This article first appeared in Capital, The Edge Malaysia Weekly on January 12, 2026 - January 18, 2026

Target price: RM1.70 BUY

UOB KAY HIAN RESEARCH (JAN 6): Eco-Shop Marketing Bhd (KL:ECOSHOP) is slated to roll out 81 new stores in FY26 (ending May), with potential to reach as many as 90 — well ahead of its five-year target of 70 openings per annum. It is also planning 15 to 20 store refurbishments for the year. A newly refurbished store typically records a 15% uplift in basket size.

Recall that 1QFY26 same store sales growth (SSSG) contracted by a sharp 12.7% year on year (y-o-y). Looking forward, we gather that 2QFY26’s SSSG has improved but remains soft. However, we retain our -6% FY26 SSSG assumption at this juncture as it remains within reach, as monthly SSSG has been improving and supply chain issues have been resolved.

Eco-Shop has increased its MyKasih-participating stores to 181 from 161, out of its approximately 400-store network. Although MyKasih-related sales contributed just 0.3% of 1QFY26 revenue, broad store participation and stock-keeping units (SKU) coverage remain important as they help drive incremental foot traffic, particularly ahead of the next disbursement cycle in 4QFY26.

Increased margins of 6.4 percentage points y-o-y to 31.8% in 1QFY26 appears to be sustained as well. This follows a favourable product mix and the strengthening of the ringgit versus the renminbi in April 2025 that has prevailed to 2QFY26. Beyond that, promotional pricing of food and beverage products has ended as well. These higher margins should more than offset the lingering SSSG softness for 2QFY26 earnings to post decent y-o-y growth for it to at least meet overall expectations.

We upgrade Eco-Shop to “buy” (from “hold”) with an unchanged target price. Its valuations now appear relatively attractive following some pullback. While SSSG appears lacklustre, its store rollout led growth off a low base coupled with robust margins, underpinning an appealing three-year earnings growth of 16.9% (FY25-FY28).

We value Eco-Shop at 34.5 times FY26F PER, which is the average of our valuation for 99 Speed Mart (38.9 times) and Mr DIY (30 times). However, 99 Speed Mart does deserve a valuation premium, given its index-linked status and superior capital efficiency. Eco-Shop merits a premium to Mr DIY, driven by its more compelling growth trajectory from a significantly lower store base.

Target price: 64 sen BUY

MBSB RESEARCH (JAN 6): Historically, the second half of the (financial) year (ended March) tends to be seasonally stronger for Tasco Bhd (KL:TASCO), supported by higher activity tied to year-end holidays and customers’ new product launches. We do not expect any material surprises in the upcoming results, notwithstanding some y-o-y softness in selected segments due to prior customer losses.

That said, management has put measures in place to backfill lost volumes, and we expect performance to improve gradually. Our target price remains unchanged, based on 11 times FY27F EPS (five-year historical mean).

While visibility on tender outcomes remains limited, management has previously highlighted that the parent’s Strategic Forward Pricing scheme is intended to support participation in tender exercises, by reimbursing any shortfall should tender rates fall below cost, with terms reviewed quarterly. This provides a degree of downside risk mitigation, given that about 80% of the forwarding business is conducted on a tender basis, with the balance exposed to spot rates.

Within the contract logistics segment, warehousing (the largest contributor) could see a gradual uplift in utilisation. No changes were made to our earnings estimates.

Target price: RM2.01 BUY

PHILIP CAPITAL (JAN 6): With an average fleet age of 15 years, Dayang Enterprise Holdings Bhd (KL:DAYANG) is embarking on a fleet renewal programme to improve efficiency and support long-term growth. The group currently operates a fleet of seven vessels and intends to retire its 20-year-old Pertama, replacing it with a new 238-berth workboat costing RM130 million, with construction slated to begin in 1Q26 and span 22 months. The younger vessel profile is expected to enhance operational reliability, boost fuel efficiency, and reduce maintenance and operating costs.

We reiterate our “buy” and target price, based on unchanged 10 times PER on 2026F EPS. We remain positive on Dayang’s earnings prospects, underpinned by its sizeable multi-year order book, which provides long-term earnings visibility. Dayang is trading at an attractive forward eight times 2026 PER, supported by a solid balance sheet with a healthy net cash position of RM261 million and an appealing dividend yield of around 6%.

We project earnings growth of 13%-37% over 2026-2027, after an expected 45% decline in 2025 as Dayang navigates a transition year affected by low oil prices, trade tensions and the PETRONAS-Petros dispute.

Target price: RM6.01 BUY

CIMB SECURITIES (JAN 6): SD Guthrie Bhd (KL:SDG) has signed a memorandum of understanding (MoU) with Permodalan Darul Ta’zim to explore a 5,000-acre mixed-use industrial park development in Kulai, Johor. Assuming it is able to sell all the land at RM15 psf and the group retains a 20% stake in the development, we estimate potential land sale gains of about RM1.9 billion.

We expect SDG’s earnings to be boosted by higher land sale gains in 2026, supported by eight outstanding land-related joint ventures that are either pending sale and purchase agreements or still at the MoU stage. It aims to monetise about 1,000ha of land annually, which could translate into RM500-RM700 million in annual earnings. This could potentially lift the group’s full-year net profit to around RM2.5 billion, surpassing our projected core net profit of RM1.8-RM1.9 billion.

The Malaysian Palm Oil Board’s average crude palm oil (CPO) price declined 2% q-o-q and 13.5% y-o-y to RM4,181/tonne in 4Q25. However, the group locked in a higher average CPO price of RM4,365/tonne for its Malaysian operations in 4Q25. This is broadly in line with our forecast of a lower net profit of RM414 million in 4Q25. We maintain our “buy” and target price.

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