23/04/2026

BIZ & FINANCE THURSDAY | APR 23, 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

‘Malaysia must recalibrate response to global changes’ KUALA LUMPUR: Malaysia should reform or recalibrate its response to changes in the global architecture, especially in trade, as they occur, said Malaysian Investment Development Authority (Mida) chairman Tengku Datuk Seri Zafrul Abdul Aziz. He said the country should also remain mindful of its strategic positioning as a middle power, leveraging its strengths while addressing concerns about energy security, technology, and overall resilience to remain part of both the US and China’s supply chain ecosystems. “For Mida and Malaysia, we know our strengths, but at the same time, we must be ready for challenges ahead,” he said during a panel session at the CNBC Converge Live programme titled Redrawing The Global Trade Map , hosted by its Morning Call anchor Morgan Brennan yesterday. He said Malaysia needs to continue engaging with the US and China as the two economies account for nearly 30% of the country’s total trade. Tengku Zafrul further noted that while China remains Malaysia’s and Asean’s largest trading partner, the US is Malaysia’s largest investor and export market and possibly for the broader region as well. “We have been consistent and will engage with both countries, as we are talking about supply chain security and technology security, and they want to have trusted supply chain partners. “So Malaysia and Asean can play that role (as trusted supply chain partners), given our position when we talk about strategic neutrality,” he said. – Bernama

THE ringgit closed slightly weaker against the US dollar yesterday as investors shifted towards safe-haven assets, while trading mostly higher against other major and regional currencies. At 6pm, the local currency stood at 3.9510/9550 against the greenback, compared with 3.9490/9530 on Tuesday. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit remained range bound against the US dollar, hovering between RM3.9528 and RM3.9575. He said markets remained cautious amid a lack of fresh developments in negotiations between the US and Iran. “Traders and investors are hopeful that a near-term compromise could extend the ceasefire and facilitate the eventual reopening of the Straits of Hormuz,” he told Bernama. At the close, the ringgit traded mostly higher against a basket of major currencies. It strengthened against the euro to 4.6408/6455 from 4.6436/6483 on Tuesday and appreciated versus the Japanese yen to 2.4794/4821 from 2.4802/4829, but weakened against the British pound to 5.3414/3468 from 5.3323/3377. The local currency also traded firmer against regional peers. It advanced against the Singapore dollar to 3.1030/1063 from 3.1043/1077 and inched up against the Thai baht to 12.2717/2902 from 12.2983/3162. The ringgit rose against the Indonesian rupiah to 229.9/230.2 from 230.3/230.7 and gained against the Philippine peso to 6.57/6.58 from 6.59/6.60 previously. Ringgit slips on safe-haven demand for US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0280 2.8920 3.1570 2.9400 4.7240 2.3810 3.1570 5.4360 5.1840 3.3470 59.2600 64.8000 51.8200 4.3900 0.0245 2.5430 44.1800 1.5000 6.8000 111.4000 108.2400 25.3000 1.3400 45.1600 13.0400 110.5900 N/A

3.8820 2.7750 3.0570 2.8580 4.5710 2.2920 3.0570 5.2620 4.9620 3.1040 56.7400 59.6200 49.2300 4.0800 0.0217 2.4250 40.6300 1.3400 6.4000 105.7600 102.7500 22.8400 1.1700 41.1200 11.5600 104.8400 N/A

3.8720 2.7590 3.0490 2.8460 4.5510 2.2760 3.0490 5.2420 4.9470

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

104.6400

2.9040

N/A

59.4200 49.0300 3.8800 0.0167 2.4150 40.4300 1.1400 6.2000 105.5600 102.5500 22.6400 0.9700 40.9200 11.1600 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

Perdana Petroleum Bhd Buy. Target price: RM0.23

Technology Neutral

Cropmate Bhd Not Rated

April 22, 2026: RM0.185

Source: Bloomberg

Source: Maybank Investment Bank

Source: Company, Phillip Capital Research

FOLLOWING a major oil price upcycle, our observation suggests that Petronas tends to initiate a corresponding capex upcycle, usually with a lag of approximately one year. Moreover, the energy security theme could also see Petronas stepping up investments to sustain production levels and enhance resource replenishment. We are of the view that there will be a multi-year Petronas capex upcycle beginning 2027. As such, the demand for OSVs should also see growth and this could propel Perdana into an earnings-growth mode amidst higher vessel utilisation. We forecast Perdana Petroleum’s earnings to grow at a FY25 28 3-year core net profit (CNP) CAGR of 36%, led by a revenue CAGR of 8% and enhanced by an expansion in the group’s CNP margins to 15.7% in FY28 (from 7.9% in FY25). We expect revenue growth to be driven by: i) a modest DCR growth of 3% annually; ii) a higher utilisation rate assumption of 63% in FY27 and 65% in FY28 (from 52% in FY25); and iii) higher third-party charters due to higher vessel demand from Petronas and related Petroleum Arrangement Contractors. With its fleet of 14 vessels (averaging 15 years in age), Perdana Petroleum is a clear pure-play OSV proxy to the multi-year capex spending upcycle (which could happen in 2027-2028). During the previous upcycle in 2023-2024, Perdana underwent a major PER re-rating, with multiples peaking at 13.3x. As such, with expectations of a Petronas spending upcycle in 2027, we deem our target PER of 11x (which is at mid-upcycle PER, but still at a discount from peak) to be justified. BUY with RM0.23 TP. – Maybank Investment Bank, April 22

CROPMATE is poised to benefit from the current fertiliser upcycle and supply tightness following export restrictions from China through August 2026, which are lifting ASPs in FY26. While fertiliser prices should normalise, its earnings remain sustainable on sales volume growth – from geographical expansion and product innovation. Its 6-month low cost inventory will widen margins, supported by cost passthroughs and higher ASP-driven revenue growth. Coupled with strong profit growth, its FY27 P/E of 7x and 4.3% yield appear undemanding. Fertiliser prices have risen sharply, with urea prices up 89% and spot prices increasing from US$450/tonne to over US$800/tonne. After disruptions to trade flows at the Strait of Hormuz, global fertiliser shortages have been further exacerbated by export restrictions from key producers (China and Russia, which collectively account for 38% of world urea supply), tightening global supply and keeping prices elevated. Prices of ammonia, sulphur, and phosphates have also surged, compounded by tight natural gas supply. This supply shock mirrors the Russia-Ukraine war, supporting higher ASPs for Cropmate’s fertiliser products in 2026, with its latest record-high inventory of RM33 million positioned to benefit and last, at least until June. In a scenario where the Strait of Hormuz gradually reopens within 2026, we project Cropmate’s blended ASP to rise 9% YoY to RM1.55/kg, before normalising, then decline by 6.4% YoY in 2027 and 3.1% YoY in 2028. The group completed automation of its weighing systems and R&D laboratory in Dec 2025, enhancing production efficiency and quality control. – RHB Research, April 22

GROWTH across the tech hardware supply chain continues to be highly concentrated in AI/DC applications. Companies with direct or indirect exposure to WFE, optical transceivers, and advanced packaging/ATE continue to see robust order flow, with multiple players reporting record or near-record order books. In contrast, demand conditions outside AI/DC remain mixed. Automotive is seeing pockets of recovery, while consumer, industrial, and renewable energy segments remain soft. The more pressing headwind remains persistent MYR strength against the USD, which is compressing margins and could cap earnings growth through 1H’26. The ongoing geopolitical conflict have introduced secondary supply chain risks, particularly in raw material costs (particularly plastics, silver, and palladium) which have seen notable price spikes, with some companies now revising cost quotations weekly from quarterly previously, while logistics costs have risen as players shift from sea to air freight. The broader tail risk lies in a prolonged Strait closure disrupting global helium supply, which is critical for semiconductor fabrication. That said, on-the-ground impact for Malaysian tech players appears contained at 0.5–1% direct margin impact, with no evidence of capex slowdown from key customers despite the geopolitical overhang. As one management team noted, “even war is using AI.” While structural AI/DC demand remains intact, near-term earnings visibility is moderated by USD/MYR margin compression, rising input costs (plastics, silver, logistics), and the unresolved geopolitical situation. – Phillip Capital Research, April 22