Malaysia Equity Strategy: Postcard from HK: Marketing Feedback

Research evidence excerpt

Malaysia Equity Strategy: Postcard from HK: Marketing Feedback

Malaysia Equity Strategy

13 July 2026 Citi Research

like price action may require more; common pushbacks include [1] The program being voluntary rather than mandatory, [2]

Absence of clear incentives for corporates to comply, [3] Malaysia broadly speaking is not necessarily a cheap market. The

potential expansion of KLCI to 50 constituents was also generally well received as it can potentially broaden Malaysia's

investable universe; see our note.

Sector/stock specific interests:

• Consumer: Minimal pushback on our +ve view, but some see little upside for our top pick 99Speedmart at ~40x

PER, despite potential earnings boost from cash handouts. Heineken Malaysia: Good interest in plans to relocate

production from SG to MY/VN, which would add incremental volumes, despite low liquidity. MRDIY: Little pushback

on MRDIY being a beneficiary of stronger MYR albeit with questions on sustainability of +ve SSSG.

• Healthcare: Continued preference for domestic-centric names like SunMed (despite valuation) and KPJ; the former

stands out from earnings growth perspective. Various discussions on IHH with focus on Turkey and SG ops.

Investors were also keen to hear Malaysia's proposition from a medical tourism perspective, especially vs TH

hospitals.

• Construction: Good interest on Gamuda post de-rating, with investors seeking clarity on earnings risk. Investors

questioned whether TH is gaining share in DC investments over MY; we note Malaysia's DC job tender market is still

very healthy with existing hyperscalers planning for further expansion phases. More stringent power/water approvals

however could encourage diversification into new markets like TH.

Companies Mentioned: