Our “buy” calls focus on minimising earnings downside exposure with Dialog Group Bhd (KL:DIALOG), Velesto Energy Bhd (KL:VELESTO) and Steel Hawk Bhd (KL:HAWK), as a weak oil price may dampen investors’ interest in the sector. MISC Bhd (KL:MISC) (“hold”, RM8) and Petronas Dagangan Bhd (KL:PETDAG) (“hold”, RM21.20) would be the wild card picks. On the broader sector, we remain “neutral” as the low oil price (our forecast Brent: US$58 per barrel) may keep the sector off of investors’ radar. We revise upwards our 12-month target price to 37 sen (from 30 sen) after lowering our cost of equity assumption to 8.5% (from 10%). Thus, we cut our earnings estimates by 4% to 11% and SOP-based target price to RM5.30 from RM5.79.

Source: The Edge Markets February 10, 2026 06:32 UTC