Maybank IB said 62% of its consumer coverage had increased ESG scores under its proprietary ESG methodology.
PETALING JAYA: While the consumer sector’s sector-wide environmental, social and governance (ESG) compliance has improved, selected companies like Padini Holdings Bhd
and Leong Hup International Bhd have a clear gap in carbon emissions disclosures, says Maybank Investment Bank Research (Maybank IB).
Maybank IB said of the 13 consumer stocks under coverage, eight (62%) saw an improvement in ESG scores, three were unchanged (DXN Holdings Bhd, Farm Fresh Bhd, 7-Eleven Malaysia Holdings Bhd), one saw a decline (MyNews Holdings Bhd) and one was a new score (Eco-Shop Marketing Bhd).
“Although certain consumer sub-sectors (example: agriculture) have a higher environmental impact, we have yet to observe any significant impact to share price performance from low ESG scores,” the research house said in a report yesterday.
Maybank IB said five stocks (Eco-Shop, Leong Hup, MyNews, Padini, and 7-Eleven Malaysia) have below-average ESG scores based on its proprietary ESG methodology.
The research house said 62% of its consumer coverage had increased ESG scores under its proprietary ESG methodology – after updating sustainability data from their latest annual reports.
The improved scores were mainly due to positive trends within their “quantitative” parameters, and more detailed disclosure of carbon emission data, that is, Scope 1, Scope 2, and Scope 3 emissions (CAB Cakaran Corp Bhd, MR DIY Group (M) Bhd, QL Resources Bhd, Leong Hup).
“The bulk of the remaining stocks in our consumer coverage had unchanged ESG scores (DXN, Farm Fresh, 7-Eleven Malaysia), while only one company (MyNews) saw a decline in its ESG score to 39 in financial year 2024 (FY24) (from 50).
“This was largely due to lower independent and female representation on its board of directors in FY24,” Maybank IB said.
Meanwhile, in an earlier report, CIMB Research said it expects consumer spending to be front-loaded in the first half of FY26 (1H26), supported by festive-driven demand as most major celebrations fall in 1H of the year.
This is further amplified by the second one-off RM100 Sumbangan Asas Rahmah (Sara) cash handout to all Malaysian adults in February 2026.
“While this will lift sales of essential goods, retailers – particularly those operating in mall-based environments such as Bonia Corp Bhd, Yoong Onn Corp Bhd, Padini, MyNews, Berjaya Food Bhd, Aeon Co (M) Bhd and MR DIY – will continue to face margin pressure from rising input and labour costs and the implementation of the 8% sales and service tax on leasing services,” the research house said.
CIMB Research said it expects operators to focus on cost efficiencies, tighter operational controls, and selective price pass-throughs to mitigate these pressures, with a stronger ringgit/yuan offering some relief for import-dependent retailers.
Meanwhile, more retailers are positioning to capture Sara-driven spending.
“Based on our estimates, Sara’s allocation will rise to approximately RM9.9bil in 2026 (from RM5.1bil in 2025), while the Sumbangan Tunai Rahmah allocation is expected to decline to RM6.2bil (from RM8.5bil in 2025).
“We highlight 99 Speed Mart Retail Holdings Bhd (more than 2,000 stores enrolled), MR DIY (about 20 stores), MyNews (30 Supervalue outlets), and 7-Eleven Malaysia (currently applying) as the key beneficiaries among stocks under our coverage, given their participation and alignment with value-focused consumer demand,” the research house said.
