the US dollar and other currencies at yesterday’s close as uncertainties over the conflict in West Asia triggered a risk-off mode in financial markets. At 6pm, the local currency fell to 3.9920/9955 versus the greenback from Wednesday’s close of 3.9620/9670. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said signs of de-escalation remained elusive, with the Iranian government rejecting peace talks despite US insistence. “The demands from the Iranian government, including reparations for damages following the US-Israel attack on its soil, guarantees against further military assaults, and recognition of its authority over the Strait of Hormuz, appear to be a tall order. “Hence, sentiment in the foreign exchange market is likely to remain cautious in the near term, as countries across Asia grapple with fuel shortages,” he told Bernama. The ringgit closed lower against a basket of other major currencies. It decreased versus the Japanese yen to 2.5025/5049 from 2.4935/4969 at Wednesday’s close, slid against the British pound to 5.3301/3348 from 5.3087/3154 yesterday and depreciated vis à-vis the euro to 4.6140/6180 from 4.5963/6021 previously. The local currency also traded weaker against Asean currencies. It fell versus the Singapore dollar to 3.1102/1132 from 3.0965/1007 at the previous close, declined versus the Thai baht to 12.1529/1695 from 12.1336/1557 on Wednesday, eased vis-a vis the Indonesian rupiah to 236.1/236.4 from 234.2/234.6, and softened against the Philippine peso to 6.62/6.63 from 6.59/6.60.

1 US Dollar

4.0420 2.8130 3.1460 2.9150 4.6640 2.3480 3.1460 5.3920 5.1240 3.3590 58.7800 63.9900 52.1000 4.3800 0.0249 2.5490 42.7000 1.5000 6.8100 111.7200 108.5700 24.6000 1.3500 44.4400 12.8300 111.0200 N/A

3.8950 2.6980 3.0460 2.8330 4.5110 2.2590 3.0460 5.2170 4.9040 3.1140 56.2700 58.8500 49.4800 4.0700 0.0220 2.4300 39.2400 1.3400 6.4100 106.0600 103.0700 22.2100 1.1800 40.4500 11.3800 105.1900 N/A

3.8850 2.6820 3.0380 2.8210 4.4910 2.2430 3.0380 5.1970 4.8890

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

104.9900

2.9140

N/A

58.6500 49.2800 3.8700 0.0170 2.4200 39.0400 1.1400 6.2100 105.8600 102.8700 22.0100 0.9800 40.2500 10.9800 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

Inari Amertron Bhd Neutral. Target price: RM1.48

Lim Seong Hai Capital Bhd Not Rated

Kelington Group Bhd Buy. Target price: RM6.80

March 26, 2026: RM5.17

March 26, 2026: RM1.37

Source: PublicInvest Research

Source: Bloomberg

Source: Bloomberg

WHILE the Middle East conflagration has spiked up energy costs and disrupted the supply of helium (a key inert gas used in the wafer cooling process), we do not foresee this upending the structural growth in the semiconductor sector as supply chains are recalibrated. Note: The shortage in global memory chip supply has accelerated foundry investments, with KGB at the forefront of this structural push. Management is targeting RM1.5-2 billion new orders for FY26 (FY25: RM1.25 billion). Further to the US$105 million (RM414 million) turnkey gas distribution system project secured from India’s maiden foundry on March 24, the group is hopeful of bagging another chemical package tender (of similar value) which may be announced in April. Some key tender outcomes to look out for in Q2/Q3’26 are: i) New Singapore hook-up jobs (>RM400 million), ii) projects tied to a second German foundry (>RM1 billion), and iii) a chunky general contracting job valued at RM1 billion) in Selangor which could fuel order wins to another record high in FY26. The group has 95.2 million outstanding warrants (end-Q4’25) with RM131 million (15 sen/share) in proceeds if the warrants are exercised prior to the July 24 expiry date. We see this as supportive of higher dividends going forward, backed by its solid net cash balance (Q4’25: RM198 million). FY25 DPR marked a record high (66.4%) with two rounds of special dividends declared in Q3-Q4’25. FY26 will see maiden earnings from the group’s foray into the renewable energy sector. BUY with RM6.80 TP. – RHB Research, March 26

IT was a weak performance in the 1H’26 as the group suffered from its customers’ loss of market share in mid-low band RF sockets in the iPhone 17 cycle, which resulted in underutilisation of Inari’s RF assembly capacity. In contrast to the global iPhone sales growth of 13% for the 1H’26, Inari’s 20% drop in the RF segment suggested Inari’s RF content share loss of 25% for the current generation of smartphones. Meanwhile, the optoelectronics segment remained solid, underpinned by rising 800G optical module demand. Inari’s Philippines plant (CK2.1) is expanding its scope beyond backend assembly process for the 800G production. The USD depreciation (weakened by 10% against MYR over the last 1 year) also impacted the group’s performance as more than 90% of its revenue is USD denominated. We estimate that every 5% depreciation of the USD against MYR would have a 15% impact on Inari’s earnings and a 2 3% impact on the net margin. We expect 2H’26 revenue to decline about 20% sequentially, consistent with normal seasonality as well as other factor such as unfavourable FX. Management is positive on regaining RF content market share for the iPhone 18 model under the mid-high band segment. Both Skyworks Solutions and Qorvo guided flattish content growth in the iPhone 18 series cycles, likely due to share loss to Broadcom in the high band RF segment. This may bode well for Inari, but they may not be the only winner given the presence of other RF assembly vendors who are also supporting Broadcom’s high band RF portfolio (such as ASE). NEUTRAL with RM1.48 TP. – PublicInvest Research, March 26

LSH’S construction and construction product segments remain the group’s key revenue drivers (>60% of total revenue). The segment delivers an industry-outperforming GPM of 35%, supported by cost efficiencies from its BEST Collaboration framework and integrated model, where 90% of construction products are used internally and can be reused across projects. As at Q1’26, the construction orderbook stood at RM1.3 billion (>7x FY25 construction revenue), providing earnings visibility through FY29. Around 60% of the orderbook is tied to in-house property development projects, while 32% relates to external infrastructure works. The property development segment is underpinned by ongoing projects, notably LSH Segar (GDV: RM395.9 million; 90% take-up rate) and Lake Side Homes (total GDV: RM1.15 billion). Lake Side Homes is set to launch its RM500 million GDV affordable homes in Q2’26, which has already secured a full waiting list, followed by the launch of its condominium phase in FY27. Supported by strong pre-launch demand and a phased rollout strategy, the development pipeline positions the segment to achieve record-high revenue through FY28. Post-listing, LSH expanded into the facilities management space, securing a 20-year concession in April 2025 to operate KL Tower, establishing a new recurring income stream. Since the takeover, ticket prices have increased by 80% with traffic remaining steady, while shoplot occupancy improved significantly from 50% to 82% YoY. There is potential for rental rate revisions after two years, which could further enhance recurring earnings. – RHB Research, March 26