21/08/2026

FRIDAY | AUG 21, 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 seeks REE investors who share technology: Johari IPOH: Malaysia wants investors exploring rare earth element (REE) opportunities in the country to bring and share their technology and participate directly across the entire supply chain, from upstream to downstream activities. Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the approach would ensure Malaysia does not merely export raw materials but captures greater value from the critical minerals. “REEs are in very high demand and are critical minerals needed for the development of almost every technology in the world today. “But to fully benefit from REEs, investors must bring their technology, share it with us and participate directly in the upstream, midstream and downstream sectors. Otherwise, we will continue looking for parties willing to commit and share their technology with us,” he told reporters after attending the Invest in Perak Day 2026 programme, officiated by Menteri Besar Datuk Seri Saarani Mohamad. Johari said Investment, Trade and Industry Ministry would focus on midstream and downstream processing, while the Ministry of Natural Resources and Environmental Sustainability would oversee upstream activities. He said Malaysia would also review regulations, laws and technology requirements, including safeguards for investors’ intellectual property and trade secrets. “We need to ensure confidentiality for our partners. “If they bring their technology, they do not want it to be shared with others, so we need the necessary laws to protect that,” he said. Bernama

THE ringgit continued its bullish momentum to close higher against the US dollar yesterday, as the US national debt, which surpassed US$40 trillion for the first time, weighed on the greenback. At 6pm, the ringgit strengthened 140 percentage in points (pips) to 4.0425/0470 against the US dollar from Wednesday’s close of 4.0565/0610. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the size of US public debt came into the spotlight recently with the US Treasury Department stepping up efforts to prevent Treasury yields from rising excessively. “Direct intervention by the US government in the treasury markets to stem the rise in long-term yields were the main driver in traders’ sentiment. “The 30-year US Treasury yields are currently hovering around 5.22 per cent after exceeding 5.30 per cent recently. The move could mean the US Federal Reserve is less inclined to raise the Federal Funds Rate in the next Federal Open Market Committee meeting in September,” he told Bernama. At the close, the ringgit ended lower against a basket of major currencies. It slid versus the Japanese yen to 2.5527/5557 from 2.5498/5528 at Wednesday’s close, fell against the British pound to 5.5164/5225 from 5.4994/5055 and eased vis-a-vis the euro to 4.7322/7374 from 4.7080/7132 previously. It weakened versus the Indonesian rupiah to 227.7/228.1 from 227.3/227.7 at Wednesday’s close, edged down against the Thai baht to 12.3014/3211 from 12.2686/2871 at the previous close, and slipped vis-a-vis the Singapore dollar to 3.1813/1851 from 3.1778/1816. Ringgit stays bullish vs dollar amid US debt worries

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1135 2.9390 3.2280 2.9710 4.7950 2.4450 3.2280 5.5860 5.1750

3.9675 2.8200 3.1280 2.8870 4.6400 2.3550 3.1280 5.4090 4.9540

3.9575 2.8040 3.1200 2.8750 4.6200 2.3390 3.1200 5.3890 4.9390

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

112.9900 3.4220 61.3600 65.7600 52.8800

107.1300 3.1940 58.7600 60.5000 50.2400

106.9300 2.9940 60.3000 50.0400 3.8700 0.0163 2.4830 41.3300 1.1700 6.1400 107.8500 104.6500 23.6600 0.9400 40.6100 11.1600 N/A N/A

4.3800 0.0241 2.6130

4.0700 0.0213 2.4930

N/A

N/A

45.1500 1.5400 6.7400 113.8200 110.4500 26.4100 1.3000 44.8100 13.0400

41.5300 1.3700 6.3400 108.0500 104.8500 23.8600 1.1400 40.8100 11.5600

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

Solarvest Bhd Buy. Target price: RM3.52

Pekat Bhd Buy. Target price: RM2.15

KPJ Healthcare Bhd Buy. Target price: RM3.80

Aug 20, 2026: RM3.03

Aug 20, 2026: RM3.13

Aug 20, 2026: RM1.91

Source: Bloomberg, Phillip Capital Research

Source: Bloomberg, Phillip Capital Research

Source: Bloomberg, Phillip Capital Research

1QFY27 revenue and core net profit rose 13% and 15% YoY to RM156m and RM20m, respectively, driven by the continued progress of LSS5 utility-scale projects and ongoing execution of Corporate Green Power Programme jobs. EBITDA margin slipped 2.4ppts YoY to 19.2% due to unfavourable project mix from lower margin EPCC jobs. Overall, 1QFY27 results were broadly in line with expectations at 18% of both our and consensus FY27 estimates. This is consistent with its historical seasonally weaker 1Q, which accounted for 14-20% of full-year core earnings in FY24 26, respectively. We expect earnings momentum to pick up in 2HFY27 as project execution ramps up. Sequentially, 1QFY27 revenue declined 42% QoQ, following a seasonally strong 4QFY26, as LSS5 projects were still at an early execution stage coupled with slowdown in C&I work. The unbilled order book stands at RM2.4bn, with utility-scale projects making up 92% (LSS5 and East Malaysia LSS: 46%, LSS5+: 38%, CGPP: 8%) and the remaining from C&I and residential projects. Management targets to recognize 45-50% of the order book in FY27, supporting our expectation of stronger 2HFY27 earnings momentum as panel deliveries ramp up from 3QFY27 onwards. Separately, its 135MWp Powervest portfolio is expected to contribute RM54m of recurring income upon full energisation over the next 12-18 months. On CRESS, the revised System Access Charge provides greater clarity for off-taker negotiations (firm supply at 20-25sen/kWh), while LSS6 (2.5GW solar and 1.25GW BESS) offers the next major replenishment opportunity. Maintain BUY with TP of RM3.52. – Phillip Capital Research, Aug 20

PEKAT’S 6M26 revenue rose 24% YoY to RM343m, driven by broad based growth across the solar PV (+21%), power distribution equipment (PDE) (+27%), ELP (+30%) and trading (+28%) segments, underpinned by LSS EPCC billings and higher PDE order fulfilment. 6M26 core net profit grew 13% YoY to RM26m, accounting for 45% of our and 47% of consensus full-year estimates. We deemed results to be within expectations on expectation of stronger 2H26 on the ramp-up of data centre related ELP jobs and PDE deliveries. Despite the strong revenue growth, EBITDA margin eased 2ppts to 13.3%, due to an unfavourable project mix, with lower contribution from the higher-margin ELP segment and a greater mix of lower-margin solar EPCC work. Sequentially, 2Q26 revenue grew 5% QoQ to RM175m on an ELP (+62% QoQ) and PDE (+43% QoQ) rebound from the festive season-affected 1Q, offsetting a 19% QoQ decline in solar PV on C&I execution timing. 2Q26 core net profit rose 12% QoQ to RM14m, aided by a 1.8ppts QoQ EBITDA margin recovery to 14.2% and a lower effective tax rate With a RM907m order book across PDE (38%), solar (34%) and ELP (26%), we expect stronger 2H26 earnings as execution ramps up on rising DC ELP demand, including the recent RM47m Port Dickson and Johor wins, and PDE deliveries supported by TNB’s grid and capex expansion. We like Pekat for its synergistic model geared to Malaysia’s RE push and its leading 50% domestic ELP share, as a key beneficiary of the data centre build-out. Maintain BUY with TP of RM2.15. – Phillip Capital Research, Aug 20

KPJ’S medical tourism revenue grew 21% YoY to RM146m in 6M26, supported by higher patient arrivals from Indonesia. Management expects medical tourism to sustain double-digit growth in 2026, underpinned by the group’s expanding specialist capabilities. Separately, MediAsaS (Medical and Health Insurance/Takaful) is currently in its pilot phase across 4 hospitals, with several months of data collection on patient uptake, bill sizes and claim rates required before a broader rollout in 2027. While the initiative should support patient volumes over time, we expect its near-term earnings contribution to remain minimal given the pilot phase’s limited scope. KPJ’s operational beds were broadly stable at 3.9k YoY in 2Q26, as new capacity additions were partially offset by ongoing ward closures and upgrade works. Bed capacity is expected to reach 4.2k by end26, implying 5% growth, with capacity growth increasingly driven by brownfield expansions, mainly at KPJ Perdana Specialist Hospital and Johor Specialist Hospital. Meanwhile, its newer hospitals, Damansara Specialist Hospital 2 and Kuala Selangor continue to ramp up, with both expected to achieve PAT breakeven by end26/early27. While operating expenses increased 14% YoY in 6M26 due to IT refresh, Electronic Medical Record (EMR) implementation and staff costs, we expect stronger patient throughput in 2H26 to drive better operating leverage and support EBITDA margin expansion. We expect KPJ to sustain its growth momentum, supported by ongoing capacity expansion and an asset-light growth model. Maintain BUY and RM3.80 TP. – Phillip Capital Research, Aug 20