11/05/2026

BIZ & FINANCE MONDAY | MAY 11, 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

RHB intensifies SME support amid geopolitical uncertainty KUALA LUMPUR: RHB Bank Bhd is offering a comprehensive suite of financing and repayment relief measures to support Small and Medium Enterprises (SMEs) navigating the impact of current global economic shifts and supply chain challenges. In line with Bank Negara Malaysia’s (BNM) SME Stabilisation Relief Facility (SRF), RHB is deploying a dual-track strategy designed to ensure businesses have the necessary liquidity and structural support to maintain operational resilience. Under the SME SRF, eligible SMEs can access working capital financing of up to RM750,000 at a competitive rate of 3.75% per annum (inclusive of guarantee fees). The facility is supported by guarantees of up to 80% from Credit Guarantee Corporation Malaysia (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP), particularly benefiting SMEs that may have limited collateral. To accelerate access to support, RHB has introduced a “Fast Track Lane” for pre selected customers, enabling quicker access to financing under the SME SRF. In support of this national initiative, RHB has also streamlined its end to end processes to provide both existing and new SME customers with faster and more seamless access to SRF financing. Applications with RHB will be open from May 15, 2026. Group managing director/Group CEO, Datuk Mohd Rashid Mohamad said: “In times of global economic disruption, the strength of a bank is measured by its agility in supporting its partners. “We have re-engineered our credit evaluation process to prioritise speed and flexibility, ensuring that geopolitical challenges do not stall the growth of businesses.”

THE ringgit is expected to trade between RM3.90 and RM3.95 against the US dollar this week ahead of a key meeting between US President Donald Trump and China President Xi Jinping. According to reports, Trump is scheduled to meet Xi during his visit to Beijing this week as the US and China seek to stabilise relations strained by tensions over trade, Taiwan and the Iran war. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said investors are hopeful that the US-Iran conflict would de-escalate and the meeting between both leaders should potentially pave the way for the de-escalation of the war. “Nonetheless, the situation in West Asia will continue to be the main focal point which can switch the market direction abruptly,” he told Bernama. On the domestic front, the market is awaiting Malaysia’s first quarter of 2026 (Q1 2026) gross domestic product (GDP) data, which will be released by Bank Negara Malaysia and the Department of Statistics Malaysia on May 15. According to reports, Malaysia’s GDP is on track to achieve 5.3% growth in Q1 2026, mainly driven by broad-based expansion across several sub-sectors, including manufacturing, services and construction. The local market was closed on May 1 in conjunction with the Labour Day public holiday. The ringgit was higher against the US dollar at 3.9185/9230 on Friday, compared with 3.9690/9740 on Thursday the week before. The local note strengthened versus the British pound to 5.3354/3416 from 5.3593/3661, appreciated against the euro to 4.6121/6174 from 4.6417/6476, but it edged down versus the Japanese yen to 2.5010/5040 from 2.4907/4942. Ringgit likely to trade within RM3.90-RM3.95 range

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

3.9920 2.8840 3.1360 2.9130 4.6740 2.3720 3.1360 5.4010 5.1330 3.3160 58.8900 64.1200 51.3400 4.3100 0.0240 2.5580 43.9100 1.4900 6.6800 110.4000 107.2400 25.0800 1.3000 44.2200 12.8800 109.6100 N/A

3.8460 2.7680 3.0380 2.8310 4.5220 2.2850 3.0380 5.2280 4.9130 3.0750 56.3900 58.9800 48.7700 4.0100 0.0212 2.4390 40.3800 1.3300 6.2900 104.8100 101.8000 22.6400 1.1300 40.2600 11.4200 103.8900 N/A

3.8360 2.7520 3.0300 2.8190 4.5020 2.2690 3.0300 5.2080 4.8980

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

103.6900

2.8750

N/A

58.7800 48.5700 3.8100 0.0162 2.4290 40.1800 1.1300 6.0900 104.6100 101.6000 22.4400 0.9300 40.0600 11.0200 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

Axiata Group Bhd Neutral. Target price: RM2.40

Pentamaster Bhd Hold. Target price: RM4.10

Focus Point Holdings Bhd Buy. Target price: RM0.72

May 8, 2026: RM2.33

May 8, 2026: RM0.515

May 8, 2026: RM4.36

Source: Bloomberg, TA Research

Source: PublicInvest Research

Source: Bloomberg, Phillip Capital Research

AXIATA held a pre-results engagement to update on EDOTCO’s FY25 EBITDA breakdown by markets, potential risks and opportunities that arise from the energy crisis as well as its target to deliver annual dividend growth of at least 10%. Axiata’s goal to pare down debt at holding company (holdco) level remains one of its priorities. This includes plans to sell its stakes in 63%-owned EDOTCO and 79.5%-owned Linknet. During the session, management shared the breakdown of EDOTCO’s FY25 EBITDA by markets, out of which, emerging markets made up 55% while the remaining came from frontier markets. Based on the possible range of EV/EBITDA between 6x and 8x for frontier and emerging markets, EDOTCO could be valued at EV of RM10.6bn to RM14.4bn based on our estimates. We think that valuation may not be the sole consideration for the disposal as telco towers are critical and strategic assets while Axiata would also have to weigh in on favourable terms of leasing back the towers to the mobile network operators in the markets that it operates in. It is reported that there are several prospective buyers for the stake. Meanwhile, tenancy ratios have declined in multiple markets due to industry consolidation, resulting in lower implied multiples compared to several years ago. Annual dividend growth target of 10% or more is expected to be supported by higher dividends from opcos given better prospects. This is coupled with its efforts to maintain holdco cost of about RM220m while reducing interest expenses. We maintain our Neutral recommendation and TP of RM2.40. - PublicInvest Research, May 8

THE optical business remains the group’s key growth driver, underpinned by an ambitious plan to open 20 new outlets in 2026, compared to a net addition of 7 outlets in 2025, which will bring the total optical store count to 206. Of the planned 20 new outlets, approximately 15 would be wholly owned, while the remaining 5 would operate under the franchise model. Expansion efforts will primarily focus on the Focus Point SightSavers, Signature, Concept Store, Anggun brands, as well as the East Malaysia market. YTD, the group has opened five outlets located at Imago KK, Sunway Kluang Mall, Hextar World, Eco Grandeur and Great Eastern Mall. Upcoming store openings are planned for Sogo KL, Ombak, 118, Bangi, Section 14 and Elmina. Meanwhile, optical corporate sales continued to deliver strong growth, rising 60.6% in FY25 to RM28.7mn, and accounting for 11% of optical revenue versus 7.3% in FY24. The total number of corporate customers increased to 839 from 721 a year ago, reflecting growing corporate awareness of employee well-being and the increasing recognition of proper eye care as part of employee welfare initiatives. Management remains confident in sustaining growth and is committed to positioning the group as the preferred vision care partner through continuous promotion and advocacy of eye health awareness. Moving forward, the group plans to continue investing in primary eye care equipment and aims to organise 10 roadshows across Malaysia to promote its 360° Advanced Primary Eye Care initiative. In addition, its partnership with Airdoc enables Focus Point to leverage AI technology to provide valuable insights into eye health and identify potential risks associated with more than 35 chronic diseases, thereby enhancing its service offerings. Reiterate Buy with a TP of RM0.72. - TA Research, May 8

PENTAMASTER’S 1Q26 revenue rose 37% YoY to RM180m, driven by strong recovery from the Factory Automation Solutions (FAS) segment (+159%) on the back of robust demand from medical and electro-optical segments. However, this was partly offset by a weaker Automated Test Equipment (ATE) segment (-9%), amid softer demand across the automotive and consumer/industrial segments. Despite the stronger revenue growth, EBITDA margin fell 4.6ppts weighed down by higher fixed costs associated with the healthcare segment’s commercialisation phase. Stripping out RM5m forex gain and RM2m forward exchange contract loss, 1Q26 core net profit of RM15m was below ours and consensus expectations at 16% of both respective forecasts. The earnings shortfall was due to larger-than-expected losses from the newly commercialised healthcare segment. Sequentially, 1Q26 revenue grew 13% QoQ, but core net profit declined sharply by 43.7% QoQ due to wider-than-expected losses from the healthcare segment. While we anticipate the losses to gradually moderate, we believe the healthcare business will likely remain loss-making in 2026, given its early-stage commercialisation phase. Pentamaster’s outstanding order book rose 20% QoQ to RM480m in 1Q26 (end25: RM400m), with the largest contributions from medical (55%) and consumer and industrial products (24%), followed by automotive (11%), opto electronics (6%), and others (5%). We continue to see the medical, electro-optical and automotive segment as the group’s main growth driver. Downgrade to HOLD with a higher 12-month TP of RM4.10. - Phillip Capital Research, May 8