24/02/2026

BIZ & FINANCE TUESDAY | FEB 24, 2026

15

Kossan Rubber Q4 net profit jumps 68.5% year-on-year

Kerjaya Prospek bags RM502m reclamation job from E&O unit

PETALING Construction company Kerjaya Prospek Group Bhd’s wholly owned subsidiary Future Rock Sdn Bhd bagged a RM502.3 million contract from Tanjung Development Sdn Bhd. The contract entails the exe cution and com pletion of recla mation and dred ging works for Phase 2B and Phase 2C of the Seri Tanjung Pinang development in Penang. Reclamation works are to begin on March 11 and be completed within 36 months. Tanjung Development is an indirect sub-sidiary company of Eastern & Oriental Bhd (E&O), in which certain directors and major share-holders of the group have direct and indirect iterests. Kerjaya Prospek CEO and executive director Tee Eng Tiong said this contract brings the group closer to its targeted order book replenishment for FY26 and increases the total outstanding order book to RM4.4 billion. “Supported by a strong and visible pipeline, we remain well positioned to leverage our proven construction capa bilities to deliver quality execution and sustain momentum throughout the financial year. He said that, building on the pipeline established in the previous year, the group expanded its landbank and joint venture footprint across Penang and Klang Valley, along with the acquisition of strategic stakes and the formation of strategic partnerships. These initiatives have enhanced the group’s development footprint and strengthened its positioning to meet evolving homebuyer needs through well-planned and liveable townships. “Looking ahead, we remain focused on residential developments, lever aging these strategic moves to deepen our market presence and support sustainable long-term growth,“ Tee said. This award increases Kerjaya Pros pek’s FY26 new contract wins to RM703.5 million and is expected to support earnings visibility over the next four years. JAYA:

PETALING JAYA: Kossan Rubber Industries Bhd’s net profit for the fourth quarter ended Dec 31, 2025 (Q4 FY25) increased 68.5% to RM46.67 million from RM27.70 million in the corresponding quarter last year. Profit before taxation (PBT) for Q4 FY25 was RM44.4 million compared with RM38.7 million in Q4 FY24. However, revenue for the quarter decreased 15.14% to RM439.48 million from RM517.89 million posted in Q4 FY24. According to a Bursa Malaysia filing, the group’s gloves division’s revenue declined by 16.47% to RM367.7 million in Q4 FY25, compared to RM440.2 million in Q4 FY24, mainly due to the strengthening of the ringgit against the US dollar and deferment of shipments to January 2026, amounting to RM35.6 million due to port congestion. However, PBT increased to RM37.7 million in Q4 FY25 from RM25.5 million in Q4 FY24, mainly due to lower production costs arising from improved production efficiencies. Further, the filing noted that Kossan Rubber’s technical rubber products (TRP) division’s revenue increased by 8.76% to RM45.1 million in Q4 FY25 as compared to RM41.4 million in Q4 FY24. PBT decreased by 38.75% to RM3.7 million in Q4 FY25 as compared with RM6.10 million in Q4 FY24, mainly due to sales of lower-margin products. The cleanroom division’s revenue decreased by 26.32% to RM26.7 million in Q4 FY25 compared with RM36.3 million in Q4 FY24. PBT decreased by 38.63% to RM2.6 million in Q4 FY25 compared with RM4.3 million in Q4 FY24, mainly due to lower revenue. For FY25, the group recorded revenue of RM1.75 billion, a 8.78% decrease from RM1.92 billion in FY24. PBT for FY25 was RM175.1 million as compared to RM157.3 million for FY24. The gloves division recorded revenue of RM1.46 billion in FY25, a 8.89% decline from FY24. This was primarily attributed to the sudden 10-day production halt in April, automation, digital solutions and operational efficiency o Group continues to advance transformation programme, focusing on

Kossan Rubber’s cleanroom Glove Class 100 packing division. The company anticipates the cleanroom division to operate under stable conditions in FY26. – KOSSAN RUBBER PIC

pressure on prices and margins. Against this backdrop, the group continues to advance its transformation programme, focusing on automation, digital solutions and cost optimisation to enhance operational efficiency and strengthen cost management. The recent strengthening of the ringgit against the US dollar may have a short-term impact on revenue, but the group’s established foreign exchange hedging mechanisms and prudent financial management help mitigate this effect. Kossan Rubber also noted that the TRP division is expected to operate in a challenging environment in 2026 amid continued market uncertainties and cost pressures. The group noted that the infrastructure sector is anticipated to record a modest recovery compared with 2025, while the automotive sector is expected to face ongoing margin pressure, primarily due to the strengthening of the ringgit against the US dollar. Against this backdrop, the group will closely monitor market conditions and industry developments while leveraging the division’s operational flexibility to maintain stable operations, enhance efficiency, and ensure the effective execution of ongoing projects. For the cleanroom division, the group anticipates this division will operate under stable conditions in FY26, the company noted in the filing.

following a gas supply shut-off by Gas Malaysia due to a pipeline explosion in Putra Heights, and to the strengthening of the ringgit against the US dollar. PBT for FY25 increased by 36.66% to RM142.3 million, compared with RM104.1 million in FY24, which was mainly due to lower production costs arising from improved production efficiencies. The TRP division’s revenue decreased by 6.81% to RM187.8 million in FY25 as compared with RM201.6 million in FY24, mainly due to the sudden 10-day stop in production in April following a gas supply shut-off by Gas Malaysia, lower deliveries and the strengthening of the ringgit against the US dollar. PBT decreased by 46.24% to RM16.2 million from RM30.2 million in FY24, due to lower revenue, higher production costs from the abrupt production disruption incident, and a lower-margin product mix. The cleanroom division’s revenue decreased by 10.70% to RM102.2 million in FY25, compared with RM114.5 million in FY24. PBT recorded at RM12.4 million in FY25, compared with RM11.1 million in FY24, was mainly due to lower production costs. In the exchange filing, Kossan Rubber stated that the glove industry continues to operate under conditions of global oversupply, with excess capacity and intensified competition from Chinese manufacturers redirecting exports to non-US markets, placing continued

CIMB Securities sees strong Q4 for Maybank, raises target price to RM13.30 PETALING JAYA: CIMB Securities Sdn Bhd project Malayan Banking Group’s (Maybank) fourth-quarter FY25 net profit at RM2.83 billion, representing an expansion of 8.1% quarter-on quarter (QoQ) and a robust 11.9% year-on-year (YoY) growth, primarily due to a more favourable outlook for non-interest income (NOII) while sequential net-interest margin (NIM) recovery may be better than expected. “This turn in liquidity conditions should reinforce tailwinds for Maybank, given its relatively higher exposure to regional flows. “In line with this, stronger foreign currency (FX) conversion and hedging activity point to firmer flow income, while increased foreign buying of Malaysian government bonds could bolster Maybank’s realised investment gains,“ it said. YoY),“ CIMB Securities said in a report. Maybank is scheduled to release its Q4 FY25 results on Thursday. CIMB Securities has increased its earnings predictions for Maybank for FY25, FY26, and FY27 by 2.6%, 6.9%, and 5.3%, respectively, because they expect NOII to grow by 2.6–3.4% due to better income from global markets, including foreign exchange, derivatives, and investment profits, along with a lower net credit charge of about 19 bps for FY26–27F (vs. previous assumption of 29 bps). The higher valuation is based on a richer FY26 price-to-book multiple of 1.64x, up from 1.27x previously. This reflects an improved post dividend FY26 return on equity of 12% (from 11.1%) and a lower cost of equity of 8.5% (from 9.3%), as capital optimisation is expected to drive the next phase of share price re-rating. CIMB Securities said Maybank has seen the sharpest valuation re-rating among Malaysian banks. Its 12-month forward FY26 price to weaker asset quality, which weighed on its share price. The higher target price also reflects better earnings visibility in Maybank’s core businesses. Net interest margins remain resilient as funding cost pressures ease, while net credit charge is expected to stay low at 19 basis points due to disciplined asset quality management.

In addition, technology is seen as a new, long-term growth driver, with the RM10 billion ROAR30 investment program aimed at improving cost control and operational efficiency through cloud-based systems and a next-generation workforce. Together with a 5.6% dividend yield, this implies a total return of 11.6%, supporting the ‘Buy’ call on the stock, the research firm said.

Meanwhile, the research firm said the combination of a stronger ringgit and improved domestic liquidity has eased the domestic funding cost pressures. “Collectively, these developments are positive for Maybank’s NIM, which we expect to expand by circa 4–5 bps QoQ in Q4 FY25 to 2.06%, although on a full-year basis, FY25 NIM may moderate slightly to 2.03% (-2 bps

The bank-backed research firm said Maybank’s marked improve ment in domestic system liquidity in Q4 FY25 – driven by increased foeign direct investment, portfolio inflows into bonds and sukuk, and robust corporate Casa growth (+14.8% YoY in December 2025) – indicates a shift from neutral to a more supportive liquidity environment.

to-book (P/BV) multiple has risen from 1.3x in December 2025 to 1.51x as of February 20, 2026, which is 2.5 standard deviations above its 10-year average. This marks the stock’s highest valuation in a decade. The last time Maybank traded at around 1.5x P/BV was in April 2018, but it failed to sustain that level due

“Based on our simulations, every 10 bps reduction in NCC would lower provisions by 33–34% and raise FY26–27 net profit by 1.4–2.0%,“ it said. CIMB Securities has maintained its ‘Buy’ call on Maybank and raised its target price to RM13.30.