Key Indices
Top Stories
Company Results | IJM Corporation (IJM MK/BUY/RM2.86/Target: RM3.15)
- IJM’s 1QFY27 results beat our expectations. Core earnings were lifted by strong recognitions from the construction segment as the fast-track projects resulted in margin expansion. Otherwise, the property division remained muted in 1Q26 while infrastructure earnings improved off lower amortisation costs and forex losses. Looking forward, IJM will continue to make progress in its monetisation efforts, with the special dividend announced during 1QFY27 marking its first major step since outlining its distribution plan. Maintain BUY with a higher target price of RM3.15.
Company Results | Public Bank (PBK MK/HOLD/RM5.18/Target: RM5.54)
- Public Bank reported 2Q26 results that were marginally below expectations due to higher-than-expected credit costs. Following stealer share price performance, we downgrade the stock to a HOLD with a lower target price of RM5.54 from RM5.65.
What’s Inside
Company Results | Alliance Bank Malaysia (ABMB MK/HOLD/RM4.92/Target: RM5.20)
- Alliance Bank delivered in-line 1QFY27 earnings, with resilient loan growth and sharply lower credit costs offsetting NIM pressure. Basel III capital uplift supports higher dividends. Maintain HOLD with a target price of RM5.20.
Company Update | Axis REIT (AXRB MK/BUY/RM1.85/Target: RM2.21)
- Axis REIT is acquiring three adjoining industrial parcels spanning 7.19 acres in Pulau Indah, Selangor, with completion targeted for 1Q27. The property is leased back to Megalift for five years at RM3.8m annual rent, implying 6.23% gross yield and ~6.0% NPI yield. We estimate ~RM1m earnings accretion (<1% of 2027F), while gearing will rise to 33.4%. Contractual rental step-ups during the lease period should support longer-term yield improvement. Maintain BUY with an unchanged target price of RM2.21.
Company Results | Deleum (DLUM MK/BUY/RM1.14/Target: RM1.45)
- 1H26 core earnings missed expectations, impacted by ongoing deferrals in downstream turnarounds that impact the higher-margin P&M businesses like valves, and lower slickline activities in East Malaysia. The declared interim DPS of 3.5 sen (lower vs 4 sen yoy) also implies that management is now expecting that full-year profit may not match 2025’s RM71m. We cut earnings forecasts by 16-28% but still expect stronger 2H26 on evidence of pickup in turnaround activities. Retain BUY with adjusted target price of RM1.45.
Company Results | Greatech Technology (GREATEC MK/BUY/RM2.67/Target: RM3.00)
- Greatech’s 1H26 core earnings came in below expectations at 29%/27% of our/consensus estimates, mainly due to slower-than-expected project recognition. Nevertheless, its outstanding orderbook strengthened to RM1.83b (3x yoy; 10% qoq), providing solid visibility into 2027. We expect stronger 2H26 earnings as DC deliveries accelerate and utilisation improves. We cut our 2026-27 earnings forecasts by 5-25% and maintain BUY, with a lower target price of RM3.00 (from RM3.10), based on 34.0x 2027F PE.
Company Results | Hap Seng Plantations (HAPL MK/HOLD/RM2.54/Target: RM2.70)
- Hap Seng Plantations 2Q26 earnings came broadly within expectations, accounting for 37%/42% of our and consensus full-year estimates. We expect earnings momentum to accelerate in 2H26, underpinned by firmer CPO prices and stronger FFB production during the peak cropping season. Maintain HOLD with a higher target price of RM2.70 (previously RM2.47), based on 11x 2026F.
Company Results | KLCCP Stapled Group (KLCCSS MK/HOLD/RM8.70/Target: RM9.46)
- Results were in line. KLCCSS declared a 9.3 sen DPU for 2Q26. The office segment remained stable, recording an operating profit of RM129m (+0.6% yoy). Suria KLCC’s reversion is expected to be positive, and management does not foresee pressure from the opening of Ombak KLCC given the two mall’s distinct offerings. We expect the hotel segment to gradually improve towards end-26 with year-end holidays and completion of Phase 1 & 2 renovation. Maintain HOLD; target price of RM9.46.
Company Update | Mah Sing Group (MSGB MK/BUY/RM1.18/Target: RM1.42)
- Mah Sing announced the acquisition of 14.38 acres in Ampang, Selangor for RM186.2m, earmarked for the RM1.92b M Araya development. The acquisition price translates to a land cost to GDV ratio of 9.7%, at the lower end of its typical range. Assuming a 10% net margin and earnings recognition from 4Q27, we estimate potential earnings contribution of RM10m/RM38m in 2027/28. Pro-forma target price will increase by 3% to RM1.46. Maintain BUY with an unchanged target price of RM1.42.
Company Results | PPB Group (PEP MK/BUY/RM10.26/Target: RM13.60)
- PPB Group’s 1H26 earnings came in broadly in line with expectations, accounting for 43% of our full-year estimate. We expect PPB’s core operation to sustain its current performance into 2H26 while Wilmar is anticipated to deliver higher contributions to the group, underpinning a stronger 2H26. Maintain BUY with a target price of RM13.60.
Company Results | QL Resources (QLG MK/HOLD/RM4.00/Target: RM4.00)
- QL’s 1QFY27 earnings were within expectations. Earnings were flat yoy, as exceptional fishmeal earnings offset weaker margins across livestock, convenience stores and clean energy. Recent appreciation appears to fairly value its future prospects, prompting us to downgrade QL to a HOLD with an unchanged target price of RM4.00.
Company Results | WCT Holdings (WCTHG MK/HOLD/RM0.405/Target: RM0.42)
- WCT’s 1H26 results met expectations. While earnings were broadly down across most segments, interest savings following the repayment of short-term borrowings softened the impact at the PATAMI level. Looking forward, WCT still appears operationally shaky with the construction segment reporting losses for the third quarter in a row. Maintain HOLD with a lower target price of RM0.42.
Market Spotlight
- The FBMKLCI closed marginally higher at 1,748.54 (+12.21pt, +0.70%) yesterday, backed by gains in blue chips.
- US stocks were lower after the close on Wednesday, as losses in the healthcare, consumer services and consumer goods sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Aeon Co. (M) | AEON MK
- Trading Buy Range: RM1.06-1.07
Cahya Mata Sarawak | CMS MK
- Trading Buy Range: RM1.06-1.07
P.I.E. Industrial | PIE MK
- Trading Buy Range: RM1.65-1.70
Top Stories
Company Results | IJM Corporation (IJM MK/BUY/RM2.86/Target: RM3.15)
- IJM’s 1QFY27 results beat our expectations. Core earnings were lifted by strong recognitions from the construction segment as the fast-track projects resulted in margin expansion. Otherwise, the property division remained muted in 1Q26 while infrastructure earnings improved off lower amortisation costs and forex losses. Looking forward, IJM will continue to make progress in its monetisation efforts, with the special dividend announced during 1QFY27 marking its first major step since outlining its distribution plan. Maintain BUY with a higher target price of RM3.15.
Company Results | Public Bank (PBK MK/HOLD/RM5.18/Target: RM5.54)
- Public Bank reported 2Q26 results that were marginally below expectations due to higher-than-expected credit costs. Following stealer share price performance, we downgrade the stock to a HOLD with a lower target price of RM5.54 from RM5.65.
What’s Inside
Company Results | Alliance Bank Malaysia (ABMB MK/HOLD/RM4.92/Target: RM5.20)
- Alliance Bank delivered in-line 1QFY27 earnings, with resilient loan growth and sharply lower credit costs offsetting NIM pressure. Basel III capital uplift supports higher dividends. Maintain HOLD with a target price of RM5.20.
Company Update | Axis REIT (AXRB MK/BUY/RM1.85/Target: RM2.21)
- Axis REIT is acquiring three adjoining industrial parcels spanning 7.19 acres in Pulau Indah, Selangor, with completion targeted for 1Q27. The property is leased back to Megalift for five years at RM3.8m annual rent, implying 6.23% gross yield and ~6.0% NPI yield. We estimate ~RM1m earnings accretion (<1% of 2027F), while gearing will rise to 33.4%. Contractual rental step-ups during the lease period should support longer-term yield improvement. Maintain BUY with an unchanged target price of RM2.21.
Company Results | Deleum (DLUM MK/BUY/RM1.14/Target: RM1.45)
- 1H26 core earnings missed expectations, impacted by ongoing deferrals in downstream turnarounds that impact the higher-margin P&M businesses like valves, and lower slickline activities in East Malaysia. The declared interim DPS of 3.5 sen (lower vs 4 sen yoy) also implies that management is now expecting that full-year profit may not match 2025’s RM71m. We cut earnings forecasts by 16-28% but still expect stronger 2H26 on evidence of pickup in turnaround activities. Retain BUY with adjusted target price of RM1.45.
Company Results | Greatech Technology (GREATEC MK/BUY/RM2.67/Target: RM3.00)
- Greatech’s 1H26 core earnings came in below expectations at 29%/27% of our/consensus estimates, mainly due to slower-than-expected project recognition. Nevertheless, its outstanding orderbook strengthened to RM1.83b (3x yoy; 10% qoq), providing solid visibility into 2027. We expect stronger 2H26 earnings as DC deliveries accelerate and utilisation improves. We cut our 2026-27 earnings forecasts by 5-25% and maintain BUY, with a lower target price of RM3.00 (from RM3.10), based on 34.0x 2027F PE.
Company Results | Hap Seng Plantations (HAPL MK/HOLD/RM2.54/Target: RM2.70)
- Hap Seng Plantations 2Q26 earnings came broadly within expectations, accounting for 37%/42% of our and consensus full-year estimates. We expect earnings momentum to accelerate in 2H26, underpinned by firmer CPO prices and stronger FFB production during the peak cropping season. Maintain HOLD with a higher target price of RM2.70 (previously RM2.47), based on 11x 2026F.
Company Results | KLCCP Stapled Group (KLCCSS MK/HOLD/RM8.70/Target: RM9.46)
- Results were in line. KLCCSS declared a 9.3 sen DPU for 2Q26. The office segment remained stable, recording an operating profit of RM129m (+0.6% yoy). Suria KLCC’s reversion is expected to be positive, and management does not foresee pressure from the opening of Ombak KLCC given the two mall’s distinct offerings. We expect the hotel segment to gradually improve towards end-26 with year-end holidays and completion of Phase 1 & 2 renovation. Maintain HOLD; target price of RM9.46.
Company Update | Mah Sing Group (MSGB MK/BUY/RM1.18/Target: RM1.42)
- Mah Sing announced the acquisition of 14.38 acres in Ampang, Selangor for RM186.2m, earmarked for the RM1.92b M Araya development. The acquisition price translates to a land cost to GDV ratio of 9.7%, at the lower end of its typical range. Assuming a 10% net margin and earnings recognition from 4Q27, we estimate potential earnings contribution of RM10m/RM38m in 2027/28. Pro-forma target price will increase by 3% to RM1.46. Maintain BUY with an unchanged target price of RM1.42.
Company Results | PPB Group (PEP MK/BUY/RM10.26/Target: RM13.60)
- PPB Group’s 1H26 earnings came in broadly in line with expectations, accounting for 43% of our full-year estimate. We expect PPB’s core operation to sustain its current performance into 2H26 while Wilmar is anticipated to deliver higher contributions to the group, underpinning a stronger 2H26. Maintain BUY with a target price of RM13.60.
Company Results | QL Resources (QLG MK/HOLD/RM4.00/Target: RM4.00)
- QL’s 1QFY27 earnings were within expectations. Earnings were flat yoy, as exceptional fishmeal earnings offset weaker margins across livestock, convenience stores and clean energy. Recent appreciation appears to fairly value its future prospects, prompting us to downgrade QL to a HOLD with an unchanged target price of RM4.00.
Company Results | WCT Holdings (WCTHG MK/HOLD/RM0.405/Target: RM0.42)
- WCT’s 1H26 results met expectations. While earnings were broadly down across most segments, interest savings following the repayment of short-term borrowings softened the impact at the PATAMI level. Looking forward, WCT still appears operationally shaky with the construction segment reporting losses for the third quarter in a row. Maintain HOLD with a lower target price of RM0.42.
Market Spotlight
- The FBMKLCI closed marginally higher at 1,748.54 (+12.21pt, +0.70%) yesterday, backed by gains in blue chips.
- US stocks were lower after the close on Wednesday, as losses in the healthcare, consumer services and consumer goods sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Aeon Co. (M) | AEON MK
- Trading Buy Range: RM1.06-1.07
Cahya Mata Sarawak | CMS MK
- Trading Buy Range: RM1.06-1.07
P.I.E. Industrial | PIE MK
- Trading Buy Range: RM1.65-1.70
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
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