01/04/2026

BIZ & FINANCE WEDNESDAY | APR 1, 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

Petronas keeping close tabs on Malaysia’s fuel supply KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) continues to closely monitor the nation’s fuel supply to help safeguard stability nationwide amid the ongoing crisis in West Asia. The national oil firm said even though Malaysia is an oil producing nation, it is not fully insulated from the impact of the crisis. Nearly 40% of the country’s crude oil requirements transit through the Strait of Hormuz, the company said. Since the onset of the crisis, crude oil prices have risen by almost 40%. Consequently, global shipping costs, insurance premiums and delivery-related logistics have also increased significantly. All these developments have impacted Malaysia’s fuel supply security, Petronas noted. On the product side, national demand continues to exceed domestic supply. To address this shortfall, Petronas leverages its integrated value chain, working through its subsidiaries to secure sufficient petrol and diesel supplies to support its market share of nearly 50% through May 2026. The balance is being supplied by the other oil companies operating in Malaysia. Meanwhile, Petronas said the retail fuel prices in Malaysia are regulated by the government via the Automatic Pricing Mechanism. Despite global pressures, the government provides subsidies for RON95 and diesel to cushion the impact on rakyat, making fuel prices in Malaysia currently among the lowest in the region. “Petronas will continue to work closely with the government and relevant stakeholders to manage any potential disruptions and to prioritise the nation’s energy security and well-being.”

THE ringgit and its regional peers continued to trade lower against the US dollar yesterday, as market sentiment remained fixated on the conflict in Iran and the elevated global energy crisis. At 6pm, the local currency fell to 4.0475/0520 against the greenback from Monday’s close of 4.0280/0350. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market sentiment remained guarded, with investors highly alert to developments in the West Asia conflict while awaiting a series of key data releases, including the US ISM Index for the manufacturing and services sectors later this week. “It will be interesting to see how business sentiment fares in March after enduring high fuel prices,” he added. He noted that Bank Negara Malaysia has released its latest macroeconomic forecast, with the country’s GDP growth at between 4% and 5% this year. At the close, the ringgit was traded lower against a basket of major currencies. It weakened against the British pound to 5.3484/3543 from 5.3311/3403 at Monday’s close, fell versus the Japanese yen to 2.5351/5381 as compared with 2.5237/5282 previously, and slipped vis-à-vis the euro to 4.6417/6468 from 4.6294/6374. The local currency also traded lower or flat against Asean currencies. It dropped versus the Singapore dollar to 3.1361/1399 from 3.1227/1284 registered at Monday’s close, weakened versus the Indonesian rupiah to 237.5/237.8 from 236.9/237.4, and eased against the Philippine peso to 6.66/6.67 from 6.63/6.65. Ringgit, regional currencies soften on West Asia, US data

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1125 2.8220 3.1750 2.9430 4.7030 2.3510 3.1750 5.4070 5.1610 3.4010 59.7300 64.5300 52.8900 4.4400 0.0253 2.5880 43.1800 1.5300 6.8600 113.8000 110.4800 24.6900 1.3700 44.1600 13.0200 112.9800 N/A

3.9665 2.7080 3.0750 2.8600 4.5500 2.2640 3.0750 5.2350 4.9400

3.9565 2.6920 3.0670 2.8480 4.5300 2.2480 3.0670 5.2150 4.9250

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

107.0800 3.1700 57.1900 59.3700 50.2500

106.8800 2.9700 59.1700 50.0500 3.9200 0.0173 2.4580 39.5100 1.1700 6.2500 107.8300 104.6800 22.1000 0.9900 40.0200 11.1400 N/A N/A

4.1200 0.0223 2.4680

N/A

39.7100 1.3700 6.4500 108.0300 104.8800 22.3000 1.1900 40.2200 11.5400

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

Kawan Renergy Bhd Outperform. Target price: RM0.54

Ta Ann Holdings Bhd Neutral. Target price: RM4.95

SD Guthrie Bhd Outperform. Target price: RM6.79

March 31, 2026: RM0.425

March 31, 2026: RM5.42

March 31, 2026: RM6.06

Source: PublicInvest Research

Source: PublicInvest Research

Source: Bloomberg

SD Guthrie is navigating a complex global landscape marked by the Middle East geopolitical tensions. Fertiliser costs, which account for 27–28% of direct costs, have been fully locked in for 2026. Diesel, comprising less than 5% of direct costs, remains a manageable risk in Malaysia but poses a higher threat to Indonesian operations due to reliance on diesel-powered mills. While direct exposure to the Middle East is limited (approx. 1 vessel/month to Europe), a prolonged conflict would cause the escalation of global bunker fuel charges and a delay in palm oil shipments, particularly for its Papua New Guinea operations. Management clarified that the recent government-linked company asset disposal rulings regarding 50% effective Bumiputera ownership are unlikely to curtail its existing projects, such as Eco Business Park 7 (SD Guthrie: 30% stake) and Eco Business Park 8 (SD Guthrie: 25% stake). Most partnerships have roped in state governments (10–20%) to mitigate the risks to equity requirements. The group has locked in about 42% of its Malaysian production for April–December 2026 at an average CPO price of RM4,400/mt, slightly below the current MPOB spot price of RM4,466/mt. The Malaysian Cabinet has recently approved a proposal from the Selangor state government to build the third international port on Carey Island after Northport and Westport. The move comes after Prime Minister Datuk Seri Anwar Ibrahim issued a directive for all relevant parties to accelerate progress on the Carey Island terminal. This is positive for SD Guthrie, which owns 79% of the island or 28,646 acres, as it has three pending land joint-venture deals there (Yayasan Selangor, Sime Darby Property, and IJM Corp). Outperform with RM6.79 TP. – PublicInvest Research, March 31

KAWAN Renergy Bhd operates through its subsidiaries: Kawan Engineering Sdn Bhd, Kawan Green Energy Sdn Bhd, Kawan Environmental Sdn Bhd, Magenko Bio Energy Sdn Bhd and Magenko Renewable Asia Sdn Bhd. The group provides high quality engineering products and services, supported by continuous research and development, while offering a wide range of solutions to meet the diverse needs of industries, driving innovation, reliability, and sustainable growth. Q1’26 revenue rose by 4.0% QoQ and 51.3% YoY to RM44.4 million, mainly supported by stronger contributions from the process plant segment, which surged 176.5% QoQ (though still down 61.5% YoY), indicating a pickup in project execution. Industrial process equipment remained the core earnings driver at RM16.5m, broadly stable QoQ (-0.7%) and improving 14.3% YoY, underpinning base revenue resilience. Meanwhile, renewable energy and cogeneration declined 6.0% QoQ to RM22 million but recorded a sharp YoY expansion, suggesting lumpy recognition tied to project timing. Power generation and others remained negligible. Overall, the revenue mix continues to reflect a project-driven profile, with volatility largely stemming from timing of project recognition. The continued slowdown in orderbook replenishment is a key concern, as it raises execution risk and weakens earnings visibility heading into FY26, particularly given the project-based revenue model. With the orderbook falling below the RM100 million threshold, we view the current level as insufficient to sustain a stable earnings trajectory, as it implies a thinner pipeline of projects available for near-term conversion. Outperform with RM0.54 TP. – PublicInvest Research, March 31

TAH is guiding for FFB to grow by 12.6% YoY to 773k tonnes this year, supported by an expanding mature area (2,170 ha) and higher projected FFB yields of 17.14 tonnes/ha (vs 16.95 tonnes/ha in 2025). 2M26 production grew 7.2% YoY, aided by a shift to dry weather vs the prolonged rain seen in early 2025. We raise our FFB growth projections to 4.4-8.2%, from 1.2-7.6%, for FY26-28. Management expects FY26 unit costs to remain flattish at RM 2,000/tonne, on the back of volume expansion and lower 1H’26 fertiliser costs (-5% YoY). We cut our unit cost assumptions accordingly, by 5% for FY26 and by 2% for FY27-28. YTD, the CPO price has rallied 15.2%, averaging RM4,171/tonne. As a pure planter, TAH is highly sensitive to CPO prices, where every RM100/tonne change affects earnings by 12 15%. Should CPO prices be sustained at the current RM4,500/tonne level throughout FY26, our earnings estimates would increase by 30%. Should this pan out and assuming a dividend payout ratio of 70-80%, DPS could rise to 52 sen (from 40 sen currently), ie yield of 9.75% (vs 7.6% currently) Should CPO prices fall, TAH would be more susceptible to this change than its peers. 2M’26 log production surged 159% due to a low base effect, good weather, and higher logging quota. As such, we raise FY26-27 log output growth to 6.5-9.3%, from -0.5-5.3%. TAH is diversifying its plywood export footprint. As of Jan 2026, the geographical mix is split evenly between Japan and Yemen (from 95% to Japan previously). Management anticipates strong demand from Yemen, driven by post-conflict reconstruction needs. Neutral with RM4.95 TP. – RHB Research, March 31