He doesn't have morphing but similar to morphing. He's made of almost pure energy and he has energy manipulation. (the reason I say almost is because his face specifically the black part is kinda like a pc monitor that's why he can change mostly everything about his face) And since Malread is made of pure energy he can change his form at will so he's testing out morphing into other derps (but not too much tho)
also this is after Penny hugs the ever lasting hell out of malread