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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

Malaysia logs RM89m sales at Indonesia Franchise Expo KUALA LUMPUR: Malaysia recorded about RM89.4 million in potential sales during its participation in the Franchise and License Expo Indonesia (FLEI) 2026 held in Jakarta from May 7-10, said Malaysia External Trade Development Corporation (Matrade). In a statement, Matrade said the Malaysian delegation to FLEI 2026 was organised by the agency in collaboration with the Ministry of Entrepreneur and Cooperatives Development (MECD) and Perbadanan Nasional Bhd. It said the trade show recorded more than 300 business meetings organised by Matrade Indonesia between Malaysian franchise brands and Indonesian business partners. “In addition to the scheduled business meetings, several participating firms also conducted separate discussions with prospective investors and strategic partners, reflecting strong market interest in establishing joint ventures,” it said. Matrade said one of the outcomes from the event involved Malaysian company ILUVQURAN, which is expected to sign a memorandum of understanding with an investor following discussions held during FLEI 2026. Malaysia’s Trade Commissioner in Indonesia Suresh Kumar said Indonesia remained a key market for Malaysian franchise brands due to its large consumer base and growing demand for food and beverage, education, and lifestyle businesses. “The encouraging response received during FLEI 2026 reflects the strong demand for quality, affordable and scalable business concepts from Malaysia. “We see growing opportunities for Malaysian brands to establish long-term partnerships and expand their footprint across major Indonesian cities,” he said. – Bernama 99 Speed Mart Retail Holdings Bhd Buy. Target price: RM4.02

Ringgit mostly firmer against major currencies

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit ended mostly higher against major currencies but eased against the US dollar yesterday as market participants await further developments in West Asia negotiations between the US and Iran. At 6pm, the ringgit edged down to 3.9745/9785 versus the greenback from 3.9720/9770 at Monday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants are awaiting further developments on the war in Iran as negotiations between the US and Iran continue. “Meanwhile, WTI and Brent crude prices fell 0.15% and 1.51% to US$108.50 per barrel and US$110.41 per barrel, respectively, as hopes for a resolution to the war strengthened,” he told Bernama Meanwhile, the Department of Statistics Malaysia (DOSM) said Malaysia’s inflation, as measured by the Consumer Price Index, rose 1.9% year-on-year in April 2026 to 136.9 from 134.3 in the same month last year. DOSM said Malaysia’s April inflation was lower than that of several countries, including the Philippines, Vietnam, Thailand, the Republic of Korea and Indonesia. At the close, the ringgit traded mostly higher against a basket of major currencies. It strengthened versus the Japanese yen to 2.4980/5006 from 2.4991/5024 and appreciated against the euro to 4.6180/6226 from 4.6214/6272 at Monday’s close, but eased against the British pound to 5.3282/3336 from 5.3078/3145 previously. At the same time, the local currency traded mixed against regional peers, rising against the Singapore dollar to 3.1022/1055 from 3.1036/1078 at Monday’s close, and strengthening against the Indonesian rupiah to 224.4/224.8 from 224.8/225.1 on Monday.

1 US Dollar

4.0440 2.9040 3.1540 2.9330 4.7040 2.3750 3.1540 5.4220 5.1730 3.3470 59.6900 64.5200 52.0300 4.2700 0.0239 2.5590 44.6800 1.5100 6.6400 111.7600 108.5500 25.1800 1.2800 44.2800 12.9400 111.0600 N/A

3.8940 2.7840 3.0520 2.8490 4.5460 2.2850 3.0520 5.2420 4.9470 3.1160 57.1000 59.3000 49.3800 3.9700 0.0211 2.4380 41.0500 1.3400 6.2400 106.1000 103.0500 22.7200 1.1100 40.2700 11.4600 105.1700 N/A

3.8840 2.7680 3.0440 2.8370 4.5260 2.2690 3.0440 5.2220 4.9320

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

104.9700

2.9160

N/A

59.1000 49.1800 3.7700 0.0161 2.4280 40.8500 1.1400 6.0400 105.9000 102.8500 22.5200 0.9100 40.0700 11.0600 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

AEON Co (M) Bhd Buy. Target price: RM1.52

Affin Bank Bhd Neutral. Target price: RM2.60

May 19, 2026: RM2.40

May 19, 2026: RM3.41

May 19, 2026: RM1.17

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

Q1’26 core profit of RM83.7 million met 53% and 56% of our and consensus full-year forecasts – in line with AEON’s seasonally stronger Q1. Earnings grew 23% YoY as net margin expanded to 6.7% (Q1’25: 5.5%), driven by strong PMS contribution and lower finance cost. Q1’26 revenue was broadly flat YoY at RM1.24 billion. Retailing revenue declined 1% YoY, reflecting moderation in discretionary purchases, while PMS revenue rose 4% YoY. PMS remained the key earnings anchor, with segment profit rising 34.1% YoY to RM116.5 million. PMS margin also expanded to 55% (Q1’25: 43%), mainly driven by stronger festive-season tenant sales improving turnover rent capture. We also believe past tenant rezoning and mix optimisation helped lift space productivity and support better average rental rates per sq ft. Meanwhile, retailing segment profit declined 9.9% YoY to RM49 million – reflecting softer discretionary spending. We expect retailing to remain soft as consumers continue to prioritise essentials over discretionary spending, especially if macro uncertainty and inflationary pressure persist. Still, AEON should remain relatively defensive, supported by its PMS segment, where rental reversions are expected to stay positive at mid-single digit levels and occupancy remains high at >95%. PMS growth should also be supported by ongoing NLA expansions, including AEON Mall KL Midtown (+400k sq ft/c.3% NLA) – targeted to open by end-2026, AEON Mall Seremban 2 (+300k sq ft/2% NLA), and AEON Mall Kinta City (+145k sq ft/1% NLA) – both targeted to open by end-2027. BUY with RM1.52 TP.– RHB Research, May 19

99SMART’S Q1’26 results were within expectations. Net profit of RM189 million (+30% YoY) accounted for 26% of our and consensus forecasts. YoY, Q1’26 revenue jumped 18% to RM3.1 billion, spurred by the net addition of 253 stores and SSSG of 11.1% (longer operating hours and SARA programme boost, which now accounts for 5% of the total sales). Q1’26 GPM expanded by 1.1ppts on growing economies of scale. Consequently, PBT margin expanded by 0.8ppts to 8.1%, reflecting improved operating leverage with opex/revenue moderating to 12.3% (-0.3ppts). QoQ, revenue was stable, but GPM was 1.1ppts higher on a more favourable product mix thanks to the expansion of SARA product categories and better seasonality. Correspondingly, Q1’26 net profit saw a 22% surge QoQ with margin exceeding the 6% mark, likely a historical high. On the implications of the Middle East conflict, management has neither observed nor foreseen any material cost pressures and supply chain disruptions in the immediate term. That said, any cost increases will be passed on to consumers to conserve its GPM. Meanwhile, the rising electricity tariff is mitigated by optimisation efforts whilst the spike in diesel expenses is covered by the government’s subsidy programme. Consumer behaviour has not changed significantly but management is seeing a more conservative spending pattern. Outlet expansion target remains at 250 stores pa for Malaysia and management is looking to add <10 outlets in China (six outlets currently) as the venture is still at an experimental stage. BUY with RM4.02 TP.– RHB Research, May 19

Q1’26 net profit came in at RM135.5 million (+6% QoQ, +9% YoY) broadly meeting expectations and forming 24% and 23% of our and consensus full year forecasts. Q1’26 reported ROE stood at 4.4% (FY25: 4.5%) – tracking below its 5% target, but Affin appeared optimistic it will be able to narrow the gap, assuming the Middle East war ends by June. Group- and bank-level CET-1 ratios eased to 12.5% and 12.2% (FY25: 13.3% and 12.8%), likely a reflection of the strong Q1’26 loan growth achieved. Q1’26 operating income jumped 20% YoY, supported by both NII (+16% YoY from loan growth and NIM expansion) and non-II (+33% YoY – fees and commission). Both loan growth and fee income were aided by solid deal conversion from corporate banking (Affin was involved in a chunky syndicated loan financing during the quarter). The rise in operating income, though, was partly offset by credit cost surging to 34bps from 5bps in Q1’25, amid a deterioration in asset quality plus lower writebacks this quarter. QoQ, the rise in PATMI was due to a lower effective tax rate of 25% vs 42% in Q4’25. Otherwise, pre-tax profit fell 17% QoQ on lower non-II (-12% QoQ) and higher credit cost. Otherwise, we estimate that loans grew by a high single digit YoY (flat QoQ). Deposits grew by a more modest 2% YoY (-2.5% QoQ) due to competitive pressures and, hence, the LDR ticked up further to 105.3% (Q4’25: 99.4%, Q1’25: 95.2%). GIL increased 7% YoY or 10% QoQ due to the SME segment plus some corporate names while, by sector, the deterioration came from manufacturing and trading. LLC moderated to 70.1% in Q1’26 (Q4’25: 74.1%, Q1’25: 80%). NEUTRAL with RM2.60 TP. – RHB Research, May 19