06/05/2026

BIZ & FINANCE WEDNESDAY | MAY 6, 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

PDC, MAHB to set up JV for logistics aeropark project GEORGE TOWN: The Penang Development Corporation (PDC) and Malaysia Airports Holdings Bhd (MAHB) have approved the setting up of a joint venture (JV) company, Syarikat Usahasama PILA Sdn Bhd, to implement the Penang International Logistics Aeropark (PILA) project. In a statement yesterday, Chief Minister Chow Kon Yeow said the majority of the key matters in the agreement regarding the joint venture company have been finalised, with the agreement signed on April 13. He said that PILA is a strategic joint venture between PDC and MAHB to develop a new cargo terminal that will strengthen the logistics ecosystem of the northern region and support the growth of Penang’s industrial sector. “The approval of the planning permission for the master plan has been obtained, and currently, earthworks and soil treatment are actively being carried out at the project site,” he said. Chow said the first phase of the project involves the construction of a new free commercial zone-class air cargo warehouse building, which is expected to be operational by 2029. He said that the development of PILA is expected to accommodate a cargo capacity of up to 500,000 tonnes per year by 2050, with the provision of warehouse space exceeding two million square feet. “For the first phase, the Air Cargo Warehouse building is expected to support an additional capacity of up to 100,000 tonnes per year,” he said. Chow said the project also includes constructing a cargo terminal and additional aircraft taxiways to increase operational capacity and attract more cargo flights to Penang. – Bernama

THE ringgit ended firmly against most major currencies and regional peers ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting as its decision is expected to play a critical role in setting the market tone going forward. However, it eased against the US dollar at 6pm yesterday to 3.9600/9635 from 3.9540/9575 on Monday’s close. According to research firms, BNM is anticipated to maintained the Overnight Policy Rate (OPR) at 2.75% at its MPC meeting on Thursday. This is following Malaysia’s advance first-quarter gross domestic product growth forecast of 5.3% showed that the country’s economy is resilient despite the unsteady global situation. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid expects the local note to be trading at a narrow range in the near term following the MPC meeting on May 7. “We view markets sentiments will continue to remain cautious as investors were perplexed on whether global central banks benchmark interest rate should be raised or cut. At the close, the ringgit edged up against the Japanese yen to 2.5138/5163 from 2.5186/5210 at Monday’s close, rose vis-a-vis the euro to 4.6288/6329 from 4.6329/6370 previously but inched down versus the British pound to 5.3622/3670 from 5.3612/3660 on Monday . It inched up against the Singapore dollar to 3.1013/1042 from 3.1019/1049 at Monday’s close, appreciated versus the Thai baht to 12.1064/1223 from 12.1460/1631, gained vis-a-vis the Indonesian rupiah to 227.2/227.5 from 227.3/227.6, but eased against the Philippine peso to 6.43/6.44 from 6.42/6.43 previously. Ringgit higher against major currencies and regional peers

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0370 2.8980 3.1530 2.9540 4.7100 2.3700 3.1530 5.4510 5.1660

3.8900 2.7810 3.0530 2.8700 4.5550 2.2820 3.0530 5.2750 4.9440

3.8800 2.7650 3.0450 2.8580 4.5350 2.2660 3.0450 5.2550 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

110.8700

105.0500

104.8500 2.9100 59.2200 49.1100 3.8200 0.0164 2.4520 40.7300 1.1400 6.0400 105.8000 102.7600 22.2000 0.9500 40.4200 10.9800 N/A N/A

3.3540

3.1100

N/A

N/A

64.6100 51.9200 4.3200 0.0242 2.5820 44.5200 1.5000 6.6300 111.6600 108.4600 24.8100 1.3300 44.6300 12.8300 N/A

59.4200 49.3100 4.0200 0.0214 2.4620 40.9300 1.3400 6.2400 106.0000 102.9600 22.4000 1.1500 40.6200 11.3800 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

Basic Materials Sector Overweight

Petronas Gas Bhd Buy. Target price: RM20.32

IHH Healthcare Bhd Buy. Target price: RM11.03

May 5, 2026: RM8.83

May 5, 2026: RM18

Source: Bloomberg, TA Research

Source: Bloomberg, RHB Research

PETGAS announced that it had received a notification from the Ministry of Economy to develop the Third Regasification Terminal (RGT3) in Lumut, Perak. RGT3 will be developed based on the Floating Storage & Regasification Unit (FSRU) concept, the first such deployment in Malaysia. The LNG storage and regasification processes will be located on the FSRU and the regasified LNG will then be transported via a connecting pipeline from RGT3 onshore & berthing facilities to the Peninsular Gas Utilisation (PGU) system. RGT3 is designed with LNG storage capacity of 170,000m³ and regasification send-out capacity of 500mmscfd. It is expected to be able to support additional gas requirement for approximately 3.5GW power plant capacity in Peninsular Malaysia. Per PETGAS’ current RGT assets, the RGT3 project will be regulated by the Energy Commission where tariffs will be determined based on the IBR mechanism. PETGAS is also exploring joint development of the project with a potential partner. RGT3 is targeted for COD in 2QCY29. While further details were not revealed, our preliminary estimates suggest a potential +4% annual PAT accretion from RGT3 based on 100% stake, total capex assumption of RM1.9bn, project IRR of 10% and a 20-year concession. In terms of valuation, we estimate RGT3 could add around 60 sen per share (+3%) to our sum-of-parts valuation based on WACC of 5.4%. To be clear, the earnings and valuation impact ultimately hinges on PETGAS’ eventual stake in RGT3. The award of RGT3 underpins our thesis of an expansion in gas supply infrastructure to accommodate the growth in domestic gas-fired power generation capacity. Maintain Buy and RM20.32 TP. – TA Research, May 5

THE Middle East conflict limits the in-and-out of aluminium, as most of the metal produced in the Persian Gulf (8-9% of global supply) passes through the Hormuz Strait, along with alumina feedstock shipments into the Gulf region. The conflict has led to a spike in crude oil prices (52% in eight weeks) and shutdown of LNG plants, which have resulted in an increase in operating costs for smelters. Given that crude oil and coal prices are closely correlated (+0.93 In YTD-2026), Rotterdam coal prices have also increased 18% to USD137/tonne. Most recently, the US announced an extended ceasefire in its conflict with Iran, easing coal prices from a peak of US$147/tonne, though the reopening of the Hormuz Strait may not be possible in the near term. We view this as a positive, as it reinforces our view of a supply tightening scenario with limited buffer to absorb supply shocks. Assuming Hormuz Strait-related disruptions remain, price pullbacks are likely to be shallow, with tight spot availability keeping prices elevated. But this could weigh on LMC as coal accounts for 20-30% of LMC’s costs and, as such, a prolonged increase in coal prices could pressure margins if the higher costs are not passed through. However, with about two months of current coal inventory levels, we expect the cost impact to be delayed - likely affecting earnings more from 4QFY26 (Jun) onwards. Additionally, while diesel prices rose 68% to RM5.12 (vs RM3.04 pre-conflict), we highlight that fuel costs only make up 1-2% of LMC’s total costs, suggesting limited earnings sensitivity to diesel inflation. Still OVERWEIGHT, with Press Metal (PMAH) as our Top Pick. – RHB Research, May 5

Source: Bloomberg, Phillip Capital Research

WE came away from the MEH visit feeling upbeat on the outlook, underpinned by solid demand for elective surgeries, expectations of stronger inpatient volumes in 2H26 and ongoing digitalisation initiatives enhancing operational efficiency Mount Elizabeth Hospital (MEH) operates 389 beds, accounting for 42% of IHH’s total bed capacity in Singapore, and mainly focuses on elective procedures, helping to drive higher revenue per patient due to more complex cases and premium pricing. The patient mix comprises 70% local and 30% foreign patients, mainly from Asean, with a meaningful contribution from Indonesia. Under its S$350m Project Renaissance, MEH is further strengthening its premium positioning by expanding single-room capacity to meet rising demand for privacy, while retaining a limited proportion of 4-bedrooms to serve more price-sensitive segments. This is complemented by digitalisation initiatives via the LizWorld platform, which is expected to improve patient experience and operational efficiency. We expect inpatient admissions at MEH to strengthen in 2H26, following temporary softness in Feb-Mar26 due to the festive season. Its bed occupancy rate (BOR) dipped below 60% in 1Q26 before recovering to 70% in Apr26. We expect IHH to report lower QoQ core net profit in 1Q26, dragged by seasonal softness across Malaysia, Singapore, Türkiye, and China operations. Earnings are expected to strengthen in 2H26, supported by higher inpatient volumes, stronger elective demand, deferred procedures, and more favourable insurance utilisation trends. Maintain BUY with a higher TP at RM11.03. – Phillip Capital Research, May 5