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Potential re-rating catalysts for Sasbadi: Berjaya Research

GDB bags two Sarawak infra contracts, marks entry into East Malaysia PETALING JAYA: Construction services company GDB Holdings Bhd has secured two infrastructure contracts in Sarawak totalling RM121.4 million from Bina Muhibbah Permajaya Construction Sdn Bhd, marking its strategic entry into the East Malaysian market. The first contract, valued at RM54.4 million, involves road development works across the Simunjan and Samarahan districts. It has a duration of 32 months, commencing on Jan 29, 2026 with an expected completion date of Sept 28, 2028. In the second contract, GDB will undertake works for a new single carriageway road for a sum of RM67 million, along with earthworks, drainage and ground improvement across the Kuching and Samarahan divisions. The project is set for a 17.5-month duration, commencing on Jan 28, 2026 and scheduled for completion by July 12, 2027. Executive director/acting group managing director, Andy Lai Wee Young said: “Securing these contracts marks our first successful diversification into the East Malaysian market, a key milestone in GDB’s strategic expansion beyond Peninsular Malaysia. “Moving forward, we intend to leverage the group’s proven track record of operational excellence and timely delivery to pursue more opportunities in the region.” GDB said these contract wins bolster its outstanding order book to RM669 million, providing the group with earnings visibility through to late 2028. Beyond its expansion into East Malaysia, GDB said it remains on track with its existing high-value portfolio in Peninsular Malaysia.

ment cycle commences. The tender exercise comprises 21 titles with a total indicative contract value of RM93.7 million. The results are expected to be announced by Q3 FY26. “Leveraging the group’s digital capabilities, content readiness and proven track record in securing government contracts, we remain confident that the group can secure a portion of these tenders, with margins estimated to trend towards the higher end of its historical range,” Berjaya Research said. Sasbadi has also entered into a memorandum of understanding with Intel Microelectronics (M) Sdn Bhd and Maistorage Technology Sdn Bhd to explore a potential collaboration to deliver hybrid and offline-first AI-enabled learning en vironments for the education sector. The proposed collaboration includes deploying a Content Access Point platform for local caching and offline access to educational content; integrating AI platforms and tech nologies for real-time, on-device inference; and co-developing and localising educational solutions aligned with national blueprints in Southeast Asian countries. “We view the development positively for an early-stage strategic initiative, as an AI-powered offline learning ecosystem could be scalable over time and enable deeper pene tration into rural schools with limited network connectivity, potentially creating monetisation opportunities in the longer term. “However, given that the colla boration is in an exploratory stage, any commercialisation is likely to require a gestation period. The MoU will remain effective from Jan 28, 2026, to June 30, 2027,” Berjaya Research said.

o Cites company’s proactive pursuit of M&A to tap into new revenue streams, complementary strengths to support digitalisation needs of Malaysia’s education system and demand recovery in retail segment

Malacca Securities Sdn Bhd said at its core, Hock Soon farms poultry and produces eggs using automated closed-house systems, backed by an in-house feed mill for ordinary and premium lines. It sorts and distributes under the “QPlus” brand and third party labels to wholesalers, retailers and food manufacturers. The group’s Teluk Intan project promises a 103.6% daily egg production boost, adding 1.53 million eggs via 25 new coops over 60 months. This gradual rollout supports customer growth, complemented by a Bidor, Perak, feed mill upgrade to 225 metric tons per day by fourth quarter 2027. Malacca Securities said Hock Soon’s vertical integration – from feed to grading – ensures efficiency, with automation curbing labour and biosecurity risks. PETALING JAYA: Berjaya Research Sdn Bhd sees potential re-rating catalysts for educational materials publisher and education solutions provider Sasbadi Holdings Bhd, based on the group’s proactive pursuance of strategic mergers and acquisitions to tap into fresh revenue streams. Furthermore, Sasbadi’s comple mentary strengths support the growing digitalisation needs of Malaysia’s education system and meaningful demand recovery in the retail segment are also within Berjaya Research’s radar. However, the research firm noted that key downside risks include failing to secure contracts from the Ministry of Education, higher operating expenses and changes in government policies. Touching on earnings, Berjaya Research said Sasbadi’s first-quarter FY26 (1Q FY26) revenue and profit after tax and minority Interests came in at 33.4% and 66.3% of the company’s previous FY26 forecasts, respectively. “We deem the results in line with our expectations, given the group’s high cyclicality, as it typically records stronger performance in the 1Q-2Q period due to the start of the academic year, which drives higher demand for academic books. “That said, we gathered that the change in school opening from February to January this year may have led to some shift in sales volume that was previously recognised in 1Q.

RM3.9 million in the preceding quarter, supported by higher sales volumes, im proved margins and the absence of year end inventory impair ments. Berjaya Research said following a review of segmental assump

Further, the research firm said a firmer ringgit, down from RM4.80/USD in 2024 to below RM4.00, slashes costs for USD-sourced feed (70% of FY25 purchases). This, alongside inte gration, should widen gross margins meaningfully, the firm said. Moving on, Malacca Securities said egg prices have climbed since August 2025, Department of Veterinary Services data show, offsetting subsidy losses. However, Visit Malaysia 2026 will spur Horeca (hotel, restaurant and cafe) demand. Meanwhile, a Q1 2026 Singapore Food Agency licence targets import-reliant markets, hedging domestic volatility with higher-value sales, the firm noted. Touching on distribution and market position, Malacca Securities said Hock Soon’s QPlus eggs grace Lotus’s, HeroMarket and Jaya Grocer, with subsidiary Al-Kauthar Trading hitting wet markets. Independent market research data pegs FY24 market share at 2.4% by “As such, we expect 2Q volumes to soften slightly year-on-year (YoY). Nevertheless, we maintain our FY26 gross profit margin assumption of 35% for the Print Publishing segment, underpinned by expectations of improved cost pass through of SST-related increases in paper input costs going forward. “This is notwithstanding the potential risk of selective inventory impairment following the intro duction of centralised evaluations for Primary Four and Form Three students, beginning in 2026 and 2027, respectively,” Berjaya Research analyst Wong Choo Hong said in a report. The research firm noted that Sasbadi’s 1Q FY26 revenue declined 8.1% YoY to RM31.3 million, reflecting the absence of Madani book sales recorded between May and December 2024, which in turn weighed on Print Publishing volumes. Despite this, net profit remained largely stable, easing only 1.8% to RM5.7 million, supported by a more favourable revenue mix and a significant improvement in Print Publishing gross margins to 52.2% from 39.1% a year earlier. On a quarter-on-quarter basis, revenue rose sharply by 58.4% to RM31.3 million, driven by seasonal demand, while net profit rebounded to RM5.7 million from a loss of

On earnings, Hock Soon’s FY25 revenue fell 2.6% year-on-year to RM147.4 million from RM151.4 million. Table eggs dipped to RM142.5 million (average selling price 32 sen vs 36 sen), hit by competition and demand shifts to unbranded lines. ‘Others’ segment slumped to RM4.9 million from RM7.6 million, lacking raw material and manure sales. Assets rose to RM189.5 million (property, plant and equipment gains), liabilities to RM45.1 million (loans), with equity at RM144.3 million and net gearing 0.1 times prelisting. Malacca Securities said as an integrated poultry producer, listing at 60 sen per share, the stock could deliver RM33.2 million in FY26 earnings, rising to RM35.8 million in FY27 and RM38.5 million in FY28. tions, revenue forecasts for FY26 and FY27 have been revised upwards to RM109.7 million and RM112.1 million respectively, while net profit is now expected to reach RM8.7 million in FY26 and RM9.4 million in FY27, reflecting a higher-than anticipated contribution from the paper-based stationery segment. “We maintain our Neutral recommendation on Sasbadi with an unchanged target price of RM0.16, derived from a target price-earnings multiple of 8 times FY26 forecast earnings. “This represents a one standard deviation premium to the two-year forward average and is considered justified by the group’s leading position in academic publishing, improving cash flow profile and strengthened balance sheet,” Berjaya Research said. On outlook, the research firm noted that the group has parti cipated in the Education Ministry’s textbook tenders for the new school curri-culum, which will take effect in 2027, with further tenders expected to be rolled out over the next few years as the new textbook procure

Favourable tailwinds to fan Hock Soon Capital egg production growth PETALING JAYA: Hock Soon Capital Bhd stands ready to ride a wave of expansion and favourable tailwinds in Malaysia’s egg production market. revenue (RM143.8 million vs RM5.98 billion industry) and 2.6% by volume (401.8 million vs 15.4 billion eggs). “Hock Soon’s expansions will grow this slice,“ the research firm said.

Hock Soon Capital farms poultry and produces eggs using automated closed house systems. – HOCK SOON CAPITAL PIC

A projected FY26 earnings dip reflects subsidy cuts, but Malacca Securities still sees fair value at 66 – a 10% upside from initial public offering – based on a 9.5 times price

earnings applied to mid-FY27 earnings per share of 6.9 sen. Hock Soon is scheduled to be listed on Bursa Malaysia’s Main Market on Feb 13.