Key Indices
Top Stories
Strategy | Budget 2027: More Cheer For Main Street
- The Fifth MADANI Budget is broadly market-neutral, offering selective opportunities through a larger spending and investment envelope alongside continued fiscal consolidation. Key measures include greater investment in grid infrastructure and renewable energy, higher cash assistance, personal income tax relief, minimum wage increases and expanded social welfare, complemented by stronger support for high-value industries, semiconductors and AI development. Net beneficiaries include utilities, renewable energy, consumer, affordable housing, E&E and tourism, although higher labour costs could pressure margins among labour-intensive players.
New Economy Conference | HE Group (HEGROUP MK/NOT RATED/RM1.11)
- • HE is scaling up on strong DC demand, with its orderbook reaching a record RM441m following its largest RM124m contract win. Its RM1.6b tender book, around 60% DC-related, provides further growth potential. Semiconductor expansion and retrofitting works offer diversification, while subsequent DC campus phases support orderbook replenishment. At an implied 27-30x 2026F PE, valuation is broadly in line with peers and justifiable by an anticipated 50-60% EPS growth, with further upside from CRESS and 275kV opportunities.
Market Spotlight
- The FBMKLCI rose 7.44pt to close at 1,608.45 last Friday following strong buying interest in blue chips buoyed by the positive sentiment in the overnight US market.
- US stocks were higher after the close on Friday, as gains in the healthcare, consumer services and basic materials sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Aeon Co. (M) | AEON MK
- Trading Buy Range: RM0.975-0.98
EG Industries | EG MK
- Trading Buy Range: RM1.81-1.82
Gadang Holdings | GADG MK
- Trading Buy Range: RM0.175-0.18
Top Stories
Strategy | Budget 2027: More Cheer For Main Street
- The Fifth MADANI Budget is broadly market-neutral, offering selective opportunities through a larger spending and investment envelope alongside continued fiscal consolidation. Key measures include greater investment in grid infrastructure and renewable energy, higher cash assistance, personal income tax relief, minimum wage increases and expanded social welfare, complemented by stronger support for high-value industries, semiconductors and AI development. Net beneficiaries include utilities, renewable energy, consumer, affordable housing, E&E and tourism, although higher labour costs could pressure margins among labour-intensive players.
New Economy Conference | HE Group (HEGROUP MK/NOT RATED/RM1.11)
- • HE is scaling up on strong DC demand, with its orderbook reaching a record RM441m following its largest RM124m contract win. Its RM1.6b tender book, around 60% DC-related, provides further growth potential. Semiconductor expansion and retrofitting works offer diversification, while subsequent DC campus phases support orderbook replenishment. At an implied 27-30x 2026F PE, valuation is broadly in line with peers and justifiable by an anticipated 50-60% EPS growth, with further upside from CRESS and 275kV opportunities.
Market Spotlight
- The FBMKLCI rose 7.44pt to close at 1,608.45 last Friday following strong buying interest in blue chips buoyed by the positive sentiment in the overnight US market.
- US stocks were higher after the close on Friday, as gains in the healthcare, consumer services and basic materials sectors led shares higher.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Aeon Co. (M) | AEON MK
- Trading Buy Range: RM0.975-0.98
EG Industries | EG MK
- Trading Buy Range: RM1.81-1.82
Gadang Holdings | GADG MK
- Trading Buy Range: RM0.175-0.18
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.
