26/06/2026

BIZ & FINANCE FRIDAY | JUNE 26, 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

TNG Digital launches ASB financing in TNG eWallet KUALA LUMPUR: TNG Digital Sdn Bhd, the operator of the TNG eWallet, has launched its first Islamic financing offering, ASB Financing, in collaboration with CIMB. In a statement yesterday, TNG Digital said that through a more convenient and integrated financing experience within TNG eWallet, users can now participate in Amanah Saham Bumiputera (ASB) investments via structured monthly commitments instead of relying on substantial upfront savings. It said that bumiputera users already make up 70 per cent of TNG eWallet’s Amanah Saham Nasional Bhd (ASNB) investor base and contribute 52 per cent of total investment value on the platform, signalling strong demand for accessible investment and wealth-building solutions within this segment. TNB Digital chief financial services Desmond Teoh said the launch marked an important step in broadening the range of financial solutions available through the e-wallet’s GOfinance feature. “The strong adoption of ASNB investments on our platform clearly reflects growing interest in accessible and digitally connected wealth-building solutions among Malaysians,” he added. Since the integration of ASNB in 2023, TNG Digital said TNG eWallet has continued to see growing adoption of digital investment services, with a 44 per cent year-on-year growth in users actively investing through the platform as of May 2026. With financing amounts ranging from RM10,000 up to RM200,000 and flexible tenures between five and 40 years, users can choose a plan that best fits their financial goals and capacity.

THE ringgit continued its uptrend for the third consecutive day, closing higher against the US dollar, major currencies and ASEAN peers on Thursday as investors await the US Personal Consumption Expenditures (PCE) inflation data later tonight. At 6 pm, the local note appreciated to 4.1160/1200 against the greenback from 4.1355/1400 at Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US PCE inflation data will be the key focus in the near term, as expectations of further US interest rate hikes gained traction following last week’s Federal Open Market Committee (FOMC) meeting. “Nonetheless, crude oil prices are making a headway with Brent crude oil currently lingering at US$72.86 per barrel, a 38.3 per cent decline from the previous high of US$118.03 per barrel on April 29. “On that note, the US inflation rate is expected to ease in June, which would alter the course of monetary policy should crude oil prices continue to normalise towards the pre-war level of around US$60-US$70 per barrel,” he told Bernama. At the close, the ringgit gained against the British pound to 5.4261/4314 from 5.4481/4540 at Wednesday’s close, rose versus the euro to 4.6762/6807 from 4.6921/6972 yesterday, and was firmer vis-à-vis the Japanese yen at 2.5437/5464 from 2.5567/5595 previously. It appreciated against the Singapore dollar to 3.1742/1775 from 3.1848/1885 at Wednesday’s close, and increased versus the Thai baht to 12.3370/3538 from 12.3658/3845 previously. The ringgit also advanced versus the Indonesian rupiah, rising to 229.4/229.7 from 230.3/230.7 previously. Ringgit continues stellar performance for third day

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1950 2.9030 3.2280 2.9390 4.7600 2.3720 3.2280 5.5180 5.1900 3.4720 61.8500 65.2700 53.9500 4.5200 0.0244 2.6100 43.5800 1.5700 6.9300 116.1000 112.6700 26.1900 1.3100 44.2600 13.0900 115.2700 N/A

4.0480 2.7840 3.1260 2.8560 4.6030 2.2840 3.1260 5.3410 4.9650 3.2330 59.2200 60.0400 51.2500 4.2000 0.0216 2.4890 40.0800 1.4000 6.5200 110.2200 106.9600 23.6300 1.1400 40.2900 11.6000 109.2400 N/A

4.0380 2.7680 3.1180 2.8440 4.5830 2.2680 3.1180 5.3210 4.9500

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

109.0400 3.0330 59.2200 59.8400 51.0500

4.0000 0.0166 2.4790

N/A

39.8800 1.2000 6.3200 110.0200 106.7600 23.4300 0.9400 40.0900 11.2000

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

Sarawak Plantation Bhd Hold. Target price: RM3.87

Keyfield International Bhd Hold. Target price: RM1.60

Banking Sector Neutral

June 25, 2026: RM3.80

June 25, 2026: RM1.57

Source: Bloomberg, TA Research

A RECURRING pattern across GE13, GE14, and GE15 shows that foreign investors consistently reduced exposure after polling day, regardless of the election outcome. The key difference was not whether outflows occurred, but rather the speed and severity of the adjustment. GE13 reflected disappointment over limited political change, while GE14 triggered a reassessment of policy direction following the historic change in government. GE15 saw a more gradual normalisation as strong banking fundamentals initially offset political concerns. In each case, however, valuation multiples compressed as investors demanded a higher risk premium. Looking ahead to GE16, we expect a similar dynamic. Banking sector earnings should remain broadly resilient, but valuation risk is becoming increasingly important. Political uncertainty typically drives investors to demand a higher equity risk premium, which weighs on valuation multiples even when earnings expectations hold steady. For example, during GE14 the sector’s PBV fell from 1.47x in 1Q 2018 to 1.34x in 2Q, while during GE15 it slipped from 1.18x in 4Q 2022 to 1.09x in 1Q 2023. Reflecting these risks, we are raising our market risk premium assumption from 6.0% to 6.5%, which lowers fair values across our banking coverage. We are tactically downgrading the Malaysian banking sector from Overweight to Neutral, cutting our FY26 and FY27 PBV forecasts to 1.17x (from 1.25x) and 1.12x (from 1.20x), respectively. Importantly, this call is not driven by concerns over sector fundamentals, which remain sound, but by the heightened risk of election-related multiple compression in a less supportive macro backdrop. – TA Research, June 25

Source: Bloomberg, Phillip Capital Research

Source: Bloomberg, Phillip Capital Research

KEYFIELD announced the award of 13 new chartering contracts with a combined value of RM229m, covering operations across Malaysia, Thailand and the Middle East. The contracts comprise a mix of owned and 3rd party vessels, including 5 accommodation work boats (AWBs), 1 work barge, 5 anchor handling tug supply vessels (AHTSs) and 2 platform supply vessels (PSVs). Charter commencement is scheduled between 2Q26 and 3Q26, with firm charter periods ranging from 1 to 17 months, alongside extension options of between 15 days and 5 months. These latest new order wins lift Keyfield’s YTD awards to RM391m, reinforcing earnings visibility through 2027 and reflecting the group’s strong execution capabilities and ability to secure repeat work across its key operating markets. We estimate that 1 AWB, 1 work barge, and 2 AHTS chartering contracts carry firm charter periods extending into 2027 and are expected to contribute RM57m of revenue in 2027E. Assuming a 30% net margin, this translates into RM17m PAT, equivalent to 12% of our 2027E earnings forecast. We keep our earnings forecasts unchanged, as these contract wins are within our full-year fleet utilisation assumptions of 68% for 2027E. We continue like Keyfield for its exposure to sustained offshore activity, structurally tight vessel supply environment, and relatively young fleet profile, which should support charter rates and utilisation over the medium term. Maintain HOLD and TP of RM1.60. – Phillip Capital Research, June 25

MANAGEMENT lowered its 2026 FFB production guidance to 410k MT (from 420k MT previously; +13.6% YoY) following weaker-than expected weather conditions in early 2026. Dry conditions across Sarawak since Mar 26 have resulted in slower fruit ripening and isolated false ripening cases. Despite the weaker guidance, we keep our 2026E production forecast as our estimates already factor in a cautious crop recovery and weather-related disruptions. Cumulative 5M26 FFB output remained ahead of last year (+8% YoY to 141,165 MT), supported by contributions from newly matured areas. Looking ahead, management is targeting 500k MT FFB production in 2027 despite factoring in a 5% weather impact. Reflecting improving estate maturity profiles and lower replanting intensity, we raise our 2027E FFB production forecast to 437k MT (+9% YoY). Management raised its 2026 CPO production cost guidance to RM2,600/MT (from RM2,300-2,400/MT), mainly due to lower production assumptions and higher fertiliser and diesel costs. Fertiliser remains the key cost pressure point, with urea prices having more than doubled and MOP prices up 30%, while the impact of diesel cost inflation is relatively modest. Nonetheless, earnings impact should be partially mitigated as 60% of its 2026 fertiliser requirements were secured earlier at lower prices. As such, we maintain our 2026-28E cost assumptions, as our forecast already incorporates a more conservative cost outlook relative to historical trends. Maintain HOLD with higher TP of RM3.87. – Phillip Capital Research, June 25