30/03/2026

BIZ & FINANCE MONDAY | MAR 30, 2026

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Malaysian Paper

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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

ASNB declares RM2.36 billion payout for ASB 2, ASM KUALA LUMPUR: Amanah Saham Nasional Bhd (ASNB), the unit trust arm of Permodalan Nasional Bhd (PNB), has declared a total income distribution of RM2.36 billion for the financial year ended March 31, 2026, covering two fixed-price funds – Amanah Saham Bumiputera 2 (ASB 2) and Amanah Saham Malaysia (ASM). ASB 2 will pay out RM0.82 billion, or 5.50 sen per unit, to 680,141 unitholders who collectively hold 15.88 billion units. ASM, meanwhile, declared RM1.54 billion, equivalent to 5.00 sen per unit, to 786,088 unitholders, representing 31.22 billion units. As of March 24, ASB 2 recorded net realised income of RM0.90 billion, while ASM posted RM1.64 billion. Both funds maintained returns in line with the previous year despite a volatile global environment marked by uneven growth and geopolitical tensions. ASNB said a disciplined asset allocation strategy, with diversification across fixed income, real estate and private investments, helped cushion market swings. Higher exposure to fixed-income assets, in particular, provided more stable and consistent income during uncertain periods. The distributions translate into total returns of 5.50% for ASB 2 and 5.00% for ASM, outperforming Maybank’s 12-month fixed deposit rate of 2.18%. Income distribution is calculated based on the average minimum monthly balance held throughout the financial year and will be automatically reinvested into unitholders’ accounts on April 1, 2026. Transactions at ASNB branches, agents, and online platforms will be temporarily suspended from March 27 to 31 to facilitate the distribution exercise.

THE ringgit is expected to trade around the 4.00 level against the US dollar this week, as expectations of a prolonged West Asia conflict weigh on the currency. Kenanga Investment Bank Bhd (Kenanga IB) said investors are likely to remain overweight on the greenback as a hedge against renewed escalation once the US 10-day pause on strikes against Iran’s energy facilities ends. “The ringgit’s initial outperformance faded in a late-cycle correction, as the benchmark Brent crude oil holding near US$100 (RM400) per barrel has heightened US inflation concerns. “Consequently, investors have priced in a more hawkish Federal Reserve (Fed), supporting the greenback,” it said in a note. Kenanga IB anticipates the West Asia conflict to extend into the third quarter of 2026 (Q3’26), keeping the Fed restrictive until Q4’26. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that US President Donald Trump’s 10-day extension for Iran to reopen the Strait of Hormuz failed to calm the crude oil market. He told Bernama that the growing concerns among Fed members regarding rising inflation risks, which now outweigh worries about weak employment, have created a policy dilemma for the US central bank. “As such, the ringgit is likely to stay weak, maintaining its current trajectory of around RM4.00 versus the US dollar in light of the heightened economic fallout from the oil shock.” Over the past week, the ringgit fluctuated between RM3.92 and RM3.99 against the US dollar. However, it lost momentum and reached RM4.00 at midday on Friday due to increasing demand for the safe-haven dollar. Hawkish Fed bets, oil shock to keep ringgit at 4.00 vs US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0750 2.8110 3.1600 2.9310 4.6910 2.3490 3.1600 5.4220 5.1440 3.3870 59.1900 64.3500 52.4700 4.4100 0.0252 2.5660 43.0000 1.5100 6.8500 112.4300 109.4900 24.6100 1.3600 44.4200 12.8700 111.9400 N/A

3.9290 2.6980 3.0610 2.8490 4.5380 2.2620 3.0610 5.2490 4.9240

3.9190 2.6820 3.0530 2.8370 4.5180 2.2460 3.0530 5.2290 4.9090

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

106.0900 3.1410 56.6700 59.1900 49.8500

105.8900 2.9410 58.9900 49.6500 3.8900 0.0172 2.4370 39.3400 1.1500 6.2400 106.5400 103.7400 22.0100 0.9900 40.2400 11.0100 N/A N/A

4.0900 0.0222 2.4470

N/A

39.5400 1.3500 6.4400 106.7400 103.9400 22.2100 1.1900 40.4400 11.4100

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

VS Industry Bhd Neutral. Target price: RM0.27

ICT Zone Asia Bhd Buy. Target price: RM0.31

UWC Bhd Buy. Target price: RM5.75

March 27, 2026: RM0.235

March 27, 2026: RM4.08

March 27, 2026: RM0.185

Source: PublicInvest Research

Source: Bloomberg, Phillip Capital Research

Source: Bloomberg, TA Capital Research

UWC’S order book rose to a record RM250m in 2QFY26, driven by strong order momentum from its largest FE customer, riding on sustained demand ramp-up. FE order book currently accounted for 45% (from 35%) of the group’s total order book. Management is optimistic on volume growth, with discussions surrounding a potential tiered rebate mechanism tied to an annual order threshold of US$60m, which could incentivise higher order commitments and potentially translate into 2-3x upside from the current RM120m contribution. UWC expects mechatronics and mechanical components to contribute 75% of its revenue mix. Meanwhile, a new FE customer is expected to complete its factory setup within the next 8 weeks, after which order loading to UWC is anticipated to commence. UWC has been granted pioneer status for its FE segment, entitling it to a 70% income tax exemption over 2024-29, implying a group effective tax rate of 15%. BE weekly test handler output remains stable at 20 units, with R&D for a new tester expected to complete by end-Apr, after which weekly capacity should increase to 25 units. Meanwhile, an older key BE customer is experiencing an unexpected ramp-up in demand for its system level tester, now accounting for 15% of its current order book, leading UWC to expand its supplier base to meet higher requirements. We gather that the customer has also requested UWC to build up inventories by 20-30% to ensure smooth delivery and meet demand. Material supply remains manageable with customer supporting on both material sourcing and cash funding. Logistics costs have increased, with management still assessing the full impact, though it remains manageable for now. Maintain BUY and RM5.75 TP. - Phillip Capital Research, March 27

ON March 27, ICT Zone Asia Bhd announced that its wholly owned subsidiary, ICT Zone Sdn Bhd, has secured a RM24.5mn purchase order from an undisclosed ICT hardware distributor in trading and delivery of ICT hardware such as laptops and peripheral devices on an undetermined date. The deal will be funded through bank borrowings and internal funds. This represents ICTZONE’s fifth contract win in the year 2026, underscoring a strong start to the year and reinforcing visibility over its near-term revenue pipeline. The steady cadence of wins early in the year highlights the group’s consistent ability to secure sizeable one-off trading contracts that complement its core business. Assuming a net margin of 6.0%, in line with our trading segment assumption, this order is estimated to contribute approximately RM1.5mn to net profit upon fulfilment, providing incremental support to nearterm earnings. The continued traction in contract wins also suggests that ICTZONE’s execution capabilities and client penetration remain intact. Overall, while this contract is already factored into our forecasts, the sustained deal flow strengthens our confidence in the group’s ability to consistently replenish its orderbook and deliver on its earnings growth trajectory. As this purchase order is already within our assumptions, we make no changes to our earnings estimates. We continue to favour ICTZONE for its: (i) recurring, contract backed earnings, (ii) unique multi-lifecycle model that enhances margins and capital efficiency and (iii) structural tailwinds from the government’s ongoing digitalisation agenda. We reiterate our Buy recommendation with a target price of RM0.31. - TA Capital Research, March 27

VS Industry swung into a core net loss of RM31m in 2QFY26 from a core net profit of RM7.4m in 2QFY25, driven primarily by a pullback in orders from key customers against a backdrop of softening global consumer sentiment. Cumulative 1HFY26 results came in well below both our and consensus expectations, representing only 4% and 2% of respective full-year estimates. The discrepancy in our forecast was largely due to the weaker-than expected order volumes from key customers. Compounding this, the recent escalation of geopolitical tensions, particularly in the Middle East, has heightened global risk aversion and introduced further supply chain uncertainties. 2QFY26 revenue declined 15.3% YoY to RM769.5m, weighed down by weaker contributions from both Malaysia and Indonesia operations, which contracted 4.4% and 6.5% YoY, respectively. The revenue shortfall was primarily driven by reduced order volumes from key customers, as soft global consumer sentiment dampened demand. Additional uncertainties stemming from the US Supreme Court’s deliberation on reciprocal tariffs, alongside the resurgence of Middle East conflict, prompted VS’ key customers to adopt a more cautious stance, reassessing their sourcing and procurement strategies and, in turn, placing fewer orders. 2QFY26 core net loss at RM31m, compared to a core net profit of RM7.4m in 2QFY25, consistent with the weaker topline performance. The loss was largely attributed to lower overall production capacity utilisation, compounded by cost optimisation efforts undertaken from its customers. We downgrade our rating from Trading Buy to Neutral with a lower TP of RM0.27. - PublicInvest Research, March 27