05/06/2026

BIZ & FINANCE FRIDAY | JUNE 5, 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

Malaysia, Indonesia push for stronger intra-Asean trade JAKARTA: Intra-Asean trade, which currently accounts for less than 25% of the region’s total trade, needs to be further strengthened to enhance economic resilience and reduce dependence on external markets, particularly amid ongoing geopolitical uncertainties and global conflicts. Foreign Minister Datuk Seri Mohamad Hassan said the matter was among the key issues discussed during the 17th Malaysia Indonesia Joint Commission for Bilateral Cooperation (JCBC) meeting with his Indonesian counterpart, Sugiono, held here on Thursday. He said Asean leaders share a common aspiration to increase trade and investment among member states, noting that a significant portion of the region’s trade is still conducted with countries outside Southeast Asia. “The leaders of Asean countries want to see intra-Asean trade enhanced. We conduct a great deal of trade with countries outside Asean. “Trade among Asean member states is less than 25%. How can we increase trade and investment among ourselves within Asean?” he said during a joint press conference after the meeting. Mohamad said recent global developments, including the conflicts in West Asia and the ongoing Russia-Ukraine war, have underscored the importance of strengthening regional economic cooperation and building a more resilient economic ecosystem within Asean. He said such crises have demonstrated the vulnerabilities associated with excessive reliance on external markets and supply chains, making closer economic collaboration among Asean nations increasingly important. – Bernama

THE ringgit ended lower against the US dollar yesterday on cautious sentiment over rising fuel prices, unresolved geopolitical tensions and global trade uncertainties. At 6pm, the local currency depreciated to 4.0095/0140 against the greenback from Wednesday’s close of 3.9955/9990. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said elevated fuel prices are expected to exert upward pressure on global inflation as a truce between the US and Israeli forces and the Iranian military remains elusive. “Hence, traders and investors have become more edgy, with fuel prices expected to remain elevated. “In addition, the US’trade protectionist policies are here to stay, leading to further anxiety in market sentiment,” he told Bernama. On June 2, the Office of the US Trade Representative published its findings under the Section 301 investigation into alleged forced labour involving Malaysia and proposed a 10% tariff on Malaysian goods upon the expiry of the tariff imposed under Section 122 of the Trade Act 1974 on July 24, 2026. The ringgit also traded lower against a basket of major currencies. It eased against the British pound to 5.3872/3932 from 5.3727/3775, slid against the euro to 4.6610/6663 from 4.6400/6440, and slipped versus the Japanese yen to 2.5081/5111 from 2.5005/5027 at Wednesday’s close. The local currency traded mostly lower against regional peers. It retreated versus the Singapore dollar to 3.1241/1279 from 3.1164/1193, eased against the Thai baht to 12.2708/2903 from 12.1825/1988, and weakened against the Philippine peso to 6.50/6.52 from 6.47/6.48. Ringgit ends lower against dollar on cautious sentiment

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0695 2.9110 3.1650 2.9200 4.7170 2.3930 3.1650 5.4570 5.1650 3.3800 60.3400 64.7000 52.3300 4.3300 0.0237 2.5590 44.7100 1.5200 6.6700 112.5400 109.2300 25.7300 1.2800 44.5600 12.9700 111.7600 N/A

3.9205 2.7920 3.0640 2.8370 4.5600 2.3020 3.0640 5.2780 4.9410 3.1330 57.7400 59.4800 49.6700 4.0200 0.0209 2.4390 41.0800 1.3500 6.2800 106.8300 103.6900 23.2300 1.1100 40.5500 11.4800 105.8800 N/A

3.9105 2.7760 3.0560 2.8250 4.5400 2.2860 3.056 5.2580 4.9260

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

105.6800

2.9330

N/A

59.2800 49.4700 3.8200 0.0159 2.4290 40.8800 1.1500 6.0800 106.6300 103.4900 23.0300 0.9100 40.3500 11.0800 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

Petronas Dagangan Bhd Buy. Target price: RM22.37

Q1’26 Results Review Earnings in line, momentum softens

QES Group Bhd Outperform. Target price: RM0.56

June 4, 2026: RM18.78

June 4, 2026: RM0.485

Source: PublicInvest Research

Source: Companies annoucement, TA Research

Source: Bloomberg

THE recently concluded Q1’26 results season came in largely within expectations. Across our coverage universe, 63% of firms reported earnings that were in line with our forecasts. Sectors that broadly met expectations included Automotive, Banking, Construction, Consumer, Healthcare, Insurance, Oil & Gas, Plantations, Power & Utilities, Property, Telecommunications and Transportation. Underperformers accounted for 26% of our coverage, mainly dragged by Technology names such as INARI, OMAI, SKPRES and UNISEM. Several heavyweights, including GAMUDA, F&N, QL, GENM, KLK and YTLPOWR, also missed expectations. On the positive side, 11% of companies delivered results ahead of our forecasts. While there was no broad-based sector outperformance, selected large caps such as IOIPG and AXIATA stood out with better-than-expected earnings. Against consensus expectations, the results trend was broadly similar. As shown from the table above, 59% of firms met consensus forecasts, while 27% disappointed and 14% exceeded expectations. Earnings momentum stayed positive on a YoY basis, with Q1’26 core earnings rising 2.6%, marking the third consecutive quarter of YoY growth. However, sequential momentum softened, with core earnings declining 4.4% QoQ after the 3.2% QoQ contraction in Q4’25. YoY growth was mainly supported by Telecommunications, Transportation and Property. Telecommunications was lifted by AXIATA’s stronger earnings, helped by lower depreciation and amortisation expenses. Transportation benefited from Westports’ tariff adjustments and stronger Capital A MRO operations. Property improved on IOIPG’s high-margin land disposal. – TA Research, June 4

CORE net profit dipped 5.7% YoY to RM278 million, weighed down by higher opex. Retail EBIT rose 68.2% YoY to RM324.5 million, underpinned by stronger fuel demand and favourable Mean of Platts Singapore or MOPS price movements, which lifted both selling prices and margins. Conversely, commercial EBIT fell 87.5% YoY to RM22.5 million as weaker Jet A1 pricing compressed margins despite higher sales volumes. The convenience segment posted a 5.3% YoY increase in EBIT to RM36 million, supported by improved merchandise sales performance. We expect earnings to remain resilient in FY26, supported by stable domestic fuel demand, sustained tourism activities, and continued growth in PETD’s retail ecosystem. While elevated oil price volatility arising from geopolitical tensions could lead to short-term margin fluctuations, management expects demand conditions to remain supported by Malaysia’s projected GDP growth of 4-5%. We also expect any impact from the government’s temporary work-from-home initiative to be limited, given its targeted implementation. Meanwhile, PETD’s strong net cash position and modest capex requirements should continue to underpin its dividend-paying capacity, reinforcing the company’s appeal as a defensive yield play. PETD signed an MoU with Shaziman Transport, Scania Malaysia, and the Malaysian Palm Oil Board to conduct feasibility studies on reducing GHG emissions in the transport segment by piloting the use of B100 fuel in road tankers. The company also plans to solarise more than 450 sites by 2030 with the aim to reduce >20ktCO2e in emissions. BUY with RM22.37 TP. – RHB Research, June 4

MANAGEMENT indicated that orders have accelerated across its manufacturing segment, with stronger momentum expected in the coming quarters. Semiconductor-related revenue contribution, which currently accounts for approximately 19.3% of group revenue, is expected to rise substantially to 45-46% over the next few quarters as customers ramp up investments in advanced packaging, wafer fabrication and inspection equipment. The company expects semiconductor activities to be significantly stronger throughout FY26, supported by increasing shipments of its Automated Handling System (AHS) and Automated Optical Inspection (AOI) solutions. Management reiterated confidence that the manufacturing division will become profitable by June 2026. The current manufacturing orderbook stands at approximately RM37 million, of which RM17 million is attributable to medical technology projects and the remaining RM20 million to traditional semiconductor customers. The majority of these orders are expected to be recognised beginning Q2’26 onwards. The group remains particularly bullish in the subsequent quarters, underpinned by expanding MedTech production in Batu Kawan, Penang and semiconductor manufacturing activities in Glenmarie, Selangor. The MedTech continues to gain traction, with Smart Manufacturing Solutions products currently being shipped for a global blood glucose monitoring device manufacturer. Management guided that the customer is preparing to launch a new product series, which is expected to provide recurring opportunities due to stringent qualification requirements and customer stickiness. OUTPERFORM with RM0.56 TP. – PublicInvest Research, June 4