27/07/2026

BIZ & FINANCE MONDAY | JULY 27, 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

KPK steps up AI and low-carbon solutions use in palm oil milling MALACCA: The Plantation and Commodities Ministry (KPK) will step up the adoption of digital technology, automation, artificial intelligence (AI) and low-carbon solutions in the palm oil milling sector to boost productivity and reduce reliance on manual labour. Deputy secretary-general (plantation and commodities) Datuk Razali Mohamad said the initiative would be implemented through closer collaboration with the Malaysian Palm Oil Board (MPOB), regulatory agencies and industry associations, including the Southern Peninsula Palm Oil Millers Association (SPPOMA). “The palm oil milling sector must not only improve operational efficiency, but also meet increasingly stringent requirements in sustainability, environmental protection, occupational safety, traceability and compliance with international market standards, including the European Union Deforestation Regulation (EUDR). “KPK wants the experience and technical expertise of industry players to be fully utilised in policy formulation and the enhancement of the regulatory framework, so that every measure introduced is practical, balanced and can be implemented effectively,” he said in a statement. He said the ministry also encouraged SPPOMA to channel industry issues and proposals through the annual industry dialogue sessions it organises. He said the platform enables the ministry to examine industry issues and, where necessary, raise them with other ministries, including Finance Ministry, during the Budget preparation process. “KPK also welcomes the industry’s progress in methane capture, biogas power generation, BioCNG production, oil recovery, process automation and the production of value added products from palm oil biomass.” – Bernama

Ringgit seen trading at RM4.08-4.10 vs US dollar

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

THE ringgit is expected to trade within the RM4.08-RM4.10 range against the greenback this week on caution ahead of key domestic and external events, namely the US interest rate decision and the Negeri Sembilan state election. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the spotlight going forward will be on the interest rate decision by the US Federal Reserve and the upcoming state election in Negeri Sembilan on Aug 1. “Most economists are expecting the US interest rates to be maintained at 3.5%-3.75%. “Market participants will focus on the Federal Open Market Committee statement, especially how committee members assess inflation dynamics going forward, as prevailing crude oil prices have risen substantially in July. “Hence, (this week), we foresee traders and investors being cautious,” he told Bernama. For the week just ended, the ringgit traded mostly higher due to robust Malaysian economic data. The ringgit strengthened to 4.0885/0935 against the US dollar from 4.0930/0990 a week earlier. The local currency traded higher against a basket of major currencies during the week. It appreciated against the Japanese yen to 2.4976/5008, rose against the euro to 4.6556/6613 and gained against the British pound to 5.4442/4509. It went up against the Singapore dollar to 3.1667/1708, edged up against the Indonesian rupiah to 227.6/227.9, climbed against the Philippine peso to 6.61/6.62 and improved against the Thai baht to 12.1414/1606.

1 US Dollar

4.1705 2.9160 3.2200 2.9550 4.7390 2.4120 3.2200 5.5460 5.1280 3.4490 61.8500 65.0000 53.6200 4.4000 0.0243 2.5610 44.4100 1.5600 6.8400 115.3300 112.0100 25.6300 1.3000 43.9800 12.8500 114.5900 N/A

4.0225 2.7960 3.1180 2.8710 4.5840 2.3230 3.1180 5.3670 4.9070 3.1970 59.2100 59.7700 50.9200 4.0900 0.0215 2.4410 40.8200 1.3900 6.4400 109.4800 106.3400 23.1400 1.1400 40.0300 11.3900 108.5700 N/A

4.0125 2.7800 3.1100 2.8590 4.5640 2.3070 3.1100 5.3470 4.8920

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

108.3700 2.9970 59.5700 50.7200 3.8900 0.0165 2.4310 40.6200 1.1900 6.2400 109.2800 106.1400 22.9400 0.9400 39.8300 10.9900 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

Mi Technovation Bhd Outperform. Target price: RM7.79

Kerjaya Prospek Group Bhd Outperform. Target price: RM3.30

KIP REIT Buy. Target price: RM1.15

July 24, 2026: RM5.60

July 24, 2026: RM2.47

July 24, 2026: RM0.865

Source: PublicInvest Research

Source: Bloomberg, TA Research

Source: PublicInvest Research

KPGB, through its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd, has accepted a letter of award for a subcontract worth RM52.5m. The contract involves civil, structural, and basic low-voltage mechanical and electrical (M&E) works for a new 275kV consumer landing station serving a data centre (DC) in the Klang Valley. The project already commenced on 23 July 2026 and is scheduled for completion by 9 January 2027. This job win brings KPGB’s year-to date contract wins to RM2.2bn and its total outstanding order book to RM4.8bn, further expanding its client base and reinforcing its reputation as a preferred construction partner for high-growth segments such as data centres and industrial developments. That said, we keep our forecast unchanged as this forms up part of the order book replenishment assumption of RM2.5bn for FY26. The scope of work covers all civil, structural, and basic low voltage M&E works, including testing and defect rectification, for a new 275kV consumer landing station at a Klang Valley data centre. The project is set to commence on 23 July 2026, with completion targeted by 9 January 2027. KPGB’s outstanding order book grew 1.1% to RM4.8bn, securing earnings visibility for the next three years. We estimate this project will contribute about RM3.2m or 1.3% to FY26 earnings, assuming mid-single-digit profit margins. As this contract forms part of our FY26 order book replenishment assumption of RM2.5bn, we keep our earnings forecast unchanged. The Group continues to strengthen its portfolio by leveraging its core construction expertise while expanding its client base as well as into higher-growth segments such as data centres and industrial developments. We maintain our Outperform call on KPGB with an unchanged TP of RM3.30. - PublicInvest Research, July 24

WE believe improving utilisation at the Tainan plant and higher ASP should sustain margin expansion over the next several quarters, while higher patented solder ball penetration supports further earnings upside. We are also encouraged by the developments in the Vehicle Technology Business Unit (VTBU) and Semiconductor Technologies Business Unit (STBU), which have seen significant progress. We believe both new segments could be the key growth drivers for the Group in the next 1-2 years. In view of that, we raise our FY26-28F earnings forecast by 15-16% to reflect lower operating losses from both VTBU and STBU. It was a record quarterly performance in 1HFY26, with Taiwan remaining the largest market for the Group at 39.8%, followed by China (25.6%), Southeast Asia & India (14.6%), America & EU (11.7%), and Korea & Japan (8.3%). Meanwhile, the Mobility & Wearables segment saw its contribution expand from 1HFY25’s 68% to 71.6%, driven by increased sales from the advanced packaging (die sorter) machines, which have gradually replaced the conventional packaging machines. HPU came in second at 21.6%, followed by Auto & Energy at 6.8%. Under the SEBU segment, the stronger 1HFY26 sales were mainly spurred by higher demand for the Mi Series die sorter (78.7%) from the US and South Korea markets in the mobility & wearable segment. Under the SMBU, the stronger performance was mainly bolstered by a surge in ASP and sales volume as Tainan plant was running at full capacity. Accurus China recorded a small loss of RM0.9m for 1HFY26. Sales from patented solder balls improved from 1HFY25’s 57.4% to 62% in 1HFY26. The customer base for SEBU and SMBU largely remained the same as in the last quarter. Maintain Outperform with a higher TP of RM7.79 based on 35x FY27 EPS. - PublicInvest Research, July 24

KIP REIT’s FY26 realised net profit of RM73.6mn increased by 42.7% YoY and came in above our forecast at 108%, but within consensus expectations at 104%. The earnings beat was mainly attributable to stronger-than-expected retail performance. FY26 revenue and net property income (NPI) rose 30.1% YoY and 34.1% YoY to RM177.1mn and RM129.9mn, respectively. Growth was driven by stronger contributions from its existing KIPMall portfolio, alongside incremental income from newly acquired retail and industrial assets. On a QoQ basis, 4QFY26 revenue and NPI rose by 8.0% and 9.6% to RM48.2mn and RM35.4mn, respectively. The improvement was driven by better operating performance across most malls. Management indicated that KIP REIT achieved rental reversions of approximately 6–7% in FY26 and expects positive reversions to continue in FY27. Around 42.7% of portfolio gross rental income is due for renewal in FY27, providing room for further rental growth. Portfolio occupancy improved to 98.7% in 4QFY26 from 98.5% in 3QFY26, supported by healthy occupancy across both the retail and industrial portfolios. KIP REIT’s community-focused malls continue to benefit from necessity-based spending and established local catchments. Unitholders approved the proposed RM435mn acquisition of Setapak Central, which will become KIP REIT’s 19th and largest asset by value upon completion. The acquisition is targeted for completion in September 2026 and will be funded through a 60:40 combination of bank borrowings and private placement proceeds. Upon completion, AUM is expected to increase to approximately RM2.1bn. Maintain Buy with higher TP of RM1.15. - TA Research, July 24