Key Indices
Top Stories
Company Results | Kuala Lumpur Kepong (KLK MK/BUY/RM21.92/Target: RM24.65)
- KLK's 3QFY26 headline net loss of RM1,344m reflects a RM1,621m non-cash impairment on its stake in Synthomer. Excluding that and the RM168m share of Synthomer's equity loss, core PATAMI was RM349m (+10.6% qoq, +5.0% yoy), taking 9MFY26 core earnings to RM1,047m (+27.9% yoy), or 67% of our full-year forecast. Maintain BUY with an unchanged target price of RM24.65, pegged to 17x FY26F PE.
Company Results | Petronas Dagangan (PETD MK/BUY/RM20.00/Target: RM24.20)
- 1H26 core profit was above expectations, on substantial commercial profit gains benefitting from a product price downtrend that was even steeper and came sooner vs 2022 (a substantial profit gain was recorded in 4Q22). We also deduced that PetDag temporarily gained some market share with the main goal of safeguarding the nation’s fuel security. We observe no major cash flow risk, and continue to like PetDag’s defensive proposition. Retain BUY with target price rolled over to RM24.20.
Company Results | Sunway Construction Group (SCGB MK/HOLD/RM8.08/Target: RM8.44)
- Suncon’s 2Q26 results were within expectations, with earnings growth lifted by significant margin expansion from the construction segment. 1H26 dividend of 26.8 sen (including special dividends) declared is also on track for the group to deliver a 5.7% yield for 2026. Overall, Suncon’s robust orderbook pipeline will continue to support recordhigh earnings in 2026-28 and a lush prospective yield of 5-6%. Nevertheless, risk-reward appears balanced after a steep share price rally. Downgrade to HOLD despite a higher target price of RM8.44.
Company Results | Zetrix AI (ZETRIX MK/BUY/RM0.655/Target: RM1.56)
- Zetrix delivered a decent quarter with 32% yoy net profit growth, mainly reflecting growing contributions from the blockchain segment. Meanwhile, the e-government segment continues to deliver steady earnings. The key rerating catalyst for the group is still the potential spin-off of web3 business as SPV in 4Q26 which will unlock the value of its blockchain segment. Maintain BUY; target price: RM1.56.
What’s Inside
Company Results | ITMAX System (ITMAX MK/BUY/RM4.40/Target: RM6.10)
- ITMAX delivered solid 2Q26 earnings, with core net profit up 31% yoy to RM29.8m, bringing 1H26 earnings of RM54.6m to 46% of our FY26 estimate, within expectations. Revenue grew 29% yoy, driven by stronger DIS contributions from Johor CCTV projects and higher smart parking collections. We expect earnings momentum to strengthen in the coming quarters, supported by higher contributions from the Johor Bahru smart parking contract and full delivery of the DBKL project. Maintain BUY; target price: RM6.10.
Company Results | Matrix Concepts Holdings (MCH MK/BUY/RM1.19/Target: RM1.72)
- Matrix’s 1QFY27 results came in within expectations. The group declared a dividend of 1.40 sen per share. 1QFY27 sales reached RM417m, on track towards and achieving 23% of its full-year target of RM1.8b. Looking ahead, property sales should pick up in 2HFY27, as it launches the first block of Levia Residence @ Puchong that has a GDV of RM356m. The stock offers a dividend yield of 5.9% for FY27. Maintain BUY with an unchanged target price of RM1.72.
Company Results | Northeast Group (NE MK/BUY/RM1.12/Target: RM1.42)
- 9MFY26 results beat expectations, with core net profit rising 63% yoy to reach 86% of our initial FY26 forecast, driven by robust semiconductor and photonics loadings, favourable product mix and stronger operating leverage. Outstanding orderbook rose 26% to RM82m from RM65m in April, reinforcing earnings visibility. NE remains well positioned to capture accelerating AI infrastructure demand, supported by capacity expansion and continued migration up the value chain. Raise FY26-28F earnings by 18-23%. Maintain BUY with a higher TP of RM1.42.
Market Spotlight
- The FBMKLCI continued to slide by 0.15pt to close at 1,736.33 on Monday amid persistent selling pressure in index-linked counters.
- US stocks were higher after the close on Tuesday, as gains in the technology, basic materials and healthcare sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Aumas Resources | AUMAS MK
- Trading Buy Range: RM0.415-0.42
Kim Loong Resources | KIML MK
- Trading Buy Range: RM2.75-2.80
MSM Malaysia Holdings | MSM MK
- Trading Buy Range: RM0.70-0.74
Top Stories
Company Results | Kuala Lumpur Kepong (KLK MK/BUY/RM21.92/Target: RM24.65)
- KLK's 3QFY26 headline net loss of RM1,344m reflects a RM1,621m non-cash impairment on its stake in Synthomer. Excluding that and the RM168m share of Synthomer's equity loss, core PATAMI was RM349m (+10.6% qoq, +5.0% yoy), taking 9MFY26 core earnings to RM1,047m (+27.9% yoy), or 67% of our full-year forecast. Maintain BUY with an unchanged target price of RM24.65, pegged to 17x FY26F PE.
Company Results | Petronas Dagangan (PETD MK/BUY/RM20.00/Target: RM24.20)
- 1H26 core profit was above expectations, on substantial commercial profit gains benefitting from a product price downtrend that was even steeper and came sooner vs 2022 (a substantial profit gain was recorded in 4Q22). We also deduced that PetDag temporarily gained some market share with the main goal of safeguarding the nation’s fuel security. We observe no major cash flow risk, and continue to like PetDag’s defensive proposition. Retain BUY with target price rolled over to RM24.20.
Company Results | Sunway Construction Group (SCGB MK/HOLD/RM8.08/Target: RM8.44)
- Suncon’s 2Q26 results were within expectations, with earnings growth lifted by significant margin expansion from the construction segment. 1H26 dividend of 26.8 sen (including special dividends) declared is also on track for the group to deliver a 5.7% yield for 2026. Overall, Suncon’s robust orderbook pipeline will continue to support recordhigh earnings in 2026-28 and a lush prospective yield of 5-6%. Nevertheless, risk-reward appears balanced after a steep share price rally. Downgrade to HOLD despite a higher target price of RM8.44.
Company Results | Zetrix AI (ZETRIX MK/BUY/RM0.655/Target: RM1.56)
- Zetrix delivered a decent quarter with 32% yoy net profit growth, mainly reflecting growing contributions from the blockchain segment. Meanwhile, the e-government segment continues to deliver steady earnings. The key rerating catalyst for the group is still the potential spin-off of web3 business as SPV in 4Q26 which will unlock the value of its blockchain segment. Maintain BUY; target price: RM1.56.
What’s Inside
Company Results | ITMAX System (ITMAX MK/BUY/RM4.40/Target: RM6.10)
- ITMAX delivered solid 2Q26 earnings, with core net profit up 31% yoy to RM29.8m, bringing 1H26 earnings of RM54.6m to 46% of our FY26 estimate, within expectations. Revenue grew 29% yoy, driven by stronger DIS contributions from Johor CCTV projects and higher smart parking collections. We expect earnings momentum to strengthen in the coming quarters, supported by higher contributions from the Johor Bahru smart parking contract and full delivery of the DBKL project. Maintain BUY; target price: RM6.10.
Company Results | Matrix Concepts Holdings (MCH MK/BUY/RM1.19/Target: RM1.72)
- Matrix’s 1QFY27 results came in within expectations. The group declared a dividend of 1.40 sen per share. 1QFY27 sales reached RM417m, on track towards and achieving 23% of its full-year target of RM1.8b. Looking ahead, property sales should pick up in 2HFY27, as it launches the first block of Levia Residence @ Puchong that has a GDV of RM356m. The stock offers a dividend yield of 5.9% for FY27. Maintain BUY with an unchanged target price of RM1.72.
Company Results | Northeast Group (NE MK/BUY/RM1.12/Target: RM1.42)
- 9MFY26 results beat expectations, with core net profit rising 63% yoy to reach 86% of our initial FY26 forecast, driven by robust semiconductor and photonics loadings, favourable product mix and stronger operating leverage. Outstanding orderbook rose 26% to RM82m from RM65m in April, reinforcing earnings visibility. NE remains well positioned to capture accelerating AI infrastructure demand, supported by capacity expansion and continued migration up the value chain. Raise FY26-28F earnings by 18-23%. Maintain BUY with a higher TP of RM1.42.
Market Spotlight
- The FBMKLCI continued to slide by 0.15pt to close at 1,736.33 on Monday amid persistent selling pressure in index-linked counters.
- US stocks were higher after the close on Tuesday, as gains in the technology, basic materials and healthcare sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Aumas Resources | AUMAS MK
- Trading Buy Range: RM0.415-0.42
Kim Loong Resources | KIML MK
- Trading Buy Range: RM2.75-2.80
MSM Malaysia Holdings | MSM MK
- Trading Buy Range: RM0.70-0.74
Key Indices
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