16/04/2026

BIZ & FINANCE THURSDAY | APR 16, 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

5E Resources eyes growth from B15 biodiesel push KUALA LUMPUR: Waste management services provider 5E Resources Holdings Bhd is poised to leverage the government’s move to raise the biodiesel blend rate to B15, expecting increased waste generation from the biodiesel industry to support its growth. CEO Lim Te Hua said the group’s expansion in Johor Bahru, slated to commence operations in the second half of 2026, would enable it to handle a larger share of waste from customers. He said the group currently manages only 20% of waste from one biodiesel industry customer in Tanjung Langsat, Johor Bahru, due to quota constraints. “Hopefully, with our PLO 321 facility (in Johor), we can handle more. Because of quota limitations, we currently take about 200 metric tonnes from their total volume. “With the new facility, this could rise to 50% from the current 20%,” he told reporters after the group’s listing ceremony yesterday. 5E Resources debuted on the ACE Market of Bursa Malaysia at 28.5 sen, a premium of 2.5 sen over its initial public offering price of 26 sen, with 36.22 million shares traded. This week, Economy Minister Akmal Nasrullah Mohd Nasir announced that the government had agreed to raise the biodiesel blend rate from B10 to B15 to help sustain Malaysia’s diesel supply following the crisis in West Asia. Meanwhile, chief operating officer Shankar Narasingam said the government’s move to review the implementation of the carbon tax was a positive development for the industry. – Bernama Eco World Development Group Bhd Buy. Target price: RM2.29

THE ringgit closed lower against the US dollar yesterday on profit taking following recent gains, said an analyst. At 6pm, the local currency inched down to 3.9550/9600 versus the greenback from 3.9500/9545 at Tuesday’s close. IPPFA Sdn Bhd investment strategy director and country economist Mohd Sedek Jantan told Bernama that the ringgit is behaving as a high-beta regional proxy, with recent outperformance leaving it vulnerable to near-term profit-taking and flow-driven adjustments, even as Malaysia’s macro backdrop remains intact. He opined that the ringgit’s fall yesterday is best understood as a function of global positioning rather than any erosion in domestic fundamentals. Meanwhile Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) rose marginally by 0.14% to 98.245 points. Hence, the firmer greenback continued to exert mild pressure on the ringgit, he added. At the close, the ringgit traded lower against a basket of major currencies. It weakened versus the British pound to 5.3614/3682 from 5.3495/3556 at Tuesday’s close, declined vis-a-vis the euro to 4.6594/6653 from 4.6567/6620 on Tuesday, and slipped against the Japanese yen to 2.4890/4923 from 2.4847/4877 previously. Meanwhile, the local currency traded mixed against its Asean peers. It eased versus the Singapore dollar to 3.1095/1139 from 3.1053/1091 on Tuesday and slid against the Indonesian rupiah to 230.7/231.0 from 230.6/231.0. Ringgit eases vs greenback on profit-taking after recent gains

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0190 2.8710 3.1530 2.9090 4.7300 2.3730 3.1530 5.4430 5.1620 3.3240 59.1700 64.8900 51.6800 4.3900 0.0245 2.5440 43.5000 1.5000 6.8000 111.1100 107.9500 25.4100 1.3400 44.9900 13.0800 110.3700 N/A

3.8740 2.7550 3.0540 2.8280 4.5770 2.2850 3.0540 5.2710 4.9430 3.0970 56.6800 59.7000 49.1100 4.0800 0.0216 2.4260 40.0100 1.3400 6.4000 105.4800 102.4800 22.9500 1.1700 40.9800 11.6000 104.6400 N/A

3.8640 2.7390 3.0460 2.8160 4.5570 2.2690 3.0460 5.2510 4.9280

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

104.4400

2.8970

N/A

59.5000 48.9100 3.8800 0.0166 2.4160 39.8100 1.1400 6.2000 105.2800 102.2800 22.7500 0.9700 40.7800 11.2000 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

Semiconductor Neutral

YTL Power International Bhd Buy. Target price: RM5.00

April15, 2026: RM2.01

April15, 2026: RM3.68

Source: Bloomberg

Source: Maybank Investment Bank

Source: SIA, TA Securities

IN February 2026, the global semiconductor industry maintained its strong growth momentum, with sales reaching US$88.8 billion, up 7.6% MoM and 61.8% YoY, according to the Semiconductor Industry Association (SIA). This marked the 28th consecutive month of YoY growth, driven by sustained demand from key areas, particularly data centre infrastructure and AI related investments. The continued expansion of data centre and cloud infrastructure, especially for generative AI workloads, has fuelled demand for high-performance logic chips and high-bandwidth memory, which account for more than half of total semiconductor sales. Overall, the global semiconductor market is expected to remain on a strong growth trajectory for the remainder of the year. In terms of regional performance, YoY growth in February 2026 was broad-based across most regions, with the exception of Japan, which recorded a marginal decline of 0.3%. The strongest growth was recorded in the Asia Pacific/All Other region (+93.5% YoY), followed by the Americas (+59.2% YoY), China (+57.4% YoY), and Europe (+42.3% YoY). By geography, the 7.6% MoM increase in global semiconductor sales in February 2026 was broad-based across all regions, supported by robust AI-related demand. Growth was led by the Americas (+12.6%), followed by Europe (+10.2%), Asia Pacific/All Other (+6%), China (+3.6%), and Japan (+3%). According to SEMI, global 300mm fab equipment spending is projected to grow by 18% to US$133 billion in 2026 and a further 14% to US$151 billion in 2027. – TA Research, April 15

OVERALL, takeaway from our meeting with ECW remains steady, with short-term earnings still supported despite rising cost pressures. Short-term impact is cushioned by locked-in construction contracts and contingency buffer imputed in each project. While some contractors are seeking to slow site progress, which may affect revenue recognition timing, FY26 earnings should remain underpinned by significant land sales. While cost pressures are rising amid Middle East tensions, short-term impact should remain limited as most ongoing projects have already locked in construction contracts, with costs largely borne by contractors. This supports near-term margins, backed by strong unbilled sales of RM5.1 billion (1.3x FY26 revenue). That said, for projects not yet tendered (despite secured buyers), rising costs could lead to a 5–10% earnings impact, while some contractors requesting slower progress may result in slower revenue recognition in the coming quarters. At Quantum Edge Business Park (QEBP), earthworks have been completed and infrastructure works are ongoing. Land sales to Microsoft and Princeton were completed in March 2025 and Dec 2025, respectively, with the remaining infrastructure related earnings to be recognised by FY26, supporting near term earnings visibility. For the remaining two parcels (133 acres), ECW is in active discussions with overseas data centre operators, highlighting continued DC demand within the Johor Singapore special economic zone (JSSEZ). We understand that QEBP already has sufficient utilities in place, positioning it well within the JSSEZ. BUY with RM2.29 TP.– Maybank Investment Bank, April 15

YTL Power is a potential beneficiary of a prolonged Middle East crisis. This is because it secured gas costs at a fixed price, while retail electricity prices in Singapore could spike in tandem with higher energy prices. We also see upside from new gas plant wins, as well as factoring in tariff hikes for Wessex Water and new data centre (DC) rollouts. As per our recent oil & gas sector report, we assume a US$79.73/bbl Brent crude oil forecast for FY27. Following the 2% sequential tariff hike for April-June, the Singapore government had indicated for energy prices to spike in 2H’26 if the Middle East situation persists. As we expect YTL PowerSeraya’s cost to remain stable, we estimate that every US$10 increase in Brent oil price will improve PBT margins by 2ppts and result in 6% accretion to group earnings and FV. Earlier this year, the government had called for the NewGen 2026 tender to build a new gas plant with targeted commissioning in 2029-2031. We believe YTLP is a front-runner to win the bid, given that it had secured three gas turbines with physical delivery as early as 2027. YTLP had secured 300MW capacity for its DC business and is targeting 200MW annual increments to reach 1.3GW by 2031. Management is also exploring a potential IPO of its DC business. Assuming the group lists its DC business at a 20x EV/EBITDA multiple on RM1.4 million EBITDA, we estimate a potential RM28 billion (or RM3.06/share) valuation for this business. BUY with RM5.00 TP. – RHB Research, April 15