CGS International (CGSI) has introduced its CGSI Malaysia Leaders 30 list, highlighting 30 Bursa Malaysia-listed companies that demonstrate strong potential in driving shareholder returns through improved profitability, dividend distribution and capital efficiency.
The list was developed as a practical benchmark to measure the potential impact of the government’s Malaysia Value Up Programme, which aims to enhance shareholder value among Malaysian public-listed companies.
CGSI selected the 30 companies from the 304 constituents of the FBM EMAS Index, which represents about 98% of Bursa Malaysia’s total market capitalisation. The selection was based on key shareholder return indicators, including return on equity (ROE), dividend payout ratio and dividend payment frequency.
According to CGSI, the selected companies generated weighted returns that exceeded the FBM100 Index by 3.1%, 1.7% and 3.8% annually over the one-, three- and five-year periods ending May 31, 2026.
For the first five months of 2026, the CGSI Malaysia Leaders 30 delivered returns in line with the FBM100, while noting that the FBM100 had outperformed the broader FBM KLCI across the measured periods.
The 30 companies currently trade at an estimated CY2026 price-to-earnings (P/E) ratio of 18.0 times, with an average dividend yield of 4.2% and ROE of 18.3%.
Focus on Value Creation
CGSI said the methodology aims to identify companies that actively create shareholder value rather than simply ranking firms based on market size.
The research house also identified a further 20 companies as Emerging Leaders, which could potentially move into the main list by improving their shareholder return profiles.
CGSI noted that among the top 50 companies comprising both the Leaders and Emerging Leaders groups, 24% achieved full marks for generating ROEs at least 15% above the assumed cost of equity (COE) benchmark of 10%.
However, 32% of companies failed to meet the 10% ROE threshold, highlighting room for improvement in capital efficiency.
On dividends, all 50 companies recorded payout ratios above 25%, with 70% of the Leaders achieving the highest two payout categories of above 50%.
Dividend frequency also played a role in differentiating companies, with 40% of the Leaders distributing dividends more than twice annually, including 11 companies that paid dividends quarterly.
Two companies achieved full scores across CGSI’s ranking framework, while five companies in the Leaders list are not members of the FBM KLCI.
High Conviction Picks
Within CGSI’s high conviction selection, Telekom Malaysia Berhad and MR D.I.Y. Group (M) Berhad recorded the largest upward ranking shifts compared with a market capitalisation-based approach.
Meanwhile, Gamuda Berhad, Tenaga Nasional Berhad and Sime Darby Plantation Berhad saw their rankings decline, mainly due to comparatively lower ROE levels.
CGSI added that the banking sector’s ranking was affected by dividend payment frequency, as several banks typically distribute dividends semi-annually rather than quarterly compared with companies in other sectors.
The research house said the CGSI Malaysia Leaders 30 list is intended to encourage companies to strengthen financial discipline, improve returns on capital and adopt practices that enhance long-term shareholder value.
