Top Stories
Company Results | Heineken Malaysia (HEIM MK/BUY/RM19.10/Target: RM21.80)
Heineken’s 1H26 results missed expectations, dragged by persistently soft sales volumes. The continued inventory adjustment among distributors resulted in a sharp decline in earnings with core net profit contracting by more than half sequentially. Looking forward, the outlook appears mixed. Positively, the recent announcement that Heineken Malaysia will begin exporting to Singapore could lift sales volume. Conversely, soft sales and a drag from high inventory levels signal near-term struggles. Maintain BUY with a lower target price of RM21.80.
Company Update | Pecca Group (PECCA MK/BUY/RM1.33/Target: RM1.66)
We remain positive on Pecca’s outlook in anticipation of its near-term earnings recovery supported by an improvement in Perodua’s sales performance, while its long-term prospects remain intact, driven by growing contributions from exports sales, the aviation business and the seat assembly venture. Maintain BUY with an unchanged target price of RM1.66, based on 17x 2027F PE.
Market Spotlight
- The FBMKLCI closed higher yesterday, adding 15.51pt to 1,748.17 amid bargain hunting across the board.
- US stocks were mixed after the close on Wednesday, as gains in the basic materials, healthcare and financials sectors led shares higher while losses in the oil & gas, telecommunications and utilities sectors led shares lower.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Bank Islam Malaysia | BIMB MK
Trading Buy Range: RM2.17-2.20
Greatech Technology | GREATEC MK
Trading Buy Range: RM2.51-2.52
Kobay Technology | KOBAY MK
Trading Buy Range: RM2.38-2.40
Top Stories
Company Results | Heineken Malaysia (HEIM MK/BUY/RM19.10/Target: RM21.80)
Heineken’s 1H26 results missed expectations, dragged by persistently soft sales volumes. The continued inventory adjustment among distributors resulted in a sharp decline in earnings with core net profit contracting by more than half sequentially. Looking forward, the outlook appears mixed. Positively, the recent announcement that Heineken Malaysia will begin exporting to Singapore could lift sales volume. Conversely, soft sales and a drag from high inventory levels signal near-term struggles. Maintain BUY with a lower target price of RM21.80.
Company Update | Pecca Group (PECCA MK/BUY/RM1.33/Target: RM1.66)
We remain positive on Pecca’s outlook in anticipation of its near-term earnings recovery supported by an improvement in Perodua’s sales performance, while its long-term prospects remain intact, driven by growing contributions from exports sales, the aviation business and the seat assembly venture. Maintain BUY with an unchanged target price of RM1.66, based on 17x 2027F PE.
Market Spotlight
- The FBMKLCI closed higher yesterday, adding 15.51pt to 1,748.17 amid bargain hunting across the board.
- US stocks were mixed after the close on Wednesday, as gains in the basic materials, healthcare and financials sectors led shares higher while losses in the oil & gas, telecommunications and utilities sectors led shares lower.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Bank Islam Malaysia | BIMB MK
Trading Buy Range: RM2.17-2.20
Greatech Technology | GREATEC MK
Trading Buy Range: RM2.51-2.52
Kobay Technology | KOBAY MK
Trading Buy Range: RM2.38-2.40
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