15/06/2026

BIZ & FINANCE MONDAY | JUNE 15, 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 Aviation Group chief appointed to IATA board PETALING JAYA: Captain Nasaruddin A. Bakar, president and group CEO of Malaysia Aviation Group (MAG), has been appointed to the board of governors of the International Air Transport Association (IATA) during its 82nd annual general meeting (AGM) held in Rio de Janeiro, Brazil. He will serve a three-year term until 2029, joining global industry leaders in providing strategic oversight and policy direction for IATA. In this capacity, he will contribute to guiding the association’s industry committees and subsidiary bodies on critical issues shaping the future of global aviation. MAG Bhd and Malaysia Airlines Bhd non-executive director Datuk Amirul Feisal Wan Zahir said Nasaruddin’s appointment is a testament to his deep expertise, leadership, and long-standing contributions to the aviation industry. “I am confident that he will bring valuable insight and perspective to the board, further strengthening Malaysia’s voice in global aviation and supporting the continued advancementof the industry,” he added. Nasaruddin said that he was honoured to be appointed to the IATA board of governors as the appointment carries both privilege and responsibility, particularly at a critical time for global aviation. “I look forward to working alongside fellow governors to contribute meaningfully to strategic dialogue and policy direction that will strengthen industry resilience, accelerate innovation, and advance a more sustainable and connected future for air transport worldwide,” he added. Nasaruddin also currently serves as chairman of the Association of Asia Pacific Airlines executive committee.

THE ringgit is expected to be traded cautiously this week, ahead of the US Federal Open Market Committee meeting tomorrow and Wednesday. Markets are expected to scrutinise the US Federal Reserve’s statements and projections for the federal funds rate for the year. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that it will be interesting to look at the latest Fed assessment, given the US headline inflation rate was at a three-year high of 4.2% in May. He said another key focus, which will be closely monitored, is the global central banks’ reaction towards the current oil price shocks. “Bank of Japan will be deciding their policy rate on June 16, with consensus expecting a 25-basis-point hike to one per cent. Reserve Bank of Australia will also reconvene to decide their cash rate, but markets are anticipating no change in the benchmark interest rate, which currently stands at 4.35%,” he said. Meanwhile, SPI Asset Management managing partner Stephen Innes said the big swing factor for this week’s market movement will be updates around the US-Iran peace deal. “If there is a credible deal, the US dollar could weaken by around 3% to 5% over the course of the month. That would be a meaningful tailwind for regional currencies, including the ringgit.” On a Friday-to-Friday basis, the ringgit eased to 4.0555/0600 against the US dollar from 4.0280/0320 a week earlier. The local currency traded lower against a basket of major currencies during the week. It depreciated against the British pound to 5.4429/4489 from 5.4233/4287 and eased versus the Japanese yen to 2.5334/5364 from 2.5183/5209. Ringgit set to trade cautiously ahead of Fed meeting

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1270 2.9170 3.2070 2.9450 4.7690 2.4090 3.2070 5.5280 5.2100 3.4120 61.1500 65.4100 53.0900 4.3900 0.0240 2.5920 44.4900 1.5400 6.8300 114.1300 110.8400 26.1800 1.3000 44.9300 13.1200 113.3600 N/A

3.9810 2.8000 3.1060 2.8630 4.6140 2.3200 3.1060 5.3520 4.9870 3.1830 58.5500 60.1800 50.4300 4.0800 0.0212 2.4720 40.9200 1.3700 6.4300 108.3500 105.2200 23.6500 1.1300 40.9200 11.6300 107.4800 N/A

3.9710 2.7840 3.0980 2.8510 4.5940 2.3040 3.0980 5.3320 4.9720

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

107.2800 2.9830 59.9800 50.2300 3.8800 0.0162 2.4620 40.7200 1.1700 6.2300 108.1500 105.0200 23.4500 0.9300 40.7200 11.2300 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

Kerjaya Prospek Bhd Buy. Target price: RM3.19

BM Greentech Bhd Buy. Target price: RM2.35

Coastal Contracts Bhd Buy. Target price: RM2.01

June 12, 2026: RM2.19

June 12, 2026: RM1.75

June 12, 2026: RM1.35

Source: Bloomberg, RHB Research

KERJAYA Prospek via Rivanis Ventures (RV) - a JV company-cum shareholders’agreement with Aspen Vision Development formed in Nov 2024 - signed a definitive agreement with Railway Assets Corp (RAC) to develop 34.8 acres of land in Seberang Perai Tengah (SPT), Penang. This marks a major milestone for the company, even as it firms up the terms and conditions under the said development. The proposed development includes 338 affordable houses plus other residential and commercial units for a 7-year period. The land in SPT is located between the Perai River and Taman Inderawasih. As a consideration for the land sale from RAC to RV, the latter will provide RM156.5m worth of returns consisting of RM54.1m in cash returns, and 338 affordable houses in accordance with Affordable Housing Category C3 specifications (value estimated at RM102.4m). The JV also has a first right of refusal to purchase the adjacent land spanning ~19.6 acres, should the land become available for development. Our preliminary analysis indicates that the potential GDV of the development in SPT could range RM1.5-1.7bn. This adds well to KPG’s upcoming property projects such as the land in Jalan Puchong (7.4 acres with an estimated RM800m GDV) and Tanjung Bungah (4.5 acres with a GDV of RM830m). In our view, launches in SPT may likely not take place this year, as KPG is not planning to launch any projects in FY26. We will also impute contributions to group estimates once details of the deal are firmed up, ie the GDV and timeline. KPG has secured RM1.1bn worth of new projects YTD vs its RM2bn target. Downside risks include property market slowdown and prolonged cost pressures. Keep BUY, new RM3.19 TP. - RHB Research, June 12

Source: Bloomberg, Phillip Capital Research

Source: Bloomberg, TA Research

FOLLOWING the successful handover of the river water treatment system for DayOne’s Phase 1 DC in Kempas, Johor, BMG is understood to be in the running for the Phase 2 package, which is guided to have higher capacity, with an estimated contract value of more than RM30m. Given its prior execution track record and existing relationship with DayOne, we believe BMG stands a good chance of securing the contract. Indonesia could emerge as a longer-term growth driver as tighter effluent discharge regulations drive demand for industrial water solutions. The group has started building market presence through chemical trading, with aspirations to expand into water treatment solutions over time. Management is pivoting towards Battery Energy Storage Systems (BESS) over large-scale utility solar projects, given their higher technology intensity and comparatively less competitive environment. BESS is expected to be a key earnings growth driver in FY27, contributing 20% of total group revenue (vs. 10% in FY26), supported by rising adoption and accelerating project execution. Residential solar demand under Solar ATAP has been relatively subdued since launch in Jan26, although the SuRIA rebate programme could provide a catalyst for improved uptake. Assuming a 10% market share, we estimate BMG could recapture around 5,000 installations, implying an RM150m opportunity over the next 2 years at an average of RM30k per installation. The bio-energy segment remains resilient, supported by higher recurring income (25% of segment revenue) from after-sales refurbishment services. Maintain BUY and RM2.35 TP. - Phillip Capital Research, June 12

COASTAL has secured a contract from Petróleos Mexicanos (Pemex) for the procurement, transportation, installation, interconnection, commissioning, testing, start-up and operations & maintenance (O&M) of the 2nd Perdiz Plant at the Ixachi Field, Mexico. The contract comprises an EPC scope valued at approximately US$157.5mn (~RM641.9mn) and a 3-year O&M scope valued at US$47.3mn (~RM192.8mn) bringing the total contract value to US$204.8mn (~RM834.7mn). The O&M contract commenced on May 20, 2026 and will run until May 19, 2029. According to management, the contract formalises the Emergency Work Instruction (EWI) previously awarded by Pemex and encompasses the full development scope of the 2nd Perdiz Plant, including long-term operational support. We view the contract positively as it formalises the previously awarded EWI into a full EPC and O&M contract, enhancing earnings visibility. Notably, the 2nd Perdiz Plant achieved first gas on May 20, 2026, marking a key milestone and triggering the commencement of the 3-year O&M contract. Management guided that the O&M contract is expected to generate annual profit of approximately RM26.3mn, implying cumulative profit of around RM78.9mn over the contract tenure. Based on the contract value of RM192.8mn, this translates into an attractive net margin of approximately 41% annually. While management has yet to provide guidance on EPC margins for the full scope, we continue to assume a 20% net margin, in line with margins achieved under previous Permanent Infrastructure contracts. We raise our TP to RM2.01. Maintain Buy. - TA Research, June 12