25/05/2026

BIZ & FINANCE MONDAY | MAY 25, 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

PSP Energy third-quarter PAT improves to RM7 million KUALA LUMPUR: PSP Energy Bhd, a provider of commercial fuel, bunkering and lubricants solutions in Malaysia, announced its unaudited financial results for the third quarter ended March 31, 2026 (Q3’26), delivering a stronger sequential performance with revenue increasing 23.8% quarter-on-quarter (QoQ) to RM279.6 million, compared to RM225.8 million in the immediate preceding quarter. The stronger performance was mainly driven by higher revenue contribution from the Distribution of Fuel Products segment, which rose by RM28.6 million or 21.3% QoQ to RM162.6 million, as well as higher contribution from the Trading of Fuel Products segment, which increased by RM24 million or 28.9% QoQ to RM107.3 million. Both segments benefitted from higher bulk orders from major customers during the quarter under review. Gross profit rose 87.4% QoQ to RM19.3 million from RM10.3 million, while gross profit margin improved to 6.9% from 4.6% in the immediate preceding quarter, supported by higher selling prices of fuel oil, marine gas oil and diesel. Profit before tax (PBT) increased by 140.6% QoQ to RM9.6 million, while profit after tax (PAT) surged 162% QoQ to RM7 million from RM2.7 million previously. For the nine-month financial period ended March 31, 2026, PSP Energy recorded revenue of RM719 million, gross profit of RM39.1 million, PBT of RM19.2 million and PAT of RM13.7 million. As part of its shareholder return commitment, PSP Energy declared a second single-tier interim dividend of 0.1 sen per ordinary share on May 21, 2026, amounting to approximately RM1.1 million. The dividend is payable on July 28, 2026 to entitled shareholders whose names appear in the Record of Depositors on June 30, 2026.

THE ringgit retreated against the US dollar last Friday, ending a three-day winning streak as investors focused on geopolitical tensions and the increasingly hawkish stance adopted by central banks globally. At 6pm, the ringgit fell to 3.9655/9700 versus the greenback from 3.9595/9630 at Thursday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was mostly in a narrow range with the US dollar last Friday, languishing around RM3.9583 to RM3.9688. “The ongoing negotiation between the US and Iran are still the main focus while central banks across the globe seems to be taking a more hawkish stance,” he told Bernama. At the close, the ringgit traded mostly lower against a basket of major currencies. It weakened versus the Japanese yen to 2.4925/4954 from 2.4906/4929 at Thursday’s close, slid against the British pound to 5.3245/3305 from 5.3220/3267 previously but gained against the euro to 4.6012/6064 from 4.6037/6078 on Thursday. At the same time, the local currency was mixed against regional peers. It fell against the Singapore dollar to 3.0985/1023 from 3.0967/0997 at the close on Thursday, down against the Thai baht to 12.1421/1611 from 12.1304/1468 on Thursday, but edged up against the Indonesian rupiah to 223.8/224.1 from 224.1/224.4 previously. It was almost flat against the Philippine peso at 6.42/6.44 from 6.43/6.44. Ringgit slips against US dollar, ending 3-day rally Petronas Chemicals Group Bhd Neutral. Target price: RM5.92

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0300 2.8870 3.1440 2.9140 4.6720 2.3690 3.1440 5.4010 5.1410 3.3350 59.4500 64.0900 51.8300 4.2700 0.0238 2.5470 44.6200 1.5000 6.6300 111.4400 108.2000 25.3000 1.2400 44.3300 12.8600 110.6700 N/A

3.8820 2.7690 3.0440 2.8310 4.5180 2.2800 3.0440 5.2260 4.9190 3.1060 56.8900 58.9400 49.2100 3.9600 0.0210 2.4280 41.0200 1.3400 6.2300 105.7900 102.7100 22.8400 1.0700 40.3500 11.4000 104.8500 N/A

3.8720 2.7530 3.0360 2.8190 4.4980 2.2640 3.0360 5.2060 4.9040

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

104.6500

2.9060

N/A

58.7400 49.0100 3.7600 0.0160 2.4180 40.8200 1.1400 6.0300 105.5900 102.5100 22.6400 0.8700 40.1500 11.0000 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

KPJ Healthcare Bhd Buy. Target price: RM3.77

Telekom Malaysia Bhd Buy. Target price: RM9.30

May 22, 2026: RM7.45

May 22, 2026: RM5.70

May 22, 2026: RM3.23

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

KPJ reported Q1’26 core earnings of RM71.6 million (+13% YoY, - 51% QoQ). We deem results as broadly within expectations at 18% of both our and consensus estimates, given the seasonally weaker first quarter. EBITDA margins of 21.1% were marginally lower (- 0.4ppts YoY), although core margins improved 0.2ppts YoY on stronger contributions from associate and lower ETR. An interim DPS of 1 sen was declared (Q1’25: 0.8sen), implying slightly higher dividend payout ratio of 63% (Q1’25: 61%). Q1’26 revenue grew 8% YoY on stronger revenue intensity (inpatient: +6%, outpatient: +7%) and 2% increase in surgeries performed. Inpatient volume improved 2% YoY, aided by bed capacity expansions (+70 beds; +2% YoY), despite a 2ppts decline in bed occupation rate (BOR) to 60%. Overall, we view this set of results as resilient. Notably, Q1’26 inpatient revenue intensity of RM8,564 has already reached our full-year assumption with further upside possible as the group continues to reap benefits from its accelerate transformation under KPJ Health System. We trim our 2026-28 earnings by 1% following updates from the annual report, while leaving key assumptions unchanged given in-line results – pending further details from the upcoming briefing. Our thesis remains unchanged: KPJ offers a refuge from MYR strength and relatively lesser growth dependency on medical tourism. While management remains focused on lifting revenue intensity via complex, high-value sub-specialty cases, we believe KPJ’s secondary care hospitals could be uniquely positioned to capture medical & health insurance and takaful spillover. BUY with RM3.77 TP. – RHB Research, May 22

Q1’26 core net profit improved (+20.1% QoQ/+11.7% YoY) on lower financing cost and seasonally higher opex in Q4’25. This formed 25% of our FY26 forecast (consensus: 24%). A first interim DPS of 6.5sen/share (payable on June 25) translates into a dividend payout ratio (DPR) of 78%. While this is slightly ahead of the new dividend policy announced of a minimum 75% of reported earnings, management highlighted that quarterly payout is subjected to earnings volatility. Core EBIT (adjusted for 5G prepayment write-down of RM127.3 million, undisclosed career transition cost/voluntary separation cost (VSS) and FX) improved 9.8% QoQ (+8% YoY), on lower device cost and tight cost controls, and we believe some staff cost savings from the earlier VSS. Reported EBIT (on which TM’s guidance is based on) fell 22% YoY. Internet revenue was marginally lower QoQ as stable subs base offset lower ARPU with competition staying elevated. TM Global (wholesale) revenue also contracted (-21% QoQ) owing to the higher base in Q4’25 with >8k mobile backhaul sites installed. Meanwhile, enterprise (TM One) revenue saw a marginal uplift YoY – the first since Q3’24. We see wholesale and earnings growth supported by the expanded data centre (DC) capacity (40MW) and the commissioning of the TM-Nxera DC in 2H’26 where over 60% of the 64MW capacity (Phase 1) has been contracted. On TM’s termination of the wholesale 5G access with Digital Nasional Bhd, TM said it is within its contractual rights to do so with a dispute mechanism process ongoing to resolve differences. BUY with RM9.30. – RHB Research, May 22

THE olefins & derivatives (O&D) segment recorded higher revenue of RM2.9 billion (+4.7% QoQ), as sales volumes rose 4.1% QoQ to 923KMT, supported by strategic sourcing initiatives and improved average product prices. The F&M segment saw revenue rise 3% QoQ to RM2.6 billion, driven by stronger pricing for urea and methanol. The specialties segment saw a stronger performance, with revenue rising 17% QoQ to RM1.4 billion as sales volume rose 21.5% QoQ to 226KMT, benefiting from customer restocking activities and demand recovery. Consequently, group EBITDA increased to RM730 million from RM115 million in the preceding quarter, mainly supported by firmer product spreads, lower plant operating costs, and improved performance across key segments. While operating conditions remain volatile, product prices are expected to stay elevated relative to pre-Middle East conflict levels through FY26, owing to supply disruptions from West Asia, continued export restrictions from China, and constrained global supply dynamics, despite moderating from recent peaks. We increase FY26–27 earnings forecasts, revising FY26 from a core net loss of RM396 million to a core net profit of RM1.9 billion, and raising FY27 earnings by 28% to RM780 million, after increasing our FY26-27 urea price assumptions to US$699/489 per tonne (from US$427/399 previously), ammonia to US$607/424 per tonne (from US$412/391 previously), and methanol to US$522.5/418 per tonne (from US$338/372 previously). Key downside risks include weaker-than-expected petrochemical spread recovery, and a strengthening MYR. NEUTRAL with RM5.92 TP. – RHB Research, May 22