09/06/2026

BIZ & FINANCE TUESDAY | JUNE 9, 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

Local institutions extend net buying streak on Bursa KUALA LUMPUR: Local institutions extended their net buying streak on Bursa Malaysia to eight consecutive weeks, recording net inflows of RM773.6 million, according to MBSB Investment Bank Bhd. The investment bank said in its weekly fund flow report for the week ended June 5, 2026 that foreign institutions extended their net selling streak to a fourth consecutive week, recording RM1.05 billion in net outflows. “Foreign institutions were net sellers on all three trading days during a week shortened by the King’s official birthday and Wesak day holidays. The largest outflow was recorded on Wednesday (- RM454.3 million), followed by Thursday (-RM367.4 million), and Friday (-RM225.8 million). Three sectors recorded net inflows by foreign institutions: energy (RM18.1 million), transportation and logistics (RM12.9 million), and technology (RM8.8 million). “The top three sectors that recorded net outflows by foreign institutions were financial services (-RM312.5 million), utilities (-RM125 million), and consumer products and services (-RM121.8 million). “Meanwhile, retailers extended to a four-week consecutive streak of net buying, recording net inflows of RM274.0 million.” The average daily trading volume saw a broad-based decrease: retailers by -6.1%, local institutions by -21.7%, while foreign institutions by -46.4%, the report said. Across the eight markets in Asia, foreigners net sold -US$19.25 billion after the previous week of inflows. “The only market that saw net foreign inflows was Thailand, with outflows led by South Korea, India, Taiwan, Indonesia, Vietnam, Malaysia, and the Philippines,” it added. – Bernama

THE ringgit ended lower against the US dollar yesterday as stronger-than-expected United States labour market data reinforced expectations that the US Federal Reserve would maintain its restrictive monetary policy stance, boosting demand for the greenback, an economist said. At 6pm, the local note depreciated to 4.0715/0760 against the US dollar from last Friday’s close of 4.0280/0320. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit eased by 1.04 per cent against the US dollar, in tandem with most Asian currencies, which also traded lower against the greenback. He said crude oil prices were also higher yesterday due to the ongoing war between the US, Israel, and Iran, which will result in the closure of the Straits of Hormuz. At the time of writing, the benchmark Brent crude oil increased 3.77 per cent to US$96.60 per barrel. “A higher inflation rate going forward and how the global market would react to such macroeconomic conditions will be a key factor that will shape market sentiments. “It appears that a higher benchmark interest rate seems to be the antidote for the currency, and this has led to cautious market sentiments,” he told Bernama. The ringgit also traded mostly lower against major currencies. It depreciated against the British pound to 5.4249/4309 from 5.4233/4287 at the close last Friday, and slid against the Japanese yen to 2.5445/5475 from 2.5183/5209 last week, but turned slightly higher versus the euro at 4.6867/6919 from 4.6882/6928 previously. It fell versus the Singapore dollar to 3.1577/1614 from 3.1390/1424 last Friday. Ringgit lower against dollar amid US rate hike expectations

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1365 2.9240 3.1970 2.9580 4.7600 2.4020 3.1970 5.5100 5.2160 3.4360 61.3800 65.2900 53.2200 4.4400 0.0240 2.5960 44.7800 1.5400 6.8000 114.4200 111.0800 25.8600 1.3000 44.9800 13.1300 113.6200 N/A

3.9905 2.8060 3.0980 2.8750 4.6050 2.3130 3.0980 5.3330 4.9920 3.1860 58.7900 60.0700 50.5600 4.1200 0.0212 2.4760 41.1800 1.3800 6.4000 108.6200 105.4500 23.3500 1.1200 40.9600 11.6400 107.7300 N/A

3.9805 2.7900 3.0900 2.8630 4.5850 2.2970 3.0900 5.3130 4.9770

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

107.5300 2.9860 59.8700 50.3600 3.9200 0.0162 2.4660 40.9800 1.1800 6.2000 108.4200 105.2500 23.1500 0.9200 40.7600 11.2400 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

Consumer Products Sector Overweight

Duopharma Biotech Bhd Buy. Target price: RM1.56

Well Chip Group Bhd Buy. Target price: RM2.07

June 8, 2026: RM1.21

June 8, 2026: RM1.15

Source: Bloomberg, RHB Research

1Q26 sector results were within expectations. Out of the 17 stocks under our coverage, nine met expectations, seven disappointed, and one surprised on the upside. We saw positive growth in revenue and net profit, driven by the double festive seasons, ie the Lunar New Year and Aidil Fitri. During the quarter, the only recommendation change was for QL Resources. We believe its valuation had depressed to attractive levels, in view of the anticipated resumption of earnings growth ahead. Encouragingly, YoY sales trends were steady across most names, suggesting resilient consumption underpinned by healthy economic growth and a sturdy job market. Consequently, profit margins were supported by the ensuing operating leverage. That said, management guidance has turned more cautious vs the optimism earlier - main concerns stem from implications of the Middle East conflict, including dampening consumer sentiment and increasing inflationary pressures. Hence, most companies are looking at various measures and options to mitigate the increase in costs (raw materials, logistics, utilities etc) and stimulate consumer spending. On a more positive note, not many consumer firms have encountered or foreseen major supply chain disruptions, thanks to their large scale of operations, diversified supply chains, and adequate inventory buffer. The sector should continue to provide a defensive shelter by offering earnings visibility amidst market volatilities, thanks to a domestic-centric earnings base and resilient consumption. We like Nestle and Farm Fresh for their staples exposure and strong pricing power, while MRDIY and ECOSHOP should benefit from value-seeking and downtrading behaviour, if the sentiment turns more cautious. Still Overweight the sector. – RHB Research, June 8

Source: Bloomberg, RHB Research

Source: M+ Global

2Q26 is shaping up to be a strong quarter. DBB’s consumer product sales are expected to remain robust, supported by sustained spending on healthcare consumables. Meanwhile, the insulin contract awarded earlier (RM65m recognised through May 2026), has been largely fulfilled and should provide a healthy boost to revenue, as the 3-month contract covers six months’ worth of supply. Also, management indicated that the spike in raw material costs remains manageable, with no meaningful margin erosion heading into 2H26. We believe the recombinant human insulin made at Biocon Biologics (DBB’s strategic partner) plant was less competitive on pricing, due to compliance with two stringent Good Manufacturing Practice certifications - US Food & Drug Administration and European Medicines Agency standards. Management’s strategy is to stay in the human insulin market (c.35% awarded market share) while strengthening its position in higher-value analogue insulin products. Ideally, the upcoming APPL contracts would include 20-30 more products, with pricing adjustments where justified. DBB has submitted its bid for the new APPL contract but negotiations - which typically commence 6-8 months before contract expiry (Dec 2026) - have yet to begin. As such, it is reasonable to expect delays in the new APPL contract cycle, which may result in an extension of the existing agreement. That said, there could be potential risk to our FY27 revenue estimate, as additional products may not be included in the APPL extension. Still, private-sector pricing remains more flexible and may partly offset this. BUY, new RM1.56 TP from RM1.61. – RHB Research, June 8

WELL Chip has proposed a renounceable rights issue of up to 120.0m new ordinary shares, on the basis of 1 rights share for every 5 existing shares held. The final issue price and entitlement date have yet to be determined, but the issue price will be fixed at no less than RM1.00/share to raise minimum gross proceeds of RM60.8m. Assuming full subscription at the illustrative issue price of RM1.00/share, the exercise could raise up to RM120.0m. The proposed rights issue is expected to be completed by 4Q26, subject to approvals from Bursa Securities, shareholders at an EGM and other relevant authorities. We view the proposed rights issue as a sensible capital-raising exercise to support Well Chip’s expansion. While EPS dilutive in the near term, the maximum issuance of 120.0m rights shares would enlarge the share base from 600.0m to 720.0m, implying theoretical EPS dilution of 16.7%, assuming earnings remain unchanged. Nevertheless, the proceeds will strengthen its capital base and support higher pawn loan disbursements, which should translate into higher interest income over time. The bulk of proceeds, RM44.6m-RM88.8m, will be allocated for cash capital to expand the pawn loan book, while RM15m-RM30m will fund up to six new pawnshops in Malacca and Johor. The group has obtained conditional KPKT approvals, with renovation works expected to be completed within 10 months from the approval date. Based on the pro forma maximum scenario, shareholders’ equity/NA would increase from RM483.3m to RM602.1m, while gearing would decline from 0.92x to 0.74x. This should provide greater headroom for expansion while reducing reliance on debt funding. Maintain BUY and RM2.07 TP. – M+ Global, June 8