19/05/2026

BIZ & FINANCE TUESDAY | MAY 19, 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

ICT Zone achieves HP sales leadership recognition KUALA LUMPUR: ICT Zone Asia Berhad’s wholly-owned subsidiary, ICT Zone Sdn Bhd, has been officially recognised as an HP Amplify Impact Sustainability Sales Leader for the 2026–2027 cycle. Issued on April 27, 2026, this recognition establishes ICT Zone as the first partner in Malaysia to achieve this specific commercial milestone under HP Inc.’s global channel sustainability programme. This achievement serves as a direct commercial validation of ICT Zone’s core business model. By integrating Technology Financing (TechFin), Device-as-a-Service (DaaS 360), lifecycle recovery, and Carbon Neutral Computing Services (CNCS), the Group is actively converting corporate environmental mandates into scalable, subscription-based IT procurement contracts. “This recognition goes beyond basic ESG compliance; it is a clear indicator of our commercial execution. Being the first in Malaysia to achieve this HP sales leadership status proves our ability to translate corporate sustainability targets into tangible IT procurement strategies,” CEO Tommy Lim Kok Kwang said. “As enterprise and government sectors face stricter environmental requirements alongside tighter capital expenditure budgets, sustainable IT is transitioning from a niche consideration into a strict procurement priority. “Our subscription-based TechFin and DaaS models provide a highly scalable, off-balance-sheet solution to this exact problem, positioning us perfectly to capture this shift in market behaviour.” HP Amplify Impact operates as an award-winning, all-in-one IT channel sustainability programme designed to drive sustainable sales and positive environmental outcomes.

THE ringgit closed lower against the US dollar yesterday, as cautious sentiment prevailed in the foreign exchange market. This came on the back of China’s weaker economic data and amid jitters ahead the Federal Open Market Committee minutes to be released tomorrow. At 6pm, the ringgit depreciated to 3.9720/9770 versus the greenback from 3.9515/9580 at last Friday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said data points in China took the centre stage with its fixed-asset investment shrinking 1.6% in the first four months of 2026 against the consensus estimate of 1.7% growth. “In addition, retail sales grew at a significantly slower rate of 0.2% (year-on-year) during April after posting 1.7% growth in the previous month while the industrial production growth moderated to 4.1% from 5.7% previously. “Hence, the April figures showed China’s economy is slowing amid the supply shock in the oil and gas sector following the war in Iran which erupted on Feb 28 this year. As such, market sentiment was cautious throughout the day,” he told Bernama. At the close, the ringgit traded mostly easier against a basket of major currencies. It strengthened versus the British pound to 5.3078/3145 from 5.3094/3135 at Friday’s close, but fell against the Japanese yen to 2.4991/5024 from 2.4886/4907 at the end of last week and slid vis-a-vis the euro to 4.6214/6272 from 4.6009/6044 previously. It eased versus the Singapore dollar to 3.1036/1078 from 3.0867/0893 on Friday, fell against the Philippine peso to 6.43/6.45 from 6.37/6.38 previously and weakened vis-a-vis the Thai baht to 12.1646/1848 from 12.1506/1652. Ringgit closes lower amid cautious sentiment

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0440 2.8880 3.1490 2.9300 4.6880 2.3590 3.1490 5.3740 5.1570 3.3470 59.6000 64.3100 52.0300 4.2900 0.0242 2.5600 44.4000 1.5100 6.6500 111.7800 108.5700 24.9400 1.3000 43.9600 12.8600 111.0400 N/A

3.8950 2.7700 3.0470 2.8450 4.5320 2.2700 3.0470 5.1980 4.9330 3.1160 57.0200 59.1200 49.3900 3.9800 0.0213 2.4400 40.8000 1.3400 6.2500 106.1100 103.0700 22.5100 1.1300 39.9900 11.3900 105.2000 N/A

3.8850 2.7540 3.0390 2.8330 4.5120 2.2540 3.0390 5.1780 4.9180

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

105.0000 2.9160 57.0200 58.9200 49.1900

3.7800 0.0163 2.4300

N/A

40.6000 1.1400 6.0500 105.9100 102.8700 22.3100 0.9300 39.7900 10.9900

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

Westports Holdings Bhd Buy. Target price: RM7.40

Tune Protect Group Bhd Buy. Target price: RM0.38

MN Holdings Bhd Buy. Target price: RM3.01

May 18, 2026: RM2.39

May 18, 2026: RM5.98

May 18, 2026: RM0.30

Source: Bloomberg, TA Research

Source: Bloomberg, TA Research

Source: Bloomberg, Phillip Capital Research

TO recap, Tune’s travel segment gross written premium (GWP) expanded by 25.6% YoY in FY25, increasing travel’s contribution to total GWP to 44%, up from 34% in FY24. However, the ongoing US/Israel-Iran conflict is expected to raise travel costs, dampen passenger traffic and alter travel patterns and spending behaviour, as consumers increasingly favour destinations within Asia and domestic routes. As a result, we are adopting a more cautious stance on Tune’s travel growth outlook for FY26, and now forecast GWP growth of 5.3%, versus our previous estimate of 15.5%. This reflects expectations of airline capacity adjustments and a greater focus on domestic and regional Asian routes. In addition, we note that insurance take-up rates for domestic travel remain lower than those for international travel. Having said that, growth would still come from its expansion into travel ancillary verticals. For example, Tune recently introduced Travel Comfort, which offers airport transfer-related services aimed at enhancing customer engagement and increasing ancillary income contribution. According to the General Insurance Association of Malaysia, the motor insurance segment recorded a combined ratio of 103% in FY25, indicating that claims payouts exceeded premiums collected. For Tune Protect, its motor segment NCI ratio has been improving, supported by initiatives to reduce exposure to lower-profitability motor sub-segments while increasing focus on more profitable areas, such as mid- to high-sum-insured vehicles and motorcycles. Looking ahead to 2026, we expect Tune’s motor GWP to grow by more than 15% driven by new partnerships and the continued expansion of its agency channels. These initiatives are also expected to further diversify earnings contribution and enhance the group’s business resilience over the longer term. Maintain Buy with a lower TP of RM0.38. – TA Research, May 18

EXCLUDING impairment loss (RM6.1mn), concession asset write-off (RM7.9mn), one-off insurance claim (RM10m) and other exception items, Westports Holdings’1Q26 core profit RM330.6mn came in within our expectations at 30% of full-year forecast. 1Q26 core profit surged 48.6% YoY on the back of revenue growth and margin expansion. Revenue expanded by 27.3% YoY in 1Q26, driven mainly by the scheduled phase-2 10% port tariff hike effective Jan-26, which more than offset a marginal 1.1% decline in throughput. For this quarter, the transhipment volume was little changed at 1.5mn TEUs while the gateway volume slid 3.4% to 1.1mn TEUs. Overall, the tariff-led revenue growth boosted the adjusted PBT margin to 57.2%, up 7.7%-pts. On QoQ basis, 1Q26 revenue and core profit rose 10.8% and 16.5% respectively, supported by the 10% port tariff hike. The throughput, however, declined by 8.3% due to seasonal factor. Management reiterates its 0-5% throughput growth guidance for FY26. It believes 2Q26 container volume to be strong due to panic buying and stocking up activity amid the US-Iran war. 3Q26 volume would tend to peak based on the past seasonal pattern. However, 4Q26 is highly uncertain as inflationary pressure could dampen global demand, thus affecting global trades. The marginal decline in throughput in 1Q26 can be attributed to port congestion. However, management indicates the condition will improve in 2Q26 supported by the company’s prudent management of container dwell time, including the selective rejection of long-dwell containers, particularly Middle Eastern cargoes. Cost pressure from higher fuel prices will remain a concern as profit will reduce by RM5.5mn per annum on 10sen rise in average fuel cost. Reiterate BUY and RM7.40 TP. – TA Research, May 18

MN Holdings has clinched a RM83.5m data centre contract in Johor from a returning customer, involving the delivery of a 275kV consumer landing substation. The project commenced in May26 and is slated for completion by Jan27. With this win, MN’s YTD FY26 job wins stand at RM1.2bn, ahead of our previous replenishment assumption of RM900m. In view of the strong job win momentum, we raise our FY26 order book replenishment assumption to RM1.3bn (from RM900m), while keeping FY27-28E new wins unchanged at RM1bn p.a. This latest win lifts its outstanding order book to RM1.4bn, with DC related projects estimated to make up 75% of the total. Assuming an 8% PAT margin, we estimate this contract to contribute RM7m in PAT, with the bulk of recognition expected in 1HFY27. We gather that this contract is from a returning client, where MN previously undertook underground cable works and has now secured a new substation scope. The successful breakthrough represents a key milestone, allowing MN to broaden its participation in the client’s future expansion pipeline. We raise FY26-28E EPS forecasts by 8-11% after penciling in higher order book replenishment for FY26. We derive our 12-month TP of RM3.01 after rolling forward our valuation to CY27E and lower our target PER to 18x (from 20x), based on the updated M&E sector average 2027E PE. At 13x FY27 PER, MN is trading at +1SD above its 3-year average of 10x; however, valuations still appear attractive, underpinned by a strong 3-year CAGR of 27%. We continue to like MN as a proxy for Malaysia’s expanding power infrastructure with strategic exposure in the rapidly growing DC and solar sectors. Key downside risks include slower-than-expected new contract awards, project execution delays, and rising project costs. Maintain BUY with higher TP of RM3.01. – Phillip Capital Research, May 18