Key Indices
Top Stories
Company Results | Binastra Corporation (BNASTRA MK/BUY/RM2.49/Target: RM3.05)
- Binastra delivered record high earnings in 2QFY27, supported by better construction progress billing and subsidiary LF Lansen’s higher contributions. 2QFY27 results made up about 53% of our FY27 expectations, and are deemed above expectations. We expect 2HFY27 earnings to improve further, backed by the group’s resilient orderbook pipeline and margin accretion from DC projects. Overall, Binastra is poised to chart record-high earnings in FY27-29, besides offering a commendable prospective yield of 3.4-4.2%. Maintain BUY and target price of RM3.05.
Company Update | Tenaga Nasional (TNB MK/BUY/RM13.32/Target: RM16.30)
- The government is protecting domestic users from tariff shocks by exempting household usage of up to 800kWh from the AFA surcharge until Dec 26. This is neutral to TNB’s earnings as the government will compensate TNB for the exemption via the KWIE fund. The recent share price weakness may be due to rising regulatory receivables. In the past decade, the IBR framework has been upheld. We maintain BUY with a DCF-based target price of RM16.30.
Market Spotlight
- The FBMKLCI extended its decline for a second day to close at 1,674.74 (-4.47pt) yesterday.
- US stocks were higher after the close on Thursday, as gains in the technology, utilities and basic materials sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Elsa | ELSA MK
- Trading Buy Range: RM0.20-0.22
Hextar Retail | HEXRTL MK
- Trading Buy Range: RM0.435-0.44
MHC Plantations | MHC MK
- Trading Buy Range: RM1.85-1.86
Top Stories
Company Results | Binastra Corporation (BNASTRA MK/BUY/RM2.49/Target: RM3.05)
- Binastra delivered record high earnings in 2QFY27, supported by better construction progress billing and subsidiary LF Lansen’s higher contributions. 2QFY27 results made up about 53% of our FY27 expectations, and are deemed above expectations. We expect 2HFY27 earnings to improve further, backed by the group’s resilient orderbook pipeline and margin accretion from DC projects. Overall, Binastra is poised to chart record-high earnings in FY27-29, besides offering a commendable prospective yield of 3.4-4.2%. Maintain BUY and target price of RM3.05.
Company Update | Tenaga Nasional (TNB MK/BUY/RM13.32/Target: RM16.30)
- The government is protecting domestic users from tariff shocks by exempting household usage of up to 800kWh from the AFA surcharge until Dec 26. This is neutral to TNB’s earnings as the government will compensate TNB for the exemption via the KWIE fund. The recent share price weakness may be due to rising regulatory receivables. In the past decade, the IBR framework has been upheld. We maintain BUY with a DCF-based target price of RM16.30.
Market Spotlight
- The FBMKLCI extended its decline for a second day to close at 1,674.74 (-4.47pt) yesterday.
- US stocks were higher after the close on Thursday, as gains in the technology, utilities and basic materials sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Elsa | ELSA MK
- Trading Buy Range: RM0.20-0.22
Hextar Retail | HEXRTL MK
- Trading Buy Range: RM0.435-0.44
MHC Plantations | MHC MK
- Trading Buy Range: RM1.85-1.86
Key Indices
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
