14/08/2026

FRIDAY | AUG 14, 2026

20

BIZ & FINANCE

MARKETS/FROM THE BROKERS

BIZ & FINANCE

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

Construction work value rises to RM47.8b in second quarter KUALA LUMPUR: The value of work done in the construction sector rose by 8.8% year-on-year to RM47.8 billion in the second quarter of 2026 (Q2’26), maintaining a steady momentum following an 8.5% increase in Q1’26, according to the Department of Statistics, Malaysia (DoSM). The performance was mainly driven by continued expansion in the special trade activities and non-residential building sub sectors, which recorded double-digit growth of 17.6% and 13.3%, respectively. The residential building sub-sector registered an 8.7% rise, followed by the civil engineering sub-sector with a 2.7% growth. DoSM said the civil engineering sub-sector contributed RM16.7 billion, or 35% of the total work value done in the quarter. The performance was driven by the construction of utility projects (RM8.1 billion) and roads and railways (RM6.9 billion). Meanwhile, the value of work done for the non-residential and residential building sub-sectors was RM14 billion (29.3% share) and RM10.9 billion (22.8% share), respectively. It said the special trade activity sub-sector contributed RM6.2 billion (12.9%), supported by site preparation (RM1.5 billion), plumbing, heat and air-conditioning installation (RM1.3 billion) and electrical installation (RM1.3 billion). DoSM said the private sector remained the primary growth driver for the quarter, contributing RM31.4 billion, or 65.8% of the total value of work done. “The private sector sustained its double-digit growth momentum, registering 11.4% growth (Q1’26: 13.2%), driven by strong performance in the special trade activity (20.2%) and non residential building (18.2%) sub-sectors. – Bernama

THE ringgit closed almost unchanged against the US dollar yesterday ahead of Malaysia’s GDP announcement for the second quarter today, as investors adopted a wait-and-see approach after US inflation data came in within expectations, supporting the greenback. At 6pm, the ringgit eased to 4.0850/0890 versus the US dollar from Wednesday’s close of 4.0835/0875. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the market was taking a wait-and see approach ahead of today’s announcements by Bank Negara Malaysia and the Department of Statistics Malaysia on the country’s economic performance. “Malaysia’s advance GDP estimate for second quarter 2026 expanded by 5.8% year-on-year (y-o-y), accelerating from Q1’26, which stood at 5.4%. “It is highly likely that the numbers will be met, or perhaps surpass expectations, based on indicators such as the Industrial Production Index (IPI) and Malaysia’s services activity,” he told Bernama. Meanwhile, at the close, the local currency ended mostly higher against a basket of major currencies. It climbed against the Japanese yen to 2.5634/5660 from 2.5655/5682 at Wednesday’s close and improved vis-à-vis the British pound to 5.5119/5173 from 5.5180/5234 previously. But it fell against the euro to 4.7120/7167 from 4.7107/7153. The local note was traded mixed against regional currencies. It was marginally higher against the Philippine peso to 6.66/6.67 from 6.67/6.68 and edged up against the Thai baht to 12.3239/3412 from 12.3488/3665. Ringgit flat against US dollar ahead of M’sian Q2 GDP data

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1590 2.9470 3.2440 2.9760 4.7900 2.4410 3.2440 5.6080 5.1400

4.0130 2.8270 3.1430 2.8920 4.6340 2.3510 3.1430 5.4290 4.9200

4.0030 2.8110 3.1350 2.8800 4.6140 2.3350 3.1350 5.4090 4.9050

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

114.2700 3.4350 61.9300 65.6800 53.4300

108.3200 3.2040 59.3000 60.4300 50.7600

108.1200 3.0040 60.2300 50.5600 3.9300 0.0165 2.4950 41.0500 1.1900 6.2800 109.0000 105.8400 23.8800 0.9400 40.4900 11.2200 N/A N/A

4.4400 0.0243 2.6270

4.1300 0.0215 2.5050

N/A

N/A

44.8500 1.5600 6.8800 115.0300 111.7000 26.6600 1.3100 44.6700 13.1000

41.2500 1.3900 6.4800 109.2000 106.0400 24.0800 1.1400 40.6900 11.6200

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 Group Bhd Buy. Target price: RM3.33

KPJ Healthcare Bhd Buy. Target price: RM3.77

Sunway REIT Neutral. Target price: RM2.45

Aug 13, 2026: RM3.05

Aug 13, 2026: RM2.74

Aug 13, 2026: RM2.19

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

KERJAYA Prospek has secured a RM223 million job from Sunway Majestic (a JV between Sunway Property and Majestic Gen) for 1,012 small office/home office units, spread over two buildings in Jalan Yahya Awal, Johor Bahru. This is KPG’s tenth job secured for FY26 and the third one related to Majestic Gen in Johor Bahru. We expect the net margin of this contract to range 8-10%. The first job awarded by Majestic Gen was garnered back in May 2025, and is related to the main building works of the Gen Rise project in Johor Bahru – this is worth RM162 million. In Dec 2025, KPG won another RM225 million job from Majestic Gen for the Gen Sphere project at Jalan Lepas, Johor Bahru. Putting aside Majestic Gen related wins, other wins in Johor include six jobs worth over RM1.3 billion. The last job KPG secured in Johor before getting the first contract by Majesti Gen back in May 2025 was for a residential development project awarded by Teguh Harian Build Tech – it won this RM258 million contract back in Oct 2021. KPG has now secured RM2.4 billion worth of new projects YTD vs our RM2.3 billion job replenishment assumption for FY26. Meanwhile, its outstanding orderbook is now valued at RM5 billion. In our view, there are still potential opportunities in the pipeline before 2H’26 ends. These include: i) Aspen Group’s Mezon@Park Enclave in Batu Kawan (which may be worth RM200 400 million, based on previous contracts); and ii) Kerjaya Prospek Property’s RM720 million GDV (estimated construction value: RM288 million) project in Batu Kawan. BUY with RM3.33 TP. – RHB Research, Aug 13

KPJ’S upcoming Q2’26 results are tentatively scheduled for release on Aug 21. We estimate Q2’26 core earnings of RM92 million (+16% YoY, +28% QoQ), bringing 1H’26 earnings to RM163 million (+14% YoY), broadly in line with our and consensus estimates at 40% and 41% (1H earnings accounted for 34-38% of full-year earnings in 2024-2025). Our estimates assume 4% and 1% YoY growth in revenue intensity and inpatient admissions, respectively, with EBITDA margin conservatively estimated at 22.5% (+1.4ppt QoQ, - 0.5ppt YoY). The sequential margin improvement should be supported by higher bed occupancy following festive season softness, partly offset by continued investments in IT and digital infrastructure. We assume an effective tax rate (ETR) of 32%, at the higher end of management’s 28-31% guidance. KPJ has launched its third centre of excellence (COE) in KPJ Penang Specialist (Orthopaedic & Rheumatology), following the Heart & Lung COE at KPJ Johor Specialist Hospital and Neuroscience & Stroke COE at Damansara Specialist Hospital 2. These form part of its 15-COE rollout under the KPJ Health System roadmap. The expansion should deepen clinical capabilities and support higher revenue intensity over the longer term, while leveraging on its secondary hospital network and primary care partnerships to drive referrals into its COEs. KPJ’s share price has retreated 13% from its 52-week high of RM3.52, when it traded at 16.7x EV/EBITDA. The stock now trades at 14.7x EV/EBITDA, which we believe offers a more attractive entry point. BUY with RM3.77 TP. – RHB Research, Aug 13

SUNWAY REIT’s Q2’26 results met expectations, with underlying asset fundamentals remaining healthy, particularly across its retail portfolio. The retail segment remained resilient (c.82% of NPI), with revenue rising 10.3% YoY – supported by stronger performances from Sunway Carnival Mall, Sunway Pyramid, and AEON Mall Seri Manjung (acquired in Q3’25). The REIT’s NPI margin improved to 73.8% (1H’25: 72.5%), supported by positive rental reversions and lower utility expenses following the bulk meter tariff conversion in July 2025. The hotels division chalked softer HoH numbers, with NPI down 5.7% YoY following a weak Q1’26, although Q2 brought about some recovery in its performance. NPI of the office segment was broadly flat, while the industrial segment’s NPI rose 16.2% YoY as the occupancy rate improved to 91% (Q2’25: 83%), driven by the PJ1 lease-up. Finance costs dropped 11.8% YoY on lower borrowings and a lower average cost of debt (3.6% vs Q2’25: 3.9%). We expect earnings growth to remain positive, supported by near-full retail occupancy rates and continued mid-single-digit rental reversions. However, with occupancy rates already high, further growth will increasingly depend on stronger rental uplift, likely through targeted asset enhancement initiatives (AEI). The ongoing Sunway 163 Mall AEI should support this, with management indicating high single-digit reversions for the affected space, but we expect the overall earnings impact to be modest – the asset contributes only 3% of NPI. NEUTRAL with RM2.45 TP. – RHB Research, Aug 13