Bursa accelerates MY Value Up to boost valuation

PETALING JAYA: Bursa Malaysia is accelerating its MY Value Up initiative, requiring public-listed companies to submit value-enhancement plans by end-2026 to boost equity valuations and investor transparency.

After a closed-door briefing with over 20 institutional investors on Sept 3, CGS International (CGSI) Research reiterated its “add” rating on Bursa Malaysia Bhd with a target price of RM11.80, citing higher trading activity and expanding return on equity (ROE).

“The meeting provided us with more clarity on the programme’s implementation timeline and Bursa’s approach,” it said.

The research house said plans will be published on a dedicated micro-site to streamline corporate disclosures.

While Bursa initially highlighted 88 candidates, the voluntary programme is open to all listed entities across 2026 to 2027.

The briefing clarified that participation allows all public-listed companies across the ACE Market and Main Market to join.

To address corporate concerns regarding rigid multi-year financial targets affected by external macroeconomic factors, Bursa is maintaining a flexible approach.

“There was no strong pushback for the adoption of MY Value Up.

“Some of the 88 companies underscored a possible challenge for them to provide some of the financial targets as their earnings are affected by factors beyond their control.”

Additionally, the exchange is considering the introduction of a dedicated MY Value Up index to highlight and track top-performing companies that meet the programme’s standards.

“We are positive on the impact of the implementation of MY Value Up on Malaysia’s equity market given its aims to improve the transmission of information from public-listed companies to investors and enhance public-listed companies’ commitments to maximise shareholder value.

“In turn, this could increase trading activity in the market,” the research house added.

Moreover, CGSI Research projects increases in equity average daily value (ADV) for the financial years 2026 (FY26) and FY27.

It also forecasts a 19.2% net profit jump in FY26 for the exchange operator, with ROE expanding from 29.9% in FY25 to 41.8% by FY28, driven by higher average daily trading values and increased market liquidity.

“Downside risks include a drastic pullback in equity ADV in the coming quarters and higher-than-expected increase in operating expenses,” the research house said.

The real visible change for everyday investors will begin in 2027, when Bursa begins publishing the official list of committed participants and companies voluntarily release their MY Value Up plans to the public

Seasoned investor Ian Yoong said MY Value Up has noble objectives of communicating fundamentally attractive large cap companies listed on Bursa, but he sees little increase in institutional interest in Malaysian stocks and expansion in valuation multiples as a result of MY Value Up.

“It is still early days. The investment style of institutional and retail investors are aligned in that the focus is on investment themes. The current hot investment theme is artificial intelligence.

“This has sparked interest in our semiconductor sector and data centre related sectors. “Malaysia equities have been in the doldrums for the past decade, unjustifiably so as there are many undervalued listed companies in Bursa,” he told StarBiz.