20/04/2026

BIZ & FINANCE MONDAY | APR 20, 2026

FOLLOW

ON YOUTUBE

20

Malaysian Paper

/theSunMedia /

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

Kawan Renergy secures RM70.4m purchase order for data centre job IPOH: Kawan Renergy Bhd, a leading end-to-end engineering solutions provider specialising in industrial process equipment, renewable energy facilities, and co-generation plants, announced that its wholly-owned subsidiary, Kawan Green Energy Sdn Bhd, has accepted a purchase order (PO) valued at RM70.4 million for the supply and delivery of diesel generator systems. The purchase order is from a client that provides data centre services at a data centre plot located in the central region of Peninsular Malaysia. The order date is April 17, 2026, with delivery targeted to be completed by April 2027. This latest contract reinforces Kawan Renergy’s strategic positioning in the growing data centre infrastructure sector, complementing the group’s existing expertise in power generation and critical backup systems. The diesel generators will provide essential backup power infrastructure to support the client’s data center operations, ensuring uninterrupted service delivery and reliability. The order is expected to contribute positively to the future earnings and net assets per share of the group upon commencement of the project. Kawan Renergy is a leading end-to-end engineering solutions provider with Grade G7 accreditation from the Construction Industry Development Board (CIDB). The group specialises in the design, fabrication, installation, and commissioning of industrial process equipment and plants, as well as renewable energy facilities and cogeneration plants. Kawan Renergy is also an independent power producer engaged in power generation and electricity sales.

THE ringgit is likely to trade within a narrow range against the US dollar this week as external drivers remain dominant. IPPFA Sdn Bhd investment strategy director and country economist Mohd Sedek Jantan said while Malaysia’s growth profile provides a firm fundamental anchor, near-term direction will be driven by US dollar dynamics, oil price volatility and evolving geopolitical developments. “Brent crude oil is expected to remain above US$90 per barrel, offering a supportive terms of trade backdrop that should help anchor the currency. “However, any adverse geopolitical escalation, particularly stemming from policy signals or announcements by Donald Trump related to West Asia, could quickly shift market sentiment, reinforcing dollar strength and introducing downside risks to the ringgit,” he told Bernama. The ringgit appreciated against the US dollar at 3.9505/9545 on Friday, compared with 3.9625/9680 at the end of the previous trading week. The local note weakened against the British pound to 5.3454/3508 from 5.3248/3322, and slipped against the euro to 4.6588/6635 from 4.6401/6465, while it enhanced versus the Japanese yen to 2.4838/4865 from 2.4882/4918 a week ago. The ringgit appreciated versus the Singapore dollar to 3.1053/1086 from 3.1093/1139, strengthened against the Thai baht to 12.3084/3274 from 12.3289/3525, expanded versus the Indonesian rupiah to 229.8/230.1 from 231.6/232.0, and elevated against the Philippine peso to 6.58/6.59 from 6.60/6.62 previously. Ringgit likely to trade within narrow range this week

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0315 2.8940 3.1600 2.9330 4.7410 2.3750 3.1600 5.4420 5.1670 3.3360 59.3200 65.0400 51.9200 4.4100 0.0246 2.5460 44.0900 1.5000 6.8000 111.3900 108.2700 25.3800 1.3400 45.1100 13.1100 110.7100 N/A

3.8825 2.7750 3.0580 2.8480 4.5840 2.2860 3.0580 5.2650 4.9440 3.1040 56.7500 59.7900 49.2800 4.0900 0.0217 2.4260 40.5200 1.3400 6.4000 105.7500 102.7800 22.9100 1.1700 41.0400 11.6100 104.8600 N/A

3.8725 2.7590 3.0500 2.8360 4.5640 2.2700 3.0500 5.2450 4.9290

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

104.6600 2.9040 59.5900 49.0800 3.8900 0.0167 2.4160 40.3200 1.1400 6.2000 105.5500 102.5800 22.7100 0.9700 40.8400 11.2100 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

Ta Ann Holdings Bhd Outperform. Target price: RM6.66

SKP Resources Bhd Neutral. Target price: RM0.39

Property sector Overweight

April17, 2026: RM0.39

April17, 2026: RM5.36

Source: PublicInvest Research

Source: Bloomberg, TA Research

Source: PublicInvest Research

DESPITE 1QFY26 FFB production lagging management’s full-year guidance of 12.5% growth, largely due to prolonged dry weather across Sarawak, management remains confident of achieving 90-95% of the full-year FFB production target of 773,000 mt. Given the robust outlook for CPO prices, we expect the group to deliver another solid earnings performance in FY26F. Sensitivity analysis suggests that every RM100/mt movement in CPO prices could contribute an additional RM12m to our earnings projection. We anticipate a muted performance in 1QFY26 across both the plantation and timber segments before earnings momentum improves in the subsequent quarters. During the 1QFY26, the group recorded FFB growth of 7% YoY to 145,898mt. Meanwhile, MPOB’s spot price slipped from 1QFY25’s RM4,712/mt to RM4,180/mt. However, the timber division is expected to remain loss-making, primarily due to weaker USD and lower selling prices. To reduce reliance on the structurally weaker Japanese market, the group has diversified its export base. Notably, Yemen has emerged as a key market, now accounting for approximately 60% of export volume. The Sarawak state government recently approved a temporary 50% reduction in timber royalty rates for natural forest timber, which should provide some cost relief to the group over the next one year. With a net cash position of nearly RM400m and annual free cash flow of approximately RM220m, the group has ample capacity to sustain attractive shareholder returns. Given the favourable CPO price outlook, we believe there is potential for higher-than-expected dividend payouts. Maintain Outperform with RM6.66 TP. - PublicInvest Research, April 17

COST pressures have begun to emerge following the sharp increase in diesel prices, with early signs already visible in building material costs. At the project level, however, the overall impact remains manageable, given limited direct exposure to diesel and the phased nature of development. Project execution remains intact, with no major changes to launch pipelines or sales targets, as developers adjust tender timing rather than scale back activity. Some margin pressure is expected, but compression should be contained, supported by project phasing, product mix and gradual pricing adjustments across new launches. Demand remains stable for now, although buying behaviour may turn more selective in light of higher cost of living, with residential demand may ease slightly while industrial and data centre-related developments continue to see firmer take-up. We would encourage investors to look beyond the current cost volatility, as underlying demand and development pipelines remain intact. We maintain our Overweight stance on the sector, as earnings visibility remains supported and valuations at around long-term mean P/B levels do not fully reflect the sector’s strengthening earnings outlook, supported by stronger industrial land demand, data centre developments and steady project rollouts. The KLPRP Index has outperformed the FBMKLCI on a year-to-date basis, reflecting continued investor interest in the sector’s earnings visibility and structural growth drivers. Our top pick is SimeProp, backed by its strong leadership in industrial development, robust financial performance, and expanding recurring income base. - TA Research, April 17

FOLLOWING the escalation of geopolitical tensions in the Middle East, we adopt a more cautious stance on SKP’s outlook as we believe the continuing weak consumer sentiment could impact its sales order in the coming quarters. Similar effect is expected to be felt across the EMS industry, given that the prolonged conflict would lead to higher crude oil prices, raising the cost of living and thus eroding household discretionary spending. We revise our FY26-28F earnings estimates downward by an average of 50% to reflect a more challenging operating environment. SKP is currently bidding for several new models with its key customer to maximise the utilisation rates and cover the fixed costs. With the new site operating at only 30% utilisation, there is sufficient floor space to accommodate all bid models should SKP secure the full contract. As there is no immediate resolution for the conflict in the Middle East, we are turning more cautious on SKP’s outlook. The increase in crude oil prices would result in higher cost of production, translating to lower affordability for consumer discretionary products such as electronic equipment. As such, we expect households to hold back their discretionary spending and this should lead to lower sales orders for SKP in the coming quarters. Notwithstanding the near-term headwinds, the group continues to expand its Printed Circuit Board Assembly (PCBA) and injection moulding capabilities, enabling it to serve a broader product portfolio and deepen customer integration. SKP is actively engaging potential new clients, which should gradually diversify its revenue base and enhance earnings resilience over time. We downgrade our call to Neutral with lower TP of RM0.39. - PublicInvest Research, April 17