15/05/2026

BIZ & FINANCE FRIDAY | MAY 15, 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

Destini wins tubular services contract from Petronas SHAH ALAM: Destini Bhd’s subsidiary Destini Oil Services Sdn Bhd has been awarded a major contract by Petronas Carigali Sdn Bhd to supply tubular running services (TRS). The contract was officially awarded on March 30, 2026. This long-term strategic contract is valid for 5 years, commencing on the effective date and ending on March 29, 2031. Destini Group managing director Datuk Seri Dr Shahril Mokhtar said the group values its ongoing partnership with Petronas. “Destini is committed to being a reliable TRS solutions provider, especially as we all adapt to the complexities of today’s energy market. “We look forward to supporting Malaysia’s energy security through operational excellence and a shared focus on long-term resilience,” he said. This award comes at a critical time for the energy sector. As global markets face heightened volatility due to the ongoing energy crisis in West Asia, maintaining stable domestic production is more vital than ever. By securing this five-year contract, Destini reinforces its role in ensuring that upstream operations in Malaysia remain resilient. The award of this contract significantly strengthens the group’s order book, providing long-term revenue visibility through 2031. Operationally, the five-year duration allows Destini Oil Services to optimise its resource deployment and leverage its established local infrastructure to drive cost-efficiencies for the client.

THE ringgit closed mostly higher against major and regional currencies yesterday, except the US dollar, amid positive signals from the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping that could benefit both Washington and Beijing. At 6pm, the ringgit depreciated to 3.9300/9330 against the greenback from 3.9285/9325 at Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said early indications had been positive, with both countries signalling encouraging developments. “Among the positive signs are the renewal of import permits for US beef plants and Trump’s remarks that US-China relations are better than ever,” he told Bernama. He added that traders and investors would continue to monitor further developments, particularly whether they could lead to the reopening of the Strait of Hormuz. At the close, the ringgit traded mostly higher against a basket of major currencies. It appreciated against the Japanese yen to 2.4886/4907 from 2.4888/4916, and strengthened versus the British pound to 5.3094/3135 from 5.3105/3160, but slid against the euro to 4.6009/6044 from 4.5987/6034 at Wednesday’s close. The local currency also traded mostly higher against regional peers. It rose against the Singapore dollar to 3.0867/0893 from 3.0872/0906, increased against the Indonesian rupiah to 224.1/224.4 from 224.7/225.1, and was higher against the Philippine peso at 6.37/6.38 from 6.40/6.41. However, it slipped against the Thai baht to 12.1506/1652 from 12.1419/1599 previously. Ringgit mostly higher but slips against US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0000 2.9090 3.1360 2.9090 4.6770 2.3750 3.1360 5.4020 5.1370 3.3220 59.1000 64.1700 51.4600 4.2600 0.0239 2.5480 44.6600 1.4900 6.5900 110.5900 107.4000 25.1900 1.2900 44.1200 12.8900 109.8400 N/A

3.8520 2.7900 3.0360 2.8260 4.5230 2.2850 3.0360 5.2260 4.9130

3.8420 2.7740 3.0280 2.8140 4.5030 2.2690 3.0280 5.2060 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

104.0500 3.0790 56.5700 59.0000 48.8600

103.8500 2.8790 58.8000 48.6600 3.7500 0.0161 2.4190 40.8500 1.1300 6.0000 104.7900 101.7600 22.5400 0.9200 39.9500 11.0200 N/A N/A

3.9500 0.0211 2.4290

N/A

41.0500 1.3300 6.2000 104.9900 101.9600 22.7400 1.1200 40.1500 11.4200

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

Sunway REIT Neutral. Target price: RM2.45

Dialog Group Bhd Buy. Target price: RM2.44

Auto & Autoparts Neutral

May 14, 2026: RM2.51

May 14, 2026: RM2.10

Source: Bloomberg

Source: Bloomberg

Q3’26 revenue rose 20% YoY to RM696.9 million, mainly driven by stronger performance from its Malaysian operations. Consequently, core net profit increased 8% YoY to RM148.3 million. This is despite lower contributions from its international operations due to reduced business activities. DLG’s midstream operations continue to provide stable and recurring income visibility, underpinned by its predominantly take-or-pay business model. Utilisation rates across its tank terminal assets remain healthy at above 90%, while independent storage rates remain stable at S$6-6.5/m³/month. Growth visibility also remains intact with the commencement of Phase 3 expansion within PDT, which will add 614,000 m³ of storage capacity with BP Singapore as the dedicated long-term customer, potentially generating around RM135-150 million in annual terminal revenue upon full commissioning. We believe this further reinforces the defensiveness of DLG’s recurring income base over the longer term. Our current 2026 oil price assumption stands at US$82.5 per bbl, premised on a sustained ceasefire scenario. However, should geopolitical tensions persist for a longer period, oil prices could trend above our current forecast. Based on our sensitivity analysis, every US$10 per bbl increase in oil prices could lift earnings by approximately 5-6%. We marginally raise our FY26-28 earnings forecasts by 2-4%, mainly driven by slightly higher tank terminal utilisation and recurring income assumptions amid improving regional storage demand dynamics. Key downside risks include lower oil price, lower tank terminal rates, and lower utilisation for its independent storage terminal. BUY with RM2.44 TP. – RHB Research, May 14

Q1’26 core earnings of RM114.7 million (+10% YoY) came in at 25% of our and consensus full-year forecasts, supported by stronger retail performance and lower utilities and finance costs. SREIT’s Q1’26 revenue growth was supported by contributions from the retail segment, particularly Sunway Carnival Mall (+37% YoY) following the reopening of its old wing after refurbishment in May 2025, as well as contribution from AEON Mall Seri Manjung, which was acquired in July 2025. Retail revenue and NPI rose 10% and 17% YoY to RM185 million and RM136 million, offsetting softer hotel contribution – revenue declining 19% YoY to RM13 million due to softer travel sentiment amid ongoing Middle East conflicts. Finance costs fell 9.9% YoY to RM38 million, mainly as proceeds from the Sunway University disposal helped pare down borrowings to RM4.3 billion (RM4.6 billion in Q1’25), alongside lower average cost of debt of 3.63% (Q1’25: 3.92%). We remain constructive on the fundamentals of its assets, underpinned by a strong retail segment. Despite current macro conditions, SREIT’s key malls have seen encouraging footfall so far, and we believe management’s guidance for mid-single digit rental reversions in FY26 is achievable. For hospitality, we view the weakness as temporary, with operators looking to rebuild demand through domestic tourism initiatives, potential tax-relief support for hotel stays, and more targeted outreach to key foreign source markets. In terms of inorganic growth, key ongoing projects remain on track, namely the new Seberang Jaya hotel and Sunway Pier redevelopment – targeted for completion by end-2027 and 2H’28. Management also noted that so far, there is no material change to capex assumptions for these projects, with funding expected to be supported internally via borrowings (Q1’26 gearing: 40.2%). NEUTRAL with RM2.45 TP. – RHB Research, May 14

Source: Bloomberg

SENTIMENT is expected to remain subdued, as loan approval rates in March fell to 54%, from 57% a year ago, implying tighter lender requirements. This is also lower than the 2-year average of 56% despite the higher TIV sales for the month. As crude oil prices remain elevated – and are unlikely to return to pre-war levels – we think this may have a spillover effect on consumers’ disposable income and affect car purchases. Over the past few weeks, following news flows on the on-off Middle East conflict ceasefire, we observed a partial return of risk on sentiment as investors gradually rotated back to cyclical sectors. This was reflected in the stocks under our coverage, which have seen share price gains of 3-15% over the past seven weeks. While the sector still has much to offer, given expectations of both Bermaz Auto (BAUTO) and SIME recording double-digit earnings growth in FY27, we think valuations now seem fair for some of the stocks under our coverage. As such, we have downgraded BAUTO and MBM Resources (MBM), premised on fair valuation and expectations of weaker Perodua sales volumes. We expect Q2’26 TIV to recover QoQ following a softer Q1’26 due to fewer working days given the Lunar New Year and Aidil Fitri festive periods. The rebound should be supported by a pickup in production, buoyed by favourable macro backdrops and lower overnight policy rates. This may be partially offset by concerns over RON95 subsidy sustainability, which have increased the monthly subsidy to RM4 billion/month from the pre-war RM700 million. – RHB Research, May 14