Top Stories
Company Results | Bursa Malaysia (BURSA MK /HOLD/RM8.70/Target: RM8.20)
Bursa’s reported 2Q26 earnings were broadly in line with expectations. We expect the current muted market sentiment to persist. Downgrade to HOLD with a lower target price of RM8.20 from RM9.63 after earnings revision.
Company Update | Dialog Group (DLG MK/BUY/RM1.98/Target: RM2.95)
Using Vopak’s 2Q26 information, we assume that the upcoming 4QFY26 results are unlikely to surprise the market, despite high O&G prices under a prolonged US-Iran war. However, Dialog’s upstream portfolio will “reboot for debut” in FY27, with several new PSCs including BJC. The material gas field will likely achieve early first gas by Oct/Nov 26. We expect an early startup track record and improving upstream data transparency to rerate Dialog’s upstream valuation. Maintain BUY and target price of RM2.95.
What’s Inside
Company Results | Axis REIT (AXRB/BUY/RM1.94/Target: RM2.21)
Axis REIT’s 2Q26 results are in line, with 1H26 core net profit at RM98m (-5% yoy), or 46%/45% of our/consensus forecasts respectively. A 2.3 sen DPU was declared. Earnings should recover as occupancy improves to 96-97% by year-end. Separately, the latest RM113m Kedah acquisition generates an initial gross yield of 6.6% and provides mild 2027 accretion of <1%. Maintain BUY with target price of RM2.21, which implies a dividend yield of 4.8% for 2026 (vs 10-year mean of 4.8%).
Company Results | ViTrox Corporation (VITRO MK/HOLD/RM8.00/Target: RM8.60)
1H26: Above expectations on record earnings; momentum to extend through to 2027.
Market Spotlight
- The FBMKLCI remained in positive territory for most of the day, ending 4.84pt higher at 1,720.40 yesterday.
- US stocks were higher after the close on Thursday, as gains in the technology, basic materials and industrials sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Autocount Dotcom | ADB MK
Trading Buy Range: RM0.605-0.61
Eupe Corporation | EUPE MK
Trading Buy Range: RM1.97-1.98
Hap Seng Consolidated | HAP MK
Trading Buy Range: RM2.77-2.78
Top Stories
Company Results | Bursa Malaysia (BURSA MK /HOLD/RM8.70/Target: RM8.20)
Bursa’s reported 2Q26 earnings were broadly in line with expectations. We expect the current muted market sentiment to persist. Downgrade to HOLD with a lower target price of RM8.20 from RM9.63 after earnings revision.
Company Update | Dialog Group (DLG MK/BUY/RM1.98/Target: RM2.95)
Using Vopak’s 2Q26 information, we assume that the upcoming 4QFY26 results are unlikely to surprise the market, despite high O&G prices under a prolonged US-Iran war. However, Dialog’s upstream portfolio will “reboot for debut” in FY27, with several new PSCs including BJC. The material gas field will likely achieve early first gas by Oct/Nov 26. We expect an early startup track record and improving upstream data transparency to rerate Dialog’s upstream valuation. Maintain BUY and target price of RM2.95.
What’s Inside
Company Results | Axis REIT (AXRB/BUY/RM1.94/Target: RM2.21)
Axis REIT’s 2Q26 results are in line, with 1H26 core net profit at RM98m (-5% yoy), or 46%/45% of our/consensus forecasts respectively. A 2.3 sen DPU was declared. Earnings should recover as occupancy improves to 96-97% by year-end. Separately, the latest RM113m Kedah acquisition generates an initial gross yield of 6.6% and provides mild 2027 accretion of <1%. Maintain BUY with target price of RM2.21, which implies a dividend yield of 4.8% for 2026 (vs 10-year mean of 4.8%).
Company Results | ViTrox Corporation (VITRO MK/HOLD/RM8.00/Target: RM8.60)
1H26: Above expectations on record earnings; momentum to extend through to 2027.
Market Spotlight
- The FBMKLCI remained in positive territory for most of the day, ending 4.84pt higher at 1,720.40 yesterday.
- US stocks were higher after the close on Thursday, as gains in the technology, basic materials and industrials sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Autocount Dotcom | ADB MK
Trading Buy Range: RM0.605-0.61
Eupe Corporation | EUPE MK
Trading Buy Range: RM1.97-1.98
Hap Seng Consolidated | HAP MK
Trading Buy Range: RM2.77-2.78
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