01/06/2026

BIZ & FINANCE MONDAY | JUNE 1, 2026

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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

Rubber market to see subdued trading with lower bias KUALA LUMPUR: The rubber market is expected to see subdued trading with a slightly lower bias this week following the end of the wintering period, said industry expert Denis Low. He said that with the full resumption of rubber production, trading activity is likely to be inclined towards replenishment only, given that supply is coming in adequately. “Production has resumed to its full potential and with supply coming in nicely and adequately, unnecessary stocking and hoarding can be inadvisable. “This will certainly lead to demand and prices having a tendency to be slightly lower,” he said. However, Low added that the fluctuation of oil prices and the volatility of the US dollar may also have an impact on rubber prices and demand. Meanwhile, the Malaysian Rubber Glove Manufacturers Association said the rubber market outlook for this week is expected to remain soft due to the public holidays and may see sideways trading as oil prices continue to surge. It said the European Union governments’ approval of legislation to remove import duties on United States goods could provide some support to sentiment. “However, the West Asia conflict and ongoing trade tensions could weaken the economic outlook,” it added. On a Friday-to-Friday basis, the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rose 33 sen to 922 sen per kg while latex-in-bulk decreased six sen to 759 sen per kg. The Kuala Lumpur rubber market will be closed today and tomorrow. Trading will resume on June 3. – Bernama CCK Consolidated Holdings Bhd Neutral. Target price: RM1.28

THE ringgit is forecast to trade within a narrow range of RM3.95 to RM3.97 against the US dollar this week as trading activity may be subdued during the holiday-shortened week. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that the focus next week would be on the United States labour market, particularly the nonfarm payrolls report and the unemployment rate. He said the current backdrop suggests that inflation in the US is likely to remain elevated, with personal consumption expenditures inflation standing at 3.8% in April, well above the US Federal Reserve’s 2% target. “As such, labour market data will be crucial in assessing the case for further monetary policy tightening,“ he said. On a Friday-to-Friday basis, the ringgit ended higher at 3.9625/9670 against the US dollar, compared with 3.9655/9700 a week earlier. The local currency traded mostly firmer against a basket of major currencies during the week. It appreciated against the British pound to 5.3165/3225 from 5.3245/3305 and strengthened versus the Japanese yen to 2.4874/4904 from 2.4925/4954, but weakened against the euro to 4.6127/6180 from 4.6012/6064 previously. The ringgit rose against the Indonesian rupiah to 221.6/221.9 from 223.8/224.1, but eased vis-a-vis the Singapore dollar to 3.1010/1048 from 3.0985/1023, slipped against the Thai baht to 12.1732/1926 from 12.1421/1611, and declined against the Philippine peso to 6.43/6.44 from 6.42/6.44. The market is closed today and tomorrow for the King’s Birthday and Wesak Day holidays. Ringgit to remain range-bound amid focus on US jobs data

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0400 2.9010 3.1580 2.9220 4.7000 2.4040 3.1580 .4220 5.1740 3.3560 59.8000 64.4700 51.9600 4.3000 0.0237 2.5510 44.6900 1.5100 6.6500 111.7700 108.4700 25.7200 1.2900 44.9100 12.9200 110.9500 N/A

3.8920 2.7830 3.0570 2.8390 4.5440 2.3140 3.0570 5.2460 4.9510 3.1100 57.2400 59.2800 49.3300 3.9900 0.0209 2.4310 41.0700 1.3400 6.2500 106.1000 102.9800 23.2200 1.1200 40.8800 11.4500 105.1100 N/A

3.8820 2.7670 3.0490 2.8270 4.5240 2.2980 3.0490 5.2260 4.9360

1 Australian Dollar 1 Brunei Dollar 1 Canadian Dollar 1 New Zealand Dollar 1 Singapore Dolla 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

104.9100 2.9100 59.0800 49.1300 3.7900 0.0159 2.4210 40.8700 1.1400 6.0500 105.9000 102.7800 23.0200 0.9200 40.6800 11.0500 N/A 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

CBH Engineering Bhd Buy. Target price: RM0.91

AGX Group Bhd Buy. Target price: RM0.91

May 29, 2026: RM0.42

May 29, 2026: RM0.61

May 29, 2026: RM1.20

Source: Bloomberg, Phillip Capital Research

Source: Bloomberg, Phillip Capital Research

CBH Engineering’s 1Q26 revenue surged 146% YoY to RM90m driven by stronger progress billings as several projects reaching completion stages. 1Q26 EBITDA margin expanded 5.9ppts to 26.3% on stronger operating leverage, lifting core net profit more than 3-fold to RM18m. Overall, results were within expectations, coming in at 23% of both our and consensus full-year estimates. CBH announced a RM28m contract to develop a 100MW/400MWh battery energy storage system (BESS), comprising the BESS interconnection facility (IF), BESS interconnector and TNB-IF, with completion targeted in Apr27. This marks a strategic pivot into the RE space beyond its core M&E business, with expected net margins of 12-15%, and serves as a key reference job for future TNB opportunities. We understand another project, about twice the size of this award, is currently in the tender stage. YTD job wins stand at RM57m, accounting for 8% of our 2026E replenishment target. Management has reiterated its RM600m internal replenishment target, with stronger job flow expected in 2H26, underpinned by a RM1bn tender book, of which 70% is data centre-related. We gather that this consists of 4-5 tenders, each valued at RM140-180m, which we expect to be rolled out in 2H26. Looking ahead, prospects remain bright, underpinned by a sustained multi-year DC build-out cycle driven by phased capacity expansion and continued hyperscaler investments. We continue to like CBH for its compelling growth prospects as a direct proxy to Malaysia’s accelerating power infrastructure investment cycle, supported by its proven track record in executing hyperscaler projects and above-industry margin profile. Maintain BUY and RM0.91 TP. – Phillip Capital Research, May 29

AGX reported 1Q26 core net profit of RM5m (-10% YoY) despite revenue rising 34% YoY, underpinned by stronger air freight forwarding and aerospace logistics segments, partly offset by the softer sea freight forwarding segment. Notwithstanding, EBITDA margin remains steady at 10.7%. Overall, 1Q26 revenue made up 22% of our 2026E full-year forecast and 16% of our full-year earnings forecasts. The weak sets of results were mainly due to weaker-than-expected associate contribution from All-Link. Nonetheless, we deem the result to be broadly in line with expectations of stronger quarters ahead. Historically, 1Q is seasonally the weakest quarter for AGX. Stripping out All Link, core net profit for core business jumped 55% YoY to RM4.3m (1Q25: RM2.8m). We expect a stronger earnings trajectory in the coming quarters, driven by the ramp-up of MAS (a new significant customer secured in Jan26) and higher associate contributions from All-Link. AGX is currently handling 60% of MAS orders, with a full ramp-up expected in 2H26. All-Link earnings are expected to accelerate in 2H26 after a soft 1Q26, supported by the onboarding of 3 new customers. All-Link has recently filed for its SGX IPO, with listing targeted in Jul26, potentially unblocking a special dividend upside. Our back-of-the-envelope estimates suggest a potential dividend yield of 5% in 2026. AGX is trading at an attractive forward PER of 4x, supported by its expanding presence across the SEA market with fast-growing contributions from All-Link. We remain positive on AGX’s earnings prospects, underpinned by improving aerospace logistics. Maintain BUY with a higher TP of RM0.91. – Phillip Capital Research, May 29

Source: PublicInvest Research

CCK Consolidated’s 1QFY26 revenue fell marginally by 0.4% YoY to RM263.1m, dragged by weaker prawn and poultry sales. This was partially cushioned by the retail segment, which grew 2.9% YoY, underpinned by maturing contributions from its retail network and resilient consumer demand. 1QFY26 core PATAMI held steady YoY at RM17.5m, as the higher poultry contribution was offset by weakness in retail and prawn. The retail segment was weighed down by approximately 20% in depreciation of the Indonesian rupiah against the Ringgit, which eroded translated earnings from the group’s Indonesian operations. Meanwhile, the prawn segment was dragged by lower sales volumes to key export markets. We adopt a more cautious stance on CCK’s near-term outlook, as macroeconomic headwinds emerge. Inflationary pressures, currency volatility and geopolitical uncertainty continue to drive fluctuations in agricultural commodity prices (including corn, soy meal and fertiliser), posing margin compression risks. Indonesia, a key operating market, remains particularly susceptible to external shocks. On a more positive note, the group is in the midst of installing new production lines slated for commissioning in CY26, which will add capacity and open new regional sales channels. Nonetheless, given the increasingly challenging backdrop, near-term earnings recovery is expected to be gradual. CCK’s continued focus on operational efficiency and disciplined execution will be critical to navigating this environment. Downgrade to Neutral, with lower TP of RM1.28. – PublicInvest Research, May 29