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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

Hong Leong Bank supports SMEs through relief facility KUALA LUMPUR: Hong Leong Bank (HLB) remains steadfast in its commitment to supporting its clients by facilitating access to the SME Stabilisation Relief Facility (SME SRF). The initiative, which was recently introduced by Bank Negara Malaysia (BNM), is designed to offer financial relief to micro, small, and medium enterprises (MSMEs) that are experiencing temporary disruptions to operations and cash flow challenges resulting from the ongoing conflict in West Asia. Recognising the vital role SMEs play as the backbone of the nation’s economy, HLB said in a statement that it is prioritising the disbursement of this facility to ensure viable businesses can maintain their momentum. The SME SRF serves as a dedicated working capital solution, allowing affected businesses to bridge short-term liquidity gaps and meet their financial obligations without compromising their long-term growth prospects. Under this facility, eligible SMEs can apply for financing of up to RM750,000 to be utilised specifically for working capital requirements at financing rates of up to 3.75% per annum, with a financing tenure of up to five years. The facility is backed by a guarantee cover of up to 80% from either the Credit Guarantee Corporation Malaysia Bhd (CGC) or Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP). The bank said that the SME SRF is available for application starting from May 15, 2026 until Dec 31, 2026, or until the total RM5 billion fund allocation is fully utilised. HLB said that customers who wish to apply for the facility are encouraged to reach out to their dedicated relationship managers for more details.

THE ringgit is expected to trade within a narrow range of between RM3.94 and RM3.96 against the US dollar this week. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said that, thus far, the Malaysian economy has performed well, with both domestic and external demand continuing to propel growth to 5.4%, which is better than the advance estimate of 5.3%. “However, the second half of this year would be more critical should the war in Iran and the blockage of the Strait of Hormuz persist,” he told Bernama. On Friday, Bank Negara reported that Malaysia’s economy expanded by 5.4%, supported by resilient household spending amid favourable labour market conditions and continued policy support. Investment activity was sustained by spending on machinery and equipment, structural investment, and the implementation of multi-year projects. The central bank said private consumption expanded by 4.7% in Q1 2026, while private investment grew 7.8%, and net exports surged 13.5% amid steady export growth and a faster moderation in imports. The ringgit was lower against the US dollar at 3.9515/9580 on Friday, compared with 3.9185/9230 the week before. The local note strengthened versus the British pound to 5.2749/2835 from 5.3354/3416, appreciated against the euro to 4.5948/6024 from 4.6121/6174, and enhanced versus the Japanese yen to 2.4927/4968 from 2.5010/5040. It gained vis-a-vis the Singapore dollar to 3.0871/0927 from 3.0910/0948, appreciated against the Thai baht to 12.0989/1247 from 12.1640/1844 and rose versus the Indonesian rupiah to 224.5/225.0 from 225.4/225.7. Ringgit set to trade between RM3.94 and RM3.96 vs US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0125 2.9010 3.1340 2.9130 4.6690 2.3690 3.1340 5.3620 5.1330 3.3320 59.3400 64.0400 51.6100 4.2700 0.0240 2.5470 44.2900 1.5000 6.5900 110.9100 107.7400 25.1200 1.2900 43.8900 12.8700 110.1900 N/A

3.8655 2.7830 3.0350 2.8300 4.5160 2.2800 3.0350 5.1880 4.9120 3.0890 56.8100 58.9000 49.0100 3.9600 0.0212 2.4280 40.7200 1.3300 6.2000 105.2900 102.2800 22.6800 1.1300 39.9500 11.4000 104.4000 N/A

3.8555 2.7670 3.0270 2.8180 4.4960 2.2640 3.0270 5.1680 4.8970

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

104.2000 2.8890 58.7000 48.8100 3.7600 0.0162 2.4180 40.5200 1.1300 6.0000 105.0900 102.0800 22.4800 0.9300 39.7500 11.0000 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

EG Industries Bhd Buy. Target price: RM2.10

Ranhill Utilities Bhd Buy. Target price: RM2.71

Duopharma Biotech Bhd Buy. Target price: RM1.69

May 15, 2026: RM1.30

May 15, 2026: RM1.45

May 15, 2026: RM2.06

Source: Bloomberg, TA Research

Source: Bloomberg, TA Research

DUOPHARMA’S 1Q26 net profit of RM30.7mn was within our expectations and consensus projections, at 29.6% and 29.4% of full year estimates respectively. Note that 1Q is traditionally the group’s strongest quarter. 1Q26 net profit rose 19.8% YoY despite a 5.7% decline in revenue to RM247.9mn. This decline in revenue was expected as 1Q25 sales benefited from a one-off surge in insulin supply following the group’s fulfilment of backlogged orders ahead of the expiry of the insulin agreement. Meanwhile, the stronger bottom line performance was mainly driven by lower Active Pharmaceutical Ingredients (API) costs and the strengthening of the Ringgit. Consequently, the PBT margin improved by 3.5%-pts to 16.3%. Local sales continued to be the primary contributor to the group’s revenue, accounting for 92.1%, while exports made up the remaining 7.9%. QoQ, 1Q26 net profit surged 61.2% as revenue grew 10.3% due to: i) timing of government purchase, ii) lower operating costs and finance costs. We estimate that the impact of Iran war is minimal at below 3%, given the group’s API inventory buffer of 3-6 month and the strong Ringgit. As such, we maintain our FY26 GP margin of 39.0%. Moving into 2Q26, we remain confident that the sales and bottom-line will increase YoY due to stronger sales across all segments and cost optimisation. There is no change to FY26-28F earnings estimates. Reiterate Buy on Duopharma with an unchanged TP of RM1.69 based on 15.0x CY27 EPS and a 3% ESG premium. - TA Research, May 15

Source: Bloomberg, Phillip Capital Research

RANHILL’S 9MFY26 result came in ahead of both our and consensus expectations. The group reported a 3QFY26 core net profit of RM60mn, which brought 9MFY26 core net profit to RM131mn, accounting for 96% of our and 100% of consensus’full year estimates respectively. The outperformance against our forecast is mainly due to stronger than expected margins for the water division and lower than expected effective tax rate. Sequentially, 3QFY26 group revenue declined slightly by -3% QoQ due to lower contribution from the power (-13%) and consultancy (-14%) divisions. In contrast, water division revenue rose marginally by +0.6% QoQ during the quarter. Nevertheless, group PBT rose +36% QoQ lifted by a +35% increase in water division PBT given stronger margins. We suspect this is due to higher developer contribution during the quarter which tends to be lumpy. Additionally, the consultancy division saw multi-fold PBT improvement as margins recovered against exceptionally weak levels in 2QFY26. Given the result outperformance, we raise FY26F-28F net profit by 12%-19% to reflect higher margin assumptions for Ranhill SAJ (water division) and lower effective tax rate assumptions. We believe earnings could moderate in the coming quarters on the back of potentially higher electricity tariffs, in particular for Ranhill SAJ, which is a fairly large consumer of electricity. Every 1% change in effective electricity tariff could impact group earnings by 0.6%, on an annual basis. We have conservatively modelled in up to +5% increase in electricity cost in our current projections. Maintain Buy at a higher TP of RM2.71. - TA Research, May 15

EG announced that it has secured a US$241.6m (RM950m) purchase order from its key customer C for high-speed 800G optical modules and wireless access products. Customer C is a reputable optical networking solution provider with exposure to high-speed optical module used in data centre interconnect applications. The order will be fulfilled progressively over period of 12 months, with deliveries slated to begin in 4QFY26. The newly secured US$242m order marks a meaningful increase from the earlier US$117m contract secured in Jul24. We view this as a strong validation of EG’s growing capabilities within the optical module segment, particularly in higher-end 800G modules, driven by AI data centre upcycle. This win coincides with the ramp-up of 800G optical module production at the Batu Kawan facility, which should drive utilisation above the 80% level recorded in 6MFY26. We estimate optical module revenue contribution to rise to 20% of FY27E revenue (from 4% in FY25), with the rising mix of 800G module supporting margin expansion and driving FY27E earnings growth of 29%. We raise our FY27-28E EPS forecasts by 2-3% after incorporating higher-than-expected order assumptions for 800G optical modules. We also lift our target PE multiple to 24x (from 20x), reflecting global EMS rerating across AI data centre-exposed peers, where valuations have expanded by 30% YTD. We remain positive on EG prospects given its direct exposure to the fast-growing 800G optical module market, which is being driven by accelerating AI data centre deployments globally. Maintain BUY with higher TP of RM2.10. - Phillip Capital Research, May 15