11/06/2026

BIZ & FINANCE THURSDAY | JUNE 11, 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

Penang Port introduces vessel traffic management system GEORGE TOWN: Penang Port has introduced its first-ever vessel traffic management system (VTMS), marking a new chapter in its transformation into a smart port while enhancing safety, operational efficiency and sustainability. Penang Port Commission (PPC) chairman Datuk Yeoh Soon Hin said yesterday the implementation of the VTMS represents a new chapter for Penang Port and reflects the commission’s commitment to strengthening the port’s international competitiveness through systematic and forward-looking initiatives. “Penang’s waters have long been a high-density maritime corridor with cargo vessels, cruise ships, passenger ferries and various small crafts navigating the area daily, creating a highly dynamic and complex maritime environment. “In this context, the VTMS will serve as the central command hub for maritime traffic, ensuring order, safety and efficiency.” Yeoh noted that the integrated system enables real-time, comprehensive and high-precision monitoring of vessel movements, enhancing navigational safety and improving maritime traffic management efficiency, while further reinforcing the PPC’s role as a forward-looking and competitive trade facilitator. From a technological perspective, he said the VTMS incorporates several advanced technologies, including the automatic identification system (AIS), electronic chart display and information system (ECDIS), very high-frequency radio (VHF), and electro-optical surveillance system (EOS). “Together, these technologies significantly enhance navigational safety while supporting marine environmental sustainability, in line with the nation’s agenda of strengthening the maritime sector,” he added.

THE ringgit ended lower against the US dollar yesterday as market sentiment remained cautious ahead of the release of the United States’ May Consumer Price Index (CPI) data. At 6pm, the local note eased to 4.0670/0715 versus the greenback from Tuesday’s close of 4.0580/0630. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said US CPI data due this week will be closely monitored with consensus estimates pencilling in a 4.2 per cent rise in May, higher than the two per cent target set by the US Federal Reserve (Fed). “The ringgit was mostly stable around the RM4.06 level. Regional developments, especially the surprise interest rate hike by the Bank of Indonesia (on Tuesday), somehow affected market sentiment, with the strong US labour market portending an interest rate hike by the Fed. “The prevailing condition is US dollar-positive; hence a softer ringgit,” he told Bernama. However, Mohd Afzanizam said, the latest BNM’s international reserves of US$130.6 billion suggests demand for the ringgit remained healthy. The local currency traded lower against a basket of major currencies. It slipped versus the Japanese yen to 2.5347/5377 from 2.5332/5365 at Tuesday’s close, weakened against the British pound to 5.4486/4546 from 5.4329/4395 yesterday, and fell vis-a vis the euro to 4.7006/7058 from 4.6915/6972 previously. It depreciated versus the Singapore dollar to 3.1591/1628 from 3.1563/1604 on Tuesday and was down against the Thai baht at 12.3688/3871 compared to 12.3531/3732 previously. Ringgit lower against dollar ahead of US CPI release

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1400 2.9160 3.2090 2.9590 4.7700 2.4090 3.2090 5.5290 5.2020 3.4260 61.3800 65.4300 53.2400 4.4200 0.0239 2.5960 44.5700 1.5400 6.8100 114.4700 111.1400 25.8700 1.2900 44.9200 13.0900 113.7300 N/A

3.9920 2.7970 3.1080 2.8750 4.6130 2.3200 3.1080 5.3500 4.9780 3.1930 58.7500 60.1700 50.5600 4.1100 0.0211 2.4760 40.9700 1.3800 6.4100 108.6700 105.5100 23.3600 1.1200 40.8800 11.6000 107.7800 N/A

3.9820 2.7810 3.1000 2.8630 4.5930 2.3040 3.1000 5.3300 4.9630

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

107.5800 2.9930 59.9700 50.3600 3.9100 0.0161 2.4660 40.7700 1.1800 6.2100 108.4700 105.3100 23.1600 0.9200 40.6800 11.2000 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

Sime Darby Property Bhd Buy. Target price: RM2.15

Life Water Bhd Outperform. Target price: RM1.48

Kossan Rubber Bhd Buy. Target price: RM1.40

June 10, 2026: RM1.48

June 10, 2026: RM1.42

June 10, 2026: RM1.18

Source: Bloomberg, RHB Research

Source: PublicInvest Research

Source: Bloomberg, Phillip Capital Research

WE gather that Life Water’s near-term earnings should benefit from the recent price adjustment and lower-cost resin inventory, which are expected to drive temporary margin expansion in 4QFY26F after we attended its post-results briefing. Following a softer quarter that coincides with the monsoon season, we expect the warmer months of April to June to potentially pave the way for 4QFY26F to outperform its recent quarters. In the longer term, growth is underpinned by capacity expansion, improving fulfilment capability and resilient demand for bottled water in Sabah. 3QFY26 revenue rose 12.6% YoY to RM48.5m, driven by higher sales volume following capacity expansion and the consolidation of Twinine’s sauces and condiments business, while core net profit grew 20.6% YoY to RM8.1m, fuelled by stronger sales, a more favourable product mix and improved operational efficiency. On a QoQ basis, revenue and core net profit eased 4.0% and 6.4%, respectively, amid fewer delivery days and softer monsoon season demand, which led to lower operating leverage. Life Water’s growth prospects are underpinned by the robust demand for bottled water in Sabah, particularly during warmer weather conditions. This is further boosted by improving fulfilment capability, regional expansion, branding initiatives, diversification into fast-moving consumer goods (FMCG) sauces and condiments, new product launches and rising tourism activities. The group is also undertaking a structured expansion of annual production capacity by 30% to 804m litres by FY27F from 626m litres currently, alongside on-going efforts to enhance operational efficiency. Upgrade to Outperform with unchanged TP of RM1.48. – PublicInvest Research, June 10

WE are upbeat over Sime Darby Property’s launch of its RM1.25bn New Economy Venture Fund (NEVF). With this fund, SDPR will have a bigger platform to accelerate its data centre (DC) and other industrial and logistics developments, without over-burdening its balance sheet. With a fund life of five years, we expect SDPR to realise more sizeable returns upon the closing, possibly by injecting the assets held in the fund into its upcoming REIT. Structured as a shariah-compliant closed-end, discretionary investment platform, NEVF has a fund size of up to RM1.25bn (main fund: RM1bn, sidecar: RM250m). The fund saw participation from Employees Provident Fund (EPF), Lembaga Tabung Angkatan Tentera (LTAT ie Armed Forces Fund Board), and Great Eastern Life Assurance (Malaysia) (GELM). Note: GELM also previously participated in SDPR’s Industrial Development Fund (IDF) in 2022. SDPR, the general partner and sponsor of NEVF, has committed RM500.1m as a co-investor at the first close. The NEVF is strategically established, and will invest in built-to suit-to-lease DCs, as well as industrial and logistics developments within SDPR’s projects. In our view, the fund marks an important milestone, especially when Elmina Business Park (EBP) is gaining its traction while management is focusing on the built-to-suit-to lease model for upcoming industrial developments to grow its recurring income portfolio. SDPR is also aggressively developing other industrial parks such as Bandar Bukit Raja, Vision Business Park, Bandar Universiti Pagoh - so opportunities to expand its asset portfolio abound. Maintain BUY and RM2.15 TP. – RHB Research, June 10

KOSSAN’S product mix remains heavily skewed towards nitrile gloves (85%), leaving earnings sensitive to movements in nitrile raw material prices. Nitrile raw material prices peaked at US$1 1.5k/mt in Apr-May26, up from US$700/mt in Mar26, driven by geopolitical tensions in the Middle East. Management guided that nitrile prices are already correcting >10% from the May26 peak and expected to normalise further into Aug-Sep26. Blended ASPs surged during the spike to US$26-29/k pieces (vs. US$16-18/k pieces in 1Q26). 2Q26 is expected to see slightly stronger QoQ earnings growth supported by better sales momentum. Average utilisation rate is also expected to improve to >80% (vs. 80% in 1Q26). Note that US accounts for 60% of sales volume, with the remainder primarily from Europe and Japan. We expect no major earnings surprise in 2H26, as ASPs are likely to normalise alongside easing raw material prices. Overall, we expect blended ASPs to average US$23/k pieces in 2026. The cleanroom segment currently contributes 6% of Kossan’s 1Q26 revenue, with sales volume of 300-400m pieces annually. Management continues to view the segment as a key long-term growth driver, supported by ASPs that are 3x higher than generic gloves, while targeting to double cleanroom sales volume next year. On the operational front, Kossan is actively advancing automation, with 50% of plants is currently fully automated. Beyond improving operating efficiency, automation aims to address structural labour constraints and support sustainable capacity expansion, particularly since foreign workers account for 45% of the group’s workforce. Maintain BUY and RM1.40 TP. – Phillip Capital Research, June 10