Key Indices
Top Stories
Company Update | Hartalega (HART MK/HOLD/RM1.10/Target: RM1.06)
- While there are signs of a demand recovery, inception of regional producers’ ASP upcycle, and margin uplift from better operating efficiency, Harta’s outlook may only chart modest growth due to higher input costs and persistent China competition. We expect sequentially weaker 2Q-3QFY27 earnings, normalising from 1QFY27’s high base. Maintain HOLD and target price of RM1.06.
What’s Inside
Company Results | Pavilion REIT (PREIT MK/BUY/RM1.56/Target: RM1.90)
- Pavilion REIT reported in-line results, with core net profit of RM92.9m (+4.3% qoq, -1.8% yoy) and DPU of 2.45 sen during the quarter. PREIT benefits from the extended Visit Malaysia Year, ongoing AEIs and tenant remixing at Pavilion KL. It currently offers a decent 2027 yield of 6.8%. Maintain BUY with a lower target price of RM1.90 (from RM2.10), as we roll over our valuation base to 2027 and increase our cost of equity assumption from 7.1%.
Market Spotlight
- The FBMKLCI extended its gains yesterday, closing 5.87pt higher to close at 1,608.14.
- US stocks were mixed after the close on Thursday, as gains in the telecoms, utilities and consumer goods sectors led shares higher while losses in the technology, industrials and basic materials sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Cypark Resources | CYP MK
- Trading Buy Range: RM0.715-0.72
Kobay Technology | KOBAY MK
- Trading Buy Range: RM2.16-2.17
Reach Ten Holdings | REACHTEN MK
- Trading Buy Range: RM0.365-0.37
Top Stories
Company Update | Hartalega (HART MK/HOLD/RM1.10/Target: RM1.06)
- While there are signs of a demand recovery, inception of regional producers’ ASP upcycle, and margin uplift from better operating efficiency, Harta’s outlook may only chart modest growth due to higher input costs and persistent China competition. We expect sequentially weaker 2Q-3QFY27 earnings, normalising from 1QFY27’s high base. Maintain HOLD and target price of RM1.06.
What’s Inside
Company Results | Pavilion REIT (PREIT MK/BUY/RM1.56/Target: RM1.90)
- Pavilion REIT reported in-line results, with core net profit of RM92.9m (+4.3% qoq, -1.8% yoy) and DPU of 2.45 sen during the quarter. PREIT benefits from the extended Visit Malaysia Year, ongoing AEIs and tenant remixing at Pavilion KL. It currently offers a decent 2027 yield of 6.8%. Maintain BUY with a lower target price of RM1.90 (from RM2.10), as we roll over our valuation base to 2027 and increase our cost of equity assumption from 7.1%.
Market Spotlight
- The FBMKLCI extended its gains yesterday, closing 5.87pt higher to close at 1,608.14.
- US stocks were mixed after the close on Thursday, as gains in the telecoms, utilities and consumer goods sectors led shares higher while losses in the technology, industrials and basic materials sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Cypark Resources | CYP MK
- Trading Buy Range: RM0.715-0.72
Kobay Technology | KOBAY MK
- Trading Buy Range: RM2.16-2.17
Reach Ten Holdings | REACHTEN MK
- Trading Buy Range: RM0.365-0.37
Key Indices
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
