10/06/2026

BIZ & FINANCE WEDNESDAY | JUNE 10, 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

Investments key to Malaysia’s next growth phase: Khazanah KUALA LUMPUR: Malaysia must ensure that investments are channelled towards strengthening firms, deepening industrial linkages, and building higher-value capabilities to support the country’s next phase of economic development. Khazanah Nasional Bhd managing director Datuk Amirul Feisal Wan Zahir said strengthening these key areas is essential; otherwise, the economy risks remaining active without becoming meaningfully stronger. “As geopolitical competition increasingly shapes economic outcomes, countries no longer compete solely on cost or market access, but also on resilience, capability and strategic relevance within global supply chains. “This is where domestic capital plays an important role. Through initiatives such as Dana Impak’s Jelawang Capital and Malaysia Growth Innovation Programme, Khazanah seeks not only to deploy capital, but also to strengthen the ecosystem surrounding key sectors – enabling companies, suppliers and talent to scale alongside global investments,” he said in his message in the Khazanah Report 2025, yesterday. He said Khazanah’s strategic initiatives also strengthened Malaysia’s semiconductor ecosystem, namely the investment in the US-based edge artificial intelligence company Syntiant, which recently expanded with a manufacturing plant in Penang, and in the local fabless integrated circuit design company, SkyeChip. “These investments contribute towards higher-value capabilities, skilled employment and deeper participation within global technology supply chains,” he said. – Bernama

THE ringgit closed higher against the US dollar and was mostly stronger against regional currencies yesterday, supported by improved market sentiment amid easing geopolitical tensions in West Asia. At 6pm, the local note appreciated to 4.0580/0630 against the US dollar from Monday’s close of 4.0715/0760. SPI Asset Management managing partner Stephen Innes said that broader regional risk appetite has improved following the tentative truce between Iran and Israel. “The truce has resulted in easing in oil prices, which helped set a more constructive tone across asset classes, with Brent crude oil retracing part of its previous gains and easing pressure on regional risk assets,” he told Bernama. The ringgit traded mostly lower against a basket of major currencies. It rose against the Japanese yen to 2.5332/5365 from 2.5445/5475 at Monday’s close, but eased versus the British pound to 5.4329/4395 from 5.4249/4309 on Monday, and turned slightly lower vis-a-vis the euro at 4.6915/6972 from 4.6867/6919 previously. However, the local currency mostly strengthened against regional peers. It gained versus the Singapore dollar to 3.1563/1604 from 3.1577/1614 on Monday, and was up against the Thai baht at 12.3531/3732 from 12.3942/4128 previously. It strengthened against the Philippine peso to 6.59/6.60 from 6.60/6.61 on Monday, but it was slightly lower against the Indonesian rupiah to 224.7/225.1 versus 223.8/224.2 previously. Ringgit closes higher on easing West Asia tensions

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1440 2.9260 3.2100 2.9610 4.7710 2.4080 3.2100 5.5190 5.2140 3.4430 61.3400 65.4500 53.3000 4.4100 0.0238 2.6030 44.7500 1.5500 6.8100 114.6600 111.2800 25.9300 1.2900 45.1600 13.1400 113.8300 N/A

3.9980 2.8090 3.1090 2.8780 4.6170 2.3190 3.1090 5.3430 4.9910 3.1930 58.7400 60.2100 50.6400 4.1000 0.0210 2.4820 41.1500 1.3800 6.4100 108.8500 105.6400 23.4000 1.1200 41.1200 11.6500 107.9300 N/A

3.9880 2.7930 3.1010 2.8660 4.5970 2.3030 3.1010 5.3230 4.9760

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

107.7300

2.9930

N/A

60.0100 50.4400 3.9000 0.0160 2.4720 40.9500 1.1800 6.2100 108.6500 105.4400 23.2000 0.9200 40.9200 11.2500 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

Banks Overweight

SD Guthrie Bhd Buy. Target price: RM6.69

SDS Group Bhd Neutral. Target price: RM0.45

June 9, 2026: RM6.02

June 9, 2026: RM0.40

Source: Company data, RHB

OF nine banks under our coverage (MY Banks) six posted results that broadly met our and consensus expectations while Maybank, BIMB and MBSB missed estimates. The negative variances were due to weaker-than-expected non-II (Maybank and BIMB) while MBSB’s earnings miss was caused by lower than-expected NIM and higher-than-expected credit cost. On dividends, payouts by Alliance Bank Malaysia (ABMB) and AMMB were in line with expectations, at 40% and 55%. Q1’26 sector operating income eased 1% YoY (-3% QoQ) with the main reason being the lower non-II (-9% YoY, -6% QoQ) due to a drop in market-related income caused by adverse marked-to-market impact, but fees rose 7% YoY (flat QoQ). NII ticked 2% higher YoY on 4% loans growth but NIM was 2bps lower due to lower benchmark rates. Opex was well controlled (flat YoY, -4% QoQ) but due to the weaker operating income, sector CIR was higher at 46.6% from 46.1% in Q1’25 (Q4’25: 46.8%). On asset quality, GIL saw a minor 1% QoQ uptick (-3% YoY), which banks attributed to seasonality. However, due to a low base in the prior quarters as a result of provision and overlay writebacks, Q1’26 credit cost was higher at 19bps vs 1Q25: 10bps and Q4’25: 6bps, which was a further drag to bottomline. The banks generally retained their 2026 guidance, on expectations that the Middle East situation and high energy prices not persisting. Loan and investment bank (IB) pipelines are healthy, and a resolution in the near term should be positive for deal execution and help banks narrow the gap to their targets and guidance in the coming quarters. – RHB Research, June 9

Source: Maybank Investment Bank

Source: PublicInvest Research

SDG first launched its GS material in 2016 which replaced the previous material- Calix600®. GS promises high yields, potentially hitting up to 40t/ha of FFB yield in a commercial field. On a commercial scale, the aspirational combined oil yield (COY) (ie CPO + CPKO) is 8t/ha (FY25A COY: 4.46t/ha) under an ideal environment with the right G.E.M formulation. While conventional oil palm breeding typically requires 10-15 years per generation, through the deployment of genetic markers in GS materials, the development cycle can be reduced by around 50%, accelerating selection efficiency and commercialisation readiness. Over the past decade, GS planting materials have been commercially deployed within SDG, with proven and validated yield performance at scale. 24,317 ha in MYs’ area have been planted with GS, of which about 26% are mature. The GS production capacity is expected to reach sufficient levels to fully support MY’s annual replanting of 5% by 2027 onwards. Beyond high yield improvement, SDGTC is expanding the deployment of genetic marker technologies towards next generation traits including disease tolerance, climate resilience, short height etc. The R&D centre is also exploring gene editing technologies to develop future-proof oil palms by precisely enhancing multiple desired traits within existing elite materials. Gene editing is not genetic modification. It does not involve introduction of foreign DNA elements into the plant genome. SDG also operates a tissue culture facility with a production capacity of up to 250,000 ramet annually. BUY with RM6.69 TP. – Maybank Investment Bank, June 9

SDS has completed the renovation of Plant 1 and fulfilled its regulatory requirements for operations. Meanwhile, Plant 2 and 3 are undergoing renovation sequentially. London Roll products are expected to begin contributing in FY27. These products will be distributed through SDS’ existing fleet and via third-party distributors to cover regions beyond SDS’ current network. Once domestic demand is established, SDS intends to explore export opportunities to leverage on the products’ longer shelf life, compared to the perishable nature of the freshly-baked goods under its existing product portfolio. SDS is undergoing rebranding exercise through outlet renovations to refresh its image, attract new customers and encourage repeat visits. A menu revamp is expected within CY26 on meals and dishes, aimed at protecting sales and sustaining customer interest amid soft consumer sentiment. We adopt a cautious stance on SDS’s near-term outlook driven by elevated oil prices and softer consumer spending. Packaging material costs are particularly exposed to risks of higher price revisions given their petroleum-based composition. Softer consumer spending poses a risk to the higher-margin retail segment. The wholesale segment provides a degree of earnings stability, though its margins remain vulnerable to diesel subsidy rationalisation, with national supply secured only until July 2026. On a positive note, the group targets to open 3 new retail outlets in FY27, and is exploring wholesale route expansion to broaden its earnings base. Cost discipline remains key to margin preservation in this environment. NEUTRAL with RM0.45 TP. – PublicInvest Research, June 9