Top Stories
Sector Update | Consumer
We assess food security through two distinct lenses: how companies strengthen Malaysia's food security and how resilient that contribution is to food-system disruption. Availability, access and utilisation measure contribution, while stability captures exposure and mitigating capacity. Essential food producers and distributors contribute the most but typically face greater agricultural, climate, disease and commodity risks. Breweries and non-food retailers may be operationally resilient but make limited or narrower contributions. Maintain MARKET WEIGHT.
Company Update | VS Industry (VSI MK /BUY/RM0.22/Target: RM0.34)
Earnings are turning the corner, supported by a stronger volume ramp-up across its customer base, narrowing losses from loss-making divisions, and early benefits from recently implemented strategic initiatives. VSI trades at just 8.6x FY27F PE (-1SD below historical mean) and 0.4x FY27F P/BV (-2SD), well below even the trough valuations seen during the MCO period (0.83-0.88x P/BV), suggesting limited downside with asymmetrical upside potential. Current valuations more than compensate for risks. Maintain BUY with a target price of RM0.34.
What’s Inside
Company Results | Nestle (Malaysia) (NESZ MK/BUY/RM93.66/Target: RM109.00)
Nestle’s 2Q26 results exceeded expectations. Sales sustained a robust mid-single-digit growth driven by resilient domestic demand. However, enhanced gross margins lifted earnings beyond expectations. Upgrade to BUY with a higher target price of RM109.00 (from RM104.00).
Market Spotlight
- The FBMKLCI closed flat yesterday at 1,712.48 (-0.61pt).
- US stocks were mixed after the close on Tuesday, as gains in the healthcare, telecommunications and consumer goods sectors led shares higher while losses in the oil & gas, technology and industrials sectors led shares lower.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Beshom Holdings | BESHOM MK
Trading Buy Range: RM0.545-0.55
Orkim Berhad | ORKIM MK
Trading Buy Range: RM0.905-0.91
PMB Technology | PMBT MK
Trading Buy Range: RM1.70-1.75
Top Stories
Sector Update | Consumer
We assess food security through two distinct lenses: how companies strengthen Malaysia's food security and how resilient that contribution is to food-system disruption. Availability, access and utilisation measure contribution, while stability captures exposure and mitigating capacity. Essential food producers and distributors contribute the most but typically face greater agricultural, climate, disease and commodity risks. Breweries and non-food retailers may be operationally resilient but make limited or narrower contributions. Maintain MARKET WEIGHT.
Company Update | VS Industry (VSI MK /BUY/RM0.22/Target: RM0.34)
Earnings are turning the corner, supported by a stronger volume ramp-up across its customer base, narrowing losses from loss-making divisions, and early benefits from recently implemented strategic initiatives. VSI trades at just 8.6x FY27F PE (-1SD below historical mean) and 0.4x FY27F P/BV (-2SD), well below even the trough valuations seen during the MCO period (0.83-0.88x P/BV), suggesting limited downside with asymmetrical upside potential. Current valuations more than compensate for risks. Maintain BUY with a target price of RM0.34.
What’s Inside
Company Results | Nestle (Malaysia) (NESZ MK/BUY/RM93.66/Target: RM109.00)
Nestle’s 2Q26 results exceeded expectations. Sales sustained a robust mid-single-digit growth driven by resilient domestic demand. However, enhanced gross margins lifted earnings beyond expectations. Upgrade to BUY with a higher target price of RM109.00 (from RM104.00).
Market Spotlight
- The FBMKLCI closed flat yesterday at 1,712.48 (-0.61pt).
- US stocks were mixed after the close on Tuesday, as gains in the healthcare, telecommunications and consumer goods sectors led shares higher while losses in the oil & gas, technology and industrials sectors led shares lower.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Beshom Holdings | BESHOM MK
Trading Buy Range: RM0.545-0.55
Orkim Berhad | ORKIM MK
Trading Buy Range: RM0.905-0.91
PMB Technology | PMBT MK
Trading Buy Range: RM1.70-1.75
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