Country Daily
Malaysia Daily
Top Stories
Sector Update | Oil and Gas – Shipping (ESG)
Recent geopolitical events are greatly undermining seafarers’ human rights, blurring the distinction between a shipping route and a war zone. At the same time, markets remain bullish on global tanker stocks as a geopolitical hedge. We are studying the elusive global shipping ESG risk (human rights), and whether it may become a significant price impact (for shipping stocks). We also see its potential to be a materiality topic stretching across multiple sectors beyond shipping. Maintain sector MARKET WEIGHT.
Company Results | Hartalega Holdings (HART MK/HOLD/RM1.06/Target: RM1.06)
Harta’s 1QFY27 results strength reflects significant ASP hikes due to the Iran war, which bolstered profitability and margins. Nevertheless, ASPs have since moderated to US$19-20/’000 pcs, while input cost will likely remain elevated due to higher raw material prices and an upcoming natural gas tariff hike. We expect 2Q-3QFY27 earnings to be sequentially weaker. The mid- to long-term outlook also remains muted given oversupply dynamics and intensifying China competition. Maintain HOLD and RM1.06 target price as risk-reward dynamics appear neutral.
Market Spotlight
- The FBMKLCI rose 6.93pt to close at 1,732.66 yesterday, buoyed by positive sentiment in the overnight US market as index-linked counters rebounded strongly.
- US stocks were higher after the close on Tuesday, as gains in the technology, industrials and basic materials sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Ann Joo Resources | AJR MK
Trading Buy Range: RM0.485-0.50
Feytech Holdings | FEYTECH MK
Trading Buy Range: RM0.255-0.26
Lotte Chemical Titan Holdings | TTNP MK
Trading Buy Range: RM0.345-0.35
Country Daily
Malaysia Daily
Top Stories
Sector Update | Oil and Gas – Shipping (ESG)
Recent geopolitical events are greatly undermining seafarers’ human rights, blurring the distinction between a shipping route and a war zone. At the same time, markets remain bullish on global tanker stocks as a geopolitical hedge. We are studying the elusive global shipping ESG risk (human rights), and whether it may become a significant price impact (for shipping stocks). We also see its potential to be a materiality topic stretching across multiple sectors beyond shipping. Maintain sector MARKET WEIGHT.
Company Results | Hartalega Holdings (HART MK/HOLD/RM1.06/Target: RM1.06)
Harta’s 1QFY27 results strength reflects significant ASP hikes due to the Iran war, which bolstered profitability and margins. Nevertheless, ASPs have since moderated to US$19-20/’000 pcs, while input cost will likely remain elevated due to higher raw material prices and an upcoming natural gas tariff hike. We expect 2Q-3QFY27 earnings to be sequentially weaker. The mid- to long-term outlook also remains muted given oversupply dynamics and intensifying China competition. Maintain HOLD and RM1.06 target price as risk-reward dynamics appear neutral.
Market Spotlight
- The FBMKLCI rose 6.93pt to close at 1,732.66 yesterday, buoyed by positive sentiment in the overnight US market as index-linked counters rebounded strongly.
- US stocks were higher after the close on Tuesday, as gains in the technology, industrials and basic materials sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Ann Joo Resources | AJR MK
Trading Buy Range: RM0.485-0.50
Feytech Holdings | FEYTECH MK
Trading Buy Range: RM0.255-0.26
Lotte Chemical Titan Holdings | TTNP MK
Trading Buy Range: RM0.345-0.35
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