29/04/2026

BIZ & FINANCE WEDNESDAY | APR 29, 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

PwC lists three catalysts for Malaysia’s auto, chip sectors KUALA LUMPUR: Technology advancement, knowledge and intellectual property (IP) creation, and talent could serve as catalysts to grow Malaysia’s automotive and semiconductor sectors while strengthening the synergies between them, according to PricewaterhouseCoopers Associates Sdn Bhd (PwC). PwC outlined these findings in its latest report on the intersection of Malaysia’s semiconductor and automotive industries titled “Semiconductor-powered Future of the Automotive Industry in Malaysia”. The report stated that, in terms of technology advancement, Malaysia’s semiconductor sector is still heavily dominated by traditional Outsourced Semiconductor Assembly and Test (OSAT) operations and will have to shift towards newer and more advanced activities to remain competitive and relevant. “Malaysia has a compelling but time-bound opportunity to secure its place as a key node in the global automotive semiconductor and high-value electronics supply chain. “Achieving this will require establishing strategic collaborations with global semiconductor leaders and automotive Tier 1 companies, as well as automotive original equipment manufacturers to accelerate technology transfer, gain access to advanced intellectual property, and build capabilities to move beyond OSAT operations,” it said. PwC noted that knowledge and IP creation remain limited across Malaysia’s automotive and semiconductor industries hence the linkage between the two sectors should be strengthened to attract and develop Tier 1 system integrators. – Bernama

THE ringgit closed higher against major and regional currencies but was flat against the US dollar yesterday amid cautious sentiments over rising crude oil prices. At 6pm, the local note stood at 3.9505/9550 against the greenback from 3.9505/9545 at Monday’s close. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit traded within a narrow range as hopes for a resolution to the Iran conflict waned, pushing crude oil prices higher. He said West Texas Intermediate (WTI) and Brent crude prices rose by 2.55% and 2.74% to US$98.83 per barrel and US$111.20 per barrel, respectively. “Investors will also monitor the Federal Open Market Committee (FOMC) as it began its two-day meeting yesterday,” he told Bernama. This week will also see a high-stakes sequence of policy decisions from the Bank of Japan, the United States Federal Reserve, the European Central Bank and the Bank of England. At the close, the ringgit traded higher against a basket of major currencies. It appreciated against the euro to 4.6189/6242 from 4.6387/6434 at the close on Monday, strengthened versus the Japanese yen to 2.4756/4785 from 2.4810/4837 on Monday, and rose against the British pound to 5.3292/3353 from 5.3525/3580 previously. At the same time, the local currency also strengthened against regional peers. It advanced against the Singapore dollar to 3.0943/0983 from 3.1018/1052 at Monday’s close and jumped against the Thai baht to 12.1494/1685 from 12.2129/2309 on Monday. Ringgit flat against US dollar, rises against other currencies Data centres and geopolitics DC investment appetite remains strong

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0240 2.8990 3.1490 2.9430 4.7060 2.3800 3.1490 5.4340 5.1370 3.3270 59.1900 64.5500 51.7300 4.3500 0.0244 2.5370 44.2900 1.5000 6.7000 111.2500 108.1300 25.1500 1.3300 44.8200 12.9200 110.5100 N/A

3.8790 2.7820 3.0500 2.8610 4.5530 2.2910 3.0500 5.2600 4.9200

3.8690 2.7660 3.0420 2.8490 4.5330 2.2750 3.0420 5.2400 4.9050

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

104.7700 3.1000 56.6900 59.4000 49.1500

104.5700 2.9000 59.2000 48.9500 3.8400 0.0166 2.4100 40.5400 1.1400 6.1100 105.4200 102.4500 22.5100 0.9600 40.6200 11.0600 N/A N/A

4.0400 0.0216 2.4200

N/A

40.7400 1.3400 6.3100 105.6200 102.6500 22.7100 1.1600 40.8200 11.4600

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

PGF Capital Bhd Buy. Target price: RM2.76

CTOS Digital Bhd Buy. Target price: RM1.03

April 28, 2026: RM1.65

April 28, 2026: RM0.72

Source: Maybank Investment Bank

Source: Knight Frank

Source: Maybank Investment Bank

OUR analysis indicates that the elevated geopolitical risks and energy crisis have not stifled investments in Malaysia’s DC sector. On-the-ground checks and discussions with industry players and DC suppliers point to sustained demand from hyperscalers and colocation (colo) providers, with limited changes to planned investment. Strong demand for artificial intelligence (AI)-related workloads remain a key structural tailwind, mitigating supply chain concerns and potentially higher build out costs. Malaysia could benefit from DC portfolio re-balancing and geopolitical diversification. We believe rising concerns around the security of DC infrastructure assets, coupled with persistent supply chain vulnerabilities, could catalyse a rebalancing of DC portfolios away from the Middle East towards Southeast Asia. Malaysia is a natural beneficiary of this potential shift, given its position as a strategic DC hub with US-based hyperscalers already developing new cloud regions. On top of the competitive land and energy economics, political stability and a strong policy framework further support and strengthen Malaysia’s attractiveness as a preferred DC destination. DC economics still favourable despite higher energy cost and tightened supply chains. Our assessment indicates that the cost of DC build-outs is still manageable despite the energy crisis due to Malaysia’s cost advantage and the use of a cost plus model. With over 3GW of DC supplies projected into 2030, a staggering RM90 billion in construction value awaits contractors. Malaysia’s regulated electricity tariffs remain one of the most competitive in the region, with minimal exposure to fuel cost fluctuations caused by the Middle East conflict. – RHB Research, April 28

PGF’S Q4’26 reported PATMI came in at RM8 million (-42% YoY, +76% QoQ). Excluding fair value losses on financial instruments and unrealised forex losses, Q4’26 core PATMI amounted to RM2.2 million (vs -RM1.9 million core loss in Q4’25, -62% QoQ). This brought FY26 core PATMI to RM23.3 million (+9% YoY), accounting for 89%/88% of our/consensus full-year estimates. The variance was due to currency translation impact from a stronger MYR against AUD (FY26 at 2.75 vs FY25 at 2.96), as well as a higher-than-expected tax rate of 29.5% vs our forecast of 24%. Future tax rate stands to benefit from the five-year tax exemption from the new plant. At core PBT level, PGF’s earnings accounted for 98% of our forecast. PGF declared a final dividend of 3.5 sen per share for the current quarter. Meanwhile for QoQ, weaker core PAT was driven by currency headwinds and festive seasonality, leading to softer demand during the period. On going Middle East tensions could indirectly impact the group via higher input cost i) electricity & gas (+9–15%; which make up 30% of production costs), ii) packaging (+20%, albeit limited impact given its relatively small cost share), and iii) sea freight (+10%). Despite cost pressures, we expect demand to remain resilient, driven by stricter building codes in Australia and New Zealand as well as energy efficiency push. This is supported by the new Kulim plant which is set to commence in H2. On the property front, its 50.1%-owned JV, Nexel, has obtained conditional planning approval for its Tg Malim property development plan. We believe Phase 1 is on track for a Q4’26 launch, with land sale gains to be recognised once take-up reaches ~80%. BUY with RM2.76 TP. – Maybank Investment Bank, April 28

IN his maiden briefing, new group CEO Ankur Sehgal introduced CTOS’ three-year strategic roadmap (FY26-28), outlining plans to reposition CTOS from a traditional credit bureau to a trusted intelligence platform. This strategic framework is premised on five key pillars, and follows a phased transition beginning with a focus on building up and strengthening the core in FY26, followed by scaling and embedding intelligence through deepened partnership & heavy investments in AI-powered platform capabilities in the following year, and ultimately monetising these new intelligence layers in FY28. The recently gazetted Consumer Credit Act 2025 (CCA) coming into effect from June 1 provides a favourable regulatory backdrop for CTOS in our view. Under the CCA, credit providers such as Buy-Now Pay-Later entities are required to be licensed under the Consumer Credit Commission. Additionally, the CCA mandates that these credit providers not only contribute to Credit Reporting Agencies (CRAs), but to also assess creditworthiness utilising CRA data. We remain optimistic on CTOS, comforted by its strategic 3 year roadmap, which we believe to be achievable. We raise our FY27/28 revenue forecasts by 2-6% to account for contributions from new upcoming products. However, we lower our core net profit forecasts over the same period by 8-9% to account for the higher ETR in light of the expiry of its pioneer tax status in Nov 26. A faster than expected adoption of digital lending could increase demand from digital banks for credit reporting services. Also, scaling of international operations would reduce revenue concentration risk. BUY with RM1.03 TP. – Maybank Investment Bank, April 28