20/08/2026

THURSDAY | AUG 20, 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

Malaysia remains vulnerable to oil price swings: Kenanga IB KUALA LUMPUR: The recent oil shock has exposed a less visible vulnerability in Malaysia’s energy balance, even as the country remains a net energy exporter, said Kenanga Investment Bank Bhd. However, Malaysia’s fiscal position remains exposed to refined product prices through subsidies, while its trade position shows a crude oil deficit but a liquefied natural gas (LNG) surplus. “Malaysia is a net oil importer, but LNG is what makes Malaysia’s energy balance positive. In 2025, Malaysia ran a RM30.4 billion deficit in crude and condensate and only a RM3.2 billion surplus in refined products, resulting in a combined petroleum deficit of RM27.2 billion. “The overall oil and gas surplus of RM18.2 billion exists because of a RM45.4 billion LNG surplus,“ the bank said in a research note yesterday. Kenanga IB said fuel subsidies are linked to refined product prices, while LNG receipts accrue to a different fiscal line and arrive with a lag. “Higher oil prices therefore protect the budget far less than the overall energy export position implies,” it said. According to estimates by the Finance Ministry, every US$1 per barrel (bbl) increase in oil prices raises federal petroleum revenue by RM300 million annually, excluding dividends from Petronas. However, the bank estimates an annual increase of around RM1.05 billion for each US$1/bbl move. Kenanga IB noted that the fiscal exposure is further compounded by relatively low subsidy “strike” levels. “The fiscal exposure has a relatively low strike. We put the RON95 subsidy strike at around US$44/bbl Brent and the diesel strike at around US$48/bbl following the RM2.10 BUDI Diesel price, both on a futures basis. – Bernama

THE ringgit extended its gains to close higher against the US dollar yesterday, supported by last-minute buying ahead of the release of the US Federal Open Market Committee (FOMC) meeting minutes. At 6pm, the ringgit inched up to 4.0565/0610 against the US dollar from Tuesday’s close of 4.0575/0615. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama the markets will be observing the FOMC minutes to seek more clues on the US Federal Reserve’s (Fed) stance on monetary policy. The latest FOMC meeting minutes will serve as guidance for market players to gauge the Fed’s appetite for a rate hike before the focus shifts to the Jackson Hole Economic Policy Symposium on Aug 27-29. At the close, the local currency ended lower against a basket of major currencies. It slid against the Japanese yen to 2.5498/5528 from 2.5420/5446 at Tuesday’s close and slipped against the British pound to 5.4994/5055 from 5.4902/4956. The ringgit was also down against the euro at 4.7080/7132 from 4.6982/7028 previously. The local note also traded mostly lower against regional currencies. It was weaker against the Indonesian rupiah at 227.3/227.7 from 227.1/227.4 at Tuesday’s close, and edged down against the Thai baht to 12.2686/2871 from 12.2657/2819/ It weakened against the Singapore dollar to 3.1778/1816 from 3.1756/1790 previously. The ringgit was flat against the Philippine peso at 6.56/6.57 from 6.56/6.58 on Tuesday. Ringgit firms against US dollar ahead of FOMC minutes

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1330 2.9360 3.2260 2.9650 4.7780 2.4290 3.2260 5.5870 5.1100

3.9870 2.8170 3.1260 2.8820 4.6230 2.3390 3.1260 5.4070 4.8910

3.9770 2.8010 3.1180 2.8700 4.6030 2.3230 3.1180 5.3870 4.8760

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

113.5400 3.4470 61.5400 65.5200 53.1100

107.6500 3.2120 58.9200 60.2700 50.4500

107.4500 3.0120 60.0700 50.2500 3.8900 0.0163 2.4760 41.1600 1.1800 6.1800 108.3200 105.1600 23.5300 0.9400 40.4000 11.1300 N/A N/A

4.4000 0.0242 2.6060

4.0900 0.0213 2.4860

N/A

N/A

44.9700 1.5500 6.7700 114.3200 110.9900 26.2700 1.3100 44.5800 13.0000

41.3600 1.3800 6.3800 108.5200 105.3600 23.7300 1.1400 40.6000 11.5300

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

MGB Bhd Buy. Target price: RM0.63

Johor Plantations Group Bhd Buy. Target price: RM2.25

Dialog Group Bhd Buy. Target price:2.44

Aug 19, 2026: RM1.96

Aug 19, 2026: RM1.88

Aug 19, 2026: RM0.43

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

MGB’s construction arm saw a Q2’26 PBT of RM10.6 million which was 19% YoY higher vs RM8.9 million in Q2’25 due to cost optimisation combined with a smaller loss for its overseas segment in Saudi Arabia. Hence, PBT margin for the construction arm in Q2’26 stood at 7.5%, similar to a year ago. Meanwhile, PBT for the property development arm in Q2’26 was RM10.6 million (+16.5% YoY) despite certain projects nearing completion stage with minimal progress. This was due to the release of unused accrued cost for projects which saw their defect liabilities period end. As such, PBT margin was higher at 15% in Q2’26 vs 9.3% in Q2’25. MGB’s outstanding orderbook now stands at RM1.68 billion as of end Q2’26 vs RM1.07 billion as of end Q2’25. YTD-FY26 wins have reached RM274.7 million vs our FY26 job replenishment target of RM800 million. Prospects are further underpinned by a tenderbook size worth SAR800 million in Saudi Arabia whereby MGB has stepped up to be a contractor from just a precast manufacturer and supplier. Despite the Middle East conflict, Saudi Arabia recorded a combined value of SAR29.5 billion of new projects in June alone, with the building and construction sector making up 56%. With MGB’s pipeline of new property projects (including affordable housing ones) providing commendable earnings visibility with a cumulative GDV of >RM1 billion – we view its valuation to be undemanding as the 4.0x FY27 P/E is -1SD from its 5-year mean. BUY with RM0.63 TP. – RHB Research, Aug 19

Q2’26 core profit fell 4.3% QoQ (-39.7% YoY), bringing 1H’26 core earnings to RM89.3 million (-37.5% YoY) at 27-30% of our and consensus full-year estimates. The miss was mainly driven by a decline in internal FFB production, alongside higher production costs from the front-loading of fertiliser application and elevated transportation costs. JPG declared a Q2’26 DPS of 1.1 sen, bringing 1H’26 DPS to 2.10 sen – a payout ratio of 51%. Q2’26 FFB output rose 5% QoQ (-18% YoY), with the QoQ improvement driven by more favourable weather (Q2 rainfall exceeded 100mm). On a YTD basis, however, 7M26 FFB output declined 12.4% YoY. Management has revised the FFB production target to 1 million tonnes for FY26 (with 40:60 split between 1H and 2H) and FY27. Q2’26 CPO ASP came in at RM4,644/tonne (+9% QoQ, +7% YoY), a 3% premium over the Malaysian Palm Oil Board (MPOB) reference price. PK ASP improved to RM3,887/tonne (+10% QoQ, +4% YoY), a 6% premium over MPOB’s. For FY26, JPG has locked in premium pricing on 70% of output (Identity Preserved premium: RM200-250/tonne, Mass Balance premium: RM100-150/tonne). Q2’26 CPO unit cost rose 30% YoY to RM2,788/tonne, driven by front-loaded fertiliser application (46% of full-year application in 1H’26 vs 37% in 1H’25) and higher transportation costs. Management expects unit costs to decline in 2H’26 as FFB production peaks in Q3’26. JPG remains confident of containing full-year cost growth to 5% YoY despite a 13.2% YoY rise in 1H’26 transportation costs. BUY with RM2.25 TP. – RHB Research, Aug 19

OIL prices were materially stronger QoQ in Q4’26, providing a supportive backdrop for DLG’s upstream operations. Brent averaged US$78/bbl in Q3’26, before rising to US$96.70/bbl in Q4’26, representing a 24% QoQ increase. We believe the stronger oil price environment should support upstream earnings, although the extent of the benefit will depend on production levels and operating performance during the quarter. We expect Q4’26 core PATMI to rise to RM163-180 million, from RM148 million in Q3’26. The stronger oil price environment should support upstream earnings, while resilient terminal operations should continue to underpin the group’s earnings base. DLG’s midstream operations continue to provide stable and recurring income visibility, underpinned by its predominantly take or-pay business model. Utilisation rates across its tank terminal assets remain healthy at above 90%, while independent storage rates remain stable at S$6-6.5/m  per month. Growth visibility also remains intact with the commencement of Phase 3 expansion within Pengerang Deepwater Terminals (PDT), which will add 614,000m  of storage capacity with BP Singapore as the dedicated long-term customer. This would potentially generate RM135-150 million in annual terminal revenue upon full commissioning. We believe this further reinforces the defensiveness of DLG’s recurring income base over the longer term. Dialog established the Green Centre of Excellence in March 2023 which is a core group to coordinate and support the implementation of green initiatives. BUY with RM2.44 TP. – RHB Research, Aug 19