This article first appeared in Capital, The Edge Malaysia Weekly on April 13, 2026 - April 19, 2026

Target price: 79 sen OUTPERFORM

KENANGA RESEARCH (APRIL 6): Cheeding Holdings Bhd (KL:CHEEDING) is a pure-play transmission specialist on Bursa Malaysia with 500kV technical capability, a licence held by very few players. This positions the group as a strategic beneficiary of Tenaga Nasional Bhd’s (KL:TENAGA) Regulatory Period 4 (RP4) cycle and the upcoming Asean Power Grid (APG) rollout. As a Tenaga-qualified “Green Lane” contractor, the group is also positioned to capture growth from the data centre trend.

Cheeding offers strong near-term earnings visibility, where about 54% of its RM184 million order book is scheduled for completion in FY27 (ended March 31). Together with a current ~RM250 million tender pipeline, from which we expect another RM50 million to RM62 million of jobs to be secured, this supports a 22% earnings growth outlook. Given the above, our target price, which is based on a PER of 15 times, is seen as well justified for this underappreciated backbone proxy.

Backed by a 19-year track record with Tenaga, Cheeding remains a key RP4 beneficiary, driving a two-year core net profit CAGR of 25%. Tenaga plans to allocate RM13 billion to transmission and distribution under RP4. Transmission is Cheeding’s core earnings driver, contributing 69% to FY25 revenue. The surge in 275kV-500kV substation projects signals a sustained pipeline for tower works under RP4. Under RP4, Cheeding has secured RM60 million in transmission contracts year to date, doubling from the RP3 amount. With more than 20 projects completed in Peninsular Malaysia, Cheeding is well positioned to accelerate transmission rollout under RP4, including growing its substation business.

Cheeding is benefiting from surging demand for underground utility solutions driven by Malaysia’s data centre expansion. This shift is reflected by the fact that in its RM248 million tender book, 51% of projects are data centre-linked. Such contracts typically span only 12 months, facilitating faster earnings recognition versus standard utility projects. Currently contributing 29% to revenue, we expect this division to be a core growth engine, with underground engineering, procurement, construction and commissioning (EPCC) projected to deliver a higher CAGR of 29% from FY25 to FY27.

We initiate coverage on Cheeding with an “outperform” call and a target price based on 15 times FY27 EPS. We expect a maiden dividend payout of one sen.

Target price: 91 sen BUY

PHILLIP CAPITAL (APRIL 7): We initiate coverage on CBH Engineering Holdings Bhd (KL:CBHB) with a “buy” recommendation and 12-month target price of 91 sen, based on a target PER of 18 times on 2027 estimated EPS.

We like CBH for its compelling growth prospects as a direct proxy to Malaysia’s accelerating power infrastructure investment cycle, supported by its proven track record in executing hyperscaler projects, above-industry margin profile and asset-light business model that delivers superior return on equity (ROE). At a 2026 PER of 12 times, we see substantial rerating potential as earnings growth accelerates alongside supportive long-term industry tailwinds.

We estimate a sizeable RM5 billion to RM7 billion addressable substation opportunity supported by the 5gw data centre pipeline. Order book visibility remains strong, with its unbilled order book reaching a record RM592 million, about 90% of which is tied to data centre projects and largely expected to be recognised in 2026. We project a three-year net profit CAGR of 38% in 2025-2028, underpinned by sustained order book replenishment from data centre infrastructure demand and above-industry margin profile. Our projections assume RM700 million to RM800 million in replenishment in 2026-2028.

Target price: RM24.35 BUY

TA SECURITIES (APRIL 7): In tandem with our in-house economic growth projection of 4.3% to 4.7% for 2026, we expect the general insurance industry to expand at a similar pace, supported by resilient domestic demand and sustained investment growth. For Allianz Malaysia Bhd (KL:ALLIANZ), we anticipate the group to continue outperforming the industry, with gross written premium growth of about 7.4%, further strengthening its leadership in the general insurance segment.

This is expected to lift its market share to about 15.5%, from 15.2% in 2025. Key growth drivers include higher premium income from pricing adjustments, Allianz General Insurance Co (M) Bhd’s strong 40% market share in the new car segment and gradual gains in non-motor market share through a stronger presence in fire and travel insurance, including specialised segments such as data centres. In terms of underwriting performance, we project the FY26 combined ratio to remain flattish at 88%, compared with 87.9% in FY2025.

Additionally, Allianz will continue to leverage tariff liberalisation under Phase 2B, which permits adjustments of up to 20%, an increase from 15% previously. We maintain our “buy” call and SOP-based target price.

Target price: 98 sen ADD

CGS INTERNATIONAL (APRIL 6): MyNews Holdings Bhd’s (KL:MYNEWS) growth appears intact despite near-term cost pressures, as we expect earnings to recover in the second half of FY26 (ended Oct 31) following seasonal softness. Management is focused on store expansion (about 60 outlets) and improving profitability of CU stores, amid geopolitical and demand volatility and ongoing restructuring. MyNews trades at an undemanding 2026 PER of 13.8 times (versus local and regional peers’ 15 to 25 times). We reiterate our “add” call, with our target price lowered from RM1.

We cut our FY26/FY27/FY28 core net profits by 22%/5%/2% following its 1QFY26 briefing. Management confirmed that footfall at its store at Kuala Lumpur International Airport had been negatively affected since the start of the Middle East conflict. However, it noted that the resulting reduction in tourist arrivals from the Middle East and Europe was mitigated by stronger arrivals from China and domestic travellers.

As 2QFY26 should be seasonally weaker due to Ramadan, we expect earnings to pick up in 2HFY26. We estimate MyNews’ revenue to rise at a three-year CAGR of 8.3% over FY25-FY28F, on the back of new stores (about 60 a year versus 30 in 2024).

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