04/08/2026

BIZ & FINANCE TUESDAY | AUG 4, 2026

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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

Perodua cuts Axia prices, passes savings to customers KUALA LUMPUR: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has reduced the price of its Axia model, Malaysia’s most affordable compact car model, by up to RM4,700, effective immediately. In a statement, the national automotive company said the revision reflects continued improvements in the company’s operational efficiency and reaffirms its commitment to passing tangible value on to its customers amid current economic conditions. The revision sees the Axia 1.0G receiving the biggest price reduction of RM4,700, followed by the 1.0X (RM1,500), 1.0SE (RM1,000) and 1.0AV (RM500). The revised prices apply to both Peninsular and East Malaysia. “This price revision forms part of our ongoing efforts to ease the cost pressures currently faced by Malaysians,” said Perodua president and CEO Datuk Sri Zainal Abidin Ahmad. He said the new pricing also reflects the company’s ongoing efforts to further improve its operational effectiveness, which has similarly translated into reduced service costs and revised pricing for the QV-E and Battery as a Service (BaaS) offerings. All specifications and quality standards for the Axia remain unchanged, with the cost savings derived entirely from process improvements and operational efficiencies. “The revised pricing is the outcome of sustained, continuous improvement initiatives undertaken in close collaboration with our local suppliers and partners within the automotive ecosystem,“ said Zainal. As Malaysia’s most affordable car, the Axia has long served as a dependable mode of transport for Malaysians. – Bernama

THE ringgit ended lower against the greenback and other major currencies yesterday, pressured by rising United States Treasury yields and renewed uncertainty over the path of US monetary policy. At 6pm, the local currency eased to 4.0935/0975 versus the greenback from last Friday’s close of 4.0835/0875. SPI Asset Management managing partner Stephen Innes said investors are now turning their attention to a busy US economic data calendar, including the Job Openings and Labour Turnover Survey (JOLTS), ADP employment data and nonfarm payrolls report on August 7. “The upcoming US labour market data will be critical in determining whether the US dollar has further room to weaken. Nonfarm payrolls remain the week’s key macro risk event.” Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit versus the US dollar started on a stronger note, with USD-MYR lingering around RM4.0788 in the morning session before gradually moving towards RM4.09 in the afternoon session. The ringgit traded lower against a basket of major currencies. It depreciated versus the Japanese yen to 2.6062/6089 from 2.5520/5548 at last Friday’s close, fell vis-à-vis the euro to 4.7165/7211 from 4.6981/7027, and declined versus the British pound to 5.5053/5107 from 5.4923/4977 previously. It weakened versus the Thai baht to 12.2663/2827 from 12.2264/2435 at last Friday’s close, declined against the Indonesian rupiah to 227.4/227.7 from 226.6/226.8 previously, edged down vis-à-vis the Philippine peso to 6.72/6.73 from 6.66/6.67, and slipped against the Singapore dollar to 3.1911/1944 from 3.1823/1856. Ringgit ends lower against major currencies

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1500 2.9330 3.2360 2.9550 4.7870 2.4530 3.2360 5.5940 5.1710 3.4280 61.7200 65.6400 53.3400 4.4300 0.0241 2.6650 44.8600 1.5500 6.8600 114.7600 111.4100 26.0700 1.3000 44.9700 12.9800 114.0100 N/A

4.0030 2.8140 3.1330 2.8700 4.6290 2.3620 3.1330 5.4130 4.9470 3.1790 59.0900 60.3700 50.6600 4.1200 0.0213 2.5410 41.2500 1.3800 6.4600 108.9400 105.7700 23.5400 1.1300 40.9400 11.5000 108.0700 N/A

3.9930 2.7980 3.1250 2.8580 4.6090 2.3460 3.1250 5.3930 4.9320

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

107.8700 2.9790 60.1700 50.4600 3.9200 0.0163 2.5310 41.0500 1.1800 6.2600 108.7400 105.5700 23.3400 0.9300 40.7400 11.1000 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

Banking Sector Overweight

Duopharma Biotech Bhd Buy. Target price: RM1.69

Hap Seng Plantation Bhd Hold. Target price: RM2.44

August 3, 2026: R M2.50

August 3, 2026: R M1.21

Source: Bank Negara Malaysia

Source: Bloomberg, Phillip Capital Research

BANK Negara Malaysia’s Jun 2026 statistics highlight stable growth in system loans at +5.5% YoY - tracking the full-year forecast - supported by continued strength in the non-household segment and resilient household loans growth. GIL, though, has continued to tick higher and we await updates from the banks in their August reporting season. However, with provision buffers in place plus healthy capital ratios, we think the banks can continue to keep their attractive dividend payouts and yields. System loans grew 5.5% YoY (+1.2% QoQ, +0.4% MoM) in Jun 2026. The YoY momentum was primarily driven by non-household loans, which increased 6.1% YoY (+1.2% QoQ), while household loans grew by 5.0% YoY (+1.1% QoQ). Key sectors driving YoY business loan growth include transport & communications (+18.0% YoY, +3.4% QoQ) and education & health (+16.0% YoY, +3.0% QoQ) but primary agriculture sector was a drag - declining 8.9% YoY (+0.9% QoQ). For household loans, growth came from purchase of securities (+7.0% YoY, flat QoQ), hire purchase (+5.5% YoY, 0.9% QoQ) and residential mortgages (+5.4% YoY, +1.3% QoQ. For the overall household sector, though, the YoY pace of growth has decelerated to its slowest pace since Apr 2022. At the halfway mark, annualised growth of 5.5% is within our 5-5.5% system loans growth forecast for 2026. Lending indicators remained solid, with 1H26 system loan applications and approvals up 8.6% and 12.6% YoY respectively. These were mostly driven by the non-household segment (applications +14.7%; approvals +21.5% YoY), whereas growth in household applications and approvals were more modest at 3.6% and 2.9% YoY. Still OVERWEIGHT on sector. – RHB Research, Aug 3

OVERALL, we remain constructive on HAPL’s operational execution, although we believe its current valuation fairly reflects its fundamentals. Supported by a strong net cash balance sheet, HAPL is well positioned to navigate industry volatility while retaining financial flexibility for future expansion. However, we believe these strengths are largely reflected in its current share price. As a predominantly upstream planter, HAPL remains more exposed to CPO price movements and production fluctuations compared to larger integrated peers, with earnings sensitivity estimated at 8-10% for every RM100/MT movement in CPO prices. Further upside hinges on sustained CPO price catalysts and a tightening supply outlook. The softer 2Q26 production performance appears largely attributable to Sabah’s seasonal cropping pattern rather than any structural operational issues, with production expected to recover as estates enter the seasonal peak harvesting period in 3Q26. Meanwhile, cost pressures remain manageable despite higher fertiliser prices, supported by disciplined procurement, improved operating leverage and lower diesel consumption following investments in biogas infrastructure. Management expects 2026 production costs to average RM2,200-2,300/MT, with higher production volumes providing better cost absorption. While Budget 2027 has yet to be finalised, management highlighted that labour, fertiliser and fuel as key areas to monitor. Overall, we view HAPL’s cost management as a key strength, with operational discipline supporting earnings resilience. Maintain HOLD with a higher TP of RM2.44. – Phillip Capital Research, Aug 3

Source: Bloomberg, TA Research

LAST Friday, Duopharma announced that the group had received a 6-month extension for its Approved Products Purchase List (APPL) contract from the Ministry of Health. The extended contract will run from 1 January 2027 to 30 June 2027, or until such other date as directed by the Government of Malaysia. Under the extension, the group will no longer supply three products, reducing the total number of stock-keeping units (SKUs) under the contract to 97 from 100 previously. Under the current APPL contract, Duopharma supplies 100 pharmaceutical and non-pharmaceutical products to Malaysian government healthcare facilities with a total value of RM684.2mn through 31 December 2026. The APPL contract extension did not come as a surprise, as management had previously guided that there was a high likelihood of a six-month extension rather than the award of a new 3-year contract. We estimate the value of the extension at approximately RM115mn, providing the group with earnings visibility through 1H27. Meanwhile, we expect the reduction of the 3 SKUs under the extended contract to have an immaterial impact, accounting for less than 1% of the group’s total revenue. No change to our FY26-28 earnings projections. We reiterate our Buy recommendation on Duopharma with an unchanged TP of RM1.69. – TA Research, Aug 3