Malaysia Market Strategy: From discount to value-up: Narrowing to execution

Research evidence excerpt

Malaysia Market Strategy: From discount to value-up: Narrowing to execution

Global Research

15 June 2026ab

Malaysia Market Strategy Equity Strategy

MalaysiaFrom discount to value-up: Narrowing to

execution Nicole Goh

Analyst

nicole.goh@ubs.com

+603-2781 1133

Initial screen: broad value-up beneficiaries Shawn Lee

Following Bursa Malaysia's launch of the MY Value-Up Programme Guidebook on 9 HOLT Sector Specialist

June 2026, we build on our March 2026 report (“From discount to value-up: Malaysia’s shawn.lee@ubs.com

+65-6212 3370

turn?”) to refine where value-up outcomes are most likely to translate into re-rating.

While our earlier work identified a broad universe of companies with the capacity and Raphael Lee

incentive to enhance shareholder returns – based on CFROI improvement, excess cash HOLT Sector Specialist

and attractive valuations – we now focus on narrowing this opportunity set to those raphael.lee@ubs.com

+65-6212 3008

where improvements in returns and capital allocation can be realistically delivered, and

where value-up outcomes are most likely to materialise. Haziq Haizan

Associate Analyst

Deeper dive: identifying where improvement can be delivered haziq.haizan@ubs.com

+603-2781 1182

Building on our initial screen, which highlighted a broad set of potential beneficiaries

across sectors – including utilities, telcos, consumer (including plantations), property and Aakash Rawat, CFA

industrials – where balance sheet strength and valuation suggested scope for value-up,

aakash.rawat@ubs.com

we now adopt a more focused approach. We first identify companies underperforming +65-6495 8283

on returns (CFROI) and asset efficiency relative to sector peers, highlighting where the

scope for operational improvement is greatest.