02/04/2026

BIZ & FINANCE THURSDAY | APR 2, 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

Asean manufacturing slows on weak demand, rising costs KUALA LUMPUR: The Asean manufacturing sector recorded notable slowdowns in demand indicators in March, and sharp upswings in input costs and output charges, marking the sector’s weakest performance in six months, said S&P Global. In a statement yesterday, it said output growth and new orders were solid and on par, but considerably softer than the sharp expansions recorded in February. “This led to slower and only marginal upticks in both purchasing and employment. “At the same time, price pressures surged in March, with the survey’s price gauges moving back above their long-run averages,” it said. The S&P Global Asean Manufacturing Purchasing Managers’ Index fell to 51.8 in March. Although it signalled a moderate improvement in Asean’s manufacturing, extending the current expansion to nine months, the figure was the lowest since September 2025, highlighting a notable loss of growth momentum since February, it said. There were solid increases in new orders and output in March, continuing the expansion seen since the middle of 2025. But the rise in new orders was the weakest since last August, and production growth was the slowest in eight months. A decline in new export orders weighed on total sales. “In turn, firms adjusted their buying and hiring activity in March. Both rose marginally,” it said. Meanwhile, firms reduced their stocks of post-production items, the first month of destocking since last November, it said. – Bernama

THE ringgit extended earlier gains to end higher against the US dollar yesterday driven by renewed optimism among market traders following signs of possible de-escalation in the US-Iran war. At 6pm, the local currency rose to 4.0240/0295 against the greenback from Tuesday’s close of 4.0475/0520. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market traders are observing signs of a possible de-escalation in the US-Iran war as indicated by US President Donald Trump that they are looking to withdraw from the area within a few weeks. “Therefore, I think that has led to some form of optimism among the traders which led to the acquisition of ringgit,” he told Bernama. At the same time, he said the US dollar index fell by 0.35 per cent to 99.613 points, indicating a weaker greenback -- a reflection of optimism that the de-escalation in war between US and Iran could happen at some point in the near future. At the close, the ringgit was traded lower against a basket of major currencies. It weakened against the British pound to 5.3507/3580 from 5.3484/3543 at Wednesday’s close, fell versus the Japanese yen to 2.5358/5394 as compared with 2.5351/5381 previously, and slipped vis-à-vis the euro to 4.6666/6730 from 4.6417/6468. The local currency traded mixed against Asean currencies. It went down versus the Singapore dollar to 3.1369/1414 from 3.1361/1399 at Tuesday’s close and eased against the Philippine peso to 6.68/6.69 from 6.66/6.67. Ringgit ends higher on US-Iran de-escalation hopes

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0980 2.8470 3.1840 2.9400 4.7370 2.3620 3.1840 5.4220 5.1610 3.4060 59.6400 64.9800 52.6900 4.4700 0.0252 2.6000 43.3700 1.5200 6.8500 113.3700 110.0800 25.1100 1.3600 44.6300 13.1400 112.5900 N/A

3.9510 2.7310 3.0840 2.8570 4.5820 2.2750 3.0840 5.2490 4.9390

3.9410 2.7150 3.0760 2.8450 4.5620 2.2590 3.0760 5.2290 4.9240

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

106.6800 3.1580 57.0800 59.7700 50.0500

106.4800 2.9580 59.5700 49.8500 3.9500 0.0172 2.4690 39.6600 1.1600 6.2400 107.4300 104.3000 22.4700 0.9900 40.4300 11.2400 N/A N/A

4.1500 0.0222 2.4790

N/A

39.8600 1.3600 6.4400 107.6300 104.5000 22.6700 1.1900 40.6300 11.6400

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

Banking Overweight

Plantations Overweight

MyNews Holdings Bhd Buy. Target price: RM0.70

April 1, 2026: RM0.53

Source: Bloomberg

Source: PublicInvest Research

Source: PublicInvest Research

CORE profit of RM4.1 million (+0.9% YoY, -27.7% QoQ) met 15% of our and consensus’ forecasts. The negative deviation was mainly due to higher operating expenses and depreciation from its ongoing expansion. Revenue rose 10.5% YoY to RM238.4 million, driven by outlet expansion (699 stores vs 632 YoY). We also note from management that SSSG has remained broadly flat, suggesting that revenue growth continues to be driven by new store openings. EBITDA grew 4.8% YoY to RM31.5 million, although EBITDA margin declined to 13.2% (Q1’25: 13.9%) due to elevated cost pressures owing to higher labour costs associated with expansion, increased marketing expenditure, and higher head office maintenance costs. EBIT also declined on higher depreciation expenses. We expect Mynews to deliver continued growth, driven by store expansion, with management targeting 100 new store openings (ex-WHSmith) in FY26 (27 stores opened YTD). Management remains optimistic, with a strong pipeline of viable locations, particularly in transit hubs. Additionally, we expect CU to continue to be profitable, supported by more aggressive promotions, an improved stock-keeping unit (SKU) mix, and better site selection, enabling a gradual utilisation of RM55 million of carried-forward tax losses at the subsidiary level. WHSmith’s contribution grew 5.8% QoQ and 11.6% YoY, and we expect this trend to continue, supported by overall tourism momentum. We expect continued cost pressure from higher depreciation and labour expenses amid ongoing expansions, although this should normalise as store productivity improves. BUY with RM0.70 TP. – RHB Research, April 1

DESPITE external headwinds, business activities remained sound in 2H’25, supported by resilient domestic demand, which resulted in a credit to business growth of 5.1%. Businesses debt servicing remained healthy, with interest coverage ratio maintaining at 6.4x (1H’25: 6.4x). Asset quality remained healthy with pockets of stress arising from SMEs borrowers. However, overall share of firms-at risk improved by 2.2ppts to 23.7%. Moving forward, business sector outlook is expected to be driven by resilient domestic demand, sustained exports especially for the electrical and electronics goods and steady tourism activities. Overall household (HH) debt expanded by 5.6% in 2H25, mainly driven by housing and auto loans. HH debt-to-GDP ratio maintained at 84.8%, with limited signs of overstretched borrowers. Median debt service ratio (DSR) is also steady at 33%, suggesting continued ability to meet loan repayments. Buy now pay later (BNPL) volume and value increased to 140.3 million and RM11.9 billion respectively (1H’25: 102.6 million, RM9.3 billion). Despite the growth in BNPL transaction volume and value, asset quality seems manageable with share of overdue BNPL debt maintaining at 3.2%. The Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) remained healthy and above regulatory minimum at 154.8% and 115.7% respectively as at 2H’25 (1H’25: 160.5% and 115.7%). Banking system deposits rose 4.5% YoY, largely driven by growth from resident businesses and individuals. With year-end deposit competition easing and funding sources becoming more diversified, coupled with the July 25 OPR cut, banks saw a moderation in funding costs. – PublicInvest Research, April 1

WE see a high possibility of declining global palm oil production trend in the coming years as small planters, who made up about 15% and 41% of Malaysian and Indonesian oil palm plantations, are likely to hold back their replanting plans and cut the fertiliser applications, given the current high CPO prices and hefty fertiliser costs. In our view, we foresee it could have a severe impact on the FFB yield performance for both Malaysia and Indonesia in the subsequent years. The situation might be exacerbated by the extreme hot weather this year, which could have a negative impact on the biological stress of palm trees, resulting in increased bunch failure. Meanwhile, Malaysian Palm Oil Council projects that about 35% (2m ha) of Malaysian oil palm plantations will be 19 years or older by next year compared to around 30% (1.7m ha) this year, putting more pressure on the output from the world’s second largest producer. The warming El Niño weather phenomenon could form later this year, potentially pushing temperatures across the Southeast Asian region to record heights. According to the US National Oceanic and Atmospheric Administration, there is a 50-60% possibility of El Niño developing during the July-Sept period and beyond. Meanwhile, the Malaysian Meteorological Department expects the country to gradually transition towards a weak El Niño phase between June and August. The prolonged dry weather could stress oil palm trees, resulting in an abortion of FFB. Based on past events, we estimate that the El Niño could affect the FFB production by up to 16% and cut the CPO production by up to 14% in the subsequent years if a strong El Niño occurs. – PublicInvest Research, April 1