Key Indices
Top Stories
Company Results | KPJ Healthcare (KPJ MK/BUY/RM3.02/Target: RM3.85)
- 2Q26 profit fell within expectations. A drive in inpatient intensity lifted both sales and margins. Higher opex for the quarter was balanced by lower finance cost and a favourable tax rate for core margins to expand marginally. Maintain BUY and target price of RM3.85. We like KPJ for its inflection point of gestating hospitals and aggressive multi-year brownfield expansion.
What’s Inside
Company Results | AMMB Holdings (AMM MK/HOLD/RM7.24/Target: RM7.30)
- AMMB’s 1QFY27 earnings of RM520m are within expectations, supported by positive operating JAWS despite a compression in NIM amid competitive asset pricing. Asset quality remained manageable despite higher qoq credit costs from a geopolitical-risk overlay. More importantly, the capital return outlook has strengthened, with >40 sen FY27 DPS targeted and potential RM2b Basel III-driven excess capital release. We raise FY27-29F DPS and ROE assumptions, lifting our target price to RM7.30 while maintaining HOLD on balanced risk-reward.
Company Results | Duopharma Biotech (DBB MK/BUY/RM1.23/Target: RM1.62)
- Duopharma Biotech’s 2Q26 earnings are broadly within expectations. Earnings accounted for 59% of both our and consensus full-year forecasts. We expect inventory impairment charges and forex to temper earnings in 2H26. Furthermore, 4Q is seasonally the weakest quarter for earnings. Maintain BUY with an unchanged target price of RM1.62.
Company Results | Hume Cement Industries (HUME MK/BUY/RM2.99/Target: RM4.16)
- Hume reported a FY26 net profit of RM430.6m (+93% yoy). Stripping out an RM191.2m one-off disposal gain of its non-core concrete business, FY26 core net profit came in at RM239.2m (+22% yoy). FY26 saw core net profit margin expanding by 5.5ppt to 23%, driven by its ongoing operational efficiency initiatives and cost optimization efforts. The group ended the year with a robust net cash position of RM529.7m. Maintain BUY with a higher rollover target price of RM4.16 (Previous TP: RM3.98).
Company Update | ITMAX System (ITMAX MK/BUY/RM4.45/Target: RM6.10)
- ITMAX’s RM186.8m PERKESO win marks a strategic step beyond its core smart-city business, expanding its AI capabilities into the government employment sector. We expect the five-year contract to yield meaningful earnings contribution from 2027, with RM77m cumulative net profit estimated over 2027-31. Including its recent RM134m KK smart-city win, ITMAX’s unbilled orderbook has reached a record RM2.7b. We raise 2027-28 earnings by 10-12% and lift our DCF-based target price to RM6.10 (from RM6.00). Maintain BUY.
Market Spotlight
- The FBMKLCI rebounded by 7.47pt (+0.43%) to close at 1,733.36 yesterday.
- US stocks were lower after the close on Tuesday, as losses in the industrials, technology and basic materials sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
TSH Resources | TSH MK
- Trading Buy Range: RM1.23-1.24
BWYS Group | BWYS MK
- Trading Buy Range: RM0.165-0.17
Engtex Group | ENGT MK
- Trading Buy Range: RM0.465-0.47
Top Stories
Company Results | KPJ Healthcare (KPJ MK/BUY/RM3.02/Target: RM3.85)
- 2Q26 profit fell within expectations. A drive in inpatient intensity lifted both sales and margins. Higher opex for the quarter was balanced by lower finance cost and a favourable tax rate for core margins to expand marginally. Maintain BUY and target price of RM3.85. We like KPJ for its inflection point of gestating hospitals and aggressive multi-year brownfield expansion.
What’s Inside
Company Results | AMMB Holdings (AMM MK/HOLD/RM7.24/Target: RM7.30)
- AMMB’s 1QFY27 earnings of RM520m are within expectations, supported by positive operating JAWS despite a compression in NIM amid competitive asset pricing. Asset quality remained manageable despite higher qoq credit costs from a geopolitical-risk overlay. More importantly, the capital return outlook has strengthened, with >40 sen FY27 DPS targeted and potential RM2b Basel III-driven excess capital release. We raise FY27-29F DPS and ROE assumptions, lifting our target price to RM7.30 while maintaining HOLD on balanced risk-reward.
Company Results | Duopharma Biotech (DBB MK/BUY/RM1.23/Target: RM1.62)
- Duopharma Biotech’s 2Q26 earnings are broadly within expectations. Earnings accounted for 59% of both our and consensus full-year forecasts. We expect inventory impairment charges and forex to temper earnings in 2H26. Furthermore, 4Q is seasonally the weakest quarter for earnings. Maintain BUY with an unchanged target price of RM1.62.
Company Results | Hume Cement Industries (HUME MK/BUY/RM2.99/Target: RM4.16)
- Hume reported a FY26 net profit of RM430.6m (+93% yoy). Stripping out an RM191.2m one-off disposal gain of its non-core concrete business, FY26 core net profit came in at RM239.2m (+22% yoy). FY26 saw core net profit margin expanding by 5.5ppt to 23%, driven by its ongoing operational efficiency initiatives and cost optimization efforts. The group ended the year with a robust net cash position of RM529.7m. Maintain BUY with a higher rollover target price of RM4.16 (Previous TP: RM3.98).
Company Update | ITMAX System (ITMAX MK/BUY/RM4.45/Target: RM6.10)
- ITMAX’s RM186.8m PERKESO win marks a strategic step beyond its core smart-city business, expanding its AI capabilities into the government employment sector. We expect the five-year contract to yield meaningful earnings contribution from 2027, with RM77m cumulative net profit estimated over 2027-31. Including its recent RM134m KK smart-city win, ITMAX’s unbilled orderbook has reached a record RM2.7b. We raise 2027-28 earnings by 10-12% and lift our DCF-based target price to RM6.10 (from RM6.00). Maintain BUY.
Market Spotlight
- The FBMKLCI rebounded by 7.47pt (+0.43%) to close at 1,733.36 yesterday.
- US stocks were lower after the close on Tuesday, as losses in the industrials, technology and basic materials sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
TSH Resources | TSH MK
- Trading Buy Range: RM1.23-1.24
BWYS Group | BWYS MK
- Trading Buy Range: RM0.165-0.17
Engtex Group | ENGT MK
- Trading Buy Range: RM0.465-0.47
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
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.
