Good Morning All,
We issued a company update report on our coverage stock KJTS Group Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📰 Newsbreak. KJTS, through its Thailand subsidiary KJTN Engineering, has entered into four agreements with wholly-owned subsidiaries of Central Plaza Hotel Public Company Limited (Centel) for retrofit works, O&M services and chilled water supply at four hotels in Thailand. Retrofit works are expected to commence in Sep 2026 and complete by Feb 2027, followed by 20 years of O&M and chilled water supply from Mar 2027 to Feb 2047. The agreements carry aggregate fixed fees of THB393.8m, equivalent to c.RM47.8m over 20 years, excluding variable fees based on chilled water supplied.
💡 M+ Global View
📌 Recurring revenue stream. Based on fixed fees alone, the four contracts should contribute c.RM2.0m of revenue in FY27f (assuming operations commence as scheduled in Mar 2027) and c.RM2.4m on a full-year basis from FY28f onwards, excluding variable fees linked to chilled water consumption, which provide additional upside.
📌 Deepening Thailand relationships. The awards deepen KJTS' relationship with Central Group; KJTN Engineering has previously undertaken three cooling projects for the group, and the repeat wins highlight its track record and scope for further cross-selling within the customer base.
📌 Favourable earnings mix shift. The contracts support KJTS' ongoing transition towards a larger Energy Services contribution, which accounted for 72.0% of Group revenue in 1H26 versus 56.5% in 1H25, with the variable fee component providing further upside as chilled water demand increases.
📌 Upfront funding requirement. KJTN will fund c.RM7.1m of retrofit works across the four hotels and is required to subsequently acquire c.RM4.1m of employer-funded retrofit works under the three DBO agreements, bringing total funding requirement to c.RM11.2m, to be funded via internally generated funds and/or bank borrowings.
📌 Forecast. We raise our FY26f/FY27f earnings forecasts by 33.2%/5.1% to RM26.6m/RM28.4m and introduce our FY28f estimate of RM31.2m, implying a 3-year earnings CAGR of 20.1% over FY25-FY28f.
📌 Reinstate BUY, TP RM1.23. We reinstate our BUY recommendation on KJTS with a higher TP of RM1.23 (from RM0.87), implying 12.8% upside, derived from an unchanged 30x P/E multiple applied to our FY27f EPS of 4.11 sen, rolled over from our previous valuation based on FY26f EPS.
📌 Downside risks. Risks include: (i) KJTS' inability to replenish its order book; (ii) changes in TNB's tariff policies; and (iii) potential contract terminations by its customers.
Research Team, M+Global
3 Sep 2026
We issued a company update report on our coverage stock KJTS Group Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📰 Newsbreak. KJTS, through its Thailand subsidiary KJTN Engineering, has entered into four agreements with wholly-owned subsidiaries of Central Plaza Hotel Public Company Limited (Centel) for retrofit works, O&M services and chilled water supply at four hotels in Thailand. Retrofit works are expected to commence in Sep 2026 and complete by Feb 2027, followed by 20 years of O&M and chilled water supply from Mar 2027 to Feb 2047. The agreements carry aggregate fixed fees of THB393.8m, equivalent to c.RM47.8m over 20 years, excluding variable fees based on chilled water supplied.
💡 M+ Global View
📌 Recurring revenue stream. Based on fixed fees alone, the four contracts should contribute c.RM2.0m of revenue in FY27f (assuming operations commence as scheduled in Mar 2027) and c.RM2.4m on a full-year basis from FY28f onwards, excluding variable fees linked to chilled water consumption, which provide additional upside.
📌 Deepening Thailand relationships. The awards deepen KJTS' relationship with Central Group; KJTN Engineering has previously undertaken three cooling projects for the group, and the repeat wins highlight its track record and scope for further cross-selling within the customer base.
📌 Favourable earnings mix shift. The contracts support KJTS' ongoing transition towards a larger Energy Services contribution, which accounted for 72.0% of Group revenue in 1H26 versus 56.5% in 1H25, with the variable fee component providing further upside as chilled water demand increases.
📌 Upfront funding requirement. KJTN will fund c.RM7.1m of retrofit works across the four hotels and is required to subsequently acquire c.RM4.1m of employer-funded retrofit works under the three DBO agreements, bringing total funding requirement to c.RM11.2m, to be funded via internally generated funds and/or bank borrowings.
📌 Forecast. We raise our FY26f/FY27f earnings forecasts by 33.2%/5.1% to RM26.6m/RM28.4m and introduce our FY28f estimate of RM31.2m, implying a 3-year earnings CAGR of 20.1% over FY25-FY28f.
📌 Reinstate BUY, TP RM1.23. We reinstate our BUY recommendation on KJTS with a higher TP of RM1.23 (from RM0.87), implying 12.8% upside, derived from an unchanged 30x P/E multiple applied to our FY27f EPS of 4.11 sen, rolled over from our previous valuation based on FY26f EPS.
📌 Downside risks. Risks include: (i) KJTS' inability to replenish its order book; (ii) changes in TNB's tariff policies; and (iii) potential contract terminations by its customers.
Research Team, M+Global
3 Sep 2026
💯2
Good Afternoon All,
Following Southern Cable Group Berhad's 2Q26 results briefing, here is our quick take for investors:
📈 Investment Highlights
📌 Strong 2Q26 Growth on Data Center & RE Tailwinds. Revenue reached RM527.6m (+25.8% YoY) with gross margin stable at 13.2%. EBITDA rose 24.8% YoY to RM60.9m, while PAT reached RM40.6m (+28.2% YoY) on operational efficiencies. Data centers contributed ~40% of quarter revenue.
📌 RM1.36bn Order Book Provides Visibility Through 2028. Orders in hand expanded 16.2% YoY to RM1.36bn, comprising RM717m in long-term contracts and RM644.6m in short-term POs (≤3 months). Power cables account for 90.2% of order mix.
📌 New PO Intake Intake More Than Doubled YoY. New short-term POs reached RM542.6m (+104.1% YoY), driven by hyperscale data centers and grid-tied renewable projects. Direct distribution channels (EPCC contractors, utilities) grew 29.6% YoY.
📌 Accelerating Vertical Integration to Secure Supply Chain:
(i) Upstream: New aluminium furnace operational since April (60k tonnes); copper furnace expansion (18k to 24k tonnes) targeted for 4Q26. Plastic compounding facility expansion (7.8k to 12k tonnes) targets 3Q26 commissioning.
(ii) Downstream: Cable capacity expanding to 60,000 km by end-2026 and 65,000 km by 2027.
(iii) Products: 132kV Milliken conductor cable certified. US export pipeline targets PV wire commercialization in 2H26 and MC cable in 1H27.
📌 Solid Balance Sheet & Dividend Above Policy. Maintained low net gearing of 0.004x (slight net debt of RM3.5m vs RM838.6m equity) in 2Q26, keeping ample headroom for capacity expansion. First interim dividend of 1.20 sen declared (RM15.3m, ~20.7% 1H26 payout ratio), exceeding the 15% minimum policy.
💡 M+ Global View
📌 Strategic capacity reallocation to meet urgent domestic data center orders temporarily moderated US export growth (+3.8% YoY). This reflects disciplined capacity allocation rather than soft US demand, with export volumes expected to normalize in 2H26 (~40–50 containers/month).
📌 While the 13.2% gross margin reflects an LV-heavy product mix, data center orders drive higher absolute revenue and dollar gross profit due to copper’s ~3x ASP premium over aluminium. Strong Control & Instrumentation growth (+84.3% YoY) and improved operational efficiency (EBITDA +24.8% YoY) support strong 2H earnings momentum.
📌 Key Catalysts: (i) TNB Plus-One contract ramp-up in 2H26, (ii) ramp-up of HV cable production following 132kV certification, (iii) US PV wire rollout in 2H26, and (iv) commissioning of the internal compounding facility to strengthen supply chain integration and support margins.
Research Team, M+ Global
3 Sep 2026
Following Southern Cable Group Berhad's 2Q26 results briefing, here is our quick take for investors:
📈 Investment Highlights
📌 Strong 2Q26 Growth on Data Center & RE Tailwinds. Revenue reached RM527.6m (+25.8% YoY) with gross margin stable at 13.2%. EBITDA rose 24.8% YoY to RM60.9m, while PAT reached RM40.6m (+28.2% YoY) on operational efficiencies. Data centers contributed ~40% of quarter revenue.
📌 RM1.36bn Order Book Provides Visibility Through 2028. Orders in hand expanded 16.2% YoY to RM1.36bn, comprising RM717m in long-term contracts and RM644.6m in short-term POs (≤3 months). Power cables account for 90.2% of order mix.
📌 New PO Intake Intake More Than Doubled YoY. New short-term POs reached RM542.6m (+104.1% YoY), driven by hyperscale data centers and grid-tied renewable projects. Direct distribution channels (EPCC contractors, utilities) grew 29.6% YoY.
📌 Accelerating Vertical Integration to Secure Supply Chain:
(i) Upstream: New aluminium furnace operational since April (60k tonnes); copper furnace expansion (18k to 24k tonnes) targeted for 4Q26. Plastic compounding facility expansion (7.8k to 12k tonnes) targets 3Q26 commissioning.
(ii) Downstream: Cable capacity expanding to 60,000 km by end-2026 and 65,000 km by 2027.
(iii) Products: 132kV Milliken conductor cable certified. US export pipeline targets PV wire commercialization in 2H26 and MC cable in 1H27.
📌 Solid Balance Sheet & Dividend Above Policy. Maintained low net gearing of 0.004x (slight net debt of RM3.5m vs RM838.6m equity) in 2Q26, keeping ample headroom for capacity expansion. First interim dividend of 1.20 sen declared (RM15.3m, ~20.7% 1H26 payout ratio), exceeding the 15% minimum policy.
💡 M+ Global View
📌 Strategic capacity reallocation to meet urgent domestic data center orders temporarily moderated US export growth (+3.8% YoY). This reflects disciplined capacity allocation rather than soft US demand, with export volumes expected to normalize in 2H26 (~40–50 containers/month).
📌 While the 13.2% gross margin reflects an LV-heavy product mix, data center orders drive higher absolute revenue and dollar gross profit due to copper’s ~3x ASP premium over aluminium. Strong Control & Instrumentation growth (+84.3% YoY) and improved operational efficiency (EBITDA +24.8% YoY) support strong 2H earnings momentum.
📌 Key Catalysts: (i) TNB Plus-One contract ramp-up in 2H26, (ii) ramp-up of HV cable production following 132kV certification, (iii) US PV wire rollout in 2H26, and (iv) commissioning of the internal compounding facility to strengthen supply chain integration and support margins.
Research Team, M+ Global
3 Sep 2026
M+ Global Market Wrap - 3Sep26
FBM KLCI: 1,715.13 pts (+6.39pts, +0.37%)
Tracking the positive overnight performance in the US, the local bourse rebounded, buoyed by gains in CIMB (+15.0 sen) and GAMUDA (+25.0 sen). Market breadth was positive with 625 gainers outpacing 497 losers. Sector wise, Construction (+3.06%) outperformed, led by GAMUDA (+25.0 sen) and IJM (+11.0 sen), while Telecommunications (-1.10%) lagged the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.240 (+2.0 sen)
INGENIEU (5178): RM0.045 (+0.5 sen)
NIHSIN (7215): RM0.275 (+1.0 sen)
Top 3 Gainer stocks:
MI (5286): RM5.82 (+27.0 sen)
GAMUDA (5398): RM4.67 (+25.0 sen)
UTDPLT (2089): RM33.02 (+24.0 sen)
Top 3 Loser stocks:
NESTLE (4707): RM94.48 (-204.0 sen)
F&N (3689): RM24.38 (-36.0 sen)
HEIM (3255): RM15.64 (-34.0 sen)
Volume: 3.91 bn (100-bar avg vol: 3.48 bn)
Value: RM3.22 bn (100-bar avg val: RM3.11 bn)
Market Breadth: ⬆️625 ⬇️497
Crude Palm Oil: RM4,958 (-RM40, -0.81%)
Dow Futures: 53,236 pts (+115 pts)
**Source: M+ Global, Bloomberg **
FBM KLCI: 1,715.13 pts (+6.39pts, +0.37%)
Tracking the positive overnight performance in the US, the local bourse rebounded, buoyed by gains in CIMB (+15.0 sen) and GAMUDA (+25.0 sen). Market breadth was positive with 625 gainers outpacing 497 losers. Sector wise, Construction (+3.06%) outperformed, led by GAMUDA (+25.0 sen) and IJM (+11.0 sen), while Telecommunications (-1.10%) lagged the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.240 (+2.0 sen)
INGENIEU (5178): RM0.045 (+0.5 sen)
NIHSIN (7215): RM0.275 (+1.0 sen)
Top 3 Gainer stocks:
MI (5286): RM5.82 (+27.0 sen)
GAMUDA (5398): RM4.67 (+25.0 sen)
UTDPLT (2089): RM33.02 (+24.0 sen)
Top 3 Loser stocks:
NESTLE (4707): RM94.48 (-204.0 sen)
F&N (3689): RM24.38 (-36.0 sen)
HEIM (3255): RM15.64 (-34.0 sen)
Volume: 3.91 bn (100-bar avg vol: 3.48 bn)
Value: RM3.22 bn (100-bar avg val: RM3.11 bn)
Market Breadth: ⬆️625 ⬇️497
Crude Palm Oil: RM4,958 (-RM40, -0.81%)
Dow Futures: 53,236 pts (+115 pts)
**Source: M+ Global, Bloomberg **
M+ Market Buzz - 4Sep26
Dow Jones: 53,686.11 pts (+624.16pts, +1.18%)
⬆️ Resistance: 54900
⬇️ Support: 51700
FBM KLCI: 1,715.13 pts (+6.39pts, +0.37%)
⬆️ Resistance: 1780
⬇️ Support: 1670
HSI Index: 25,213.31 pts (-97.90pts, -0.39%)
⬆️ Resistance: 26300
⬇️ Support: 24600
Crude Palm Oil: RM4,904 (+RM7, +0.14%)
⬆️ Resistance: 5130
⬇️ Support: 4710
Brent Oil: $95.52 (-$0.11, -0.12%)
⬆️ Resistance: 99.60
⬇️ Support: 87.10
Gold: $4,472.92 (-$0.44, +0.06%)
⬆️ Resistance: 4730
⬇️ Support: 4200
Source: Bloomberg, M+Global
Dow Jones: 53,686.11 pts (+624.16pts, +1.18%)
⬆️ Resistance: 54900
⬇️ Support: 51700
FBM KLCI: 1,715.13 pts (+6.39pts, +0.37%)
⬆️ Resistance: 1780
⬇️ Support: 1670
HSI Index: 25,213.31 pts (-97.90pts, -0.39%)
⬆️ Resistance: 26300
⬇️ Support: 24600
Crude Palm Oil: RM4,904 (+RM7, +0.14%)
⬆️ Resistance: 5130
⬇️ Support: 4710
Brent Oil: $95.52 (-$0.11, -0.12%)
⬆️ Resistance: 99.60
⬇️ Support: 87.10
Gold: $4,472.92 (-$0.44, +0.06%)
⬆️ Resistance: 4730
⬇️ Support: 4200
Source: Bloomberg, M+Global
👍2🥰1😁1
M+ Global Market Update – 04Sep26
Wall Street Extends Recovery Ahead of Jobs Data
US: Although Wall Street snapped its three-day slide, we expect sentiment to be heavily influenced by non-farm payrolls data later today and the upcoming September FOMC meeting outcome. Stock-wise, we like Dell Technologies (DELL) following its strong Q2 results and earnings beat, led by strong AI server demand, which prompted management to raise its FY27 full-year revenue guidance to USD192bn (from USD167bn). Lastly, we continue to favour Arista Networks (ANET), underpinned by its rapid expansion into "Scale-Across" multi-tenant AI fabrics for premier developers such as OpenAI and Anthropic, alongside accelerating 800G Ethernet deployment across cloud hyperscalers such as Meta and Microsoft.
MY: Tracking Wall Street’s positive overnight performance, we expect the FBM KLCI to remain on a recovery footing. Stock-wise, we favour SAM, with its Equipment segment recording a 30% QoQ jump in 1QFY27, led by stronger semiconductor front-end and HDD demand. In its Aerospace segment, SAM is relocating its manufacturing base from Singapore to Thailand to secure lower production costs and better margins. Hence, as a proxy for Applied Materials, SAM is expected to see robust equipment orders as the broader semiconductor market enters an AI supercycle, while its Aerospace segment benefits from margin expansion as the Thailand relocation progresses.
Stocks to watch:
Construction: *GAMUDA*, IJM, *ISF*
Solar: *PEKAT*, *SAMAIDEN*, SLVEST
Technology: AMBEST, *D&O*
Consumer: *ECOSHOP*
Glove: SUPERMX
**Source: M+ Global**
Wall Street Extends Recovery Ahead of Jobs Data
US: Although Wall Street snapped its three-day slide, we expect sentiment to be heavily influenced by non-farm payrolls data later today and the upcoming September FOMC meeting outcome. Stock-wise, we like Dell Technologies (DELL) following its strong Q2 results and earnings beat, led by strong AI server demand, which prompted management to raise its FY27 full-year revenue guidance to USD192bn (from USD167bn). Lastly, we continue to favour Arista Networks (ANET), underpinned by its rapid expansion into "Scale-Across" multi-tenant AI fabrics for premier developers such as OpenAI and Anthropic, alongside accelerating 800G Ethernet deployment across cloud hyperscalers such as Meta and Microsoft.
MY: Tracking Wall Street’s positive overnight performance, we expect the FBM KLCI to remain on a recovery footing. Stock-wise, we favour SAM, with its Equipment segment recording a 30% QoQ jump in 1QFY27, led by stronger semiconductor front-end and HDD demand. In its Aerospace segment, SAM is relocating its manufacturing base from Singapore to Thailand to secure lower production costs and better margins. Hence, as a proxy for Applied Materials, SAM is expected to see robust equipment orders as the broader semiconductor market enters an AI supercycle, while its Aerospace segment benefits from margin expansion as the Thailand relocation progresses.
Stocks to watch:
Construction: *GAMUDA*, IJM, *ISF*
Solar: *PEKAT*, *SAMAIDEN*, SLVEST
Technology: AMBEST, *D&O*
Consumer: *ECOSHOP*
Glove: SUPERMX
**Source: M+ Global**
Good Morning All,
We issued a company update report on our coverage stock KJTS Group Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📝Briefing Highlights
📌 Sustained Revenue Momentum. Management expressed confidence that 3Q26 and 4Q26 revenue can match or exceed 2Q26’s RM88.2m, backed by ongoing EPCC progress and project transitions into recurring income.
📌 Pipeline remains robust. Consolidated pipeline exceeds RM1.6bn, including c.RM700m in Stonepeak opportunities (deployable over 1–2 years) and active tendering across data centres, hospitals, and manufacturing.
💡 M+ Global View
📌 2H26 revenue momentum remains encouraging. Thai and Indonesian EPCC execution, combined with near-completion projects transitioning to O&M, provides strong earnings visibility heading into 2H26.
📌 Recurring income transition gaining traction. Progressive EPCC-to-O&M conversion (validated by recent Centel wins) establishes a solid recurring earnings base bridging into FY27f–FY28f.
📌 Medium-term growth runway remains intact. Beyond current tendering, the c.RM700m Stonepeak pipeline (one major project past the ESCO audit stage) and expansion into Utilities-as-a-Service offer long-term upside.
📌 Forecast. We maintain our FY26f earnings forecast at RM26.6m, while raising our FY27f/FY28f earnings forecasts by 7.3%/7.2% to RM30.4m/RM33.4m respectively. The revisions reflect improved visibility on the Group's recurring income pipeline, with management highlighting several projects nearing completion and progressively transitioning from EPCC to O&M.
📌 Reiterate BUY, TP RM1.32. Raised TP to RM1.32 (from RM1.23) based on an unchanged 30x P/E applied to revised FY27f EPS of 4.41 sen, offering 16.8% upside from RM1.13.
📌 Downside risks. Risks to our recommendation include: (i) KJTS's inability to replenish its order book; (ii) changes in TNB's tariff policies; and (iii) potential contract terminations by its customers.
Research Team, M+ Global
4 Sep 2026
We issued a company update report on our coverage stock KJTS Group Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📝Briefing Highlights
📌 Sustained Revenue Momentum. Management expressed confidence that 3Q26 and 4Q26 revenue can match or exceed 2Q26’s RM88.2m, backed by ongoing EPCC progress and project transitions into recurring income.
📌 Pipeline remains robust. Consolidated pipeline exceeds RM1.6bn, including c.RM700m in Stonepeak opportunities (deployable over 1–2 years) and active tendering across data centres, hospitals, and manufacturing.
💡 M+ Global View
📌 2H26 revenue momentum remains encouraging. Thai and Indonesian EPCC execution, combined with near-completion projects transitioning to O&M, provides strong earnings visibility heading into 2H26.
📌 Recurring income transition gaining traction. Progressive EPCC-to-O&M conversion (validated by recent Centel wins) establishes a solid recurring earnings base bridging into FY27f–FY28f.
📌 Medium-term growth runway remains intact. Beyond current tendering, the c.RM700m Stonepeak pipeline (one major project past the ESCO audit stage) and expansion into Utilities-as-a-Service offer long-term upside.
📌 Forecast. We maintain our FY26f earnings forecast at RM26.6m, while raising our FY27f/FY28f earnings forecasts by 7.3%/7.2% to RM30.4m/RM33.4m respectively. The revisions reflect improved visibility on the Group's recurring income pipeline, with management highlighting several projects nearing completion and progressively transitioning from EPCC to O&M.
📌 Reiterate BUY, TP RM1.32. Raised TP to RM1.32 (from RM1.23) based on an unchanged 30x P/E applied to revised FY27f EPS of 4.41 sen, offering 16.8% upside from RM1.13.
📌 Downside risks. Risks to our recommendation include: (i) KJTS's inability to replenish its order book; (ii) changes in TNB's tariff policies; and (iii) potential contract terminations by its customers.
Research Team, M+ Global
4 Sep 2026
M+ Global Market Wrap - 4Sep26
FBM KLCI: 1,708.10 pts (-7.03pts, -0.41%)
The local bourse traded cautiously today as investors stayed on the sidelines ahead of the crucial US August payrolls report, with market breadth negative as 568 losers outpaced 523 gainers. The index was dragged down by PETGAS (-36.0 sen) and SDG (-20.0 sen). Sector wise, Telecommunications (+1.31%) outperformed, led by MAXIS (+2.0 sen) and TM (+2.0 sen), while Plantation (-1.64%) lagged the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.255 (+1.5 sen)
CUSCAPI (0051): RM0.045 (-0.5 sen)
SALUTE (0183): RM0.155 (+4.0 sen)
Top 3 Gainer stocks:
F&N (3689): RM24.76 (+38.0 sen)
NESTLE (4707): RM94.84 (+36.0 sen)
CHB (0291): RM2.04 (+17.0 sen)
Top 3 Loser stocks:
UTDPLT (2089): RM32.06 (-96.0 sen)
CARLSBG (2836): RM13.02 (-84.0 sen)
HEIM (3255): RM14.84 (-80.0 sen)
Volume: 4.34 bn (100-bar avg vol: 3.48 bn)
Value: RM2.98 bn (100-bar avg val: RM3.12 bn)
Market Breadth: ⬆️523 ⬇️568
Crude Palm Oil: RM4,904 (+RM1, +0.02%)
Dow Futures: 53,723 pts (-22 pts)
**Source: M+ Global, Bloomberg **
FBM KLCI: 1,708.10 pts (-7.03pts, -0.41%)
The local bourse traded cautiously today as investors stayed on the sidelines ahead of the crucial US August payrolls report, with market breadth negative as 568 losers outpaced 523 gainers. The index was dragged down by PETGAS (-36.0 sen) and SDG (-20.0 sen). Sector wise, Telecommunications (+1.31%) outperformed, led by MAXIS (+2.0 sen) and TM (+2.0 sen), while Plantation (-1.64%) lagged the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.255 (+1.5 sen)
CUSCAPI (0051): RM0.045 (-0.5 sen)
SALUTE (0183): RM0.155 (+4.0 sen)
Top 3 Gainer stocks:
F&N (3689): RM24.76 (+38.0 sen)
NESTLE (4707): RM94.84 (+36.0 sen)
CHB (0291): RM2.04 (+17.0 sen)
Top 3 Loser stocks:
UTDPLT (2089): RM32.06 (-96.0 sen)
CARLSBG (2836): RM13.02 (-84.0 sen)
HEIM (3255): RM14.84 (-80.0 sen)
Volume: 4.34 bn (100-bar avg vol: 3.48 bn)
Value: RM2.98 bn (100-bar avg val: RM3.12 bn)
Market Breadth: ⬆️523 ⬇️568
Crude Palm Oil: RM4,904 (+RM1, +0.02%)
Dow Futures: 53,723 pts (-22 pts)
**Source: M+ Global, Bloomberg **
👏2
M+ Market Buzz - 7Sep26
Dow Jones: 53,414.25 pts (-271.86pts, -0.51%)
⬆️ Resistance: 54900
⬇️ Support: 51700
FBM KLCI: 1,708.10 pts (-7.03pts, -0.41%)
⬆️ Resistance: 1770
⬇️ Support: 1670
HSI Index: 25,650.87 pts (+437.56pts, +1.74%)
⬆️ Resistance: 26400
⬇️ Support: 24600
Crude Palm Oil: RM4,929 (+RM25, +0.51%)
⬆️ Resistance: 5130
⬇️ Support: 4790
Brent Oil: $96.28 (+$0.76, +0.80%)
⬆️ Resistance: 99.60
⬇️ Support: 87.30
Gold: $4,429.98 (-$42.94, -0.96%)
⬆️ Resistance: 4610
⬇️ Support: 4200
Source: Bloomberg, M+Global
Dow Jones: 53,414.25 pts (-271.86pts, -0.51%)
⬆️ Resistance: 54900
⬇️ Support: 51700
FBM KLCI: 1,708.10 pts (-7.03pts, -0.41%)
⬆️ Resistance: 1770
⬇️ Support: 1670
HSI Index: 25,650.87 pts (+437.56pts, +1.74%)
⬆️ Resistance: 26400
⬇️ Support: 24600
Crude Palm Oil: RM4,929 (+RM25, +0.51%)
⬆️ Resistance: 5130
⬇️ Support: 4790
Brent Oil: $96.28 (+$0.76, +0.80%)
⬆️ Resistance: 99.60
⬇️ Support: 87.30
Gold: $4,429.98 (-$42.94, -0.96%)
⬆️ Resistance: 4610
⬇️ Support: 4200
Source: Bloomberg, M+Global
👏3
M+ Global Market Update – 07Sep26
Selective Plays to Drive Local Market Gains
US: Wall Street will be closed for the Labor Day holiday, with normal trading set to resume on Tuesday. Upon reopening, institutional attention is likely to turn towards S&P Dow Jones Indices’ quarterly rebalancing. Bloom Energy (BE) is in focus after jumping more than 7% in post-market trading following news of its inclusion in the benchmark S&P 500 alongside Illumina (ILMN) and Everpure (P), replacing Molson Coors Beverage, The Trade Desk and Builders FirstSource. The inclusion further highlights BE’s growing exposure to on-site fuel-cell power solutions for AI data centre infrastructure.
MY: Over in Malaysia, the FBM KLCI is expected to remain supported above the 1,700 psychological level, although buying interest may stay selective amid a cautious broader market backdrop. Focus should remain on stock-specific catalysts across infrastructure, renewable energy and industrial growth plays. PEKAT remains a beneficiary of Malaysia’s renewable-energy push, with recent strength bringing the stock close to its 52-week high. KEEMING is supported by an indicative order book of approximately RM246m and growing exposure to data centre M&E works. LWSABAH offers a more defensive angle following strong FY2026 earnings, underpinned by resilient East Malaysian beverage demand and expanded production capacity. GAMUDA also remains well supported by its record RM59.6bn order book and expanding data centre exposure, providing strong earnings visibility.
Stocks to watch:
Technology: EG, SAM, *PENTECH*
Industrial: CBHB
Solar: PEKAT
Consumer: *LWSABAH*
Construction: SSB8, GAMUDA, MNHLDG
Chemical: *TMK*
Source: M+ Global
Selective Plays to Drive Local Market Gains
US: Wall Street will be closed for the Labor Day holiday, with normal trading set to resume on Tuesday. Upon reopening, institutional attention is likely to turn towards S&P Dow Jones Indices’ quarterly rebalancing. Bloom Energy (BE) is in focus after jumping more than 7% in post-market trading following news of its inclusion in the benchmark S&P 500 alongside Illumina (ILMN) and Everpure (P), replacing Molson Coors Beverage, The Trade Desk and Builders FirstSource. The inclusion further highlights BE’s growing exposure to on-site fuel-cell power solutions for AI data centre infrastructure.
MY: Over in Malaysia, the FBM KLCI is expected to remain supported above the 1,700 psychological level, although buying interest may stay selective amid a cautious broader market backdrop. Focus should remain on stock-specific catalysts across infrastructure, renewable energy and industrial growth plays. PEKAT remains a beneficiary of Malaysia’s renewable-energy push, with recent strength bringing the stock close to its 52-week high. KEEMING is supported by an indicative order book of approximately RM246m and growing exposure to data centre M&E works. LWSABAH offers a more defensive angle following strong FY2026 earnings, underpinned by resilient East Malaysian beverage demand and expanded production capacity. GAMUDA also remains well supported by its record RM59.6bn order book and expanding data centre exposure, providing strong earnings visibility.
Stocks to watch:
Technology: EG, SAM, *PENTECH*
Industrial: CBHB
Solar: PEKAT
Consumer: *LWSABAH*
Construction: SSB8, GAMUDA, MNHLDG
Chemical: *TMK*
Source: M+ Global
Good Morning All,
We issued a company update report on our coverage stock LGMS Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📌 Softer quarterly results. To recap, LGMS registered a drop of 13.7% YoY and 0.5% YoY in core PAT to RM1.7m and RM3.9m in 2QFY26 and 1HFY26, respectively. The weaker bottom-line performance was primarily attributable to elevated employee benefit expenses (+9.1% YoY) and IT spending (+36.7% YoY) to build out its AI security capabilities, coupled with softer contributions from the compliance (-21.3% YoY) and incident response (-32.6% YoY) segments. Nevertheless, we expect to see a stronger recovery in 2HFY26, driven by a surge in incident response engagements amid rising breach cases and also customary year-end project billings.
📌 Surge in incident response demand. LGMS is observing an increasing trend in its cyber threat and incident response segment, spurred by a rise in cybersecurity breach incidents amidst ongoing enterprise AI adoption and digitalization. Management expects this operational momentum to translate into a stronger performance in 2HFY26 as affected companies engage LGMS for breach response and forensic services.
📌 Softer growth anticipated in other segments. Conversely, growth across cyber risk prevention as well as management and compliance are expected to remain relatively subdued in 2HFY26, largely attributable to general weakness in proactive cybersecurity awareness among enterprise clients, who typically hold back spending until an actual security breach occurs.
📌 Cost drag from personnel and tech. The sequential step-up in employee benefit expenses in 1HFY26 was primarily driven by annual salary increments and performance bonuses. To mitigate long-term dependency on human headcount, LGMS is increasing its utilization of AI and technologies, which has also contributed to higher IT expenses in 1HFY26.
📌 Antarex contribution backloaded. As the RM24.5m profit guarantee from Antarex Holdings (where LGMS holds a 27% stake, representing an RM6.6m profit share) is assessed on a cumulative 3-year basis (FY26–FY28), actual profit recognition will fluctuate based on project execution timelines, with management expecting contributions to be skewed towards the later part of the period.
Maintained BUY recommendation with a lower TP of RM0.70. We maintain our BUY recommendation on LGMS with a lower TP of RM0.70 (from RM0.93), implying 45.8% upside from the current share price of RM0.48. Our valuation is based on a lower 30.0x P/E multiple (previously 35.0x), applied to mid-FY27f EPS of 2.32 sen. The lower valuation multiple reflects the slower-than-anticipated demand across the cyber risk prevention and compliance segments, coupled with a more subdued nearterm earnings trajectory. .
Research Team, M+ Global
7 Sep 2026
We issued a company update report on our coverage stock LGMS Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📌 Softer quarterly results. To recap, LGMS registered a drop of 13.7% YoY and 0.5% YoY in core PAT to RM1.7m and RM3.9m in 2QFY26 and 1HFY26, respectively. The weaker bottom-line performance was primarily attributable to elevated employee benefit expenses (+9.1% YoY) and IT spending (+36.7% YoY) to build out its AI security capabilities, coupled with softer contributions from the compliance (-21.3% YoY) and incident response (-32.6% YoY) segments. Nevertheless, we expect to see a stronger recovery in 2HFY26, driven by a surge in incident response engagements amid rising breach cases and also customary year-end project billings.
📌 Surge in incident response demand. LGMS is observing an increasing trend in its cyber threat and incident response segment, spurred by a rise in cybersecurity breach incidents amidst ongoing enterprise AI adoption and digitalization. Management expects this operational momentum to translate into a stronger performance in 2HFY26 as affected companies engage LGMS for breach response and forensic services.
📌 Softer growth anticipated in other segments. Conversely, growth across cyber risk prevention as well as management and compliance are expected to remain relatively subdued in 2HFY26, largely attributable to general weakness in proactive cybersecurity awareness among enterprise clients, who typically hold back spending until an actual security breach occurs.
📌 Cost drag from personnel and tech. The sequential step-up in employee benefit expenses in 1HFY26 was primarily driven by annual salary increments and performance bonuses. To mitigate long-term dependency on human headcount, LGMS is increasing its utilization of AI and technologies, which has also contributed to higher IT expenses in 1HFY26.
📌 Antarex contribution backloaded. As the RM24.5m profit guarantee from Antarex Holdings (where LGMS holds a 27% stake, representing an RM6.6m profit share) is assessed on a cumulative 3-year basis (FY26–FY28), actual profit recognition will fluctuate based on project execution timelines, with management expecting contributions to be skewed towards the later part of the period.
Maintained BUY recommendation with a lower TP of RM0.70. We maintain our BUY recommendation on LGMS with a lower TP of RM0.70 (from RM0.93), implying 45.8% upside from the current share price of RM0.48. Our valuation is based on a lower 30.0x P/E multiple (previously 35.0x), applied to mid-FY27f EPS of 2.32 sen. The lower valuation multiple reflects the slower-than-anticipated demand across the cyber risk prevention and compliance segments, coupled with a more subdued nearterm earnings trajectory. .
Research Team, M+ Global
7 Sep 2026
💯2
Good Morning All,
WTK Holdings Berhad (2QFY26 Briefing Key Takeaways)
📈 Investment Highlights
📌 2QFY26 Financials. Revenue surged 41.3% YoY to RM195.2m, while reported PAT jumped 247.1% YoY to RM60.5m. Earnings were boosted by a RM43.2m one-off bargain purchase gain. Excluding this, 2QFY26 core PAT stood at RM17.3m (-0.8% YoY).
📌 1HFY26 Core Turnaround. Revenue rose 10.8% YoY to RM326.4m, swinging 1HFY26 core PAT to RM24.6m (vs. RM4.0m core loss in 1HFY25).
📌 Plantation Engine Acceleration Post-Acquisitions. Segment revenue surged 82.1% YoY to RM143.3m (73.4% of total sales), with core PBT reaching RM21.3m (vs. RM8.1m in 2QFY25). Planted area expanded 84.3% to 32,166 ha post-acquisitions, setting up full-quarter consolidation in 3QFY26 and supporting an FY26 FFB target of 400,000 MT.
📌 RM311.5m Asset Monetization. Unlocking non-core capital via two divestments: (i) 85% stake in Biogrow City for RM90.0m cash (RM72.7m gain; completing 4QFY26), and (ii) 3 Miri estates for RM221.5m cash (RM86.6m net gain; completing 1Q2027). Proceeds will pare down debt.
📌 Food & Tapes Segments. Food revenue grew 22.1% YoY to RM39.4m as "Fro7en" outlets increased from 7 to 12 (targeting 20 outlets in 3 years). Tapes achieved an operational turnaround with RM0.9m core PBT (ex-RM5.5m insurance claim) vs. a RM1.5m loss in 2QFY25.
📌 Balance Sheet. Net assets per share strengthened to RM1.73 (35.2% discount at RM1.12 share price) with RM313.8m in cash. Net gearing rose to 0.57x post-acquisition, but asset sale proceeds will swiftly deleverage the balance sheet.
💡 M+ Global View
📌 The addition of 14,710 ha of young/prime mature area provides immediate scale, while integrating WTK Oil Mill (60 MT/hr) captures processing margins. With ~51.5% of trees in immature/young phases, organic yield growth is well-secured.
📌 Moving forward, key catalysts for WTK include: (i) full 3QFY26 financial contribution from newly acquired estates and palm oil mill , (ii) realization of RM159.3m gains in combined asset disposals across 4QFY26-1Q2027 and (iii) expansion roadmap toward >50,000 ha planted area and 20 "Fro7en" retail stores over FY26-FY28.
M+ Global Research Team
7 Sep 2026
WTK Holdings Berhad (2QFY26 Briefing Key Takeaways)
📈 Investment Highlights
📌 2QFY26 Financials. Revenue surged 41.3% YoY to RM195.2m, while reported PAT jumped 247.1% YoY to RM60.5m. Earnings were boosted by a RM43.2m one-off bargain purchase gain. Excluding this, 2QFY26 core PAT stood at RM17.3m (-0.8% YoY).
📌 1HFY26 Core Turnaround. Revenue rose 10.8% YoY to RM326.4m, swinging 1HFY26 core PAT to RM24.6m (vs. RM4.0m core loss in 1HFY25).
📌 Plantation Engine Acceleration Post-Acquisitions. Segment revenue surged 82.1% YoY to RM143.3m (73.4% of total sales), with core PBT reaching RM21.3m (vs. RM8.1m in 2QFY25). Planted area expanded 84.3% to 32,166 ha post-acquisitions, setting up full-quarter consolidation in 3QFY26 and supporting an FY26 FFB target of 400,000 MT.
📌 RM311.5m Asset Monetization. Unlocking non-core capital via two divestments: (i) 85% stake in Biogrow City for RM90.0m cash (RM72.7m gain; completing 4QFY26), and (ii) 3 Miri estates for RM221.5m cash (RM86.6m net gain; completing 1Q2027). Proceeds will pare down debt.
📌 Food & Tapes Segments. Food revenue grew 22.1% YoY to RM39.4m as "Fro7en" outlets increased from 7 to 12 (targeting 20 outlets in 3 years). Tapes achieved an operational turnaround with RM0.9m core PBT (ex-RM5.5m insurance claim) vs. a RM1.5m loss in 2QFY25.
📌 Balance Sheet. Net assets per share strengthened to RM1.73 (35.2% discount at RM1.12 share price) with RM313.8m in cash. Net gearing rose to 0.57x post-acquisition, but asset sale proceeds will swiftly deleverage the balance sheet.
💡 M+ Global View
📌 The addition of 14,710 ha of young/prime mature area provides immediate scale, while integrating WTK Oil Mill (60 MT/hr) captures processing margins. With ~51.5% of trees in immature/young phases, organic yield growth is well-secured.
📌 Moving forward, key catalysts for WTK include: (i) full 3QFY26 financial contribution from newly acquired estates and palm oil mill , (ii) realization of RM159.3m gains in combined asset disposals across 4QFY26-1Q2027 and (iii) expansion roadmap toward >50,000 ha planted area and 20 "Fro7en" retail stores over FY26-FY28.
M+ Global Research Team
7 Sep 2026
M+ Global Market Wrap - 7Sep26
FBM KLCI: 1,714.79 pts (+6.69pts, +0.39%)
Despite the cautious sentiment caused by surging US Treasury yields and renewed Federal Reserve rate-hike fears, the local bourse bucked the trend and traded higher, led by gains in TENAGA (+22.0 sen) and PETGAS (+44.0 sen). However, market breadth remained negative, with 603 losers against 484 gainers. Sector wise, Healthcare (+0.7%) outperformed, led by PHARMA (+5.0 sen) and KPJ(+3.0 sen), while Transportation & Logistics (-0.68%) lagged the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.270 (+1.5 sen)
HHRG (0175): RM0.205 (+6.0 sen)
INGENIEU (5178): RM0.035 (-1.0 sen)
Top 3 Gainer stocks:
PETGAS (6033): RM17.7 (+44.0 sen)
MPI (3867): RM39.82 (+42.0 sen)
KLK (2445): RM22.50 (+24.0 sen)
Top 3 Loser stocks:
NESTLE (4707): RM93.90 (-94.0 sen)
CARLSBG (2836): RM12.76 (-26.0 sen)
HLIND (3301): RM17.40 (-22.0 sen)
Volume: 3.60 bn (100-bar avg vol: 3.49 bn)
Value: RM2.46 bn (100-bar avg val: RM3.11 bn)
Market Breadth: ⬆️484 ⬇️603
Crude Palm Oil: RM4,929 (+RM56, +1.14%)
Dow Futures: 53,264 pts (-176 pts)
**Source: M+ Global, Bloomberg **
FBM KLCI: 1,714.79 pts (+6.69pts, +0.39%)
Despite the cautious sentiment caused by surging US Treasury yields and renewed Federal Reserve rate-hike fears, the local bourse bucked the trend and traded higher, led by gains in TENAGA (+22.0 sen) and PETGAS (+44.0 sen). However, market breadth remained negative, with 603 losers against 484 gainers. Sector wise, Healthcare (+0.7%) outperformed, led by PHARMA (+5.0 sen) and KPJ(+3.0 sen), while Transportation & Logistics (-0.68%) lagged the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.270 (+1.5 sen)
HHRG (0175): RM0.205 (+6.0 sen)
INGENIEU (5178): RM0.035 (-1.0 sen)
Top 3 Gainer stocks:
PETGAS (6033): RM17.7 (+44.0 sen)
MPI (3867): RM39.82 (+42.0 sen)
KLK (2445): RM22.50 (+24.0 sen)
Top 3 Loser stocks:
NESTLE (4707): RM93.90 (-94.0 sen)
CARLSBG (2836): RM12.76 (-26.0 sen)
HLIND (3301): RM17.40 (-22.0 sen)
Volume: 3.60 bn (100-bar avg vol: 3.49 bn)
Value: RM2.46 bn (100-bar avg val: RM3.11 bn)
Market Breadth: ⬆️484 ⬇️603
Crude Palm Oil: RM4,929 (+RM56, +1.14%)
Dow Futures: 53,264 pts (-176 pts)
**Source: M+ Global, Bloomberg **
M+ Market Buzz - 8Sep26
Dow Jones: 53,414.25 pts (-271.86pts, -0.51%)
⬆️ Resistance: 54900
⬇️ Support: 51700
FBM KLCI: 1,714.79 pts (+6.69pts, +0.39%)
⬆️ Resistance: 1770
⬇️ Support: 1670
HSI Index: 25,413.12 pts (-237.75pts, -0.93%)
⬆️ Resistance: 26400
⬇️ Support: 24600
Crude Palm Oil: RM4,978 (+RM36, +0.72%)
⬆️ Resistance: 5130
⬇️ Support: 4790
Brent Oil: $96.28 (+$0.72, +0.75%)
⬆️ Resistance: 100.10
⬇️ Support: 88.90
Gold: $4,404.30 (+$7.01, +0.16%)
⬆️ Resistance: 4610
⬇️ Support: 4200
Source: Bloomberg, M+Global
Dow Jones: 53,414.25 pts (-271.86pts, -0.51%)
⬆️ Resistance: 54900
⬇️ Support: 51700
FBM KLCI: 1,714.79 pts (+6.69pts, +0.39%)
⬆️ Resistance: 1770
⬇️ Support: 1670
HSI Index: 25,413.12 pts (-237.75pts, -0.93%)
⬆️ Resistance: 26400
⬇️ Support: 24600
Crude Palm Oil: RM4,978 (+RM36, +0.72%)
⬆️ Resistance: 5130
⬇️ Support: 4790
Brent Oil: $96.28 (+$0.72, +0.75%)
⬆️ Resistance: 100.10
⬇️ Support: 88.90
Gold: $4,404.30 (+$7.01, +0.16%)
⬆️ Resistance: 4610
⬇️ Support: 4200
Source: Bloomberg, M+Global
👍2
M+ Global Market Update – 08Sep26
S&P Rebalancing, Malaysia DC Plays in Focus
US: With Wall Street reopening after the Labor Day holiday, focus is likely to turn to S&P Dow Jones Indices’ quarterly rebalancing candidates such as Bloom Energy (BE), Illumina (ILMN) and Everpure (P). Meanwhile, Micron (MU) should benefit from robust HBM demand, with HBM4 already in high-volume shipments and FQ4FY26 revenue guided at c.US$50bn. Besides, Dell Technologies (DELL) remains supported by strong AI server demand and its record US$95bn backlog, while Super Micro Computer (SMCI) continues to benefit from record AI infrastructure orders and expanding liquid-cooling solutions.
MY: We expect the FBM KLCI to extend its gains on a selective footing amid a mixed global backdrop, with stock-specific catalysts likely to drive interest. We continue to favour PEKAT following its latest three subcontracts worth RM57.2m for earthing and lightning protection works at a hyperscale data centre in Johor. AWC also remains in focus after securing a RM23.1m data centre subcontract, further expanding its exposure to mission-critical infrastructure. Meanwhile, COASTAL staged a 52-week-high breakout following a strong 1H26 profit of RM201.2m, while ECA could ride its continued earnings recovery following its return to profitability in 4Q25, with 1H26 PAT reaching RM3.23m versus a RM6.64m loss previously.
Stocks to watch:
Technology: *CNERGEN*, *CPETECH*, *ECA*, *INFOM*, SCICOM
Construction: CBHB, *CHB*, SSB8, *WESTRVR*
Consumer: ECOSHOP
**Source: M+ Global**
S&P Rebalancing, Malaysia DC Plays in Focus
US: With Wall Street reopening after the Labor Day holiday, focus is likely to turn to S&P Dow Jones Indices’ quarterly rebalancing candidates such as Bloom Energy (BE), Illumina (ILMN) and Everpure (P). Meanwhile, Micron (MU) should benefit from robust HBM demand, with HBM4 already in high-volume shipments and FQ4FY26 revenue guided at c.US$50bn. Besides, Dell Technologies (DELL) remains supported by strong AI server demand and its record US$95bn backlog, while Super Micro Computer (SMCI) continues to benefit from record AI infrastructure orders and expanding liquid-cooling solutions.
MY: We expect the FBM KLCI to extend its gains on a selective footing amid a mixed global backdrop, with stock-specific catalysts likely to drive interest. We continue to favour PEKAT following its latest three subcontracts worth RM57.2m for earthing and lightning protection works at a hyperscale data centre in Johor. AWC also remains in focus after securing a RM23.1m data centre subcontract, further expanding its exposure to mission-critical infrastructure. Meanwhile, COASTAL staged a 52-week-high breakout following a strong 1H26 profit of RM201.2m, while ECA could ride its continued earnings recovery following its return to profitability in 4Q25, with 1H26 PAT reaching RM3.23m versus a RM6.64m loss previously.
Stocks to watch:
Technology: *CNERGEN*, *CPETECH*, *ECA*, *INFOM*, SCICOM
Construction: CBHB, *CHB*, SSB8, *WESTRVR*
Consumer: ECOSHOP
**Source: M+ Global**
Good Morning All,
We issued a company update report on our coverage stock EITA Resources Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📌 3QFY26 turnaround. To recap, EITA registered a core PATMI turnaround to RM7.2m in 3QFY26, compared to a core net loss of RM0.4m in 3QFY25. The improved performance was propelled by a RM5.4m PBT turnaround in the Manufacturing segment to RM2.4m (vs. LBT of RM3.0m in 3QFY25), higher PBT recorded in the marketing and distribution segment and services segment, and also narrowed HV system losses. While EITA’s 9MFY26 core PATMI recorded at RM11.5m, 7.6% YoY lower than RM12.4m in 9MFY25, we expect EITA to end FY26 stronger, driven by fasttracked Busduct deliveries for regional data centre projects and lowered losses in HV segment.
📌 Mapai 500kV substation execution. According to the management, the RM221.0m SESCO Mapai project (commencing 7 September 2026 over 25 months) executed by 60%-owned TransSystem Continental carries an estimated GP margin of 13%, translating to a total GP contribution of RM17.2m for EITA. This marks EITA’s maiden 500kV substation project in Sarawak, with management expecting to participate in additional tender opportunities in CY27.
📌 HV segment loss reduction timeline. The management expects HV segment to remain loss-making in FY27, but losses will narrow significantly before reaching operational breakeven in FY28 as project execution accelerates.
📌 Manufacturing segment turnaround in 3QFY26. The Manufacturing segment achieved a strong RM4.5m PBT swing into profitability in 3QFY26 (posting a PBT of RM2.4m vs. an LBT of RM2.1m in 2QFY26), propelled by a 66.9% QoQ revenue surge mainly led by Busduct deliveries for the Indonesia data centre project. Management expects 4QFY26 performance to be even stronger with concurrent contributions from both the Indonesia and Johor Busduct projects, with operational momentum sustaining into 1HFY27.
📌 Orderbook targeted to hit RM1.0bn mark by year end. Driven by rapid order wins across all its segments, management projects EITA’s total outstanding orderbook to reach RM1.0bn by the end of CY26, representing a substantial expansion from RM423.9m as of 30 June 2026.
Upgraded to BUY with a higher TP of RM0.83. Following our earnings upgrades, we upgraded our call on EITA from Hold to Buy with a higher target price of RM0.83 (up from RM0.69). The target price is derived based on the P/E ratio of 11.0x pegged to our revised FY27f EPS of 7.57 sen.
Research Team, M+ Global
8 Sep 2026
We issued a company update report on our coverage stock EITA Resources Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📌 3QFY26 turnaround. To recap, EITA registered a core PATMI turnaround to RM7.2m in 3QFY26, compared to a core net loss of RM0.4m in 3QFY25. The improved performance was propelled by a RM5.4m PBT turnaround in the Manufacturing segment to RM2.4m (vs. LBT of RM3.0m in 3QFY25), higher PBT recorded in the marketing and distribution segment and services segment, and also narrowed HV system losses. While EITA’s 9MFY26 core PATMI recorded at RM11.5m, 7.6% YoY lower than RM12.4m in 9MFY25, we expect EITA to end FY26 stronger, driven by fasttracked Busduct deliveries for regional data centre projects and lowered losses in HV segment.
📌 Mapai 500kV substation execution. According to the management, the RM221.0m SESCO Mapai project (commencing 7 September 2026 over 25 months) executed by 60%-owned TransSystem Continental carries an estimated GP margin of 13%, translating to a total GP contribution of RM17.2m for EITA. This marks EITA’s maiden 500kV substation project in Sarawak, with management expecting to participate in additional tender opportunities in CY27.
📌 HV segment loss reduction timeline. The management expects HV segment to remain loss-making in FY27, but losses will narrow significantly before reaching operational breakeven in FY28 as project execution accelerates.
📌 Manufacturing segment turnaround in 3QFY26. The Manufacturing segment achieved a strong RM4.5m PBT swing into profitability in 3QFY26 (posting a PBT of RM2.4m vs. an LBT of RM2.1m in 2QFY26), propelled by a 66.9% QoQ revenue surge mainly led by Busduct deliveries for the Indonesia data centre project. Management expects 4QFY26 performance to be even stronger with concurrent contributions from both the Indonesia and Johor Busduct projects, with operational momentum sustaining into 1HFY27.
📌 Orderbook targeted to hit RM1.0bn mark by year end. Driven by rapid order wins across all its segments, management projects EITA’s total outstanding orderbook to reach RM1.0bn by the end of CY26, representing a substantial expansion from RM423.9m as of 30 June 2026.
Upgraded to BUY with a higher TP of RM0.83. Following our earnings upgrades, we upgraded our call on EITA from Hold to Buy with a higher target price of RM0.83 (up from RM0.69). The target price is derived based on the P/E ratio of 11.0x pegged to our revised FY27f EPS of 7.57 sen.
Research Team, M+ Global
8 Sep 2026
Good Afternoon All,
Following Kimlun Corporation Berhad's (KIMLUN) 1HFY26 results briefing, here is our quick take for investors:
📈 Investment Highlights
📌 Revenue grew but margins compressed. 1H2026 revenue rose 5.2% YoY to RM938.5m led by construction (+13% YoY), but PATMI fell 31.1% YoY to RM33.6m as gross margin contracted to 10.5% from 12.9%, squeezed by higher raw material and fuel costs. Management indicated margins should stabilize around 2Q26 levels as the worst of the diesel price impact has been priced in, partly offset by lower steel prices from China.
📌 Conservative stance on orderbook replenishment. Construction orderbook stands at RM3.8bn (as at 1 Jul 2026) with a tender book of c.RM900m, but management is deliberately moderating new contract intake amid global uncertainties, prioritizing cash flow over aggressive growth. The group has reached maximum manpower capacity and would only scale up for larger projects involving IBS or technology solutions.
📌 Property pipeline underpins medium-term earnings. RM765m in combined unbilled sales — RM133m from Pinegate/Taman Nusa Melati and RM632m from the Arden Residence JV (92% take-up, 68-storey tower in JB city centre). Meaningful Arden profit contribution expected from late 2027 as superstructure works progress. Lino Residence (RM205m GDV) targeted for launch in Q4 2026.
💡 M+ Global View
Mixed quarter, but earnings visibility remains intact. While profitability was affected by cost pressures and the lack of lumpy property recognition, we believe the near term softness is manageable given the RM3.8bn construction orderbook and RM765m of unbilled property sales, which provide two to three years of earnings visibility. Management’s cautious stance also remains appropriate amid macro uncertainties.
Key catalysts: (i) margin stabilization as input cost pressures plateau, (ii) Arden Residence revenue recognition ramp-up from late 2027, (iii) Johor infrastructure pipeline including potential ERT project near Kimlun's manufacturing base, and (iv) Singapore precast demand visibility through 2030 on MRT extensions.
Research Team, M+ Global
8 Sep 2026
Following Kimlun Corporation Berhad's (KIMLUN) 1HFY26 results briefing, here is our quick take for investors:
📈 Investment Highlights
📌 Revenue grew but margins compressed. 1H2026 revenue rose 5.2% YoY to RM938.5m led by construction (+13% YoY), but PATMI fell 31.1% YoY to RM33.6m as gross margin contracted to 10.5% from 12.9%, squeezed by higher raw material and fuel costs. Management indicated margins should stabilize around 2Q26 levels as the worst of the diesel price impact has been priced in, partly offset by lower steel prices from China.
📌 Conservative stance on orderbook replenishment. Construction orderbook stands at RM3.8bn (as at 1 Jul 2026) with a tender book of c.RM900m, but management is deliberately moderating new contract intake amid global uncertainties, prioritizing cash flow over aggressive growth. The group has reached maximum manpower capacity and would only scale up for larger projects involving IBS or technology solutions.
📌 Property pipeline underpins medium-term earnings. RM765m in combined unbilled sales — RM133m from Pinegate/Taman Nusa Melati and RM632m from the Arden Residence JV (92% take-up, 68-storey tower in JB city centre). Meaningful Arden profit contribution expected from late 2027 as superstructure works progress. Lino Residence (RM205m GDV) targeted for launch in Q4 2026.
💡 M+ Global View
Mixed quarter, but earnings visibility remains intact. While profitability was affected by cost pressures and the lack of lumpy property recognition, we believe the near term softness is manageable given the RM3.8bn construction orderbook and RM765m of unbilled property sales, which provide two to three years of earnings visibility. Management’s cautious stance also remains appropriate amid macro uncertainties.
Key catalysts: (i) margin stabilization as input cost pressures plateau, (ii) Arden Residence revenue recognition ramp-up from late 2027, (iii) Johor infrastructure pipeline including potential ERT project near Kimlun's manufacturing base, and (iv) Singapore precast demand visibility through 2030 on MRT extensions.
Research Team, M+ Global
8 Sep 2026
M+ Global Market Wrap - 8Sep26
FBM KLCI: 1,714.40 pts (-0.39pts, -0.02%)
The local bourse traded relatively muted today amid escalating Middle East hostilities following strikes on Saudi energy sites, with market breadth also traded flattish with 547 gainers against 549 losers. Sector wise, Technology (+2.00%) outperformed, led by VITROX (+24.0 sen) and INARI (+9.0 sen), while Health Care (-1.02%) lagged the most. Meanwhile, IPO GTA debuted today, closing at RM0.335 compared to its IPO price of RM0.35.
Top 3 Active stocks:
ZETRIX (0138): RM0.305 (+3.5 sen)
GTA (0469): RM0.335 (-1.5 sen)
HHRG (0175): RM0.185 (-2.0 sen)
Top 3 Gainer stocks:
UTDPLT (2089): RM33.30 (+110.0 sen)
NESTLE (4707): RM94.16 (+26.0 sen)
SLVEST (0215): RM3.55 (+25.0 sen)
Top 3 Loser stocks:
MCEMENT (3794): RM5.52 (-51.0 sen)
HLIND (3301): RM17.06 (-34.0 sen)
PETGAS (6033): RM17.44 (-26.0 sen)
Volume: 4.13 bn (100-bar avg vol: 3.50 bn)
Value: RM3.14 bn (100-bar avg val: RM3.11 bn)
Market Breadth: ⬆️547 ⬇️549
Crude Palm Oil: RM4,978 (+RM16, +0.32%)
Dow Futures: 52,992 pts (-448 pts)
**Source: M+ Global, Bloomberg **
FBM KLCI: 1,714.40 pts (-0.39pts, -0.02%)
The local bourse traded relatively muted today amid escalating Middle East hostilities following strikes on Saudi energy sites, with market breadth also traded flattish with 547 gainers against 549 losers. Sector wise, Technology (+2.00%) outperformed, led by VITROX (+24.0 sen) and INARI (+9.0 sen), while Health Care (-1.02%) lagged the most. Meanwhile, IPO GTA debuted today, closing at RM0.335 compared to its IPO price of RM0.35.
Top 3 Active stocks:
ZETRIX (0138): RM0.305 (+3.5 sen)
GTA (0469): RM0.335 (-1.5 sen)
HHRG (0175): RM0.185 (-2.0 sen)
Top 3 Gainer stocks:
UTDPLT (2089): RM33.30 (+110.0 sen)
NESTLE (4707): RM94.16 (+26.0 sen)
SLVEST (0215): RM3.55 (+25.0 sen)
Top 3 Loser stocks:
MCEMENT (3794): RM5.52 (-51.0 sen)
HLIND (3301): RM17.06 (-34.0 sen)
PETGAS (6033): RM17.44 (-26.0 sen)
Volume: 4.13 bn (100-bar avg vol: 3.50 bn)
Value: RM3.14 bn (100-bar avg val: RM3.11 bn)
Market Breadth: ⬆️547 ⬇️549
Crude Palm Oil: RM4,978 (+RM16, +0.32%)
Dow Futures: 52,992 pts (-448 pts)
**Source: M+ Global, Bloomberg **
M+ Market Buzz - 9Sep26
Dow Jones: 52,786.07 pts (-628.18pts, -1.18%)
⬆️ Resistance: 54900
⬇️ Support: 51700
FBM KLCI: 1,714.40 pts (-0.39pts, -0.02%)
⬆️ Resistance: 1760
⬇️ Support: 1670
HSI Index: 25,317.18 pts (-95.94pts, -0.38%)
⬆️ Resistance: 26400
⬇️ Support: 24600
Crude Palm Oil: RM4,976 (-RM27, -0.54%)
⬆️ Resistance: 5130
⬇️ Support: 4790
Brent Oil: $97.92 (+$0.92, +0.95%)
⬆️ Resistance: 101.50
⬇️ Support: 91.30
Gold: $4,355.99 (-$3.83, -0.09%)
⬆️ Resistance: 4610
⬇️ Support: 4200
Source: Bloomberg, M+Global
Dow Jones: 52,786.07 pts (-628.18pts, -1.18%)
⬆️ Resistance: 54900
⬇️ Support: 51700
FBM KLCI: 1,714.40 pts (-0.39pts, -0.02%)
⬆️ Resistance: 1760
⬇️ Support: 1670
HSI Index: 25,317.18 pts (-95.94pts, -0.38%)
⬆️ Resistance: 26400
⬇️ Support: 24600
Crude Palm Oil: RM4,976 (-RM27, -0.54%)
⬆️ Resistance: 5130
⬇️ Support: 4790
Brent Oil: $97.92 (+$0.92, +0.95%)
⬆️ Resistance: 101.50
⬇️ Support: 91.30
Gold: $4,355.99 (-$3.83, -0.09%)
⬆️ Resistance: 4610
⬇️ Support: 4200
Source: Bloomberg, M+Global
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M+ Global Market Update – 09Sep26
High Yields and Oil Spike Pressure Market Sentiment
US: Given the Brent oil spike nearer towards the USD100/bbl mark alongside 10-year Treasury yields pushing near two-decade highs, we expect Wall Street to maintain its cautious tone. Stock-wise, investors could monitor fabless semiconductor company Astera Labs (ALAB), as hyperscalers aggressively expand AI cluster deployments, which should drive high-margin demand for its PCIe 6.0 and CXL retimer connectivity hardware. Meanwhile, buying interest was also seen in Oracle (ORCL) following its gap-up, supported by its USD638bn Remaining Performance Obligation (RPO) backlog and 50%+ projected growth in Oracle Cloud Infrastructure (OCI). However, given that its price experienced a gap-up and faces resistance at its MA200, investors could wait for a pullback to a higher low as an entry level.
MY: Tracking Wall Street’s negative overnight performance, we believe overall sentiment for the FBM KLCI may stay generally weaker. However, given the elevated oil prices, traders could look for energy-related plays for short-term trading opportunities, particularly HENGYUAN and PCHEM. Meanwhile, we favour both SAM and EIPOWER, with the former acting as a proxy for Applied Materials and seeing robust equipment orders as the broader semiconductor market enters an AI supercycle, while the latter is supported by accelerated revenue conversion from mission-critical DC power delivery and its expansion into Thailand.
Stocks to watch:
Construction: CHB, *HEGROUP, *ICENTS*, *JTGROUP*, MNHLDG
Technology: *AIMFLEX*, *CNERGEN*, INFOM, PENTECH
Solar: *NORTHERN*
Utility: RANHILL
**Source: M+ Global**
High Yields and Oil Spike Pressure Market Sentiment
US: Given the Brent oil spike nearer towards the USD100/bbl mark alongside 10-year Treasury yields pushing near two-decade highs, we expect Wall Street to maintain its cautious tone. Stock-wise, investors could monitor fabless semiconductor company Astera Labs (ALAB), as hyperscalers aggressively expand AI cluster deployments, which should drive high-margin demand for its PCIe 6.0 and CXL retimer connectivity hardware. Meanwhile, buying interest was also seen in Oracle (ORCL) following its gap-up, supported by its USD638bn Remaining Performance Obligation (RPO) backlog and 50%+ projected growth in Oracle Cloud Infrastructure (OCI). However, given that its price experienced a gap-up and faces resistance at its MA200, investors could wait for a pullback to a higher low as an entry level.
MY: Tracking Wall Street’s negative overnight performance, we believe overall sentiment for the FBM KLCI may stay generally weaker. However, given the elevated oil prices, traders could look for energy-related plays for short-term trading opportunities, particularly HENGYUAN and PCHEM. Meanwhile, we favour both SAM and EIPOWER, with the former acting as a proxy for Applied Materials and seeing robust equipment orders as the broader semiconductor market enters an AI supercycle, while the latter is supported by accelerated revenue conversion from mission-critical DC power delivery and its expansion into Thailand.
Stocks to watch:
Construction: CHB, *HEGROUP, *ICENTS*, *JTGROUP*, MNHLDG
Technology: *AIMFLEX*, *CNERGEN*, INFOM, PENTECH
Solar: *NORTHERN*
Utility: RANHILL
**Source: M+ Global**
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Good Morning All,
We issued a company update report on our coverage stock AWC Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📌 Earnings recap. As highlighted in our previous report, AWC’s FY26 core PAT came in at RM20.1m (-19.3% YoY), within expectations at 104.1%/101.3% of our/consensus forecasts. Reported PAT was higher at RM26.4m (+6.2% YoY), mainly due to a RM6.3m impairment reversal in 4QFY26. Moving forward, earnings momentum should remain supported by its expanding data centre pipeline and RM847.4m outstanding order book.
📌 Data centre momentum accelerating. Data centre subcontracts under the Engineering segment have reached an all-time high order book of RM100.0m. Moving forward, management conservatively projects RM100.0m–120.0m in annual order book replenishment across FY27f and FY28f, anchored primarily by plumbing and air-conditioning packages for regional data centre developments.
📌 Concession and healthcare visibility intact. Management remains optimistic about securing its government facilities maintenance concession extension, which is expected to contribute ~RM70.0m in FY27f despite no official update from relevant authorities yet. Furthermore, hospital support and maintenance services across three major healthcare facilities (Hospital Shah Alam, National Cancer Institute Putrajaya, and Hospital Orang Asli Gombak) are anticipated to continue seamlessly, contributing RM50.0m–60.0m in revenue for FY27f.
📌 Strategic pivot toward India in Environment segment. Amid persistent geopolitical headwinds in the Middle East, management is shifting its Environment division's growth focus toward major public infrastructure tenders in India, specifically smart cities and airports. Consequently, short-to-medium term segment performance will rely on Malaysia, Singapore, and India as key drivers while awaiting operational recovery in the Middle East.
📌 Penang LRT subcontract opportunities starting CY27. While viewing the rail systems contract award for the Penang LRT project positively, management expects tangible earnings contributions to materialize starting CY27 when specialized subcontract packages (track works, depot equipment, and maintenance systems) open for bidding. In the interim, AWC maintains a healthy existing rail order book of RM72.1m, supported by ongoing works such as the Prasarana Ampang Line conductor rail replacement.
Maintained BUY with a higher TP of RM0.65. We maintain our Buy recommendation with a higher TP of RM0.65 (from RM0.59). The target price is derived based on a P/E ratio of 10.0x pegged to our revised FY27f fully-diluted EPS of 6.50 sen.
Research Team, M+ Global
9 Sep 2026
We issued a company update report on our coverage stock AWC Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
📌 Earnings recap. As highlighted in our previous report, AWC’s FY26 core PAT came in at RM20.1m (-19.3% YoY), within expectations at 104.1%/101.3% of our/consensus forecasts. Reported PAT was higher at RM26.4m (+6.2% YoY), mainly due to a RM6.3m impairment reversal in 4QFY26. Moving forward, earnings momentum should remain supported by its expanding data centre pipeline and RM847.4m outstanding order book.
📌 Data centre momentum accelerating. Data centre subcontracts under the Engineering segment have reached an all-time high order book of RM100.0m. Moving forward, management conservatively projects RM100.0m–120.0m in annual order book replenishment across FY27f and FY28f, anchored primarily by plumbing and air-conditioning packages for regional data centre developments.
📌 Concession and healthcare visibility intact. Management remains optimistic about securing its government facilities maintenance concession extension, which is expected to contribute ~RM70.0m in FY27f despite no official update from relevant authorities yet. Furthermore, hospital support and maintenance services across three major healthcare facilities (Hospital Shah Alam, National Cancer Institute Putrajaya, and Hospital Orang Asli Gombak) are anticipated to continue seamlessly, contributing RM50.0m–60.0m in revenue for FY27f.
📌 Strategic pivot toward India in Environment segment. Amid persistent geopolitical headwinds in the Middle East, management is shifting its Environment division's growth focus toward major public infrastructure tenders in India, specifically smart cities and airports. Consequently, short-to-medium term segment performance will rely on Malaysia, Singapore, and India as key drivers while awaiting operational recovery in the Middle East.
📌 Penang LRT subcontract opportunities starting CY27. While viewing the rail systems contract award for the Penang LRT project positively, management expects tangible earnings contributions to materialize starting CY27 when specialized subcontract packages (track works, depot equipment, and maintenance systems) open for bidding. In the interim, AWC maintains a healthy existing rail order book of RM72.1m, supported by ongoing works such as the Prasarana Ampang Line conductor rail replacement.
Maintained BUY with a higher TP of RM0.65. We maintain our Buy recommendation with a higher TP of RM0.65 (from RM0.59). The target price is derived based on a P/E ratio of 10.0x pegged to our revised FY27f fully-diluted EPS of 6.50 sen.
Research Team, M+ Global
9 Sep 2026
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M+ Global Market Wrap - 9Sep26
FBM KLCI: 1,714.34 pts (-0.06pts, -0.00%)
Amid escalating geopolitical tensions, Brent crude oil prices surged above US$100/bbl following tit-for-tat strikes between the U.S. and Iran around the Strait of Hormuz. The heightened uncertainty contributed to a muted session on the local bourse, which edged marginally lower. Nevertheless, market breadth remained slightly positive, with gainers and losers trading at an almost 1:1 ratio. Sector-wise, Construction (+1.59%) outperformed, led by GAMUDA (+12.0 sen) and KERJAYA (+12.0 sen), while Financials (-0.50%) was the weakest performer.
Top 3 Active stocks:
ZETRIX (0138): RM0.270 (-3.5 sen)
JAKS (4723): RM0.130 (+1.0 sen)
GAMUDA (5398): RM4.92 (+12.0 sen)
Top 3 Gainer stocks:
MPI (3867): RM40.96 (+114.0 sen)
PETDAG (5681): RM20.30 (+38.0 sen)
TM (4863): RM8.18 (+29.0 sen)
Top 3 Loser stocks:
NESTLE (4707): RM93.00 (-116.0 sen)
F&N (3689): RM24.10 (-44.0 sen)
UTDPLT (2089): RM33.00 (-30.0 sen)
Volume: 3.67 bn (100-bar avg vol: 3.51 bn)
Value: RM3.50 bn (100-bar avg val: RM3.11 bn)
Market Breadth: ⬆️551 ⬇️531
Crude Palm Oil: RM4,976 (RM0, 0.00%)
Dow Futures: 52,719 pts (-113 pts)
**Source: M+ Global, Bloomberg **
FBM KLCI: 1,714.34 pts (-0.06pts, -0.00%)
Amid escalating geopolitical tensions, Brent crude oil prices surged above US$100/bbl following tit-for-tat strikes between the U.S. and Iran around the Strait of Hormuz. The heightened uncertainty contributed to a muted session on the local bourse, which edged marginally lower. Nevertheless, market breadth remained slightly positive, with gainers and losers trading at an almost 1:1 ratio. Sector-wise, Construction (+1.59%) outperformed, led by GAMUDA (+12.0 sen) and KERJAYA (+12.0 sen), while Financials (-0.50%) was the weakest performer.
Top 3 Active stocks:
ZETRIX (0138): RM0.270 (-3.5 sen)
JAKS (4723): RM0.130 (+1.0 sen)
GAMUDA (5398): RM4.92 (+12.0 sen)
Top 3 Gainer stocks:
MPI (3867): RM40.96 (+114.0 sen)
PETDAG (5681): RM20.30 (+38.0 sen)
TM (4863): RM8.18 (+29.0 sen)
Top 3 Loser stocks:
NESTLE (4707): RM93.00 (-116.0 sen)
F&N (3689): RM24.10 (-44.0 sen)
UTDPLT (2089): RM33.00 (-30.0 sen)
Volume: 3.67 bn (100-bar avg vol: 3.51 bn)
Value: RM3.50 bn (100-bar avg val: RM3.11 bn)
Market Breadth: ⬆️551 ⬇️531
Crude Palm Oil: RM4,976 (RM0, 0.00%)
Dow Futures: 52,719 pts (-113 pts)
**Source: M+ Global, Bloomberg **
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