Good Morning All,
Here’s our IPO note on EcoSys (Malaysia) Berhad (ECOSYS): Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
We assign a fair value of RM0.32 per share for ECOSYS, indicating an 18.5% upside from the IPO price of RM0.27. Our valuation is derived by ascribing a target P/E multiple of 14.9x to mid-FY27 core EPS of 2.14 sen, representing a 50% discount to the peer average forward P/E of 29.7x.
Investment highlights include:
(i) Higher-margin abatement provides a stronger base for earnings growth
(ii) Indian manufacturing expansion provides a demonstrated growth avenue
(iii) Proprietary technology supports customised equipment sales and follow-on opportunities
(iv) Secured purchase orders provide delivery visibility into FY27
(v) Targeted process investment supports throughput at Simpang Ampat
Research Team, M+Global
28 Sep 26
Here’s our IPO note on EcoSys (Malaysia) Berhad (ECOSYS): Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
We assign a fair value of RM0.32 per share for ECOSYS, indicating an 18.5% upside from the IPO price of RM0.27. Our valuation is derived by ascribing a target P/E multiple of 14.9x to mid-FY27 core EPS of 2.14 sen, representing a 50% discount to the peer average forward P/E of 29.7x.
Investment highlights include:
(i) Higher-margin abatement provides a stronger base for earnings growth
(ii) Indian manufacturing expansion provides a demonstrated growth avenue
(iii) Proprietary technology supports customised equipment sales and follow-on opportunities
(iv) Secured purchase orders provide delivery visibility into FY27
(v) Targeted process investment supports throughput at Simpang Ampat
Research Team, M+Global
28 Sep 26
👍2
M+ Global Market Wrap - 28Sep26
FBM KLCI: 1,670.02 pts (-1.60 pts, -0.10%)
Following the rejection by President Trump of a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, which led to a rebound in oil prices, regional markets traded broadly lower, including the local bourse, with losses in key heavyweights such as YTLPOWR (-11.0 sen) and MAYBANK (-6.0 sen) dragged the FBM KLCI lower. Market breadth was negative, with 748 losers outpacing 388 gainers. Sector-wise, Transportation & Logistics (+0.51%) outperformed, led by gains in WPRTS (+5.0 sen) and MTTSL (+2.0 sen), while Healthcare (-2.2%) declined the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.190 (UNCH)
JAKS (4723): RM0.185 (+1.5 sen)
EVOCOM (0473): RM0.130 (-)
Top 3 Gainer stocks:
SIME (4197): RM2.51 (+4.0 sen)
GAMUDA (5398): RM4.91 (+3.0 sen)
PMETAL (8869): RM7.52 (+6.0 sen)
Top 3 Loser stocks:
MPI (3867): RM42.20 (-198.0 sen)
UTDPLT (2089): RM31.60 (-98.0 sen)
F&N (3689): RM22.22 (-78.0 sen)
Volume: 3.117 bn
Value: RM2.406bn
Market Breadth: ⬆️388 ⬇️748
Crude Palm Oil: RM4,667 (-RM5, -0.11%)
Dow Futures: 51,568.80 pts (-259.80 pts)
**Source: M+ Global, Bloomberg **
FBM KLCI: 1,670.02 pts (-1.60 pts, -0.10%)
Following the rejection by President Trump of a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, which led to a rebound in oil prices, regional markets traded broadly lower, including the local bourse, with losses in key heavyweights such as YTLPOWR (-11.0 sen) and MAYBANK (-6.0 sen) dragged the FBM KLCI lower. Market breadth was negative, with 748 losers outpacing 388 gainers. Sector-wise, Transportation & Logistics (+0.51%) outperformed, led by gains in WPRTS (+5.0 sen) and MTTSL (+2.0 sen), while Healthcare (-2.2%) declined the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.190 (UNCH)
JAKS (4723): RM0.185 (+1.5 sen)
EVOCOM (0473): RM0.130 (-)
Top 3 Gainer stocks:
SIME (4197): RM2.51 (+4.0 sen)
GAMUDA (5398): RM4.91 (+3.0 sen)
PMETAL (8869): RM7.52 (+6.0 sen)
Top 3 Loser stocks:
MPI (3867): RM42.20 (-198.0 sen)
UTDPLT (2089): RM31.60 (-98.0 sen)
F&N (3689): RM22.22 (-78.0 sen)
Volume: 3.117 bn
Value: RM2.406bn
Market Breadth: ⬆️388 ⬇️748
Crude Palm Oil: RM4,667 (-RM5, -0.11%)
Dow Futures: 51,568.80 pts (-259.80 pts)
**Source: M+ Global, Bloomberg **
M+ Global Market Update – 29Sep26
Nvidia Buyback and New AI Security Layer In Focus
US: With the 10-year Treasury yield touching a 19-year high of 5.27% before easing to 5.23% amid elevated energy costs and inflation concerns, we expect Wall Street to remain soft. Nvidia (NVDA) may stay in focus after announcing a USD150bn expansion to its share repurchase programme and unveiling new AI security software to prevent rogue autonomous agents. Any formalisation of AI licensing channels during the upcoming US–China AI dialogue in November could also provide a re-rating catalyst, as its guidance assumes no Data Center compute revenue from China. Lastly, amid surging advanced-packaging demand, traders may also position into KLA Corporation (KLAC).
MY: Tracking Wall Street’s negative overnight performance, we expect the FBM KLCI to extend its losses today. Meanwhile, investors are likely to remain focused on potential beneficiary sectors ahead of the Budget 2027 announcement next week, including Construction, Utilities, Technology and Consumer. Stock-wise, we favour BETA, supported by (i) strong earnings momentum following a 53.2% YoY increase in 1QFY27 net profit, (ii) its deeply entrenched relationship with Perodua, and (iii) regional export market expansion following the acquisition of automotive electronics manufacturer Sanshin. Lastly, industrial solutions and semiconductor engineering provider ECOSYS will close its IPO application closes today.
Stocks to watch:
Consumer: MRDIY, *QL*, *SIME*
Technology: INARI, INFOM, *OGX*
O&G: *PANTECH*, PGLOBAL
Shipping: *MTTSL*
Construction: *GAMUDA*
Financial: MNRB
**Source: M+ Global**
Nvidia Buyback and New AI Security Layer In Focus
US: With the 10-year Treasury yield touching a 19-year high of 5.27% before easing to 5.23% amid elevated energy costs and inflation concerns, we expect Wall Street to remain soft. Nvidia (NVDA) may stay in focus after announcing a USD150bn expansion to its share repurchase programme and unveiling new AI security software to prevent rogue autonomous agents. Any formalisation of AI licensing channels during the upcoming US–China AI dialogue in November could also provide a re-rating catalyst, as its guidance assumes no Data Center compute revenue from China. Lastly, amid surging advanced-packaging demand, traders may also position into KLA Corporation (KLAC).
MY: Tracking Wall Street’s negative overnight performance, we expect the FBM KLCI to extend its losses today. Meanwhile, investors are likely to remain focused on potential beneficiary sectors ahead of the Budget 2027 announcement next week, including Construction, Utilities, Technology and Consumer. Stock-wise, we favour BETA, supported by (i) strong earnings momentum following a 53.2% YoY increase in 1QFY27 net profit, (ii) its deeply entrenched relationship with Perodua, and (iii) regional export market expansion following the acquisition of automotive electronics manufacturer Sanshin. Lastly, industrial solutions and semiconductor engineering provider ECOSYS will close its IPO application closes today.
Stocks to watch:
Consumer: MRDIY, *QL*, *SIME*
Technology: INARI, INFOM, *OGX*
O&G: *PANTECH*, PGLOBAL
Shipping: *MTTSL*
Construction: *GAMUDA*
Financial: MNRB
**Source: M+ Global**
M+ Market Buzz - 29Sep26
Dow Jones: 51,487.16 pts (-347.01pts, -0.67%)
⬆️ Resistance: 54200
⬇️ Support: 51000
FBM KLCI: 1,670.02pts (-1.60pts, -0.10%)
⬆️ Resistance: 1760
⬇️ Support: 1650
HSI Index: 24,642.51 pts (+132.42pts, +0.54%)
⬆️ Resistance: 26200
⬇️ Support: 24100
Crude Palm Oil: RM4,649 (-RM15, -0.32%)
⬆️ Resistance: 5120
⬇️ Support: 4394
Brent Oil: $98.75 (+$1.16, +1.18%)
⬆️ Resistance: 112.20
⬇️ Support: 94.10
Gold: $4,114.99 (-$169.99, -3.97%)
⬆️ Resistance: 4540
⬇️ Support: 4070
Source: Bloomberg, M+Global
Dow Jones: 51,487.16 pts (-347.01pts, -0.67%)
⬆️ Resistance: 54200
⬇️ Support: 51000
FBM KLCI: 1,670.02pts (-1.60pts, -0.10%)
⬆️ Resistance: 1760
⬇️ Support: 1650
HSI Index: 24,642.51 pts (+132.42pts, +0.54%)
⬆️ Resistance: 26200
⬇️ Support: 24100
Crude Palm Oil: RM4,649 (-RM15, -0.32%)
⬆️ Resistance: 5120
⬇️ Support: 4394
Brent Oil: $98.75 (+$1.16, +1.18%)
⬆️ Resistance: 112.20
⬇️ Support: 94.10
Gold: $4,114.99 (-$169.99, -3.97%)
⬆️ Resistance: 4540
⬇️ Support: 4070
Source: Bloomberg, M+Global
Good Morning All,
We issued a company update report on our coverage stock AWC Berhad: mplusonline.com
Newsbreak
📌 AWC Berhad announced that its indirect wholly-owned subsidiary, Stream Industries Sdn Bhd (STREAM), has on 28 September 2026 entered into two agreements with Gujarat International Finance Tec-City Company Limited for a combined contract sum of RM13.1m. The contracts entail supplying Automated Waste Collection System (AWCS) connections for developments in the Domestic Tariff Area (DTA) for RM8.4m and Special Economic Zone (SEZ) for RM4.7m within GIFT City in Gandhinagar, Gujarat, India. Both contracts carry a duration of 36 months from the Notice to Commence. To facilitate local operations, STREAM is incorporating a legal entity in India, to which the agreements will subsequently be novated.
M+ Global View
📌 We view this contract win positively, as it directly validates management's strategy highlighted during the recent 4QFY26 post-briefing note, to pivot its Environment division toward public infrastructure and smart city developments in India. Securing AWCS project in GIFT City establishes a vital execution track record in the region, serving as an operational hedge against ongoing project delays in the Middle East while complementing core regional markets in Malaysia and Singapore.
📌 Executed over a 36-month tenure, the project translates to an annualized top-line contribution of ~RM4.4m. Assuming a conservative NP margin of 8.0%–10.0% for environmental engineering turnkey works, the contracts are expected to contribute approximately RM1.1m–RM1.3m in cumulative net profit (~RM0.35m–RM0.44m per annum) across FY27f–FY29f.
Valuation & Recommendation
📌 Forecast. As this contract win falls within our order book replenishment assumptions for the Environment division, we maintain our core PAT forecasts for FY27f–FY29f.
📌 Maintain BUY with a higher TP of RM0.80. We maintain our BUY recommendation with a higher TP of RM0.80 (from RM0.65), based on a higher P/E multiple of 12.0x (from 10.0x) pegged to our mid-FY28f fully diluted EPS of 6.69 sen. The valuation rerating reflects improving earnings visibility, underpinned by a record RM100.0m Engineering order book, largely driven by DC-related contract wins, together with the India AWCS contract, which validates the Group’s regional expansion strategy and provides greater geographic diversification against ongoing Middle East project delays. Improved trading liquidity since early September further supports a narrowing of the stock’s historical liquidity discount. Concurrently, we roll forward our valuation base from FY27f to mid-FY28f as part of our annual report update.
Research Team, M+Global
29 Sep 2026
We issued a company update report on our coverage stock AWC Berhad: mplusonline.com
Newsbreak
📌 AWC Berhad announced that its indirect wholly-owned subsidiary, Stream Industries Sdn Bhd (STREAM), has on 28 September 2026 entered into two agreements with Gujarat International Finance Tec-City Company Limited for a combined contract sum of RM13.1m. The contracts entail supplying Automated Waste Collection System (AWCS) connections for developments in the Domestic Tariff Area (DTA) for RM8.4m and Special Economic Zone (SEZ) for RM4.7m within GIFT City in Gandhinagar, Gujarat, India. Both contracts carry a duration of 36 months from the Notice to Commence. To facilitate local operations, STREAM is incorporating a legal entity in India, to which the agreements will subsequently be novated.
M+ Global View
📌 We view this contract win positively, as it directly validates management's strategy highlighted during the recent 4QFY26 post-briefing note, to pivot its Environment division toward public infrastructure and smart city developments in India. Securing AWCS project in GIFT City establishes a vital execution track record in the region, serving as an operational hedge against ongoing project delays in the Middle East while complementing core regional markets in Malaysia and Singapore.
📌 Executed over a 36-month tenure, the project translates to an annualized top-line contribution of ~RM4.4m. Assuming a conservative NP margin of 8.0%–10.0% for environmental engineering turnkey works, the contracts are expected to contribute approximately RM1.1m–RM1.3m in cumulative net profit (~RM0.35m–RM0.44m per annum) across FY27f–FY29f.
Valuation & Recommendation
📌 Forecast. As this contract win falls within our order book replenishment assumptions for the Environment division, we maintain our core PAT forecasts for FY27f–FY29f.
📌 Maintain BUY with a higher TP of RM0.80. We maintain our BUY recommendation with a higher TP of RM0.80 (from RM0.65), based on a higher P/E multiple of 12.0x (from 10.0x) pegged to our mid-FY28f fully diluted EPS of 6.69 sen. The valuation rerating reflects improving earnings visibility, underpinned by a record RM100.0m Engineering order book, largely driven by DC-related contract wins, together with the India AWCS contract, which validates the Group’s regional expansion strategy and provides greater geographic diversification against ongoing Middle East project delays. Improved trading liquidity since early September further supports a narrowing of the stock’s historical liquidity discount. Concurrently, we roll forward our valuation base from FY27f to mid-FY28f as part of our annual report update.
Research Team, M+Global
29 Sep 2026
M+ Global Market Wrap - 29Sep26
FBM KLCI: 1,643.96 pts (-26.06 pts, -1.56%)
Negative market sentiment persisted amid elevated bond yields and rising oil prices, with the FBM KLCI (-1.56%) extending its decline to 1,643.96 points, weighed down by losses in CIMB (-21.0 sen) and MAYBANK (-17.0 sen). Market breadth remained negative, with 684 decliners against 412 gainers. Sector-wise, 11 of the 13 sectors closed in negative territory, with Energy (+0.80%) and REITs (+0.51%) the only sectors posting gains, while Financial Services (-1.72%) was the worst performer.
Top 3 Active stocks:
ZETRIX (0138): RM0.165 (-2.5 sen)
JAKS (4723): RM0.190 (+0.5 sen)
L&G (3174): RM0.205 (-1.5 sen)
Top 3 Gainer stocks:
SLVEST (0215): RM4.49 (+33.0 sen)
SAMAIDEN (0223): RM3.18 (+28.0 sen)
SCGBHD (0225): RM2.97 (+21.0 sen)
Top 3 Loser stocks:
MPI (3867): RM40.80 (-140.0 sen)
NESTLE (4707): RM89.00 (-104.0 sen)
F&N (3689): RM21.80 (-42.0 sen)
Volume: 3.315 bn
Value: RM2.956bn
Market Breadth: ⬆️412 ⬇️684
Crude Palm Oil: RM4,622 (-RM42, -0.90%)
Dow Futures: 51,412.10 pts (-69.60 pts)
**Source: M+ Global, Bloomberg **
FBM KLCI: 1,643.96 pts (-26.06 pts, -1.56%)
Negative market sentiment persisted amid elevated bond yields and rising oil prices, with the FBM KLCI (-1.56%) extending its decline to 1,643.96 points, weighed down by losses in CIMB (-21.0 sen) and MAYBANK (-17.0 sen). Market breadth remained negative, with 684 decliners against 412 gainers. Sector-wise, 11 of the 13 sectors closed in negative territory, with Energy (+0.80%) and REITs (+0.51%) the only sectors posting gains, while Financial Services (-1.72%) was the worst performer.
Top 3 Active stocks:
ZETRIX (0138): RM0.165 (-2.5 sen)
JAKS (4723): RM0.190 (+0.5 sen)
L&G (3174): RM0.205 (-1.5 sen)
Top 3 Gainer stocks:
SLVEST (0215): RM4.49 (+33.0 sen)
SAMAIDEN (0223): RM3.18 (+28.0 sen)
SCGBHD (0225): RM2.97 (+21.0 sen)
Top 3 Loser stocks:
MPI (3867): RM40.80 (-140.0 sen)
NESTLE (4707): RM89.00 (-104.0 sen)
F&N (3689): RM21.80 (-42.0 sen)
Volume: 3.315 bn
Value: RM2.956bn
Market Breadth: ⬆️412 ⬇️684
Crude Palm Oil: RM4,622 (-RM42, -0.90%)
Dow Futures: 51,412.10 pts (-69.60 pts)
**Source: M+ Global, Bloomberg **
👏3
M+ Global Market Update – 30Sep26
Rising Yields May Cap AI Optimism
US: Wall Street remains under pressure from elevated long-dated yields, with the 30-year Treasury yield reaching a 24-year high of 5.62%, weighing on equity valuations. Attention now turns to AI-related earnings, with Micron reporting FY4Q results today, putting memory pricing and HBM demand in focus. NVIDIA also remains on the radar after increasing its share repurchase authorisation by USD150.0bn to USD235.0bn through FY2028, reflecting management’s confidence in the long-term AI opportunity. Meanwhile, Microsoft continues to benefit from robust AI and cloud demand, with FY4Q Microsoft Cloud revenue rising 27.0% YoY to USD59.3bn.
MY: Locally, we anticipate sustained interest in data centre infrastructure and regional expansion plays as Malaysia strengthens its digital infrastructure ecosystem. PWRWELL could attract attention following its strategic collaboration with Socomec to develop integrated power train units (PTUs) combining power distribution and UPS systems for large data centres and hyperscale facilities. Meanwhile, UMSINT has proposed a RM450.0m private placement, with RM332.0m earmarked for its Penang expansion and a further RM111.0m for projects in Vietnam and Singapore. KGB also remains in focus following its largest-ever contract win worth RM1.8bn (14 Sep 2026), lifting its order book to more than RM3.6bn and extending earnings visibility through 2029.
Stocks to watch:
Technology: AMBEST, CNERGEN, *NOTION*, *OGX*
Construction: AWC, *GAMUDA*, *IAB*
Chemical: POLYMER
Solar: *SUNLOGY*
Healthcare: *KPJ*
Packaging: L&PBHD
**Source: M+ Global**
Rising Yields May Cap AI Optimism
US: Wall Street remains under pressure from elevated long-dated yields, with the 30-year Treasury yield reaching a 24-year high of 5.62%, weighing on equity valuations. Attention now turns to AI-related earnings, with Micron reporting FY4Q results today, putting memory pricing and HBM demand in focus. NVIDIA also remains on the radar after increasing its share repurchase authorisation by USD150.0bn to USD235.0bn through FY2028, reflecting management’s confidence in the long-term AI opportunity. Meanwhile, Microsoft continues to benefit from robust AI and cloud demand, with FY4Q Microsoft Cloud revenue rising 27.0% YoY to USD59.3bn.
MY: Locally, we anticipate sustained interest in data centre infrastructure and regional expansion plays as Malaysia strengthens its digital infrastructure ecosystem. PWRWELL could attract attention following its strategic collaboration with Socomec to develop integrated power train units (PTUs) combining power distribution and UPS systems for large data centres and hyperscale facilities. Meanwhile, UMSINT has proposed a RM450.0m private placement, with RM332.0m earmarked for its Penang expansion and a further RM111.0m for projects in Vietnam and Singapore. KGB also remains in focus following its largest-ever contract win worth RM1.8bn (14 Sep 2026), lifting its order book to more than RM3.6bn and extending earnings visibility through 2029.
Stocks to watch:
Technology: AMBEST, CNERGEN, *NOTION*, *OGX*
Construction: AWC, *GAMUDA*, *IAB*
Chemical: POLYMER
Solar: *SUNLOGY*
Healthcare: *KPJ*
Packaging: L&PBHD
**Source: M+ Global**
M+ Market Buzz - 30Sep26
Dow Jones: 51,349.92 pts (-131.59pts, -0.26%)
⬆️ Resistance: 54,200
⬇️ Support: 51,000
FBM KLCI: 1,643.96pts (-26.06pts, -1.56%)
⬆️ Resistance: 1,760
⬇️ Support: 1,650
HSI Index: 24,523.57 pts (-118.94pts, -0.48%)
⬆️ Resistance: 26,200
⬇️ Support: 24,100
Crude Palm Oil: RM4,624 (+RM19, +0.41%)
⬆️ Resistance: 5,120
⬇️ Support: 4,720
Brent Oil: $102.59 (-$2.70, -2.56%)
⬆️ Resistance: 112.20
⬇️ Support: 94.10
Gold: $4,182.31 (-$0.84, -0.02%)
⬆️ Resistance: 4,540
⬇️ Support: 4,210
Source: Bloomberg, M+Global
Dow Jones: 51,349.92 pts (-131.59pts, -0.26%)
⬆️ Resistance: 54,200
⬇️ Support: 51,000
FBM KLCI: 1,643.96pts (-26.06pts, -1.56%)
⬆️ Resistance: 1,760
⬇️ Support: 1,650
HSI Index: 24,523.57 pts (-118.94pts, -0.48%)
⬆️ Resistance: 26,200
⬇️ Support: 24,100
Crude Palm Oil: RM4,624 (+RM19, +0.41%)
⬆️ Resistance: 5,120
⬇️ Support: 4,720
Brent Oil: $102.59 (-$2.70, -2.56%)
⬆️ Resistance: 112.20
⬇️ Support: 94.10
Gold: $4,182.31 (-$0.84, -0.02%)
⬆️ Resistance: 4,540
⬇️ Support: 4,210
Source: Bloomberg, M+Global
👏2
Good Morning All,
We issued a company update report on our coverage stock Powerwell Holdings Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
Powerwell Holdings Berhad, through its wholly-owned subsidiary Powerwell International Sdn Bhd, has entered into a one-year Strategic Collaboration Agreement with Socomec Innovative Solution (Malaysia) Sdn Bhd to pursue large data centre and hyperscale opportunities in Malaysia. Under the arrangement, PISB will act as system integrator for power train units incorporating Socomec's UPS systems. The collaboration is non-exclusive and project-by-project, broadening PWRWELL's scope within the data centre power infrastructure value chain beyond its existing switchgear capabilities. This follows PWRWELL's largest-ever contract win of RM190.4m last week, lifting its unbilled orderbook to RM459.3m and YTD major contract wins to RM349.2m — representing 91.9% of our FY27f replenishment assumption.
Maintain BUY with TP of RM1.41. Forecasts are maintained for now pending formal contract awards under the collaboration. Our TP is based on 20.0x mid-FY28f EPS of 7.07 sen, implying 22.6% capital upside plus 1.7% dividend yield for 24.3% total return. With replenishment risk materially reduced and our FY26A–FY29f core earnings CAGR of 26.1% implying a PEG of c.0.8x, we see the Socomec tie-up as a further re-rating support for PWRWELL's longer-term data centre growth story.
Research Team, M+ Global
30 Sep 2026
We issued a company update report on our coverage stock Powerwell Holdings Berhad: Your Trusted Guide to Global Trading | Malacca Securities (mplusonline.com)
Powerwell Holdings Berhad, through its wholly-owned subsidiary Powerwell International Sdn Bhd, has entered into a one-year Strategic Collaboration Agreement with Socomec Innovative Solution (Malaysia) Sdn Bhd to pursue large data centre and hyperscale opportunities in Malaysia. Under the arrangement, PISB will act as system integrator for power train units incorporating Socomec's UPS systems. The collaboration is non-exclusive and project-by-project, broadening PWRWELL's scope within the data centre power infrastructure value chain beyond its existing switchgear capabilities. This follows PWRWELL's largest-ever contract win of RM190.4m last week, lifting its unbilled orderbook to RM459.3m and YTD major contract wins to RM349.2m — representing 91.9% of our FY27f replenishment assumption.
Maintain BUY with TP of RM1.41. Forecasts are maintained for now pending formal contract awards under the collaboration. Our TP is based on 20.0x mid-FY28f EPS of 7.07 sen, implying 22.6% capital upside plus 1.7% dividend yield for 24.3% total return. With replenishment risk materially reduced and our FY26A–FY29f core earnings CAGR of 26.1% implying a PEG of c.0.8x, we see the Socomec tie-up as a further re-rating support for PWRWELL's longer-term data centre growth story.
Research Team, M+ Global
30 Sep 2026
Good Afternoon All,
Following AEON Credit Service (M) Berhad's (AEONCR) 2Q27 results briefing, here is our quick take for investors:
📈 Investment Highlights
📌 Solid top-line growth, but 2Q profit hit by higher provisioning. Revenue grew a steady 7.8% YoY to RM1.31bn in 1H27, while receivables expanded 9.1% YoY to RM16.53bn — ahead of management's full-year ±8% target. However, 2Q27 PAT fell sharply to RM57.0m (-21.0% YoY, -39.0% QoQ) as impairment losses stepped up 15.9% QoQ to RM273.7m, driven by cost-of-living pressures on lower-income borrowers. On a 1H basis, PAT came in broadly flat at RM150.5m (+0.5% YoY), further weighed by RM39.4m in cumulative AEON Bank loss share.
📌 Superbike strategy paying off; portfolio mix improving. Superbike financing receivables surged 52.7% YoY to RM2.0bn, with premium scooter big-bikes now representing 59% of Superbike sales vs. 41% a year ago — reflecting a deliberate shift toward higher-scoring customers and better yield profiles.
📌 AI driving real cost savings. ACSM's AI Voice Bot scaled to handle 35% of all Day 0 collection calls by August 2026, up from just 10% at its February launch, with call attempts up 105% MoM at zero added headcount and promise-to-pay rates tracking 8% above human agents. Coverage has since expanded to D1 accounts, pointing to further efficiency gains ahead.
📌 Near-term earnings boost from write-off sale. Board approval has been secured for the Batch 10 write-off debt sale, with cash proceeds of RM20m–RM40m targeted by end-November 2026, providing a direct 3Q27 earnings uplift. An interim dividend of 13.00 sen per share (43.0% payout ratio) has also been declared, payable 5 November 2026.
💡 M+ Global View
📌 The 2Q profit drop looks alarming on the surface, but the story underneath is more nuanced — receivables growth is outpacing NPL formation (NPL improved 5bps QoQ to 2.55%), cost discipline remains intact (CIR: 27.8%), and the impairment step-up reflects macro stress that is being actively managed through AI-led collections and portfolio de-risking. The main drag on reported earnings remains AEON Bank, which contributed RM39.4m in loss share for 1H — a drag that should moderate as the digital bank scales toward its Year 5 breakeven.
📌 Key catalysts include: (i) Batch 10 write-off sale proceeds flowing through in 3Q27, (ii) AI Voice Bot expansion to D1 accounts reducing future credit costs, (iii) AEON360 ecosystem monetisation as partner onboarding accelerates toward full launch, and (iv) gradual reduction in AEON Bank loss drag as the balance sheet crosses RM1.1bn and financing scales.
Research Team, M+ Global
30 Sep 2026
Following AEON Credit Service (M) Berhad's (AEONCR) 2Q27 results briefing, here is our quick take for investors:
📈 Investment Highlights
📌 Solid top-line growth, but 2Q profit hit by higher provisioning. Revenue grew a steady 7.8% YoY to RM1.31bn in 1H27, while receivables expanded 9.1% YoY to RM16.53bn — ahead of management's full-year ±8% target. However, 2Q27 PAT fell sharply to RM57.0m (-21.0% YoY, -39.0% QoQ) as impairment losses stepped up 15.9% QoQ to RM273.7m, driven by cost-of-living pressures on lower-income borrowers. On a 1H basis, PAT came in broadly flat at RM150.5m (+0.5% YoY), further weighed by RM39.4m in cumulative AEON Bank loss share.
📌 Superbike strategy paying off; portfolio mix improving. Superbike financing receivables surged 52.7% YoY to RM2.0bn, with premium scooter big-bikes now representing 59% of Superbike sales vs. 41% a year ago — reflecting a deliberate shift toward higher-scoring customers and better yield profiles.
📌 AI driving real cost savings. ACSM's AI Voice Bot scaled to handle 35% of all Day 0 collection calls by August 2026, up from just 10% at its February launch, with call attempts up 105% MoM at zero added headcount and promise-to-pay rates tracking 8% above human agents. Coverage has since expanded to D1 accounts, pointing to further efficiency gains ahead.
📌 Near-term earnings boost from write-off sale. Board approval has been secured for the Batch 10 write-off debt sale, with cash proceeds of RM20m–RM40m targeted by end-November 2026, providing a direct 3Q27 earnings uplift. An interim dividend of 13.00 sen per share (43.0% payout ratio) has also been declared, payable 5 November 2026.
💡 M+ Global View
📌 The 2Q profit drop looks alarming on the surface, but the story underneath is more nuanced — receivables growth is outpacing NPL formation (NPL improved 5bps QoQ to 2.55%), cost discipline remains intact (CIR: 27.8%), and the impairment step-up reflects macro stress that is being actively managed through AI-led collections and portfolio de-risking. The main drag on reported earnings remains AEON Bank, which contributed RM39.4m in loss share for 1H — a drag that should moderate as the digital bank scales toward its Year 5 breakeven.
📌 Key catalysts include: (i) Batch 10 write-off sale proceeds flowing through in 3Q27, (ii) AI Voice Bot expansion to D1 accounts reducing future credit costs, (iii) AEON360 ecosystem monetisation as partner onboarding accelerates toward full launch, and (iv) gradual reduction in AEON Bank loss drag as the balance sheet crosses RM1.1bn and financing scales.
Research Team, M+ Global
30 Sep 2026
M+ Global Market Wrap - 30Sep26
FBM KLCI: 1,651.17 pts (+7.21 pts, +0.44%)
Amid a global bond market selloff and surging US Treasury yields, the local bourse traded on a cautious note as market breadth turned negative; there were 695 losers, outpacing 410 gainers. However, the key index gained momentum and was supported by TENAGA (+24.0 sen) and GAMUDA (+20.0 sen). Sector wise, Construction (+2.07%) outperformed, led by GAMUDA (+20.0 sen) and SUNCON (+9.0 sen), while Energy (-2.65%) lagged the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.160 (-0.5 sen)
VS (6963): RM0.280 (+4.5 sen)
JAKS (4723): RM0.205 (+1.5 sen)
Top 3 Gainer stocks:
NESTLE (4707): RM90.00 (+100.0 sen)
ALLIANZ (1163): RM21.62 (+76.0 sen)
UWC (5292): RM7.07 (+27.0 sen)
Top 3 Loser stocks:
HENGYUAN (4324): RM3.56 (-78.0 sen)
MPI (3867): RM40.40 (-40.0 sen)
KLK (2445): RM22.20 (-30.0 sen)
Volume: 3.315 bn
Value: RM2.956bn
Market Breadth: ⬆️410 ⬇️695
Crude Palm Oil: RM4,624 (-RM32, -0.82%)
Dow Futures: 51,349.92 pts (-131.59 pts)
**Source: M+Global, Bloomberg **
FBM KLCI: 1,651.17 pts (+7.21 pts, +0.44%)
Amid a global bond market selloff and surging US Treasury yields, the local bourse traded on a cautious note as market breadth turned negative; there were 695 losers, outpacing 410 gainers. However, the key index gained momentum and was supported by TENAGA (+24.0 sen) and GAMUDA (+20.0 sen). Sector wise, Construction (+2.07%) outperformed, led by GAMUDA (+20.0 sen) and SUNCON (+9.0 sen), while Energy (-2.65%) lagged the most.
Top 3 Active stocks:
ZETRIX (0138): RM0.160 (-0.5 sen)
VS (6963): RM0.280 (+4.5 sen)
JAKS (4723): RM0.205 (+1.5 sen)
Top 3 Gainer stocks:
NESTLE (4707): RM90.00 (+100.0 sen)
ALLIANZ (1163): RM21.62 (+76.0 sen)
UWC (5292): RM7.07 (+27.0 sen)
Top 3 Loser stocks:
HENGYUAN (4324): RM3.56 (-78.0 sen)
MPI (3867): RM40.40 (-40.0 sen)
KLK (2445): RM22.20 (-30.0 sen)
Volume: 3.315 bn
Value: RM2.956bn
Market Breadth: ⬆️410 ⬇️695
Crude Palm Oil: RM4,624 (-RM32, -0.82%)
Dow Futures: 51,349.92 pts (-131.59 pts)
**Source: M+Global, Bloomberg **
👍2
M+ Market Buzz - 1Oct26
Dow Jones: 50,906.05 pts (-443.87pts, -0.86%)
⬆️ Resistance: 53000
⬇️ Support: 49900
FBM KLCI: 1,651.17 pts (+7.21pts, +0.44%)
⬆️ Resistance: 1720
⬇️ Support: 1620
HSI Index: 24,613.27 pts (+89.70pts, +0.37%)
⬆️ Resistance: 25300
⬇️ Support: 23800
Crude Palm Oil: RM4,610 (+RM5, +0.11%)
⬆️ Resistance: 4910
⬇️ Support: 4490
Brent Oil: $98.03 (+$1.87, +1.94%)
⬆️ Resistance: 111.10
⬇️ Support: 99.80
Gold: $4,157.41 (-$1.48, -0.04%)
⬆️ Resistance: 4410
⬇️ Support: 4030
Source: Bloomberg, M+Global
Dow Jones: 50,906.05 pts (-443.87pts, -0.86%)
⬆️ Resistance: 53000
⬇️ Support: 49900
FBM KLCI: 1,651.17 pts (+7.21pts, +0.44%)
⬆️ Resistance: 1720
⬇️ Support: 1620
HSI Index: 24,613.27 pts (+89.70pts, +0.37%)
⬆️ Resistance: 25300
⬇️ Support: 23800
Crude Palm Oil: RM4,610 (+RM5, +0.11%)
⬆️ Resistance: 4910
⬇️ Support: 4490
Brent Oil: $98.03 (+$1.87, +1.94%)
⬆️ Resistance: 111.10
⬇️ Support: 99.80
Gold: $4,157.41 (-$1.48, -0.04%)
⬆️ Resistance: 4410
⬇️ Support: 4030
Source: Bloomberg, M+Global
👍3
M+ Global Market Update – 01Oct26
AI Momentum Builds Amid Mixed Markets
US: Wall Street may remain mixed as elevated Treasury yields continue to weigh on valuations, although softer-than-expected PCE data has eased near-term Fed hike concerns. Against this backdrop, AI and semiconductor momentum remain key supports. Micron is in focus following record 4QFY26 results and an upbeat outlook, reinforcing expectations of sustained AI-driven memory demand. Meanwhile, Hewlett Packard Enterprise could see continued interest after securing a USD1.2bn AI server order from Vultr and raising its networking growth outlook. AMD also remains on the radar following its USD8.2bn acquisition of World Labs, strengthening its capabilities across AI models, infrastructure and physical AI.
MY: Closer to home, we expect the FBM KLCI to remain mixed, although stronger semiconductor sentiment could continue to underpin selected technology counters. UWC could attract attention after FY26 net profit surged 132.0% YoY to RM93.8m, with 4QFY26 net profit rising nearly 130% YoY to RM37.6m on stronger semiconductor demand and a more favourable product mix. Meanwhile, KGB remains in focus after securing a fresh RM172.0m contract for an advanced data-storage manufacturing facility in Kuching, bringing total awards from the same customer to RM283.0m. Elsewhere, VIS may remain in focus following its improved earnings performance, supported by stronger machine sales.
Stocks to watch:
Technology: EDELTEQ, *JHM*, *OGX*, *PENTECH*
Construction: *GAMUDA*, IAB
Healthcare: *KPJ*
Consumer: CAB
**Source: M+ Global**
AI Momentum Builds Amid Mixed Markets
US: Wall Street may remain mixed as elevated Treasury yields continue to weigh on valuations, although softer-than-expected PCE data has eased near-term Fed hike concerns. Against this backdrop, AI and semiconductor momentum remain key supports. Micron is in focus following record 4QFY26 results and an upbeat outlook, reinforcing expectations of sustained AI-driven memory demand. Meanwhile, Hewlett Packard Enterprise could see continued interest after securing a USD1.2bn AI server order from Vultr and raising its networking growth outlook. AMD also remains on the radar following its USD8.2bn acquisition of World Labs, strengthening its capabilities across AI models, infrastructure and physical AI.
MY: Closer to home, we expect the FBM KLCI to remain mixed, although stronger semiconductor sentiment could continue to underpin selected technology counters. UWC could attract attention after FY26 net profit surged 132.0% YoY to RM93.8m, with 4QFY26 net profit rising nearly 130% YoY to RM37.6m on stronger semiconductor demand and a more favourable product mix. Meanwhile, KGB remains in focus after securing a fresh RM172.0m contract for an advanced data-storage manufacturing facility in Kuching, bringing total awards from the same customer to RM283.0m. Elsewhere, VIS may remain in focus following its improved earnings performance, supported by stronger machine sales.
Stocks to watch:
Technology: EDELTEQ, *JHM*, *OGX*, *PENTECH*
Construction: *GAMUDA*, IAB
Healthcare: *KPJ*
Consumer: CAB
**Source: M+ Global**
👍2💯1
Good Afternoon All,
Following UWC Berhad's 4Q26 results briefing, here is our quick take for investors:
📈 Investment Highlights
📌 Riding the semiconductor super-cycle. UWC delivered RM494.8m in full-year revenue as hyperscaler CapEx expanded from USD700bn to USD745bn globally. The broader semiconductor market has been revised upward to USD1.29tn for 2026/2027 and is on track for USD1.75tn by 2030, underpinned by AI demand and acute memory shortages. Wafer fab equipment spending forecasts have similarly been upgraded from USD130bn to USD150bn with a USD200bn long-term target — a rising tide that flows directly into UWC's orderbook, which grew from RM270m to RM350m quarter-on-quarter.
📌 Front-end mix accelerating, driven by key customers. Front-end wafer fab equipment now represents ~40% of the RM350m orderbook, with the primary "neighbour" customer alone accounting for ~30% and loading aggressively across mechatronics (40%), gas delivery systems (30%) and chambers (30%). A competitor to the neighbour is set to move into UWC's newly completed Penang building by end-October, while two additional new WFE customers — currently at 3–4% of the orderbook each — are expected to ramp significantly in coming weeks as material lead times are worked through. Management guided WFE mix to reach 60–70% of revenue by 4QFY27, the highest front-end exposure in UWC's history.
📌 New US WFE customer marks a structural step-up in the value chain. UWC has secured a new US-based customer to manufacture complete wafer fab equipment — priced at USD1m per unit versus USD200k for back-end units — with TSMC as the ultimate end-client. UWC will act as a "remote factory," with 15–30 customer engineers permanently based at UWC Penang from January 2027, while 40 UWC engineers complete technology transfer training in the US. First shipment targets March 2027, with RM70–100m in revenue expected over the subsequent 12 months. Customer demand stands at 20 units per quarter; UWC is initially committed to 6–8 units per quarter, with the first five units expected to break even as components are fully US-sourced. Post-localisation (targeting 20% within one year), margins are expected to improve meaningfully. UWC has committed a minimum RM100m investment (scalable to RM200m), phased against project milestones.
📌 Capacity racing to keep up, tough prioritisation calls ahead. Total floor space is expanding 35–40% across Penang, Johor, and Thailand through ASRS warehouse automation (+40% storage efficiency), nearby factory rentals freeing up ~10% of manufacturing space, and a new manufacturing building targeted within eight months. Given strong front-end loading, management expects to deprioritise back-end customers within 1–2 quarters — despite the back-end test handler run rate rising from 30–40 to 50–60 units per week on three models. Thailand topline currently stands at RM30m annually; the key customer wants UWC to double capacity within one year, backed by BOI tax incentives and 100% foreign ownership allowance. Full-year CapEx is guided at RM150–300m depending on the European customer pipeline, with headcount growing from 2,300 to approximately 2,500.
💡 M+Global View
📌 UWC is undergoing a meaningful transformation — from a precision parts and back-end equipment supplier into a full-system wafer fab equipment manufacturer embedded in the AI semiconductor supply chain. The new US WFE contract is the clearest evidence yet of this transition, and with front-end mix guided to reach 60–70% of revenue by 4QFY27, the earnings quality and margin profile of the business should improve structurally as higher-complexity, higher-priced equipment takes a larger share of the mix.
Following UWC Berhad's 4Q26 results briefing, here is our quick take for investors:
📈 Investment Highlights
📌 Riding the semiconductor super-cycle. UWC delivered RM494.8m in full-year revenue as hyperscaler CapEx expanded from USD700bn to USD745bn globally. The broader semiconductor market has been revised upward to USD1.29tn for 2026/2027 and is on track for USD1.75tn by 2030, underpinned by AI demand and acute memory shortages. Wafer fab equipment spending forecasts have similarly been upgraded from USD130bn to USD150bn with a USD200bn long-term target — a rising tide that flows directly into UWC's orderbook, which grew from RM270m to RM350m quarter-on-quarter.
📌 Front-end mix accelerating, driven by key customers. Front-end wafer fab equipment now represents ~40% of the RM350m orderbook, with the primary "neighbour" customer alone accounting for ~30% and loading aggressively across mechatronics (40%), gas delivery systems (30%) and chambers (30%). A competitor to the neighbour is set to move into UWC's newly completed Penang building by end-October, while two additional new WFE customers — currently at 3–4% of the orderbook each — are expected to ramp significantly in coming weeks as material lead times are worked through. Management guided WFE mix to reach 60–70% of revenue by 4QFY27, the highest front-end exposure in UWC's history.
📌 New US WFE customer marks a structural step-up in the value chain. UWC has secured a new US-based customer to manufacture complete wafer fab equipment — priced at USD1m per unit versus USD200k for back-end units — with TSMC as the ultimate end-client. UWC will act as a "remote factory," with 15–30 customer engineers permanently based at UWC Penang from January 2027, while 40 UWC engineers complete technology transfer training in the US. First shipment targets March 2027, with RM70–100m in revenue expected over the subsequent 12 months. Customer demand stands at 20 units per quarter; UWC is initially committed to 6–8 units per quarter, with the first five units expected to break even as components are fully US-sourced. Post-localisation (targeting 20% within one year), margins are expected to improve meaningfully. UWC has committed a minimum RM100m investment (scalable to RM200m), phased against project milestones.
📌 Capacity racing to keep up, tough prioritisation calls ahead. Total floor space is expanding 35–40% across Penang, Johor, and Thailand through ASRS warehouse automation (+40% storage efficiency), nearby factory rentals freeing up ~10% of manufacturing space, and a new manufacturing building targeted within eight months. Given strong front-end loading, management expects to deprioritise back-end customers within 1–2 quarters — despite the back-end test handler run rate rising from 30–40 to 50–60 units per week on three models. Thailand topline currently stands at RM30m annually; the key customer wants UWC to double capacity within one year, backed by BOI tax incentives and 100% foreign ownership allowance. Full-year CapEx is guided at RM150–300m depending on the European customer pipeline, with headcount growing from 2,300 to approximately 2,500.
💡 M+Global View
📌 UWC is undergoing a meaningful transformation — from a precision parts and back-end equipment supplier into a full-system wafer fab equipment manufacturer embedded in the AI semiconductor supply chain. The new US WFE contract is the clearest evidence yet of this transition, and with front-end mix guided to reach 60–70% of revenue by 4QFY27, the earnings quality and margin profile of the business should improve structurally as higher-complexity, higher-priced equipment takes a larger share of the mix.
📌 Key catalysts include: (i) new US WFE customer first shipment in March 2027 and RM70–100m revenue ramp over 12 months, (ii) WFE mix expanding to 60–70% by 4QFY27 as neighbour loading intensifies and new customers scale from initial loading, (iii) European customer update expected by December — a potential significant incremental pipeline, and (iv) Thailand capacity doubling and improved effective tax rate under BOI providing an additional earnings lever.
Research Team, M+Global
1 Oct 2026
Research Team, M+Global
1 Oct 2026
M+ Global Market Wrap - 1Oct26
FBM KLCI: 1,630.36 pts (-20.81pts, -1.26%)
Given the stalling peace talks between the US and Iran to end the Middle East war, which led to a rebound in oil prices and subdued sentiment, the local bourse continued to extend its losses today, dragged by key heavyweights such as PMETAL (-29.0 sen) and YTLPOWR (-15.0 sen). Market breadth remained negative, with 750 losers against 342 gainers. Sector-wise, all sectors traded in negative territory except Technology (+0.54%), with Construction (-1.93%) ending as the biggest decliner.
Top 3 Active stocks:
ZETRIX (0138): RM0.165 (+0.5 sen)
VS (6963): RM0.270 (-1.0 sen)
JAKS (4723): RM0.180 (-2.5 sen)
Top 3 Gainer stocks:
MPI (3867): RM41.12 (+72.0 sen)
AYER (2305): RM7.70 (+20.0 sen)
RVIEW (2542): RM3.02 (+12.0 sen)
Top 3 Loser stocks:
KLK (2445): RM21.42 (-78.0 sen)
ALLIANZ (1163): RM21.00 (-62.0 sen)
UTDPLT (2089): RM30.96 (-60.0 sen)
Volume: 1.96 bn (100-bar avg vol: 3.53 bn)
Value: RM1.47 bn (100-bar avg val: RM3.13 bn)
Market Breadth: ⬆️342 ⬇️750
Crude Palm Oil: RM4,610 (-RM60, -1.30%)
Dow Futures: 51,342 pts (+64 pts)
**Source: M+Global, Bloomberg **
FBM KLCI: 1,630.36 pts (-20.81pts, -1.26%)
Given the stalling peace talks between the US and Iran to end the Middle East war, which led to a rebound in oil prices and subdued sentiment, the local bourse continued to extend its losses today, dragged by key heavyweights such as PMETAL (-29.0 sen) and YTLPOWR (-15.0 sen). Market breadth remained negative, with 750 losers against 342 gainers. Sector-wise, all sectors traded in negative territory except Technology (+0.54%), with Construction (-1.93%) ending as the biggest decliner.
Top 3 Active stocks:
ZETRIX (0138): RM0.165 (+0.5 sen)
VS (6963): RM0.270 (-1.0 sen)
JAKS (4723): RM0.180 (-2.5 sen)
Top 3 Gainer stocks:
MPI (3867): RM41.12 (+72.0 sen)
AYER (2305): RM7.70 (+20.0 sen)
RVIEW (2542): RM3.02 (+12.0 sen)
Top 3 Loser stocks:
KLK (2445): RM21.42 (-78.0 sen)
ALLIANZ (1163): RM21.00 (-62.0 sen)
UTDPLT (2089): RM30.96 (-60.0 sen)
Volume: 1.96 bn (100-bar avg vol: 3.53 bn)
Value: RM1.47 bn (100-bar avg val: RM3.13 bn)
Market Breadth: ⬆️342 ⬇️750
Crude Palm Oil: RM4,610 (-RM60, -1.30%)
Dow Futures: 51,342 pts (+64 pts)
**Source: M+Global, Bloomberg **
👍1
M+ Market Buzz - 2Oct26
Dow Jones: 50,926.56 pts (+20.51pts, +0.04%)
⬆️ Resistance: 53000
⬇️ Support: 49600
FBM KLCI: 1,630.36 pts (-20.81pts, -1.26%)
⬆️ Resistance: 1710
⬇️ Support: 1600
HSI Index: 24,613.27 pts (+89.70pts, +0.37%)
⬆️ Resistance: 25300
⬇️ Support: 23800
Crude Palm Oil: RM4,554 (-RM51, -1.12%)
⬆️ Resistance: 4880
⬇️ Support: 4440
Brent Oil: $102.31 (+$4.28, +4.37%)
⬆️ Resistance: 111.10
⬇️ Support: 94.70
Gold: $4,177.66 (-$1.72, -0.04%)
⬆️ Resistance: 4410
⬇️ Support: 4030
Source: Bloomberg, M+Global
Dow Jones: 50,926.56 pts (+20.51pts, +0.04%)
⬆️ Resistance: 53000
⬇️ Support: 49600
FBM KLCI: 1,630.36 pts (-20.81pts, -1.26%)
⬆️ Resistance: 1710
⬇️ Support: 1600
HSI Index: 24,613.27 pts (+89.70pts, +0.37%)
⬆️ Resistance: 25300
⬇️ Support: 23800
Crude Palm Oil: RM4,554 (-RM51, -1.12%)
⬆️ Resistance: 4880
⬇️ Support: 4440
Brent Oil: $102.31 (+$4.28, +4.37%)
⬆️ Resistance: 111.10
⬇️ Support: 94.70
Gold: $4,177.66 (-$1.72, -0.04%)
⬆️ Resistance: 4410
⬇️ Support: 4030
Source: Bloomberg, M+Global
👍2
M+ Global Market Update – 02Oct26
Micron Outlook Lifts Chip Sentiment
US: Despite the pullback in 10-year US Treasury yields, Wall Street may trade mixed amid the rebound in oil prices. Nevertheless, against this backdrop, we continue to favour Micron (MU) following its record 4QFY26 results and upbeat outlook, reinforcing expectations of sustained AI-driven memory demand. Management stated that more than 75% of its FY27 shipments are already committed, with customer allocation discussions shifting towards FY28. Given MU’s higher CapEx moving forward, semiconductor equipment suppliers such as Lam Research (LRCX) and Applied Materials (AMAT) could benefit as MU expands its manufacturing capacity and increases equipment spending.
MY: Tracking the rebound on Wall Street, we expect sentiment on the FBM KLCI to improve today. However, we believe investors will remain selective, focusing on potential beneficiary sectors and stocks ahead of the upcoming Budget 2027 announcement next Friday. Investors could look at (i) VITROX, which is seeing stronger demand for high-precision inspection solutions amid the structural shift towards AI infrastructure and advanced packaging, (ii) QES, following its expansion into China’s X-ray semiconductor inspection market, and (iii) HKB, which has a record-high order book of RM851m (~6.8x FY25 revenue) and could potentially benefit from infrastructure-related initiatives in East Malaysia under Budget 2027.
Stocks to watch:
Technology: *JHM*, *PENTECH*, *QES*, SKPRES, VSTECS
Consumer: *CAB*, *SORENTO*, L&PBHD
Construction: HEGROUP, *HKB*
**Source: M+ Global**
Micron Outlook Lifts Chip Sentiment
US: Despite the pullback in 10-year US Treasury yields, Wall Street may trade mixed amid the rebound in oil prices. Nevertheless, against this backdrop, we continue to favour Micron (MU) following its record 4QFY26 results and upbeat outlook, reinforcing expectations of sustained AI-driven memory demand. Management stated that more than 75% of its FY27 shipments are already committed, with customer allocation discussions shifting towards FY28. Given MU’s higher CapEx moving forward, semiconductor equipment suppliers such as Lam Research (LRCX) and Applied Materials (AMAT) could benefit as MU expands its manufacturing capacity and increases equipment spending.
MY: Tracking the rebound on Wall Street, we expect sentiment on the FBM KLCI to improve today. However, we believe investors will remain selective, focusing on potential beneficiary sectors and stocks ahead of the upcoming Budget 2027 announcement next Friday. Investors could look at (i) VITROX, which is seeing stronger demand for high-precision inspection solutions amid the structural shift towards AI infrastructure and advanced packaging, (ii) QES, following its expansion into China’s X-ray semiconductor inspection market, and (iii) HKB, which has a record-high order book of RM851m (~6.8x FY25 revenue) and could potentially benefit from infrastructure-related initiatives in East Malaysia under Budget 2027.
Stocks to watch:
Technology: *JHM*, *PENTECH*, *QES*, SKPRES, VSTECS
Consumer: *CAB*, *SORENTO*, L&PBHD
Construction: HEGROUP, *HKB*
**Source: M+ Global**
💯1
*4Q26 Outlook and Strategy - Capturing the Next Growth Cycle*
https://r.mplusglobal.com.my/public/website/file/2026/10/02/20261002082642092.pdf
🌎 US Outlook
• US equities face a tougher 4Q26 backdrop, as elevated yields, persistent inflation and Middle East tensions could cap valuations. However, resilient earnings and sustained AI spending remain supportive. We favour AI compute, power infrastructure and enterprise adoption, backed by visible earnings and strong cash flows.
🇲🇾 Malaysia Outlook
• Malaysia enters 4Q26 with resilient fundamentals, supported by 6.0% YoY GDP growth in 2Q26 and continued investment in data centres, semiconductors and power infrastructure. Despite external headwinds, we favour Technology/Semiconductors, Construction/Infrastructure and Gloves, focusing on earnings and order visibility.
🇲🇾 MY Stock Picks
1. CBHB (S: RM1.00–1.03, R: RM1.20–1.24, CL: RM0.980)
2. CHEEDING (S: RM0.565–0.585, R: RM0.730–0.750, CL: RM0.554)
3. HKB (S: RM0.590–0.625, R: RM0.715–0.750, CL: RM0.578)
4. KOSSAN (S: RM1.08–1.13, R: RM1.33–1.37, CL: RM1.06)
5. CLOUDPT (S: RM0.450–0.470, R: RM0.600–0.635, CL: RM0.441)
6. INFOM (S: RM1.47–1.55, R: RM1.98–2.05, CL: RM1.44)
7. OGX (S: RM0.380–0.425, R: RM0.600–0.625, CL: RM0.372)
8. QES (S: RM0.540–0.555, R: RM0.655–0.675, CL: RM0.529)
9. SCICOM (S: RM2.11–2.17, R: RM2.54–2.59, CL: RM2.07)
10. THMY (S: RM1.88–1.97, R: RM2.40–2.50, CL: RM1.84)
11. UMSINT (S: RM8.14–8.45, R: RM9.75–10.00, CL: RM7.98)
12. UWC (S: RM6.32–6.56, R: RM7.76–8.00, CL: RM6.19)
13. VITROX (S: RM9.26–9.57, R: RM11.24–11.50, CL: RM9.07)
S: Support | R: Resistance | CL: Cut loss
🇺🇸 US Themes & Stock Picks
⚡ AI Power & Electrification – AI data centres are accelerating power and grid demand.
GEV – USD176bn backlog; >USD5bn data-centre orders YTD. | PWR – Record USD53.4bn backlog. | CEG – Nuclear exposure; FY26 EPS guidance raised.
🧠 AI Compute, Memory & Networking – AI spending broadens across accelerators, HBM and networking.
AVGO – AI accelerators/networking; 3QFY26 revenue +86% YoY. | MU – Key HBM and AI-memory beneficiary.
💻 AI Software Monetisation – Focus shifts from AI infrastructure to enterprise adoption.
PLTR – 2Q26 revenue +93%; US commercial revenue +149% YoY.
🧬 Healthcare & Obesity – Obesity treatments remain a major structural growth market.
LLY – Mounjaro/Zepbound-led growth; 2Q26 revenue +48% YoY.
🏦 Financials & Credit Resilience – Higher yields favour banks with strong deposits and balance sheets.
JPM – 2Q26 net income USD21.2bn; loans +10% and deposits +7% YoY.
Source: Bloomberg, M+Global
https://r.mplusglobal.com.my/public/website/file/2026/10/02/20261002082642092.pdf
🌎 US Outlook
• US equities face a tougher 4Q26 backdrop, as elevated yields, persistent inflation and Middle East tensions could cap valuations. However, resilient earnings and sustained AI spending remain supportive. We favour AI compute, power infrastructure and enterprise adoption, backed by visible earnings and strong cash flows.
🇲🇾 Malaysia Outlook
• Malaysia enters 4Q26 with resilient fundamentals, supported by 6.0% YoY GDP growth in 2Q26 and continued investment in data centres, semiconductors and power infrastructure. Despite external headwinds, we favour Technology/Semiconductors, Construction/Infrastructure and Gloves, focusing on earnings and order visibility.
🇲🇾 MY Stock Picks
1. CBHB (S: RM1.00–1.03, R: RM1.20–1.24, CL: RM0.980)
2. CHEEDING (S: RM0.565–0.585, R: RM0.730–0.750, CL: RM0.554)
3. HKB (S: RM0.590–0.625, R: RM0.715–0.750, CL: RM0.578)
4. KOSSAN (S: RM1.08–1.13, R: RM1.33–1.37, CL: RM1.06)
5. CLOUDPT (S: RM0.450–0.470, R: RM0.600–0.635, CL: RM0.441)
6. INFOM (S: RM1.47–1.55, R: RM1.98–2.05, CL: RM1.44)
7. OGX (S: RM0.380–0.425, R: RM0.600–0.625, CL: RM0.372)
8. QES (S: RM0.540–0.555, R: RM0.655–0.675, CL: RM0.529)
9. SCICOM (S: RM2.11–2.17, R: RM2.54–2.59, CL: RM2.07)
10. THMY (S: RM1.88–1.97, R: RM2.40–2.50, CL: RM1.84)
11. UMSINT (S: RM8.14–8.45, R: RM9.75–10.00, CL: RM7.98)
12. UWC (S: RM6.32–6.56, R: RM7.76–8.00, CL: RM6.19)
13. VITROX (S: RM9.26–9.57, R: RM11.24–11.50, CL: RM9.07)
S: Support | R: Resistance | CL: Cut loss
🇺🇸 US Themes & Stock Picks
⚡ AI Power & Electrification – AI data centres are accelerating power and grid demand.
GEV – USD176bn backlog; >USD5bn data-centre orders YTD. | PWR – Record USD53.4bn backlog. | CEG – Nuclear exposure; FY26 EPS guidance raised.
🧠 AI Compute, Memory & Networking – AI spending broadens across accelerators, HBM and networking.
AVGO – AI accelerators/networking; 3QFY26 revenue +86% YoY. | MU – Key HBM and AI-memory beneficiary.
💻 AI Software Monetisation – Focus shifts from AI infrastructure to enterprise adoption.
PLTR – 2Q26 revenue +93%; US commercial revenue +149% YoY.
🧬 Healthcare & Obesity – Obesity treatments remain a major structural growth market.
LLY – Mounjaro/Zepbound-led growth; 2Q26 revenue +48% YoY.
🏦 Financials & Credit Resilience – Higher yields favour banks with strong deposits and balance sheets.
JPM – 2Q26 net income USD21.2bn; loans +10% and deposits +7% YoY.
Source: Bloomberg, M+Global
Good Morning All,
Here’s our Factor Focus - October 2026 report | Malacca Securities (mplusonline.com)
Despite the high US 10Y Treasury yield and elevated oil price environment, which dragged the local bourse's performance in September 2026, with the FBM KLCI and FBMSCAP recording losses of 4.3% and 1.0% respectively, our Large- and Small-cap portfolios outperformed the indices by recording a minimal loss of 1.3% and a gain of 13.7% respectively. Cumulatively, our Large-, Small-, and Combined portfolios managed to outperform the broader indices, recording 38.6%, 63.4%, and 51.7% in returns since inception.
Research Team, M+Global
2 October 2026
Here’s our Factor Focus - October 2026 report | Malacca Securities (mplusonline.com)
Despite the high US 10Y Treasury yield and elevated oil price environment, which dragged the local bourse's performance in September 2026, with the FBM KLCI and FBMSCAP recording losses of 4.3% and 1.0% respectively, our Large- and Small-cap portfolios outperformed the indices by recording a minimal loss of 1.3% and a gain of 13.7% respectively. Cumulatively, our Large-, Small-, and Combined portfolios managed to outperform the broader indices, recording 38.6%, 63.4%, and 51.7% in returns since inception.
Research Team, M+Global
2 October 2026