04/03/2026

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BIZ & FINANCE WEDNESDAY | MAR 4, 2026

UCHI share upside seen limited without clear earnings catalyst

Unsubsidised RON95 and diesel prices could climb if global crude prices rise further. – BERNAMAPIX

KUALA UCHI Technologies Bhd’s share price upside is expected to stay constrained in the absence of a clearer earnings catalyst, particularly firmer confirmation of a sustained recovery in European sales demand. Berjaya Research Sdn Bhd said its cautious volume growth forecast aligns with the group’s guidance. UCHI Technologies expects ongoing armed conflicts, heightened geopolitical tensions, and global economic uncertainty to create greater volatility in its supply chain, cost base, and US dollar movements. Nonetheless, net profitability margin remains robust at above 50% with dividend yield remaining attractive at 6.4%, which could provide a valuation floor to sustain its share price over the near-term, Berjaya Research said. The research firm also said UCHI Technology’s 2025 revenue and profit after tax, excluding unrealised forex and derivative movements, came in broadly in line with expectations, meeting 95% and 97% of Berjaya Research’s full-year forecasts, respectively. On a year-on-year basis, UCHI Technology’s Q4’25 revenue slipped 1.7% to RM44.6 million from RM45.4 million, mainly due to lower revenue translation into ringgit following the stronger currency (RM/USD 4.18 versus 4.31 in Q4’24), despite a 1% increase in USD sales to US$10.7 million from US$10.5 million. Core profit after tax declined 7.9% to RM22.4 million from RM24.3 million. On a quarter-on-quarter basis, UCHI Technology’s Q4’25 revenue fell 10.7% to RM44.6 million from RM50 million, mainly due to weaker sales demand (US$10.7 million versus US$11.8 million in LUMPUR:

‘Malaysia may benefit from rising LNG prices’

Q3’25) and a stronger ringgit against the US dollar. As a result, core profit after tax declined 15.2% to RM22.4 million from RM26.4 million. The company declared a third interim dividend of 4.5 sen and proposed a final dividend of 6 sen, bringing total dividends for 2025 to 19.5 sen, compared with 29.5 sen in 2024, which included a 5 sen special dividend. “We reduced our 2026 forecast profit after tax by 16.3% to RM79.8 million after revising our forex assumption to RM3.90 against the US dollar, from RM4.30 previously. “We also introduced a 2027 forecast profit after tax of RM85.8 million, representing a 7.5% year on-year increase,“ Berjaya Research said. “We maintain our Neutral recommendation for UCHI Technology, but with a lower target price of RM2.74, following a roll-forward of our multi-stage dividend discount model (DDM) valuation,“ it said. The research firm noted that the potential upsides to UCHI Technology include sustained dividend payout, solid balance sheet with a net cash position, and impressive profitability. Key downside risks are customer concentration, supply chain disruption, depreciation of the US dollar against the ringgit, and non-renewal of its pioneer status.

RM2.05 per litre, adding another 10 basis points to headline inflation while reducing the annual subsidy bill by about RM1 billion.” CIMB said the impact on inflation would remain manageable at this level, making a hike to the OPR unlikely even under this scenario. Fiscally, every US$10 per barrel increase in Brent crude is expected to boost petroleum-related revenue by roughly RM3.5 billion. At the same time, annual RON95 and diesel subsidies after subsidy rationalisation are projected to rise by RM3.8 billion and RM1.3 billion, respectively, resulting in a net fiscal effect of RM1.6 billion. Separately, a US$5/MMBtu increase in natural gas prices is expected to raise the LNG subsidy by around RM500 million. However, CIMB noted that with the ringgit having appreciated nearly 7% since Budget 2026 was tabled, the net fiscal impact of an oil price increase from the initial US$10 per barrel assumption is likely to be minimal compared with the original figures in Budget 2026. – Bernama

Tobago) to net improvement in its current account. “In such a scenario, Malaysia’s external position and currency would likely diverge markedly from regional peers, which could face further deterioration in their current account balances,” CIMB said in a research note. On inflation, CIMB said that assuming the US dollar and ringgit remain stable at around RM3.85, and the BUDI95 fuel price is unchanged, a US$10 per barrel increase in Brent crude would raise headline inflation by 0.1% in 2026, factoring in increases in unsubsidised RON95 and diesel prices. “At an unconstrained level, every US$10 per barrel increase in Brent crude is estimated to raise the economic price of RON95 by around 10%, which would have added roughly 55 basis points to headline inflation if not for the BUDI95 subsidy, at an additional fiscal cost of RM3.8 billion per year. “Should Brent crude reach US$100 per barrel, the government could raise the BUDI95 price back to record a

KUALA Malaysia’s substantial Liquefied Natural Gas (LNG) exports uniquely position the country to benefit from rising gas prices, with a US$5 (RM19.56) per million British thermal units (MMBtu) increase estimated to add 1.23% of GDP to the current account. CIMB Treasury and Markets Research noted that Malaysia posts a net oil and gas trade surplus despite being a net crude oil importer, thanks to its significant LNG export capacity. “On a combined basis, Malaysia would be the only major global LNG exporter (including Indonesia, other LNG exporters, and Trinidad and o Country has O&G trade surplus despite being net oil importer thanks to gas export capacity: CIMB LUMPUR:

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

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