BIMB Securities Research said a firmer ringgit, now edging well below US$4, represents a direct translation risk. “With ASPs fully dollar-denominated, every 1% strengthening in ringgit reduces reported revenue in ringgit terms without a corresponding 1% decline in cost base,” it said in a report. If forex appreciation runs ahead of ASP revisions, near-term quarterly earnings could still reflect volatility before repricing fully flows through. “Collectively, these factors provide a meaningful near-term margin buffer, but that cushion could narrow if the ringgit continues to strengthen further,” it said. With that, BIMB Securities Research maintained its “neutral” call on the sector, viewing its risk-reward profile as broadly balanced.

Source: The Star February 17, 2026 17:11 UTC