Key Indices
Top Stories
Sector Update | Plantation
- Budget 2027, to be unveiled on 9 October, is expected to include an increase in the RM1,700 monthly minimum wage. At a hypothetical wage of RM2,000, we estimate the after-tax cost to listed planters at 2.6-18.5% of their latest reported net profits. The higher floor also narrows the gap to a living wage, and comes ahead of the EU’s ban on forced labour in Dec 27. Maintain OVERWEIGHT.
Company Update | VS Industry (VSI MK/BUY/RM0.27/Target: RM0.35)
- VS is entering a transition phase as it actively explores diversifying beyond CE, optimising its existing manufacturing footprint and pursuing higher-value opportunities. 4QFY26 marked an initial recovery with operations returning to profitability before impairment. Higher orders, improving utilisation and breakeven of the Philippines operations should support 1QFY27, while new customer wins provide longer-term upside into FY28. At 8.8x FY28F PE and 0.5x P/B, valuations remain undemanding. Maintain BUY with a target price of RM0.35.
What’s Inside
Sector Update | Telecommunications
- DNB said it has completed a RM5.2b syndicated Islamic term financing exercise, as MOF prepares to transfer its DNB shareholding to CelcomDigi, Maxis and YTL Power. MOF will retain a golden share in DNB. This news is within expectations, as CelcomDigi and Maxis had previously guided for the transfer of MOF’s stake in early 4Q26. Maintain MARKET WEIGHT. Top picks: Maxis and CelcomDigi.
Market Spotlight
- The FBMKLCI slid 20.81pt to close at 1,630.36 yesterday, dragged by profit taking on index-linked stocks.
- US stocks were higher after the close on Thursday, as gains in the oil & gas, industrials and utilities sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Agmo Holdings | AGMO MK
- Trading Buy Range: RM0.275-0.28
Elsoft Research | ELSR MK
- Trading Buy Range: RM0.28-0.285
Genetec Technology | GENE MK
- Trading Buy Range: RM0.34-0.345
Top Stories
Sector Update | Plantation
- Budget 2027, to be unveiled on 9 October, is expected to include an increase in the RM1,700 monthly minimum wage. At a hypothetical wage of RM2,000, we estimate the after-tax cost to listed planters at 2.6-18.5% of their latest reported net profits. The higher floor also narrows the gap to a living wage, and comes ahead of the EU’s ban on forced labour in Dec 27. Maintain OVERWEIGHT.
Company Update | VS Industry (VSI MK/BUY/RM0.27/Target: RM0.35)
- VS is entering a transition phase as it actively explores diversifying beyond CE, optimising its existing manufacturing footprint and pursuing higher-value opportunities. 4QFY26 marked an initial recovery with operations returning to profitability before impairment. Higher orders, improving utilisation and breakeven of the Philippines operations should support 1QFY27, while new customer wins provide longer-term upside into FY28. At 8.8x FY28F PE and 0.5x P/B, valuations remain undemanding. Maintain BUY with a target price of RM0.35.
What’s Inside
Sector Update | Telecommunications
- DNB said it has completed a RM5.2b syndicated Islamic term financing exercise, as MOF prepares to transfer its DNB shareholding to CelcomDigi, Maxis and YTL Power. MOF will retain a golden share in DNB. This news is within expectations, as CelcomDigi and Maxis had previously guided for the transfer of MOF’s stake in early 4Q26. Maintain MARKET WEIGHT. Top picks: Maxis and CelcomDigi.
Market Spotlight
- The FBMKLCI slid 20.81pt to close at 1,630.36 yesterday, dragged by profit taking on index-linked stocks.
- US stocks were higher after the close on Thursday, as gains in the oil & gas, industrials and utilities sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Agmo Holdings | AGMO MK
- Trading Buy Range: RM0.275-0.28
Elsoft Research | ELSR MK
- Trading Buy Range: RM0.28-0.285
Genetec Technology | GENE MK
- Trading Buy Range: RM0.34-0.345
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
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.
