27/05/2026

BIZ & FINANCE WEDNESDAY | MAY 27, 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

Padini records lower Q3 net profit of RM60.5 million KUALA LUMPUR: Padini Holdings Bhd posted a lower net profit of RM60.54 million in the third quarter ended March 31, 2026 (Q3’26) from RM71.97 million in Q3’25. Revenue was marginally lower at RM624.45 million from RM626.81 million previously, it said in a filing with Bursa Malaysia. For the nine months of 2026, net profit was RM122.24 million, down from RM147.81 million a year ago, while revenue eased to RM1.51 billion from RM1.55 billion previously. The group said it recorded a decline in top-line sales, resulting in revenue decreasing by RM2.4 million (-0.4%) quarter-on-quarter (q-o-q) and RM36 million (-2.3%) year-on year (y-o-y). Padini Holdings said its profit before tax decreased by RM12.9 million (-13.5%) q-o-q and RM27.5 million (-13.9%) y-o-y. “Apart from a decrease in top-line sales, which resulted in lower profit before tax, the decline was also due to higher operational costs, including increased depreciation and the imposition of service tax on rental and other expenses, which took effect as part of the service tax scope expansion from July 1, 2025,” it said. Moving forward, the fashion and apparel company said that retail business in general remains challenging due to deteriorating purchasing power stemming from rising costs, trade tensions, inflation, and interest rates. The company has declared a fourth interim dividend of 1.8 sen per ordinary share (single-tier) and a special dividend of 2 sen per ordinary share (single-tier) for the financial year ending June 30, 2026, both payable on June 29, 2026. – Bernama

THE ringgit closed lower against the US dollar yesterday, pressured by external developments following reports of US and Israeli attacks on Iranian vessels in the Strait of Hormuz, which dampened regional market sentiment. At 6pm, the ringgit eased to 3.9660/9705 against the greenback from Monday’s close of 3.9510/9550. According to news report, the attacks had resulted in several casualties among the Iranians. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that such development suggests that the ongoing effort for peace negotiation would be futile, risking a prolonged military conflict in West Asia. At the time of writing, Brent crude were trading higher by 2.8% to US$98.83 per barrel. At the close, the ringgit also traded easier against a basket of major currencies. It weakened versus the Japanese yen to 2.4917/4947 from 2.4860/4887 at Monday’s close, depreciated against the euro to 4.6172/6225 from 4.5998/6044 on Monday, and declined vis-a vis the British pound to 5.3470/3530 from 5.3311/3365 previously. The local currency was mostly lower against regional peers except the Thai baht, rising to 12.1485/1675 from 12.1640/1816 at Monday’s close. The ringgit was lower versus the Singapore dollar to 3.1038/1075 from 3.0932/0966 at Monday’s close, ticked down against the Philippine peso to 6.44/6.45 from 6.43/6.44, and was easier versus the Indonesian rupiah to 222.8/223.2 from 222.6/223 from Monday’s close. Ringgit softens against dollar as West Asia tensions flare up

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0285 2.8950 3.1450 2.9080 4.6790 2.3620 3.1450 5.4250 5.1610 3.3460 59.5900 64.2000 51.8100 4.3100 0.0237 2.5490 44.5900 1.5000 6.6300 111.3700 108.1900 25.5100 1.3100 44.5500 12.9000 110.6400 N/A

3.8825 2.7780 3.0470 2.8270 4.5260 2.2740 3.0470 5.2520 4.9400

3.8725 2.7620 3.0390 2.8150 4.5060 2.2580 3.0390 5.2320 4.9250

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

104.8600 3.1030 57.0600 59.0600 49.2100

104.6600 2.9030 58.8600 49.0100 3.8000 0.0159 2.4200 40.8100 1.1400 6.0400 105.5300 102.5100 22.8300 0.9300 40.3700 11.0400 N/A N/A

4.0000 0.0209 2.4300

N/A

41.0100 1.3400 6.2400 105.7300 102.7100 23.0300 1.1300 40.5700 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

Econpile Holdings Bhd Buy. Target price: RM0.29

MISC Bhd Buy. Target price: RM9.71

Tenaga Nasional Bhd Buy. Target price: RM16.50

May 26, 2026: RM8.09

May 26, 2026: RM14.16

May 26, 2026: RM0.14

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

CORE net profit fell 4.4% YoY to RM638.8 million, dragged by weaker contributions across most segments, particularly LNG and offshore, but partially offset by stronger performance from the petroleum and heavy engineering divisions. LNG EBIT declined 29.5% YoY to RM214.2 million, mainly due to lower earning days arising from vessel disposals and lay-ups, and lower charter rates. Petroleum EBIT rose 17.0% YoY to RM433 million, supported by higher freight rates and earning days achieved. Offshore EBIT fell 25.2% YoY to RM195 million due to the operational shutdown of an FPSO while heavy engineering EBIT increased 15.2% YoY to RM18.2 million, mainly driven by ongoing projects progressing into higher construction phases. Earnings visibility remains underpinned by the group’s contracted revenue base, with almost 100% of LNG vessels on term charters, shielding the segment from spot market volatility. Meanwhile, its petroleum unit retains about 35% exposure to the spot market, allowing MISC to benefit from stronger tanker rates while maintaining stable earnings through its contracted fleet. Beyond near-term market movements, the group remains well positioned to benefit from the ongoing FPSO upcycle, with industry expectations of approximately 12 FPSO project awards in 2026 and close to US$80 billion of cumulative FPSO capex opportunities through 2030. Together with growing LNG fleet deliveries and selected involvement in new energy opportunities, this is expected to support long-term earnings visibility and stable contracted cash flows. BUY with new RM9.71 TP. – RHB Research, May 26

DIESEL cost as part of a piling contractor’s cost structure is at 8 12%; higher than a normal contractor’s 3-6% of overall cost coming from diesel. Piling contractor peers such as Aneka Jaringan reported Q2’26 (August) (from Dec 2025-Feb 2026) results which saw the GPM reaching 6.8% from 9.2% a year ago. Recall that the Middle East conflict only started on Feb 28. Therefore, margin compression may be partly due to tighter restrictions for overloading vehicles leading to more trips required to transport materials to site. Taking cue from the above, we envisage ECON to also face some margin headwinds for Q3’26 (Jan to March 2026), especially with diesel pump prices rising 88% as of end-March vs early CY26. ECON already felt some pressure on the margins in Q2’26 with the GPM at 9.3% vs 13.5% in Q2’25 (albeit slightly higher than Q1’26’s GPM of 8.9%). With bitumen (60/70 grade) price surging 50.6% MoM in March, we view highway projects that are about to begin, eg the Sungai Klang Link (SKL) (estimated RM300-500 million for piling works) could likely be delayed into CY27, especially with the MoU between ECON and the developer of SKL extended (on a mutual basis) to Feb 2027 from Feb 2026. Notwithstanding the above, ECON has clinched a piling job for an industrial building which commands slightly higher margins, such as the one awarded by Eastmont for a job in Klang worth RM98 million. Hence, upcoming industrial developments, especially from areas such as the Johor-Singapore Special BUY with RM0.29 TP. – RHB Research, May 26

DATA centre (DC) supply drives 7% electricity sales growth. Excluding fuel cost adjustments, revenue grew by 7% YoY, in tandem with the 7% rise in electricity unit sales. The growth was mainly driven by the commercial sector (+13% YoY), which captures energy supply to DCs, retailers and business services. In comparison, TNB’s industrial sector sales declined 2% YoY, while domestic sector sales grew 10% YoY. TNB also achieved another record peak demand of 21,469MW in April, which was 2% higher than the previous peak recorded in May 2025. TNB’s effective tax rate (ETR) rose to 31% in Q1’26 (vs 17% in Q4’25), due mainly to expenses not being applicable for the tax rate. Nevertheless, we expect the tax rate to decline in the coming quarters as TNB continues to recognise its investment allowance (IA). Note: Management had previously guided for a 23-24% ETR in FY26. The power generation division recorded RM334 million in PAT (vs RM25 million a year earlier), due to an improved operational performance and despite a RM72 million negative fuel margin impact. TNB utilised RM2.5 billion in regulated capex in Q1’26 – this makes up 19% of our RM13 billion forecast. This is in line with expectations, as capex utilisation typically accelerates towards the end of the year. Management is still hopeful of achieving two-thirds of Regulatory Period 4 capex approvals – which should provide a 7% uplift to our FY26 EPS and TP. Key downside risks: i) Carbon tax implementation; ii) delayed capex approvals; and iii) higher ETR. BUY with RM16.50 TP. – RHB Research, May 26