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BIZ & FINANCE FRIDAY | NOV 13, 2026

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Malaysian Paper

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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

Hartalega’s first-half PAT more than triples to RM103m KUALA LUMPUR: For the first six months ended Sept 30, 2026, Hartalega Holdings Bhd recorded profit after tax (PAT) of RM103 million, more than tripling year on year. Revenue rose approximately 14% to RM1.25 billion, while operating profit increased more than fivefold to RM120 million. For its second quarter ended Sept 30, 2026, PAT rose 83% to RM33 million from RM18 million in the corresponding quarter last year. Revenue increased approximately 20% to RM645 million, while operating profit nearly tripled to RM40 million. The group’s stronger earnings performance was driven by higher average selling prices and ongoing cost optimisation initiatives, including tighter cost control and improved production efficiency. Together, these measures helped to offset higher production costs, particularly raw material costs arising from supply disruptions amid geopolitical tensions. The group’s net cash position strengthened to RM1.19 billion as at Sept 30, 2026. CEO Kuan Mun Leong said, “At the halfway mark of our financial year, we are seeing the benefits of the strategies and measures we have put in place in anticipation of challenging market conditions. Our manufacturing transformation remains ongoing and is already improving labour productivity, with further potential as we extend these improvements across our plants. This will support our aim of increasing output without proportionate growth in headcount, strengthening our long-term cost competitiveness.” He added: “Industry overcapacity continues to constrain pricing, with redirected China-origin supply intensifying competition in non-US markets and expanding China-owned capacity in Southeast Asia posing further competitive pressure.”

THE ringgit ended higher against major and Asean currencies yesterday but dipped against the US dollar as growing expectations of an aggressive US interest rate hike boosted demand for the greenback. At 6pm, the local currency depreciated to 4.0765/0805 against the greenback from 4.0710/0745 at Wednesday’s close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit fell 0.22% to RM4.0817 against the US dollar during the trading session, amid broader weakness in regional currencies. “The Indonesian rupiah also came under significant selling pressure, while other Asian currencies weakened against the greenback amid heightened expectations of further US monetary tightening,” he told Bernama. Mohd Afzanizam noted that the US Dollar Index (DXY) fluctuated between 102.890 and 103.083 points as hawkish signals from US Federal Reserve (Fed) officials continued to dominate market sentiment following recent stronger-than expected US inflation data. The ringgit traded higher against a basket of major currencies. It strengthened against the euro to 4.5225/5269 from 4.5343/5382 at Wednesday’s close, appreciated vis-à-vis the British pound to 5.4103/4156 from 5.4246/4293 and rose against the Japanese yen to 2.5524/5551 from 2.5609/5632. The ringgit also traded higher against its Asean peers. It edged up against the Singapore dollar to 3.1726/1760 from 3.1745/1775, appreciated against the Thai baht to 12.0678/0836 from 12.0963/1117, and climbed vis-à-vis the Indonesian rupiah to 223.5/223.8 from 224.3/224.6. Ringgit higher against major currencies except for US dollar Economy September unemployment holds at 2.9%

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.1530 2.8510 3.2270 2.9060 4.6020 2.3120 3.2270 5.5060 5.0110 3.3820 62.5100 63.1000 53.3600 4.5200 0.0239 2.6190 44.4800 1.5600 6.6500 114.8400 111.5400 25.8600 1.3100 42.8600 12.8200 114.0900 N/A

4.0040 2.7330 3.1240 2.8230 4.4490 2.2240 3.1240 5.3260 4.7940

3.9940 2.7170 3.1160 2.8110 4.4290 2.2080 3.1160 5.3060 4.7790

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

108.1000 3.1470 59.8200 58.0100 50.6600

107.9000 2.9470 57.8100 50.4600 3.9900 0.0161 2.4860 40.6800 1.1900 6.0400 108.8200 105.6900 23.1400 0.9400 38.8000 10.9500 N/A N/A

4.1900 0.0211 2.4960

N/A

40.8800 1.3900 6.2400 109.0200 105.8900 23.3400 1.1400 39.0000 11.3500

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

SP Setia Bhd Neutral. Target price: RM0.60

Dialog Group Bhd Buy. Target price: RM2.44

Nov 12, 2026: RM0.555

Nov 12, 2026: RM1.91

Source: DOSM, TA Research

Source: Bloomberg

Source: Bloomberg

FOR the first nine months of 2026 (9M’26), employment averaged 16.83 million persons, representing a 0.4% YoY increase. Meanwhile, the average number of unemployed persons declined by 2.2% YoY to 512.6k. Consequently, the average unemployment rate eased to 2.9%, down by 0.1 percentage points from the 8M’26 average, reflecting sustained resilience in labour market conditions. Malaysia’s labour market remained resilient in Q3’26, supported by continued employment growth and a stable unemployment rate. Total employment increased by 0.3% QoQ and 1.2% YoY to 16.82 million persons, compared with 16.77 million in Q2’26. In terms of employment composition, men accounted for 62.6% of total employment, equivalent to 10.53 million persons, while women represented the remaining 37.4% (6.29 million persons). By age group, workers aged 25–34 constituted the largest share of total employment at 30.6% (5.15 million), followed by those aged 35–44 at 27.5% (4.63 million) and 45–54 at 18.1% (3.04 million). On the unemployment front, the rate remained unchanged at 3% in Q3’26, despite a marginal 0.8% QoQ increase in the number of unemployed persons to 513.7k, from 509.7k in Q2’26. This suggests that the increase in unemployment was broadly in line with the expansion of the labour force. At the state level, nine states and one federal territory recorded unemployment rates below the national average of 3%. Putrajaya registered the lowest unemployment rate at 1.3%, followed by Malacca and Selangor at 2% each, and Pahang at 2.1%, indicating relatively favourable labour market conditions across these regions. – TA Research, Nov 12

9M’26 revenue declined 10% YoY to RM2.32 billion, mainly due to slower sales conversion, lower land sale contributions, and the non recurrence of contributions from completed projects in Australia. EBIT fell 15% YoY to RM691.1 million, with the margin narrowing to 29.8% from 31.5%, partly cushioned by one-off provision reversals. PBT declined 21% YoY to RM391.3 million, while core earnings fell 20% YoY to RM182.1 million. Notably, Q3’26 did not have any land sale transactions recorded – recognition is expected in Q4’26, subject to regulatory approvals. Borrowings declined by RM402 million YTD to RM7.5 billion, with net gearing improving to 0.30x. 9M’26 property sales declined 33% YoY to RM2.34 billion. Management is maintaining its RM4.6 billion FY26 sales target, supported by RM2.96 billion secured as at November and a further RM500–600 million in identified transactions. Nevertheless, this leaves RM1-1.1 billion of additional sales to be secured, suggesting a demanding Q4 execution. Unbilled sales stood at RM3.95 billion, including RM1.05 billion from Atlas Melbourne, with the latter expected to be recognised progressively upon handover from 2029. We remain cautious on SP Setia’s near-term prospects, given the continued uncertainty over earnings recognition and the timing of land monetisation. The RM273.5 million Glengowrie disposal and Setia Alaman industrial transactions are still pending regulatory approvals. Uncertainties over the upcoming general election are possibly causing the delay in approvals. Additionally, while the RM3-4 billion GDV Setia Fontaines Industrial Park offers longer-term growth potential, contributions are unlikely to be immediate. NEUTRAL with RM0.60 TP. – RHB Research, Nov 12

DIALOG Group achieved first gas at the Salbiah Gas Field on Oct 27, broadly in line with its Q2’27 guidance. It also reached a final investment decision (FID) for the Fatimah gas field – its second development under the Baram Junior Cluster (BJC) small field asset production sharing contract (PSC) – involving total project capex of US$211 million (RM860 million). DIALOG has a 70% participating interest in the PSC, with Petroleum Sarawak Exploration and Production (PSEP) owning the remaining 30%. Based on our discussion with management, the Salbiah field has estimated gas reserves of 140bcf, with the Fatimah field expected to have a similar reserve base. This brings the combined estimated reserves to 280bcf, of which 196bcf is attributable to DIALOG. Management indicated that the Fatimah field is expected to deliver low- to mid-teens project IRR. Based on DIALOG’s 70% participating interest, we estimate its proportional share of the US$211 million development cost at US$147.7 million. We are positive on the commencement of production at the Salbiah field and subsequent development of the Fatimah field, as these should strengthen DIALOG’s upstream production base and diversify its earnings stream. The Salbiah field should provide a full year production contribution in FY28, while the Fatimah field represents an additional longer-term growth driver, subject to its development schedule and first-gas timeline. The two developments also reinforce DIALOG’s strategy of expanding across the upstream, midstream, and downstream segments of the energy value chain, while building a more diversified base of recurring income. BUY with RM2.44 TP. – RHB Research, Nov 12