This article first appeared in Capital, The Edge Malaysia Weekly on March 9, 2026 - March 15, 2026

Target price: RM4.08 ADD

CGS INTERNATIONAL (MARCH 2): IOI Properties Group Bhd (KL:IOIPG) reported a stronger 2QFY26 core net profit of RM200.6 million (+24% quarter on quarter [q-o-q], +110% year on year [y-o-y]), after excluding RM510 million in net fair value gains of investment properties. This lifted 1HFY26 core net profit to RM362.9 million (+113% y-o-y), which we deem as above expectations despite accounting for 48% of our and Bloomberg consensus estimates, as we anticipate stronger quarterly earnings ahead from accelerated progress billing and improved Singapore investment properties’ earnings.

Despite IOIPG’s strong share price performance (+30% as at YTD February 2026), we see further upside driven by (i) our expectation for accelerated earnings from its Singapore operations, ii) meaningful interest cost savings from Singapore dollar-denominated borrowings, and (iii) incremental earnings from the Banting land sale in Selangor to Bridge Data Centres Malaysia VII Sdn Bhd. We expect Singapore operations to be a key earnings catalyst in FY26, underpinned by sustained growth momentum at IOI Central Boulevard Towers (ICBT) and South Beach.

In our view, this is backed by South Beach’s first fully consolidated FY26 earnings following the 50.1% acquisition while ICBT is on track to convert 95% committed occupancy into physical occupancy of over 85% by end-FY26 versus 50% at end-FY25, collectively adding an estimated RM113 million to FY26 profit after tax (15% of our forecasts).

In addition, declining interest rates in Singapore should provide a structural uplift, with Singapore dollar-denominated borrowings comprising 84% of IOIPG’s total debt as at 1QFY26. The three-month Singapore overnight rate average has fallen by over 150 basis points since January 2025 to 1.14% (as at Feb 11, 2026), translating into RM250 million in annual interest savings, which were already embedded in our forecasts.

Following IOIPG’s strong share price performance, we also view potential entry into FBM KLCI as an incremental rerating catalyst. In our view, entry into the bellwether index would meaningfully boost a stock’s exposure to a larger pool of institutional funds, further lifting its share price performance and trading liquidity.

Target price: RM6.18 BUY

CIMB SECURITIES (MARCH 2): MBM Resources Bhd’s (KL:MBMR) core net profit rose 13.9% q-o-q to RM101 million in 4QFY25, mainly driven by stronger contributions from its 22.5%-owned associate Perodua and a favourable foreign exchange following the appreciation of the ringgit against the US dollar. Perodua’s sales volume increased 17.9% q-o-q to a record 104,810 units, boosted by year-end promotions. Stronger total industry volume (TIV) deliveries in 4Q2025 also lifted pre-tax profit for the auto parts manufacturing division by 35.5% q-o-q.

We have raised our FY26-27 EPS forecasts by 9%-10% to reflect (i) the strengthening of the ringgit, which benefits automakers and component manufacturers, and (ii) sustained sales momentum at Perodua. Although we project TIV to decline by 2.5% y-o-y in 2026, we expect Perodua to maintain flattish sales volumes, supported by new model launches, despite intensifying competition from Proton.

Although MBMR did not declare a dividend for the quarter, we see scope for a final payout, given that the group typically announces one around April. Accordingly, we expect a final DPS of 15 sen in April 2026 (versus 9 sen in April 2025). MBMR continues to offer an attractive FY26-27 dividend yield of 9%, supported by a healthy net cash position of RM215 million, or 55 sen per share, as at end-December 2025.

Target price: RM14.75 OUTPERFORM

KENANGA RESEARCH (MARCH 2): PPB Group Bhd’s (KL:PPB) FY25 core net profit came in 3% within Kenanga Research’s and 9% below consensus estimates after excluding a non-cash RM4.17 billion impairment against the carrying value of 19%-associate Wilmar International Ltd. While fines, legal cases and write-offs at Wilmar did dampen investment sentiment on PPB and led to the impairment against Wilmar’s carrying value, we believe this negativity is abating.

Despite the headline losses, core FY25 earnings recovered well, up 17% y-o-y. We expect this growth trajectory to continue into FY26-27, underpinned by the growing Asia-Pacific middle-income group’s demand for more entry-level fast moving consumer goods (FMCG) food items and mass entertainment.

PPB’s FY25 underlying core earnings recovered well. While volatile earnings can be expected from commodity trading positions at both Wilmar and PPB’s grains & agribusiness unit, their integrated chain, from upstream agriculture to refining-cum-processing and ownership of FMCG brands, has demonstrated resilience. Wilmar has strong food FMCG exposure in China and India, while PPB has flour, feed, food and film exhibition businesses in Southeast Asia.

Trading deeply below book value with prospective PER of below 10 times and gross dividend yield of around 4%, we believe PPB’s downside is limited.

Target price: 55 sen BUY

RHB RESEARCH (MARCH 3): Following Cnergenz Bhd’s (KL:CNERGEN) post-results briefing, we remain constructive that FY25 marked the earnings trough, with FY26 shaping up as a recovery year supported by strong order momentum, near-term revenue visibility and margin normalisation. Management guided for a meaningful rebound in profitability from 1QFY26, with FY26 potentially establishing a new earnings base as mass production ramps up, supported by carry-forward order recognition and a more favourable revenue mix from new business segments.

The tender pipeline remains robust at RM100 million, with several projects secured and additional opportunities in advanced negotiation stages. Projects span Southeast Asia, driven primarily by electronics manufacturing services customers.

Management expects to close additional projects by 1Q26 and confirmed existing capacity is sufficient to support near-term growth, with the new plant plan remaining on track with a 2H27 completion target. Notably, RM10 million has already been secured for smart factory projects, with further awards expected to contribute to FY26 order intake.

We maintain our FY26 earnings forecasts as core assumptions remain intact, with FY26 shaping up as a new earnings base supported by order momentum, margin normalisation and original design manufacturing/original equipment manufacturing contribution.

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