Key Indices
Top Stories
Company Results | Axiata Group (AXIATA MK/BUY/RM1.82/Target: RM2.50)
- 2Q26 net profit came in weak at RM42.5m (-84% yoy; -85% qoq). This was due to lower ringgit translated earnings, elevated withholding tax expense, and an increase in interest and depreciation expenses. Edotco also booked a one-off commercial settlement cost relating to discounts given for early contract extensions. Axiata declared a 5.5 sen interim DPS and remains on track to deliver 11 sen net DPS in 2026. Maintain BUY with an SOTP-based target price of RM2.50.
Company Results | CIMB Group (CIMB MK/BUY/RM7.80/Target: RM9.30)
- CIMB reported 2Q26 earnings that are broadly in line. Excluding forex impact, 2Q26 earnings growth accelerated to 7.3% yoy (1Q26: +1.7%), bringing 1H26 growth to 4.5% yoy. Maintain BUY and target price of RM9.30.
Company Results | IOI Corporation (IOI MK/BUY/RM4.68/Target: RM5.15)
- IOI's 4QFY26 core net profit of RM408m (+38.2% qoq, +26.2% yoy) was the strongest quarter of FY26, taking fullyear core earnings to RM1,512m (+14.6% yoy) or 103%/104% of our/consensus forecasts. The swing factor for the year was downstream: resource-based manufacturing underlying profit rose 173% yoy to RM407m. A 7.0 sen second interim dividend lifted FY26 DPS to 12.5 sen. We maintain BUY with a higher SOTP-based target price of RM5.15 rolled forward to FY27.
Company Results | Kerjaya Prospek Group (KPG MK/BUY/RM2.96/Target: RM3.54)
- KPG’s 1H26 broadly met expectations. Revenue came in soft due to project completions but clawbacks from said projects saw margins improve across the board. Looking forward, the outlook appears bright as potential to secure further contracts beyond the already record replenishments signal for stronger construction earnings. However, revenue may remain weak in 3Q26 as the lag in early milestone recognitions for new contracts is expected to last into 4Q26. Maintain BUY with a higher target price of RM3.54 (from RM3.20).
Company Results | Mah Sing Group (MSGB MK/BUY/RM1.18/Target: RM1.42)
- Results were in line and we expect stronger 2H26 on higher progressive billings. 1H26 sales arrived at RM1.32b and is on track to meet the full-year target of RM2.76b, with upcoming launches of RM1.7b. Meanwhile, sales gallery of Corus site should be ready by 4Q26 and launch in 1Q27. Manufacturing segment EBIT turned positive in 2Q26 on higher utilisation for glove production lines and cost pass-through. Maintain BUY on Mah Sing with an unchanged target price of RM1.42.
Company Results | RHB Bank (RHBBANK MK/HOLD/RM8.68/Target: RM9.10)
- 1H26 earnings came in within expectations, supported by higher NII, positive JAWS and lower credit costs. 2Q26 earnings fell qoq on weaker NOII and NIM compression, partly cushioned by higher NII and lower NCC. Downgrade RHB to HOLD with an unchanged target price of RM9.10 (1.11x 2027F P/B, 10.3% ROE). Risk-reward is now more balanced following the strong ytd performance. The stock offers a dividend yield of 5.6-6.1%.
What’s Inside
Company Results | Farm Fresh (FFB MK/HOLD/RM2.07/Target: RM2.05)
- Farm Fresh’s 1QFY27 core profit of RM26.5m (-5.1% qoq, -19.3% yoy) was broadly in line, representing 18% of our and consensus full-year forecasts. Strong sales growth was offset by margin compression. Distribution expansion, exports and new products should sustain sales momentum, while price hikes support partial margin recovery. Maintain HOLD and target price of RM2.05.
Company Results | Malaysian Resources Corporation (MRC MK/BUY/RM0.31/Target: RM0.39)
- MRCB’s results came in below expectations. The weaker results mainly reflect the softer property development and construction segment, dragged by lower sales and progress billings. Nevertheless, several positive developments such as securing the Penang LRT system turnkey contracts, developing an AI DC in Bukit Jalil, and the disposal of Cyberjaya landbanks will drive 2027-28 earnings growth. Upgrade to BUY with a higher target price of RM0.39 as we increased our construction progress billings for 2027-28.
Company Results | Northern Solar (NORTHERN MK/BUY/RM0.70/Target: RM1.00)
- Northern Solar reported a 1QFY27 core net profit of RM3.7m (+18% qoq). Earnings were driven by maiden LSS5 contribution and improved demand for C&I solar installations. Accounting for 17% of our full-year estimate, we deem the results to be in line. We expect stronger quarterly earnings, supported by its RM120m LSS5 progress billing. Maintain BUY with a target price of RM1.00.
Company Results | Oriental Kopi (KOPI MK/HOLD/RM1.05/Target: RM1.05)
- Oriental Kopi’s 3QFY26 core profit of RM17.0m brought 9MFY26 earnings to RM49.3m (+7.4% yoy), below expectations. Outlet expansion supported sales growth, but weaker sales per outlet and softer margins weighed on profitability. We cut our earnings forecast by approximately 10% and downgrade to HOLD, lowering our target price to RM1.05.
Company Results | SKP Resources (SKP MK/HOLD/RM0.285/Target: RM0.29)
- SKP’s 1QFY27 results were below expectations, recorded a core net loss of RM3.8m amid weaker customer orders, softer demand and tariff-related cost-down initiatives. While sales rose 11% qoq on higher order volumes, profitability remained under pressure. We expect near-term earnings headwinds from softer consumer demand and margin compression, prompting a 19-24% cut to FY27-28 forecasts. We maintain HOLD with a lower target
price of RM0.29 (from RM0.36).
Market Spotlight
- The FBMKLCI fell 15.84pt to close at 1,725.88 last Friday, as the sell-off in global stocks that briefly looked to have ended mid-week has come back, tipping markets from the US.
- US stocks were lower after the close on Friday, as losses in the industrials, utilities and technology sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
GIIB Holdings | GII MK
- Trading Buy Range: RM0.45-0.48
Keyfield International | KEYFIELD MK
- Trading Buy Range: RM1.41-1.42
Lianson Fleet Group | LFG MK
- Trading Buy Range: RM1.48-1.50
Top Stories
Company Results | Axiata Group (AXIATA MK/BUY/RM1.82/Target: RM2.50)
- 2Q26 net profit came in weak at RM42.5m (-84% yoy; -85% qoq). This was due to lower ringgit translated earnings, elevated withholding tax expense, and an increase in interest and depreciation expenses. Edotco also booked a one-off commercial settlement cost relating to discounts given for early contract extensions. Axiata declared a 5.5 sen interim DPS and remains on track to deliver 11 sen net DPS in 2026. Maintain BUY with an SOTP-based target price of RM2.50.
Company Results | CIMB Group (CIMB MK/BUY/RM7.80/Target: RM9.30)
- CIMB reported 2Q26 earnings that are broadly in line. Excluding forex impact, 2Q26 earnings growth accelerated to 7.3% yoy (1Q26: +1.7%), bringing 1H26 growth to 4.5% yoy. Maintain BUY and target price of RM9.30.
Company Results | IOI Corporation (IOI MK/BUY/RM4.68/Target: RM5.15)
- IOI's 4QFY26 core net profit of RM408m (+38.2% qoq, +26.2% yoy) was the strongest quarter of FY26, taking fullyear core earnings to RM1,512m (+14.6% yoy) or 103%/104% of our/consensus forecasts. The swing factor for the year was downstream: resource-based manufacturing underlying profit rose 173% yoy to RM407m. A 7.0 sen second interim dividend lifted FY26 DPS to 12.5 sen. We maintain BUY with a higher SOTP-based target price of RM5.15 rolled forward to FY27.
Company Results | Kerjaya Prospek Group (KPG MK/BUY/RM2.96/Target: RM3.54)
- KPG’s 1H26 broadly met expectations. Revenue came in soft due to project completions but clawbacks from said projects saw margins improve across the board. Looking forward, the outlook appears bright as potential to secure further contracts beyond the already record replenishments signal for stronger construction earnings. However, revenue may remain weak in 3Q26 as the lag in early milestone recognitions for new contracts is expected to last into 4Q26. Maintain BUY with a higher target price of RM3.54 (from RM3.20).
Company Results | Mah Sing Group (MSGB MK/BUY/RM1.18/Target: RM1.42)
- Results were in line and we expect stronger 2H26 on higher progressive billings. 1H26 sales arrived at RM1.32b and is on track to meet the full-year target of RM2.76b, with upcoming launches of RM1.7b. Meanwhile, sales gallery of Corus site should be ready by 4Q26 and launch in 1Q27. Manufacturing segment EBIT turned positive in 2Q26 on higher utilisation for glove production lines and cost pass-through. Maintain BUY on Mah Sing with an unchanged target price of RM1.42.
Company Results | RHB Bank (RHBBANK MK/HOLD/RM8.68/Target: RM9.10)
- 1H26 earnings came in within expectations, supported by higher NII, positive JAWS and lower credit costs. 2Q26 earnings fell qoq on weaker NOII and NIM compression, partly cushioned by higher NII and lower NCC. Downgrade RHB to HOLD with an unchanged target price of RM9.10 (1.11x 2027F P/B, 10.3% ROE). Risk-reward is now more balanced following the strong ytd performance. The stock offers a dividend yield of 5.6-6.1%.
What’s Inside
Company Results | Farm Fresh (FFB MK/HOLD/RM2.07/Target: RM2.05)
- Farm Fresh’s 1QFY27 core profit of RM26.5m (-5.1% qoq, -19.3% yoy) was broadly in line, representing 18% of our and consensus full-year forecasts. Strong sales growth was offset by margin compression. Distribution expansion, exports and new products should sustain sales momentum, while price hikes support partial margin recovery. Maintain HOLD and target price of RM2.05.
Company Results | Malaysian Resources Corporation (MRC MK/BUY/RM0.31/Target: RM0.39)
- MRCB’s results came in below expectations. The weaker results mainly reflect the softer property development and construction segment, dragged by lower sales and progress billings. Nevertheless, several positive developments such as securing the Penang LRT system turnkey contracts, developing an AI DC in Bukit Jalil, and the disposal of Cyberjaya landbanks will drive 2027-28 earnings growth. Upgrade to BUY with a higher target price of RM0.39 as we increased our construction progress billings for 2027-28.
Company Results | Northern Solar (NORTHERN MK/BUY/RM0.70/Target: RM1.00)
- Northern Solar reported a 1QFY27 core net profit of RM3.7m (+18% qoq). Earnings were driven by maiden LSS5 contribution and improved demand for C&I solar installations. Accounting for 17% of our full-year estimate, we deem the results to be in line. We expect stronger quarterly earnings, supported by its RM120m LSS5 progress billing. Maintain BUY with a target price of RM1.00.
Company Results | Oriental Kopi (KOPI MK/HOLD/RM1.05/Target: RM1.05)
- Oriental Kopi’s 3QFY26 core profit of RM17.0m brought 9MFY26 earnings to RM49.3m (+7.4% yoy), below expectations. Outlet expansion supported sales growth, but weaker sales per outlet and softer margins weighed on profitability. We cut our earnings forecast by approximately 10% and downgrade to HOLD, lowering our target price to RM1.05.
Company Results | SKP Resources (SKP MK/HOLD/RM0.285/Target: RM0.29)
- SKP’s 1QFY27 results were below expectations, recorded a core net loss of RM3.8m amid weaker customer orders, softer demand and tariff-related cost-down initiatives. While sales rose 11% qoq on higher order volumes, profitability remained under pressure. We expect near-term earnings headwinds from softer consumer demand and margin compression, prompting a 19-24% cut to FY27-28 forecasts. We maintain HOLD with a lower target
price of RM0.29 (from RM0.36).
Market Spotlight
- The FBMKLCI fell 15.84pt to close at 1,725.88 last Friday, as the sell-off in global stocks that briefly looked to have ended mid-week has come back, tipping markets from the US.
- US stocks were lower after the close on Friday, as losses in the industrials, utilities and technology sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
GIIB Holdings | GII MK
- Trading Buy Range: RM0.45-0.48
Keyfield International | KEYFIELD MK
- Trading Buy Range: RM1.41-1.42
Lianson Fleet Group | LFG MK
- Trading Buy Range: RM1.48-1.50
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
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