31/03/2026

BIZ & FINANCE TUESDAY | MAR 31, 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

Bond yields rise as investors reassess ‘prolonged war’ risks KUALA LUMPUR: The Malaysian Government Securities (MGS) and Government Investment Issues (GII) yields mostly rose last week, moving between -0.5 to 8.8 basis points (bps). The 10-year MGS increased 4.8 bps to 3.603%, while the 10-Y GII rose 4.9 bps to 3.586%. Kenanga Investment Bank Bhd (Kenanga IB) said domestic yields tracked firmer global rates as the “prolonged war” narrative gained traction. “Resilient fundamentals and semiconductor optimism provided some support, but the ringgit’s depreciation towards 4.00 against the USD weighed on sentiment. “Escalating Middle East tensions and US troop deployments sustained upside risks to energy-driven inflation elevated.“ Consequently, the festive-shortened week, investors turned defensive as they assessed risks from a potential massive disruption to the Strait of Hormuz, it said. Kenanga IB said foreign investors remained net buyers with RM5.1 billion in inflows in the previous week. Momentum may ease as the ringgit nears the 4.00 psychological handle. Kenanga IB said the MGS yields are likely to face upward pressure next week as markets price in a conflict extending into late 2026. “Domestic focus will be on the BNM Economic and Monetary Review 2025 and potential fuel subsidy adjustments. “We expect yields to trend higher alongside a hawkish Fed until clearer signs of de-escalation emerge,“ Kenanga IB said. On US Treasury, Kenanga IB said yields pushed higher across the curve, as investors recalibrated expectations amid renewed inflation concerns and a backdrop of rising geopolitical risk.

THE ringgit and other regional currencies continued to weaken against the US dollar yesterday as investors sought safety in safe-haven assets amid escalating tensions in the US-Israel war. At 6pm,the local currency fell to 4.0280/0350 against the greenback from last Friday’s close of 4.0105/0140. Regional currencies, including the Singapore dollar, Indonesian rupiah and Philippine peso, also weakened against the US dollar. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said that despite market jitters, JP Morgan has issued a positive review, noting that Malaysia is well-positioned to withstand current challenges. “Malaysia is still a net oil exporter, and fiscal consolidation exercise in the past two years may have contributed to improving fiscal space, which should be positive for the ringgit,” Mohd Afzanizam said. Mohd Afzanizam said this week the market will be observing the United States labour market data on Nonfarm Payrolls (NFPs) on Friday. February NFPs contracted 92,000, with consensus pencilling in 56,000 jobs to be created in the upcoming data. He said signs of softening US labour market data have become more visible. “This is especially true when gasoline prices have gone up significantly following the war in Iran, leading to weak business and consumer sentiment. “Ultimately, traders and investors are looking for signs of the impact from the war in Iran and how that translates into Federal Open Market Committee (FOMC) decisions going forward,” he added. Ringgit, regional currencies end lower against greenback

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0900 2.8120 3.1660 2.9360 4.7000 2.3480 3.1660 5.4130 5.1420 3.3830 59.4000 64.4800 52.6300 4.4000 0.0252 2.5720 43.0300 1.5200 6.8300 113.0300 109.8200 24.6700 1.3600 44.4600 12.9300 112.3400 N/A

3.9400 2.6960 3.0640 2.8500 4.5430 2.2590 3.0640 5.2360 4.9170 3.1490 56.8300 59.2600 49.9500 4.0800 0.0222 2.4500 39.4700 1.3600 6.4200 107.3000 104.2600 22.2600 1.1900 40.4400 11.4500 106.3600 N/A

3.9300 2.6800 3.0560 2.8380 4.5230 2.2430 3.0560 5.2160 4.9020

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

106.1600 2.9490 59.0600 49.7500 3.8800 0.0172 2.4400 39.2700 1.1600 6.2200 107.1000 104.0600 22.0600 0.9900 40.2400 11.0500 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

Power & Utilities Sector Overweight

Binastra Bhd Buy. Target price: RM2.63

Kim Loong Resources Bhd Buy. Target price: RM2.72

March 30, 2026: RM2.51

March 30, 2026: RM1.95

Source: Bloomberg, TA Research

KIM Loong Resources 4QFY26 results came in broadly in line with expectations. Core net profit surged 69.8% YoY to RM37.9mn, driven by a 14.3% increase in revenue, mainly supported by stronger milling contributions. For FY26, cumulative net profit rose to RM169.7mn, meeting 101% of our forecast and 102% of consensus. Revenue grew 8.3% YoY to RM1.8bn. For plantation, FY26 profit increased 11.6% YoY to RM157.5mn, supported by higher FFB prices (+2.5% to RM846/tonne) and stronger production (+6.4% to 330.0k tonnes). For palm oil milling: Despite slightly lower CPO prices (- 1.1% YoY to RM4,245/tonne), profit rose 4.2% YoY to RM122.2mn, driven by higher sales volume (+6.0%) and improved margins.The group declared a second single-tier dividend of 6sen/share, bringing FY26 total dividends to 14sen/share (vs. 15sen in FY25). Management guides for ~5% FFB production growth in FY27, supported by a more favourable age profile of maturing palms and continued replanting efforts. The group replanted 490 ha in FY26 and plans to increase replanting to approximately 700 ha in FY27. Management expects CPO prices to range between RM4,000– RM4,500/tonne in FY27, alongside targeted processing throughput of 1.6mn tonnes of FFB. Heightened Middle East tensions have lifted oil and freight costs, improving biodiesel economics and underpinning palm oil demand. Higher diesel prices enhance Indonesia’s B40 blending incentives, while precautionary buying across Asia amid potential supply disruptions is supporting near-term CPO prices, in our view. Maintain BUY with revised TP of RM2.72. – TA Research, March 30

Source: Bloomberg, TA Research

Source: Bloomberg, Phillip Capital Research

THE US-Iran war and subsequent blockade of the Strait of Hormuz has abruptly sent global fuel prices soaring. For Malaysia, regulated gas input cost could partly cushion the impact on domestic electricity tariff. Rather, coal price volatility has a more direct impact on generation cost based on the 2022 Russia-Ukraine war experience. For domestic utilities, the existence of cost pass-through elements to a large extent insulates the impact of higher fuel prices on industry players. In fact, operators of coal power plants like MALAKOF and TENAGA might benefit from positive fuel margins. YTLPOWR, which operates in Singapore’s merchant electricity market, could benefit from rising spot rates and more favourable retail contracts, while RE players could benefit from improved RE economics against rising grid power cost. Nevertheless, the war highlights the structural risk of fuel concentration in a country’s electricity supply system. Gasbased generation capacity buildout is accelerating with the latest NewGen26 tender, in line with the National Energy Transition Roadmap. However, nuclear is being actively explored to complement gas and RE, especially given sizeable expiry of coal PPAs from 2029 onwards. From a regional standpoint, the ASEAN Power Grid could become increasingly important in maintaining electricity access stability. We maintain our Overweight stance on the Utilities sector premised on new generation capacity buildout, grid capex to accommodate demand and RE integration, record RE rollout and expansion of gas supply infrastructure. TENAGA (TP: RM18.00), MALAKOF (TP: RM1.29) and SAMAIDEN (TP: RM1.96) remain our top sector picks. – TA Research, March 30

BNASTRA delivered another strong set of results, with FY26 core earnings of RM134m (+48% YoY), in line with both our and consensus expectations at 104% and 101% respectively. FY26 revenue grew 59% YoY to RM1.5bn, underpinned by 60% increase in order book to RM5.8bn from RM3.6bn at end FY25. EBITDA margin eased marginally by 1.1ppts YoY to 13%, largely due to a higher revenue mix from DC projects, which typically carry lower margins. BNASTRA declared a FY26 DPS of 6.5sen (payout ratio: 53%) and guided for a higher payout in FY27. In line with this, we raise our FY27-28E DPS assumption to 7.0sen (from 5.0sen in FY27E and 6.5sen in FY28E). Sequentially, 4QFY26 core net profit rose 13% QoQ to RM42m supported by a 29% QoQ revenue growth on higher number of active project sites and contribution from LF Lansen. Of the RM7.1bn outstanding order book, 70% are residential project while the remaining 30% from DCs and RE projects. Strategically, BNASTRA focus remains on expanding its presence in DC and RE projects while its residential segment is well supported by a sizeable existing pipeline, including RM3bn worth projects in Johor. BNASTRA is targeting at least 1-2 new DC projects wins in FY27, with a combined contract value of RM0.5-1.0bn from both new and existing clients. Operationally, management highlighted that construction costs remain manageable, with no material impact observed thus far, as building projects are less reliant on diesel (<1% of cost of sales in FY26) than infrastructure projects. Reiterate BUY with RM2.63 TP. – Phillip Capital Research, March 30