10/02/2026

BIZ & FINANCE TUESDAY | FEB 10, 2026

20

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

Kenanga IB sees FBM KLCI touching 1,840 level this year KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga IB) foresees the FBM KLCI could touch the 1,840 mark this year. Kenanga IB said Malaysia has historically been a good place to shelter in relative terms compared to Asean amid geopolitical risks, and could now also benefit from investor sentiment looking to position away from Indonesia in the short term. “Near term, we also foresee that the sentiment for FBM KLCI could also benefit should investors look to position away from Indonesia, amid recent MSCI’s investability warnings flagged towards the Indonesian market, followed by Moody’s negative outlook on the country’s rating,” it said in a note yesterday. On Jan 27, the bellwether index hit 1,771.25, surpassing its previous peak of 1,769.16 on Oct 8, 2018. However, Kenanga IB said it would maintain its year-end target of 1,750 ahead of the upcoming results season. It said the FBM KLCI exhibits a positive correlation with the strength of the ringgit, with the US dollar returns year-to-date of approximately 6%, on par with Thailand and the Philippines. The USD/MYR trend is seen as being neutral currently, post the appointment of Kevin Warsh as the US Federal Reserve chair by the US President, lending support to the US dollar, it said. Foreign exchange (forex) would likely weigh on exporters’ results in the near term, but a steadying ringgit would likely help sentiment ahead in sectors most impacted by forex fluctuations, such as technology, said the investment bank. It noted that amid a largely bank-driven rally to start 2026, interest in the FBM KLCI has firmed up since the middle of last year, but as foreign shareholding gains remain narrow in breadth, this presents opportunities to pick up quality names. – Bernama

THE ringgit traded higher against the US dollar yesterday after Malaysia’s December Industrial Production Index (IPI) came in above market expectations, signalling that the domestic economy remains on a firm footing. At 6pm, the ringgit increased by 0.33% to 3.9325/9375 against the greenback compared with last Friday’s close of 3.9440/9525. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said emerging-market currencies are mostly stronger against the US dollar yesterday. “There is a sense of risk-on mode in Asia following the election results in Thailand and Japan, which led traders to be more constructive on Asian currencies. “Hence, expect the ringgit to remain well supported in the near term,” he told Bernama. At the close, the ringgit traded mostly higher against a basket of major currencies. It gained versus the Japanese yen to 2.5104/5137 from 2.5111/5167 at Friday’s close, appreciated vis-à-vis the British pound to 5.3482/3550 from 5.3548/3663, but eased against the euro to 4.6647/6707 from 4.6508/6608 previously. The local note was also mostly lower against its Asean peers, except strengthening against the Philippine peso to 6.72/6.74 from 6.73/6.75 previously. However, the ringgit edged down vis-à-vis the Singapore dollar to 3.0979/10.21 from 3.0965/1034, fell versus the Indonesian rupiah to 234.0/234.4 from 233.6/234.3 and declined versus the Thai baht to 12.5876/6101 from 12.4609/4933. Ringgit gains against dollar on Malaysia’s strong December IPI

Exchange Rates

FOREIGN CURRENCY

SELLING TT/OD

BUYING TT

BUYING OD

1 US Dollar

4.0135 2.8290 3.1490 2.9290 4.7390 2.4200 3.1490 5.4530 5.1940 3.3330 58.0400 65.0500 51.7400 4.5100 0.0248 2.5730 42.4900 1.4900 6.9400 110.9300 107.8200 25.9100 1.3600 45.8400 13.3100 110.1900 N/A

3.8655 2.7130 3.0490 2.8450 4.5820 2.3290 3.0490 5.2760 4.9690

3.8555 2.6970 3.0410 2.8330 4.5620 2.3130 3.0410 5.2560 4.9540

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

104.4100 3.1130 55.5500 59.8100 49.1300

104.2100 2.9130 59.6100 48.9300 3.9900 0.0169 2.4420 38.8300 1.1300 6.3300 105.1100 102.1600 23.1900 0.9900 41.5100 11.3900 N/A N/A

4.1900 0.0219 2.4520

N/A

39.0300 1.3300 6.5300 105.3100 102.3600 23.3900 1.1900 41.7100 11.7900

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

Gamuda Bhd Buy. Target price: RM6.26

Capital A Bhd Buy. Target price: RM0.75

Public Bank Bhd Buy. Target price: RM5.45

Feb 9, 2026: RM0.58

Feb 9, 2026: RM5.06

Feb 9, 2026: RM4.04

Source: Bloomberg

Source: Maybank Investment Bank

Source: Maybank Investment Bank

CAPITALA is close to having its PN17 classification uplifted. With the upliftment, we believe it will be able to raise more capital, publicly list its subsidiaries and dividend their shares in specie to shareholders. It also has plans to monetise its AAX shares and warrants and declare a special cash DPS. Thanks to the disposal of its 5 airlines, CAPITALA’s shareholders’ equity position has turned positive. Having a positive shareholders’ equity position is a prerequisite for PN17 classified companies like CAPITALA, to have their classification uplifted. The other prerequisite is to demonstrate 2 consecutive quarters of profitability. CAPITALA may apply for a waiver from the second prerequisite but even if it does not secure one, we gather that CAPITALA will have its PN17 classification uplifted by May or June 2026. Upliftment of its PN17 classification will allow CAPITALA to raise more capital to expand its businesses. On Jan 22, 2026, Teleport raised US$50 million (RM200 million) in redeemable convertible preference shares and there are near term plans by AirAsia MOVE, ADE and AirAsia Next to raise capital as well. Even CAPITALA itself is considering a dual listing on the Hong Kong Stock Exchange. CAPITALA is aware that its 655.5 million AAX shares are worth a whopping RM1.4 billion and its 28.5 million AAX warrants are worth RM27.8 million based on their last prices of RM2.03 and RM0.98 respectively. We understand options being explored are:- (i) distribute them in specie gradually in tandem with retained profits generated; (ii) accumulate enough retained profits to distribute them in specie wholesale; or (iii) sell them to a third party and utilise the cash proceeds to pay a special DPS. BUY with RM0.75 TP. – Maybank Investment Bank, Feb 9

WHILE GAM chalked RM20 billion in new job wins in CY25, we calculated that 60-70% of GAM’s orderbook as of end-Dec 2025 was made up of contracts that are in their early stages, while notable projects like the Sydney Metro West tunnelling package and M1 Motorway have reached >80% completion. As such, the bulk of projects at nascent stages may move higher along the Scurve towards the later part of 1H’26 (or near the end of FY26). While the Sabah water supply project (estimated at RM3-4 billion) has been anticipated for 1.5 years – we think the state’s water reserve margin (7.3% as of end-CY22) necessitates the rollout of the project in CY26. If this project was awarded in late CY24 or in CY25, we may have seen a ramp-up in progress in CY26 (ie higher margins in CY26). In Australia, GAM has an opportunity pipeline of >A$50 billion for FY27-29 with >A$10 billion worth of active tenders. Australia’s Clean Energy Finance Corp (with a capital base of A$30 billion) intends to focus more on solar and wind projects in New South Wales (where GAM already has a footprint) over the next 12 months. More importantly, China’s move to scrap value-added tax export rebates for photovoltaic products from April 1 should not impact GAM’s solar projects in Australia as solar contracts in the country generally have what is called a free-issue or owner-supplied equipment. Microsoft launched its Southeast Asia Region 3 in Nov 2025 which, in our view, may relate to the 370 acres of land it acquired in 2023-2025 in Johor. Given the large land size, we do not discount the possibility of Microsoft engaging with more than one contractor (which was the case for Pearl Computing Malaysia) – which may open up opportunities for DC builders including GAM. BUY with RM6.26 TP. – RHB Research, Feb 9

WITH Public Bank’s upcoming Q4’25 results, we expect NIMs to compress sequentially, but for benign credit costs to provide support, with over RM900 million worth of management overlays. We estimate core net profit (CNP) growth of 4.5% in FY25, picking up pace to 5.3% in FY26 amid expectations of stable margins and low credit cost. Public Bank’s CET1 ratios (13.8%/11.9% at the group/bank as at end-Sept 2025) could potentially increase by up to 100bps once credit risk weight adjustments under Basel III reforms kick in by July 2025. We estimate a higher dividend payout ratio of 60% for FY25 (57% in FY24) and would not rule out possible capital optimisation exercises in the near future. Prospective dividend yields of 4.4%/4.8% for FY25/26 are decent. LPI Capital is expected to place out its 1.1% stake in Public Bank by June 3, 2026 (based on the 6-month extended deadline provided by Suruhanjaya Syarikat Malaysia) and this would help address part of the share overhang issue. We look forward to clearer commitment in addressing the distribution of the Teh family’s 12.28% shareholding by way of a Restricted Offer for Sale (ROS) (over 5 years), to address the other share overhang issue. Separately, Public Bank’s foreign shareholding has hit an all-time low of 23.09% end-Dec 2025 – renewed foreign interest would be positive. Domestic operations contributed to 94% of group loans end Sept 2025. Key overseas operations include Public Bank Hong Kong Ltd, Cambodian Public Bank PLC and Public Bank Vietnam Ltd. BUY with RM5.45 TP. – Maybank Investment Bank, Feb 9