08/04/2026

BIZ & FINANCE WEDNESDAY | APR 8, 2026

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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

Penang unveils Malaysia’s first Local Plan for greenfield area GEORGE TOWN: Penang yesterday launched its Publicity and Public Participation Programme for the Final Report of the Draft of the Penang Silicon Island Local Plan (RTPSI) 2050, which was specifically designed for a greenfield area or fully reclaimed development. Chief Minister Chow Kon Yeow said the RTPSI 2050, which is the first Local Plan in Malaysia, integrates Geographic Information Systems and Building Information Modelling (GeoBIM) databases, a digital revolution that makes planning documents more flexible, adaptive and investor-friendly. “The Silicon Island development is seen as a new canvas for the state to draft a future city that is progressive, sustainable and resilient,” he said at the launch of the programme yesterday. He added that Silicon Island is not merely a land reclamation project, but a “new canvas” for building a future city model that balances rapid economic progress and environmental sustainability. Chow said the artificial island is targeted to become a 930.777ha Global Gateway capable of addressing the shortage of industrial land in the state, with the economic impact contribution of up to RM1.1 trillion to the country’s GDP by 2050. In addition, he said a total of 220,000 new jobs are expected to be created, encompassing the high-tech, creative economy and modern services sectors, while urging the public to seize the opportunity during the publicity period until May 8 to submit their views as co-creators of the development of Silicon Island. The Silicon Island is a Penang-owned reclamation project developed by the state government to ensure long-term economic growth. – Bernama

THE ringgit closed almost flat against the US dollar yesterday as investors remained cautious amid the ongoing conflict in West Asia. At 6pm, the local note was almost flat against the greenback, being slightly lower at 4.0275/0320 compared with 4.0245/0320 at Monday’s close. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit traded within a narrow range against the US dollar as traders monitor the latest developments. He said US President Donald Trump’s ultimatum on Iran to reopen the Strait of Hormuz was the main focus among traders. “Brent crude prices rose to as high as US$111 per barrel before easing to around US$109 per barrel, reflecting a cautious trading environment throughout the day,” he told Bernama. At the close, the ringgit traded mostly lower against a basket of major currencies. It slid against the euro to 4.6566/6618 from 4.6483/6570 and fell against the British pound to 5.3425/3484 compared with 5.3305/3404 from Monday’s close. Meanwhile, the ringgit edged up against the Japanese yen to 2.5229/5258 from 2.5241/5290. At the same time, the local currency traded mostly higher against Asean currencies. It was higher versus the Thai baht to 12.3809/4021 from 12.3831/4138, rose against the Philippine peso to 6.68/6.69 from 6.70/6.72, and appreciated against the Indonesian rupiah to 235.4/235.8 from 236.2/236.8. The ringgit was marginally lower against the Singapore dollar, falling to 3.1381/1419 from 3.1346/1407 previously. Ringgit almost flat against US dollar as caution lingers

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1050 2.8490 3.1870 2.9420 4.7310 2.3470 3.1870 5.4260 5.1620 3.3920 59.8700 64.8900 52.7900 4.4900 0.0251 2.5850 43.2900 1.5300 6.9200 113.4700 110.2200 25.1700 1.3700 44.6800 13.1300 112.7400 N/A

3.9590 2.7340 3.0860 2.8590 4.5760 2.2600 3.0860 5.2520 4.9400

3.9490 2.7180 3.0780 2.8470 4.5560 2.2440 3.0780 5.2320 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

106.8900 3.1590 57.3400 59.7000 50.1500

106.6900 2.9590 59.5000 49.9500 3.9800 0.0172 2.4560 39.6200 1.1600 6.3100 107.5200 104.4300 22.5300 0.9900 40.4800 11.2300 N/A N/A

4.1800 0.0222 2.4660

N/A

39.8200 1.3600 6.5100 107.7200 104.6300 22.7300 1.1900 40.6800 11.6300

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

Construction Overweight

IJM Corp Bhd Buy. Target price: RM3.43

Sunway Bhd Buy. Target price: RM6.11

April 7, 2026: RM2.28

April 7, 2026: RM5.00

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

AS at the 5pm April 6 deadline, Sunway received valid acceptances under its voluntary takeover offer (VTO) of IJM Corp, amounting to 33.4% of total voting shares in IJM. As such, SWB did not receive sufficient valid acceptances for the VTO, for which it would have needed in aggregate >50% of voting shares in IJM. With the VTO not materialising, the status quo retains IJM’s opportunity to demonstrate value crystallisation via the listing of its construction business, exiting India (for its toll highways and property projects), and injecting its local highway assets into a trust (or also listing it) within the next two years. Materialisation of such plans may provide further visibility on IJM’s standalone value, as its current conglomerate structure brings about valuation noise. We expect IJM’s FY27 core earnings to see positive growth underpinned by: i) Accelerated progress billings for ongoing data centre (DC) contracts, estimated at 45-50% of IJM’s balance domestic orderbook of RM8.2 billion as per our projections; ii) focusing on more targeted pockets of development rather than large-scale townships; and iii) a gradual rationalisation of its India operations. Cargo throughput in Kuantan Port is also set to see higher growth as a major client is expected to complete major maintenance works. IJM’s industry division is often overlooked. The division (represented by the spun piles manufacturing business, among others), which contributed 24% of FY25 PBT has seen a 4-year (FY21-25) PBT CAGR of 29%. Future growth may be anchored by its newest Bestari Jaya automated pile factory (the largest in Asean) with a monthly production capacity of 60k tonnes. BUY with RM3.43 TP. – RHB Research, April 7

SUNWAY’s offer to take over IJM has not received sufficient support from the latter’s shareholders. As the acceptance level has only reached 33.43% (below the 50% + 1 share threshold), the entire offer is now withdrawn. This should not dissuade Sunway’s management from pursuing organic and inorganic growth, and the group is always on the lookout for acquisition opportunities – either development land, investment properties or companies with strategic assets. Acceptance level fell below the 50% + 1 share mark. The conditional voluntary takeover offer for IJM has lapsed following the close of acceptance at 5pm on April 6. As Sunway has only received 33.43% acceptance, the acceptance condition has not been fulfilled. All acceptances will be returned to the accepting holders. Although the merger did not materialise, Sunway’s organic growth is likely to underpin near-term earnings, via Sunway Construction’s more aggressive orderbook replenishment target of RM6 billion (from RM5.2 billion achieved in FY25), higher new launches and sales target (RM4.2 billion from RM3.8 billion in FY25), Sunway Healthcare’s expansion, as well as the recent acquisition of MCL Land in Singapore. Sunway’s solid earnings track record (from a core net profit of RM461 million in FY20 to RM1.16 billion in FY25) reinforces our expectation on management’s future execution capabilities. Despite the disappointment this round, we think management will still pursue inorganic growth opportunities. Sunway’s offer to take over IJM does indicate its appetite to acquire any company that holds strategic assets worth up to RM11-12 billion, and the group is

THE US-Israel vs Iran conflict potentially poses risks in terms of higher energy prices, which implies that data centre (DC) operators may have to incur higher electricity costs in Malaysia. However, based on our preliminary analysis, we view that any rise in electricity costs in light of higher energy prices to still be manageable. Using Tenaga Nasional’s bill calculator, we found that the electricity bill for a 100MW DC with a 1.2 power usage effectiveness ratio may incur a monthly electricity bill that is 7% higher, based on the maximum Automatic Fuel Adjustment (AFA) surcharge of +3sen/kWh vs the latest AFA rebate of -0.47sen/kWh for April. In July 2025, when TNB transitioned into the new tariff structure, DCs were already expected to incur 10-15% higher electricity costs (before surcharges), so any potential rise similar or lower than this quantum is likely manageable. The AFA is capped at 3 sen per kWh — and anything exceeding this threshold will require Cabinet approval. Costs to develop a DC in Malaysia are relatively affordable vs other markets. Referring to Cushman & Wakefield’s APAC DC Construction Cost Guide 2026, Malaysia’s mid-range DC construction costs of US$9.6 million per MW remains lower than that of Japan, Singapore, South Korea, Australia and Hong Kong – and only slightly more expensive than in New Zealand and Thailand. Even with risks of higher material costs amid potentially steeper material prices, we view that such risks may apply to other countries too as material prices are correlated with energy prices (i.e. oil price). – RHB Research, April 7

able to fund with a cash pile of RM1.1-1.2 billion. BUY with RM6.11 TP. – RHB Research, April 7