Key Indices
Top Stories
Company Results | Malayan Banking (MAY MK/HOLD/RM10.62/Target: RM11.58)
- Maybank reported an in-line 2Q26 net profit. Positively, non-interest income recovered and provisions declined qoq, although the 4bp qoq decline in NIM remains a near-term earnings drag. Maintain HOLD and target price of RM11.58 (1.27x 2027F P/B, ROE:11.2%) with the stock trading at a historical mean P/B.
Company Results | MISC (MISC MK/BUY/RM8.48/Target: RM9.50)
- 1H26 is deemed in line. The petroleum segment’s 2Q26 profit is exceptionally strong. This reflects a strategic boost in spot fleet mix to 30%, as MISC capitalised on high freight rates arising from tensions over the Strait of Hormuz. The gas segment’s performance aligns with our theory that LNG earnings have bottomed. While tanker rates may revert to pre-war levels in 2H26, an M&A event is now the near-term risk (instead of earnings). We retain BUY and target price of RM9.50.
Company Results | Sime Darby (SIME MK/HOLD/RM2.51/Target: RM2.67)
- Sime’s FY26 core net profit of RM1,547m came in above expectations, supported by the BMW Malaysia dividend. While management expects a gradual recovery in mining-related maintenance activities in FY27, we remain cautious given the prolonged recovery and await clearer signs of a sustained upcycle. We downgrade the stock to HOLD but raise our SOTP-based target price to RM2.67 (from RM2.55) following our 7% upward revision of FY27/28 earnings forecasts.
Company Results | Sunway Bhd (SWB MK/HOLD/RM5.11/Target: RM5.61)
- Results were within our expectations, with yoy core PATAMI yoy growth driven by new contributions from Sunway MCL and the healthcare segment. Property sales of RM2.3b are largely on track to meet full-year target of RM4.2b, while launches could fall short of the original target following the delay in the RTS Tower launch. Maintain HOLD with a lower target price of RM5.61 (from RM5.70) to reflect softer take-up rates at selected projects and delays in the RTS project launch.
Company Results | Tenaga Nasional (TNB MK/BUY/RM14.30/Target: RM16.30)
- Tenaga booked a 2Q26 normalised net profit of RM1,053m (+6% yoy; -16% qoq) on the back of a higher regulatory base. This was partly offset by higher repair & maintenance costs, computer expenses and higher depreciation charges. 1H26 normalised net profit of RM2,306m (+5% yoy) is in line with expectations. Electricity demand jumped 8% yoy on higher data centre demand. Maintain BUY with a DCF-based target price of RM16.30.
What’s Inside
Company Results | Bumi Armada (BAB MK/HOLD/RM0.35/Target:RM0.35)
- 1H26 core earnings missed expectation, comprising 38%/32% of our/consensus forecasts respectively. The negative surprise came from FPSO Kraken, whose uptime was 85% in 2Q26. Although the uptime is better qoq, there is uncertainty over how long FPSO Kraken’s operational issues will last. We cut earnings forecasts by 3-28%. Retain HOLD and target price of RM0.35.
Company Results | Hong Leong Bank (HLBK MK/BUY/RM23.88/Target: RM24.50)
- Hong Leong Bank’s FY26 earnings coming in broadly within expectations amid resilient core operating trends. Maintain BUY with an adjusted target price of RM24.50 (from RM24.40).
Company Results | Hong Leong Financial Group (HLFG MK/BUY/RM19.14/Target: RM22.00)
- HLFG’s FY26 earnings rose 5.5% to a record RM3.43b, underpinned by robust banking operations and doubledigit insurance growth. Underlying operating momentum remained stronger than headline PBT growth suggests. Maintain BUY and SOTP-based target price of RM22.00, implying a 25% holding-company discount.
Company Results | IHH Healthcare (IHH MK/BUY/RM8.15/Target: RM9.25)
- IHH’s 2Q26 core profit rose 38% yoy to RM569m, broadly meeting expectations, as strong Malaysia and Türkiye operations offset currency-affected India results. With Singapore recovering sequentially, Greater China turning profitable and expansion-led growth intact, we upgrade IHH to BUY with an unchanged RM9.25 target price per share.
Company Results | Inari Amertron (INRI MK/HOLD/RM2.50/Target: RM2.47)
- Inari’s 4QFY26 core net profit rose 60% qoq, but fell 9% yoy to RM49.3m, bringing FY26 earnings (-26% yoy) above our expectations at 109%, within consensus estimates at 96%. While FY26 was weighed by weaker RF volumes, we expect a recovery in FY27 as RF content increases and ChipFab volumes potentially double, supported by 1.6T applications and AI/DC capex. We tweak our FY27-28 earnings forecasts by +2/+1% for housekeeping purposes. Maintain HOLD with a higher rollover target price of RM2.47.
Company Results | RGB International (RGB MK/BUY/RM0.21/Target: RM0.26)
- RGB’s results were within expectations. While SSM operations sales were stronger yoy, earnings declined on lower margins from different product mixes. Meanwhile, TSM revenue softened yoy due to the operation disruptions in Poipet region, but earnings improved on lower cost. We still expect better earnings in 2H26, mainly lifted by sizeable SSM delivery in the Philippines. Key investment thesis includes a compelling 8-9% yield and cheap valuations of 3x ex-cash PE. Maintain BUY with a lower target price of RM0.26.
Company Results | TIME dotCom (TDC MK/HOLD/RM6.01/Target: RM6.50)
- 2Q26 core net profit grew 14% yoy to RM129.0m (+3% qoq), driven by robust top-line in the retail and wholesale segments. This partly offset higher finance cost and effective tax rate. The group declared a special interim dividend of 5.41 sen/share (78% payout). Management aims to achieve 1.0-1.5x net debt-to-EBITDA optimal capital structure within the next three years. Maintain HOLD with a DCF-based target price of RM6.50.
Market Spotlight
- The FBMKLCI slid 6.82pt to close at 1,741.72 yesterday amid profit-taking, particularly in index-linked counters.
- US stocks were higher after the close on Thursday, as gains in the technology, consumer goods and oil & gas sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Hume Cement Industries | HUME MK
- Trading Buy Range: RM3.04-3.05
Inari Ametron | INRI MK
- Trading Buy Range: RM2.54-2.55
Karex | KAREX MK
- Trading Buy Range: RM0.50-0.51
Top Stories
Company Results | Malayan Banking (MAY MK/HOLD/RM10.62/Target: RM11.58)
- Maybank reported an in-line 2Q26 net profit. Positively, non-interest income recovered and provisions declined qoq, although the 4bp qoq decline in NIM remains a near-term earnings drag. Maintain HOLD and target price of RM11.58 (1.27x 2027F P/B, ROE:11.2%) with the stock trading at a historical mean P/B.
Company Results | MISC (MISC MK/BUY/RM8.48/Target: RM9.50)
- 1H26 is deemed in line. The petroleum segment’s 2Q26 profit is exceptionally strong. This reflects a strategic boost in spot fleet mix to 30%, as MISC capitalised on high freight rates arising from tensions over the Strait of Hormuz. The gas segment’s performance aligns with our theory that LNG earnings have bottomed. While tanker rates may revert to pre-war levels in 2H26, an M&A event is now the near-term risk (instead of earnings). We retain BUY and target price of RM9.50.
Company Results | Sime Darby (SIME MK/HOLD/RM2.51/Target: RM2.67)
- Sime’s FY26 core net profit of RM1,547m came in above expectations, supported by the BMW Malaysia dividend. While management expects a gradual recovery in mining-related maintenance activities in FY27, we remain cautious given the prolonged recovery and await clearer signs of a sustained upcycle. We downgrade the stock to HOLD but raise our SOTP-based target price to RM2.67 (from RM2.55) following our 7% upward revision of FY27/28 earnings forecasts.
Company Results | Sunway Bhd (SWB MK/HOLD/RM5.11/Target: RM5.61)
- Results were within our expectations, with yoy core PATAMI yoy growth driven by new contributions from Sunway MCL and the healthcare segment. Property sales of RM2.3b are largely on track to meet full-year target of RM4.2b, while launches could fall short of the original target following the delay in the RTS Tower launch. Maintain HOLD with a lower target price of RM5.61 (from RM5.70) to reflect softer take-up rates at selected projects and delays in the RTS project launch.
Company Results | Tenaga Nasional (TNB MK/BUY/RM14.30/Target: RM16.30)
- Tenaga booked a 2Q26 normalised net profit of RM1,053m (+6% yoy; -16% qoq) on the back of a higher regulatory base. This was partly offset by higher repair & maintenance costs, computer expenses and higher depreciation charges. 1H26 normalised net profit of RM2,306m (+5% yoy) is in line with expectations. Electricity demand jumped 8% yoy on higher data centre demand. Maintain BUY with a DCF-based target price of RM16.30.
What’s Inside
Company Results | Bumi Armada (BAB MK/HOLD/RM0.35/Target:RM0.35)
- 1H26 core earnings missed expectation, comprising 38%/32% of our/consensus forecasts respectively. The negative surprise came from FPSO Kraken, whose uptime was 85% in 2Q26. Although the uptime is better qoq, there is uncertainty over how long FPSO Kraken’s operational issues will last. We cut earnings forecasts by 3-28%. Retain HOLD and target price of RM0.35.
Company Results | Hong Leong Bank (HLBK MK/BUY/RM23.88/Target: RM24.50)
- Hong Leong Bank’s FY26 earnings coming in broadly within expectations amid resilient core operating trends. Maintain BUY with an adjusted target price of RM24.50 (from RM24.40).
Company Results | Hong Leong Financial Group (HLFG MK/BUY/RM19.14/Target: RM22.00)
- HLFG’s FY26 earnings rose 5.5% to a record RM3.43b, underpinned by robust banking operations and doubledigit insurance growth. Underlying operating momentum remained stronger than headline PBT growth suggests. Maintain BUY and SOTP-based target price of RM22.00, implying a 25% holding-company discount.
Company Results | IHH Healthcare (IHH MK/BUY/RM8.15/Target: RM9.25)
- IHH’s 2Q26 core profit rose 38% yoy to RM569m, broadly meeting expectations, as strong Malaysia and Türkiye operations offset currency-affected India results. With Singapore recovering sequentially, Greater China turning profitable and expansion-led growth intact, we upgrade IHH to BUY with an unchanged RM9.25 target price per share.
Company Results | Inari Amertron (INRI MK/HOLD/RM2.50/Target: RM2.47)
- Inari’s 4QFY26 core net profit rose 60% qoq, but fell 9% yoy to RM49.3m, bringing FY26 earnings (-26% yoy) above our expectations at 109%, within consensus estimates at 96%. While FY26 was weighed by weaker RF volumes, we expect a recovery in FY27 as RF content increases and ChipFab volumes potentially double, supported by 1.6T applications and AI/DC capex. We tweak our FY27-28 earnings forecasts by +2/+1% for housekeeping purposes. Maintain HOLD with a higher rollover target price of RM2.47.
Company Results | RGB International (RGB MK/BUY/RM0.21/Target: RM0.26)
- RGB’s results were within expectations. While SSM operations sales were stronger yoy, earnings declined on lower margins from different product mixes. Meanwhile, TSM revenue softened yoy due to the operation disruptions in Poipet region, but earnings improved on lower cost. We still expect better earnings in 2H26, mainly lifted by sizeable SSM delivery in the Philippines. Key investment thesis includes a compelling 8-9% yield and cheap valuations of 3x ex-cash PE. Maintain BUY with a lower target price of RM0.26.
Company Results | TIME dotCom (TDC MK/HOLD/RM6.01/Target: RM6.50)
- 2Q26 core net profit grew 14% yoy to RM129.0m (+3% qoq), driven by robust top-line in the retail and wholesale segments. This partly offset higher finance cost and effective tax rate. The group declared a special interim dividend of 5.41 sen/share (78% payout). Management aims to achieve 1.0-1.5x net debt-to-EBITDA optimal capital structure within the next three years. Maintain HOLD with a DCF-based target price of RM6.50.
Market Spotlight
- The FBMKLCI slid 6.82pt to close at 1,741.72 yesterday amid profit-taking, particularly in index-linked counters.
- US stocks were higher after the close on Thursday, as gains in the technology, consumer goods and oil & gas sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Hume Cement Industries | HUME MK
- Trading Buy Range: RM3.04-3.05
Inari Ametron | INRI MK
- Trading Buy Range: RM2.54-2.55
Karex | KAREX MK
- Trading Buy Range: RM0.50-0.51
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
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