28/04/2026

BIZ & FINANCE TUESDAY | APR 28, 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

MDEC urges local businesses to focus on execution KUALA LUMPUR: The Malaysia Digital Economy Corporation (MDEC) has urged local businesses to move beyond innovation ambitions and focus on execution, as artificial intelligence (AI) and other fast-evolving technologies shorten the time needed to turn ideas into practical, market-ready outcomes. In a statement yesterday, MDEC CEO Anuar Fariz Fadzil, who spoke at the recent Digital Economy Innovation Forum, said that while many organisations already see themselves as innovation ready, the bigger challenge now is implementing, scaling, and commercialising solutions quickly enough to remain competitive. He said that the issue is not a lack of ideas, but an execution gap, especially as AI accelerates the pace of change. Many businesses, he said, already have innovation frameworks in place but still struggle to turn intent into results with enough speed and impact. MDEC said that a study by the Securities Commission Malaysia shows that 70% of corporates are innovation-ready, while 44% already have structured innovation processes in place. However, it said, 65% still face talent, capability or capital constraints, while average revenue allocated to innovation remains at just 0.85%, underlining the difficulty of translating readiness into results. Anuar also said that businesses can no longer depend on traditional innovation cycles, as AI is significantly shortening the gap between emergence and adoption. “What once took years is now increasingly happening within weeks, requiring businesses and institutions alike to respond faster and with greater clarity.” – Bernama

THE ringgit closed higher against the greenback yesterday on improved optimism, as markets saw inflows into semiconductor-related stocks, which benefited Malaysia. Against regional currencies, the ringgit was mostly higher; however, it was lower against other major currencies. At 6 pm, the ringgit rose to 3.9505/9545 against the US dollar from 3.9630/9670 at last Friday’s close. SPI Asset Management managing partner Stephen Innes said the local note strengthened on renewed optimism over a potential Iran peace proposal reportedly being considered by the White House, which helped reduce geopolitical risk premiums and softened the US dollar at the margins. “The ringgit’s gains were not solely driven by geopolitical developments, but also underpinned by broader structural trends, particularly strong global demand for computing power and artificial intelligence infrastructure. “In this environment, capital continues to flow into semiconductor-linked economies, with Malaysia well-positioned to benefit from this trend,” he added. At the close, the ringgit traded depreciated against the euro to 4.6387/6434 from last Friday’s close of 4.6312/6358, shed versus the Japanese yen to 2.4810/4837 from 2.4808/4834, and reduced against the British pound to 5.3525/3580 from 5.3429/3483 previously. It appreciated against the Thai baht to 12.2129/2309 from last Friday’s close of 12.2183/2363, gained against the Indonesian rupiah to 229.5/229.8 from 230.0/230.3, and expanded against the Philippine peso to 6.50/6.51 from 6.52/6.53 previously. However, the local note slipped against the Singapore dollar to 3.1018/1052 from 3.1009/1043 at Friday’s close last week. Ringgit closes higher against greenback on tech-led inflows

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0410 2.8900 3.1550 2.9410 4.7150 2.3690 3.1550 5.4340 5.1600 3.3580 59.4100 64.6800 51.9900 4.3700 0.0244 2.5450 44.3300 1.5000 6.7600 111.7200 108.5800 25.1400 1.3400 44.9000 12.9600 110.9900 N/A

3.8950 2.7730 3.0550 2.8580 4.5610 2.2810 3.0550 5.2600 4.9400

3.8850 2.7570 3.0470 2.8460 4.5410 2.2650 3.0470 5.2400 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

105.1900 3.1140 56.8900 59.5000 49.3800

104.9900 2.9140 59.3000 49.1800 3.8600 0.0165 2.4170 40.5700 1.1400 6.1700 105.8600 102.8800 22.4900 0.9600 40.6900 11.0900 N/A N/A

4.0600 0.0215 2.4270

N/A

40.7700 1.3400 6.3700 106.0600 103.0800 22.6900 1.1600 40.8900 11.4900

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

Unisem Bhd Buy. Target price: RM3.45

Sarawak Oil Palms Bhd Hold. Target price: RM4.77

Energy sector Overweight

April 27, 2026: RM4.66

April 27, 2026: RM0.44

April 27, 2026: RM3.30

Source: Bloomberg, RHB Research

Source: Bloomberg, TA Research

WE like energy as a defensive sector, should the Middle East conflict persist and lead to a market risk-off mode. Big-cap utility names like TNB and Petronas Gas (PTG) have minimal exposure to non-domestic risks (fuel costs, non-domestic operations, regulated fuel costs, and FX), while regulated frameworks provide stable earnings with 4-5% dividend yields. The impact of the increase in energy prices on TNB and other power producers has been minimal, as these are passed on to end users via the monthly Automatic Fuel Adjustment (AFA) mechanism. Since the AFA implementation last July, the Government has continued to approve AFA rebates due to the stronger MYR (vs USD) and weaker gas prices. Based on prevailing coal and gas prices, the Government is forecasting a 0.08sen AFA surcharge in July (vs the 0.47sen rebate currently). The adjustment mainly reflects a higher Tier-2 gas price, mitigated by a stronger MYR and lower Tier-1 subsidised gas price. Nevertheless, the effective tariff impact should be minimal, ie 1% higher vs current prices. The impact of higher gas prices is minimal on the power sector, as unsubsidised gas (the most correlated to Brent crude) only makes up 9% of total generation fuel costs in Malaysia. The price of Tier-2 gas is indexed to 15% of the Brent crude price. We estimate that every US$10/bbl movement in the Brent crude price would only impact the AFA by 0.01sen. We think coal prices (which make up ~60% of fuel costs) have a higher impact on tariff adjustments - and estimate that coal prices will need to reach US$180/tonne to result in a 3 sen AFA surcharge. Still OVERWEIGHT on sector. TNB remains our main Top Pick. – RHB Research, April 27

EXCLUDING the foreign exchange loss of RM3.9mn, UNISEM reported a 1QFY26 core net loss of RM9.5mn, which came below ours and consensus’s full-year profit forecasts of RM161.3mn and RM131.0mn, respectively. The variance was mainly due to higher than-expected operating costs. YoY, 1QFY26 revenue increased 9.7% to RM464.7mn, mainly driven by higher sales volumes. However, the group slipped into a core net loss of RM9.5mn, compared with a core profit of RM4.3mn previously, largely due to higher operating costs arising from annual salary adjustments and rising material costs. Meanwhile, the group continues to expand its headcount in line with its business expansion plans. As at end-March 2026, headcount stood at 7,468, compared to 6,814 a year earlier. QoQ, the group recorded a core net loss of RM9.5mn, compared with a core net profit of RM21.3mn previously, mainly due to lower revenue and higher production costs. Revenue declined 3.3% to RM464.7mn, impacted by the Chinese New Year festive closure as well as a temporary wafer shortage experienced by a key customer in February. As a % of total revenue, 1QFY26 contributions by end-market were led by the industrial segment (27%, +7ppts YoY), supported by increasing contributions from AI-driven demand. This was followed by automotive (25%, +3ppts YoY), consumer (21%, -7ppts YoY), communications (19%, +1ppt YoY), and PC (8%, -4ppts YoY). For 2QFY26, management guided for 15%–20% QoQ growth in USD revenue, supported by continued robust order flows from key customers benefiting from the AI and data centre boom. Maintain Buy call with lower TP of RM3.45. – TA Research, April 27

Source: Bloomberg, Phillip Capital Research

SOP’S 1Q26 revenue increased marginally by 0.2% YoY at RM1.4bn, on the back of higher sales volumes but mitigated by lower realised selling prices of palm oil and PK products. After adjusting for one-off items (fair value loss/gain of biological assets, derivatives and unrealised forex), the 1Q25 core net profit was lower at RM102.5m (-15% YoY). Overall, the results were within expectations, accounting for 23% of both our and consensus full year forecasts. EBITDA margin slipped by 2.2ppts YoY to 11.8%, mainly due to higher operating costs, administrative expenses, and lower contributions from the refined palm products segment. Sequentially, SOP’s 1Q26 revenue and core net profit declined by 9% and 31%, respectively, weighed by lower FFB, CPO and PK production, as well as weaker ASPs. EBITDA margin fell 5ppts QoQ to 11.8%, in line with softer revenue. Despite the softer start, we expect earnings to recover in the coming quarters, supported by seasonal production improvement as the industry enters its recovery phase. In addition, firmer CPO prices (currently trading at RM4,400-4,600/MT) underpinned by elevated energy prices and biodiesel demand amid ongoing Middle East tensions, should provide further support to upstream margins. We raise our 2026-28E EPS forecasts by 10-16%, factoring in higher CPO and PK price assumptions, as well as operating cost assumptions. Nonetheless, we remain cautious on cost inflation, and margin pressure from downstream operations. Maintain HOLD with higher TP of RM4.77. – Phillip Capital Research, April 27