26/05/2026

BIZ & FINANCE TUESDAY | MAY 26, 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

GFM Services records revenue growth of 72.3% year-on-year KUALA LUMPUR: Integrated facilities management (IFM) services provider GFM Services Bhd, saw a revenue growth of 72.3% year-on-year (YoY) to RM82.7 million in Q1 ended March 31, 2026 (FY26) from RM48.0 million in Q1 FY25. The improved performance was mainly driven by a stronger contribution from the Energy division following the consolidation of Shapadu Energy Sdn Bhd, upon completion of its acquisition in November 2025. The Energy division has become GFM’s largest revenue contributor, accounting for 62.2% of total revenue. Revenue from the segment increased to RM51.4 million, supported by the consolidation of Shapadu Energy as well as additional work orders executed under the existing Integrated Turnaround Main Mechanical and Maintenance Mechanical Static (TA4MS) contracts at the Pengerang Integrated Complex (PIC). The remaining revenue was contributed by the facilities management (FM) segment, RM24.5 million, and the Concession Arrangements segment, RM6.8 million. Gross profit (GP) rose to RM22.2 million in Q1 FY26 from RM19.5 million in Q1 FY25. GP margin narrowed to 26.8% from 40.6% previously, reflecting a shift in revenue mix, with the Energy division contributing a larger share at a different margin profile than the group’s historically FM-led business. As a result, the group recorded a profit before tax of RM10.4 million in Q1 FY26, up from RM8.5 million in Q1 FY25, while net profit stood at RM6.1 million, up from RM6.0 million in Q1 FY25. GFM Services managing director Ruslan Nordin said scaling the Energy business will take the group beyond FM and into a larger addressable market, while diversifying its earnings base.

THE ringgit closed higher against the US dollar yesterday, driven by hopes of a resolution to the warbetween the United States and Iran although conditions remained highly fluid. At 6pm, the ringgit rose to 3.9510/9550 versus the greenback from Friday’s close of 3.9655/9700. US Secretary of State Marco Rubio, who is on a four-day visit to India, said President Donald Trump is not going to make a bad deal and that the US is going to give diplomacy every chance to succeed. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that following the latest developments in US-Iran relations, all eyes would continue to focus on potential deals that could pave the way for the reopening of the Strait of Hormuz. He said Malaysia’s improving macroeconomic fundamentals, particularly the stronger current account position and continued fiscal consolidation, indicate that the risk of the country slipping into a twin-deficit situation remains low. The country’s current account surplus widened significantly to RM15.2 billion, or 3.0 per cent of gross domestic product (GDP), in the first quarter of 2026 from RM2.7 billion in the fourth quarter of last year, while the fiscal deficit is on track to narrow further to 3.5 per cent of GDP this year. At the close, the ringgit strengthened versus the Japanese yen to 2.4860/4887 from 2.4925/4954 at Friday’s close and appreciated against the euro to 4.5998/6044 from 4.6012/6064 previously, but it eased vis-a-vis the British pound to 5.3311/3365 from 5.3245/3305. It rose versus the Singapore dollar to 3.0932/0966 from 3.0985/1023 at the end of last week and edged higher against the Indonesian rupiah to 222.6/223.0 from 223.8/224.1 previously. Ringgit higher vs greenback on hopes of US-Iran deal

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0200 2.8850 3.1400 2.9020 4.6720 2.3640 3.1400 5.4100 5.1590 3.3390 59.3700 64.0900 51.6900 4.2800 0.0237 2.5440 44.4000 1.4800 6.6000 111.1400 107.9600 25.4200 1.2900 44.4400 12.9000 110.3800 N/A

3.8740 2.7680 3.0410 2.8200 4.5190 2.2760 3.0410 5.2360 4.9380

3.8640 2.7520 3.0330 2.8080 4.4990 2.2600 3.0330 5.2160 4.9230

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

104.6300 3.0960 56.8500 58.9500 49.1100

104.4300 2.8960 58.7500 48.9100 3.7700 0.0159 2.4160 40.6300 1.1200 6.0100 105.3100 102.2800 22.7500 0.9100 40.2700 11.0400 N/A N/A

3.9700 0.0209 2.4260

N/A

40.8300 1.3200 6.2100 105.5100 102.4800 22.9500 1.1100 40.4700 11.4400

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

Power & Utilities Sector Overweight

Hibiscus Petroleum Bhd Buy. Target price: RM3.35

Paramount Corporation Bhd Buy. Target price: RM1.25

May 25, 2026: RM2.03

May 25, 2026: RM1.02

Source: PublicInvest Research

Source: Bloomberg, TA Research

Source: Tenaga, TA Research

HIBISCUS recorded a 3QFY26 core net profit of RM65.6m (- 22.5% QoQ), mainly due to the absence of the RM54.7m deferred tax credit recognised in 2QFY26, although reported PAT stood higher at RM80.1m. YoY, the group swung back to a core net profit from a core net loss of RM106.1m, due to the absence of RM167.3m one-off deferred tax charge related to the two-year extension of the UK Energy Profits Levy (EPL) to 31 March 2030. Cumulatively, 9MFY26 core earnings accounted for only 42.2% of our FY26F estimate due to substantially high realised oil price assumption, but 82.1% of consensus estimates. Despite the shortfall against our estimate, we trim FY26F earnings by only 7.2% to account for higher seasonal maintenance expenses at its Malaysian assets, as 4QFY26 earnings are expected to be substantially stronger. Management guided that around 75% of its planned 4QFY26 oil offtake volume of 1.2MMbbl has been sold at an average realised price of over USD120/bbl, USD43/bbl higher than 3QFY26 average realised oil price of USD76.7. This should drive strong earnings to rebound in 4QFY26, even after factoring in higher maintenance activity. On the operational front, the Brunei Low Pressure Compressor (LPC) project has started up and is already delivering incremental production, while the UK Teal West development remains on track for first oil by mid-CY2026. We maintain our Outperform call with a slightly lower TP of RM3.35. – PublicInvest Research, May 25

THE Ministry of Energy Transition and Water Transformation launched the Sustainable Rebate & Incentive Assistance (SuRIA) Home initiative, which will commence from 1 June 2026. Under the initiative, domestic users who install solar systems under the Solar Accelerated Transition Action Programme (Solar ATAP) by 31 December 2026 are eligible, on a first come first serve basis, to receive a rebate of RM600 for every 1kWac of solar installation up to a maximum of RM3000, or 5kWac. The SuRIA initiative is expected to benefit up to 250MWac of residential solar installations based on RM600 per kWac rebate and a total allocation of RM150mn for the program. Similar to the previous Solar for Rakyat Incentive Scheme (SolaRIS), we believe SuRIA could accelerate take up of residential rooftop solar, notwithstanding lower rebates under SuRIA compared to SolaRIS’ RM1000 per kWac incentive and a maximum cap of RM4000. Additionally, we believe the SuRIA initiative is timely given rising grid power cost as a result of the Iran War. Based on the latest projections by Tenaga Nasional Bhd (as at April 30, 2026), the Automatic Fuel Adjustment (AFA) rate is expected to turn from a rebate of -0.47sen/kWh in April 2026 to a surcharge of +1.38sen/kWh in May 2026 and +2.92sen/kWh in June 2026 due to rising fuel cost. These mark a significant increase compared to AFA rebate levels of up to -4.99sen/kWh earlier in the year. However, we note that AFA is only applicable to households with over 600kWh monthly consumption. The potential 250MWac SuRIA-backed residential solar installations translate into EPCC prospects worth an estimated RM875mn-1bn. We maintain our OVERWEIGHT stance on the Utilities sector. – TA Research, May 25

PARAMOUNT reported 1Q26 core net profit of RM14.4mn, accounting for 18% of our full-year forecast and 14% of consensus. We deem the results broadly within our expectations, as 1Q is typically seasonally weaker, with earnings expected to improve in the coming quarters. Revenue declined 30% YoY to RM152.2mn, while PBT fell 18% YoY to RM18.6mn. Core net profit was flat YoY, cushioned by lower tax expenses and associate contribution despite weaker property earnings. Property revenue fell 32% YoY to RM140.1mn, while PBT declined 27% YoY to RM22.6mn, mainly due to fewer ongoing projects, absence of new launches, slower revenue recognition from early-stage projects and softer sales. QoQ, core net profit rose 16% to RM14.4mn, despite softer operating performance. Core PBT declined 23% QoQ to RM18.6mn, tracking the 41% revenue decline, mainly due to slower property recognition and absence of major launches. The sequential improvement at the net profit level was largely due to a lower effective tax rate. New property sales fell 34% YoY and 42% QoQ to RM152mn, making up 14% of our RM1.1bn sales assumption and 13% of management’s RM1.2bn target. Sales were mainly from prior year launches and existing inventories, with key contributors including The Atera, Bukit Banyan, Sejati Residences and completed commercial units at ATWATER. Unbilled sales remained healthy at RM1.5bn, equivalent to 1.7x FY25 property revenue. Sales momentum should improve in 2H26, supported by planned launches at Kulim, Section U9 Shah Alam and the U-Thant enclave. Maintain Buy and RM1.25 TP. – TA Research, May 25