07/05/2026

BIZ & FINANCE THURSDAY | MAY 7, 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

inDrive joins WEF to promote fair mobility KUALA LUMPUR: inDrive, the global mobility and delivery platform, has joined the World Economic Forum’s (WEF) Unicorn Community, an invitation-only network of high-growth companies recognised for driving innovation and positive global impact. The milestone reflects inDrive’s growing role in shaping a more people-centric digital economy, particularly in emerging markets such as Malaysia, where access, affordability, and transparency remain key concerns for both consumers and gig workers. As part of the Unicorn Community, inDrive will contribute to conversations surrounding fair access to services and economic opportunities, supported by its human-centric platform model and non-profit initiatives. The company will also share insights from markets where technology platforms play an increasingly important role in supporting livelihoods and expanding opportunities for underserved communities. inDrive’s peer-to-peer pricing system allows passengers and drivers to negotiate fares directly, providing greater pricing transparency and flexibility while helping drivers retain fairer earnings. Arsen Tomsky, founder and CEO of inDrive said, “Joining the World Economic Forum’s Unicorn Community is an important milestone for inDrive as we continue to scale globally and expand our impact. In markets like Malaysia, where the gig economy plays an increasingly important role, we see a growing need for greater transparency, fairness, and access to opportunities. At inDrive, our mission has always been to challenge injustice by giving people more control over their choices. We look forward to contributing to the forum’s dialogue on building more inclusive and equitable digital economies.” Malaysian Pacific Industries Bhd Buy. Target price: RM43.80

THE ringgit continued its upward momentum yesterday, closing mostly higher against most major currencies and regional peers on improved sentiment as investors await the decision on the Overnight Policy Rate (OPR). Bank Negara Malaysia (BNM) will hold its third Monetary Policy Committee (MPC) meeting today ahead of the announcement. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market focus would be on the BNM’s MPC meeting, in which economists widely believe the OPR remained unchanged at 2.75%. “The key highlights will be the latest assessment on inflation and growth prospects of Malaysia. “For now, ringgit seems to be in a sweet spot as the macro numbers have been encouraging while the government remain mindful in their response to the current economic shocks,” he told Bernama. At the close, the ringgit traded mostly higher against a basket of major currencies. It strengthened against the euro to 4.6189/6242 from 4.6288/6329 at Tuesday’s close, rose versus the British pound to 5.3443/3504 from 5.3622/3670 previously, but inched down against the Japanese yen to 2.5159/5191 from 2.5138/5163 on Tuesday. The local currency was also mostly higher against regional peers. It appreciated against the Singapore dollar to 3.0946/0986 from 3.1013/1042 at Tuesday’s close, gained versus the Indonesian rupiah to 225.6/225.9 from 227.2/227.5 previously, edged up the Philippine peso to 6.39/6.41 from 6.43/6.44 on Tuesday, but eased versus the Thai baht to 12.1866/2074 from 12.1064/1223. Ringgit extends gains ahead of Bank Negara OPR decision

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0255 2.9100 3.1530 2.9500 4.7090 2.3820 3.1530 5.4540 5.1700 3.3450 59.1500 64.5900 51.7600 4.3100 0.0241 2.5680 44.5900 1.5000 6.6200 111.3000 108.1100 25.1000 1.3200 44.8000 12.9300 110.5400 N/A

3.8795 2.7920 3.0530 2.8660 4.5550 2.2930 3.0530 5.2790 4.9480 3.1020 56.6400 59.4200 49.1700 4.0000 0.0213 2.4490 41.0000 1.3400 6.2300 105.6600 102.6300 22.6600 1.1500 40.7900 11.4600 104.7800 N/A

3.8695 2.7760 3.0450 2.8540 4.5350 2.2770 3.0450 5.2590 4.9330

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

104.5800 2.9020 59.2200 48.9700 3.8000 0.0163 2.4390 40.8000 1.1400 6.0300 105.4600 102.4300 22.4600 0.9500 40.5900 11.0600 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

Gamuda Bhd Buy. Target price: RM6.01

CIMB Group Holdings Bhd Buy. Target price: RM9.00

May 6, 2026: RM41.46

May 6, 2026: RM4.64

May 6, 2026: RM7.94

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

GAMUDA announced that Upper Padas Power (UPP) – in which it owns a 45% stake – has accepted the revised letter of notification (LoN) from the Energy Commission of Sabah. The letter incorporates the increased combined capacity with the inclusion of a floating solar plant for the Upper Padas Hydroelectric Project (UPHEP) in Sabah. The combination of the UPHEP and the floating solar facility means that this will be an integrated hybrid project. The floating solar plant has a 150MWac capacity and comes with a 25-year concession/power purchase agreement (PPA) tenure on top of UPHEP’s 187.5MW capacity with a 40-year tenure. With UPHEP currently being built (scheduled commercial operation date (SCOD): on or before Dec 31, 2030) – the construction of the floating solar plant may only commence once UPHEP is substantially ready, i.e. likely towards the final year of UPHEP’s building progress. Hence the SCOD for the floating solar plant is expected to be a year after UPHEP’s SCOD, which is on or before Dec 31, 2031. The potential EPCC value of the floating solar project is estimated to be RM500 million (or RM375 million, by assuming GAM having a 75% stake at the contractor level) and may only come in around CY29. This would be roughly a year before UPHEP is completed and, therefore, is not part of GAM’s orderbook yet. Meanwhile, post completion of the floating solar project (beyond Dec 2031) – the integrated hybrid project is expected to generate annual revenue exceeding RM450 million (or RM202 million, via GAM’s 45% share). With the capital structure having a minimum debt-to-equity ratio of 80:20, we expect the PBT margin – from the recurring nature of the integrated hybrid project – to range 8-10%. BUY with RM6.01 TP. – RHB Research, May 6

9M’26 revenue rose 22.1% YoY on solid customer loadings across regions, underpinned by a resilient semiconductor upcycle. Core PATAMI accounted for 73.7% and 74.8% of our and Street’s full year estimates. A second interim dividend of 30 sen (Q3’25: 25 sen) was declared (ex-date: May 19). Growth from all regions remained robust – Asia (+22% YoY), Europe (+10%), and the US (+44%) – with overall orders up 54% YoY, driven by artificial intelligence (AI) server and peripherals demand. Q3’26 revenue (USD terms) is estimated to grow 41.1% YoY (+8.8% QoQ) to US$165 million despite seasonality – supported by the consolidation of Carsem Semiconductor (Bangkok) (Carsem Thailand) since Feb 4. However, core PATAMI fell 38% QoQ (-11.4% YoY) to RM38 million on cost pressures, losses from the Thailand unit, and USD depreciation (–11% YoY, -4.4% QoQ). EBITDA margin comparison is distorted by the inclusion of the lower-margin, loss-making subsidiary. Positive customer guidance – including the bottoming out automotive players – and sustained semiconductor demand underpin a constructive outlook. Malaysia and China operations are expected to reach optimal utilisation by 2H’26, supported by consumer, server, and sensor-related packages. Additional upside stems from a rebound in automotive demand, silicon carbide or SiC, robotics power packages, and a NOR flash pivot in Thailand. Carsem Thailand is currently running at US$50-60 million revenue pa with a >US$200 million post expansion by 2030 target, focusing on AI, power, robotics, and defence applications. The Suxiang factory is now undergoing qualification and certification. BUY with RM43.80 TP. – RHB Research, May 6

CIMB announced the sale of its auto financing portfolio in Thailand to Bank of Ayudhya and its subsidiary Krungsri. The disposal is part of CIMB Thai’s (CIMBT) transformation under the Forward30 strategic plan, i.e. to exit a non-core and sub-scale business (1% market share) to generate improved returns. While the portfolio forms 13% of CIMBT’s total loans (<1% of group loans), it made up >70% of CIMBT’s ECL and contributed to a THB498 million loss vs CIMBT group profit of THB2.9 billion in FY25. Post disposal (expected completion in Q4’26), CIMBT will have a narrow and sharpened focus on wealth, wholesale and treasury as well as consumer (mainly mortgages). CIMBT expects to incur a one-off transformation cost of up to THB1.6 billion (RM194 million) this year due to the disposal, which includes THB1.3 billion related to the exit of the business (eg: branch closure, staff redundancies). The sale is expected to lead to a combination of improved financial metrics such as cost efficiencies (FY27 CIR of mid-40s vs FY25: 58%) and lower credit cost (FY27: 40-45bps vs FY25: 89bps), with room for capital management (FY27 CET-1: Ż 14% vs FY25: 17%), all of which would drive FY27 ROE higher to 10-12% vs FY25’s 4.5%. At the group level, CIMB said the 11-11.5% FY26 ROE target takes into account the one-off restructuring cost and assumes the portfolio stays consolidated for much of the year. However, the absence of the one-off restructuring cost next year is expected to lead to a 10-20bps uplift in FY27 ROE, with another 10-20bps coming from CIMBT’s ROE improvement. Together with other strategic levers, management thinks the group is on track to achieve its 12-13% FY27 ROE target. BUY with RM9.00 TP. – RHB Research, May 6