30/05/2026

BIZ & FINANCE SATURDAY | MAY 30, 2026

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Petronas Dagangan Q1 net profit slips to RM283m

KUALA LUMPUR: Petronas Dagangan Bhd reported a lower net profit of RM283 million in the first quarter ended March 31, 2026 (Q1’26), compared to RM293.5 million in the same quarter a year ago, due to higher product costs and expenditures, which lowered the commercial segment’s contribution. In a Bursa Malaysia filing yesterday, Petronas Dagangan said the lower profit was partially offset by higher gross profit from the retail segment following upward movement in Mean of Platts Singapore prices. Revenue increased to RM11.15 billion during the quarter under review from RM9.09 billion in the previous corresponding quarter, supported by higher average selling prices and stronger sales volumes. Sales volume increased by 7%t across all segments, driven by higher demand. Managing director and CEO Azrul Osman Rani said that in a volatile market, the group’s priority is to keep customers moving with reliable fuel supply, consistent service quality and convenience at every customer touchpoint. “Quarter one reflects the strength of our core business and the discipline of our teams. We will stay focused on operational excellence and customer centricity as we respond quickly to cost and market pressures.” In addition, he said that while conditions remain dynamic, the group is confident in its ability to navigate challenges across both its retail and commercial segments, and to continue strengthening its customer value proposition and deliver long-term value. According to Petronas Dagangan, the group’s operations were affected by volatility in o Results impacted by higher product costs and expenditures, 18 sen interim dividend declared The research firm said while diesel accounts for only about 3% of Econpile’s total cost of goods sold, the cascading impact from higher oil prices may have a knock-on impact on key input costs such as ready-mixed concrete, the price of which has jumped about 10% since the onset of the US-Iran conflict in March. To mitigate this pressure, Econpile is in discussions with some of its private sector clients to explore cost-sharing adjustments for existing projects. The group is also repricing ongoing bids to reflect the higher cost environment, the research firm noted. On earnings, Econpile’s core profit fell 78% YoY to RM0.5 million in Q3 of the financial year ending June 2026 (FY6/26), despite a 49% YoY increase in top line. “This brought core earnings for the first nine months of the financial year ending June 2026 (9M FY6/26) to RM3.6 million, up 53% year-on year, which we deem to be in line with our expectations at 70% of our previous full-year forecast, but well ahead of consensus estimates at 98%,“ CIMB Securities said. The top-line expansion in Q3 FY6/26 was

Stronger Q3 earnings as telecom infrastructure demand picks up PETALING JAYA: OCK Group Bhd, Malaysia’s largest telecommunication network solutions provider and regional towerco, recorded a 28.7% increase in revenue to RM174.7 million for the third quarter ended March 31, 2026 (Q3’26) compared to the RM135.7 million in the corresponding quarter last year. Building upon the earnings momentum from the previous quarter, the group managed to post a noticeable uptick, registering an 89.6% leap in profit before tax (PBT) to RM20.8 million, 98.6% rise in profit after tax (PAT) to RM15.9 million while profit after tax and minority interest (PATAMI) more than doubled to RM11.3 million from RM5.5 million, representing a surge of 104.5%. Against Q2 ‘26, the group also posted notable improvements, with revenue up 4.2% to RM167.6 million, PBT up 6.2% to RM19.6 million, PAT up 7.8% to RM14.8 million, and PATAMI up 11.8% to RM10.1 million. The overall improvement in performance was mainly attributable to stronger contributions from the power solutions arm and improved tower leasing income. For the cumulative nine-month period, the group recorded revenue of RM499.9 million, PBT of RM55.1 million, a PAT of RM41.5 million and Patami of RM27.4 million. Following the change in the financial year end from Dec 31, 2024, to June 30, 2025, there are no direct comparative financial figures for the corresponding period of the preceding year. Managing director Datuk Wira Sam Ooi Chin Khoon said OCK’s strong earnings momentum in Q3 reflects the group’s strengthening position within the telecom munications and digital infrastructure ecosystem. “This is supported by the contributions from the TNS projects alongside the increasing participation in data centre related activities as well as the continued resilience of recurring income base through the regional tower leasing and managed services portfolio across Southeast Asia. “As demand for connectivity, fiberisation, digital infrastructure and 5G network deployment continues to accelerate across the region, we remain optimistic on the industry’s long-term outlook and believe OCK is well-positioned to capitalise on these structural growth trends. “In parallel, the successful listing of EI Power Technologies also marked an important milestone for the group as it unlocked value within our power solutions segment while strengthening our platform for future expansion,“ he said. Ooi said that, given the exciting developments, the group remains focused on enhancing operational execution, expanding its infrastructure footprint, and capturing new opportunities across telecommuni cations, digital solutions, and sustainable energy initiatives to drive sustainable long term growth and deliver better value creation for all stakeholders.

Azrul says the group is confident in its ability to navigate challenges across both its retail and commercial segments. – BERNAMAPIC

CIMB Securities said that although Econpile’s 9M FY6/26 results broadly met expectations, CIMB Securities cut its FY26/27/28 core profit forecasts for the group by 13%/49%/60% to RM4.4 million/RM11.7 million/RM15.3 million, respectively. “The downward revisions reflect our expectations of mounting cost pressures, which may accelerate from 2H26. “Accordingly, we lower our core net margin forecasts for FY27 and FY28 by 2.1 pp and 3.9 pp to 3.1% and 3.7%, respectively. “Given the lack of large-scale contract catalysts in the near term, we also cut our FY27 and FY28F job replenishment assumptions by 27% and 23% to RM400 million and RM500 million, respectively. “This translates into a reduced target price of RM0.16 from RM0.40 previously, as we peg the stock to a lower target multiple of 16x from 18x previously,“ the firm said. As visibility on large infrastructure jobs remains poor alongside rising margin risk, CIMB Securities downgrades Econpile to Hold from Buy. Key re-rating catalysts include the revival of big-ticket infrastructure tenders. A key risk factor would be elevated building material prices. elevated, with the conflict’s uncertain trajectory reinforcing the need to remain cautious, given the potential disruption to global energy supplies and supply chains. “Against this backdrop, Petronas Dagangan remains focused on sharpening its strategic priorities and enhancing operational efficiency through deeper customer engagement and disciplined cost management. “The group will stay the course, executing with consistency and rigour despite global uncertainties, while continuing to deliver resilient and steady performance,” it said. Petronas Dagangan declared an interim dividend of 18 sen per ordinary share. – Bernama

crude oil prices. “In Q1 2026, the average Brent crude price stood at US$81.13 (RM322) per barrel, an increase of 27.3% compared to the preceding quarter, following escalating tensions in West Asia arising from the US-Iran conflict in late February 2026. “The retail segment closely tracks movement in oil prices, supported by long-term back-to-back contracts with its supplier, while the commercial segment recorded lower profit primarily due to increased product costs arising from the steep increases in prices,” it said. Regarding prospects, Petronas Dagangan said geopolitical tensions in West Asia remain

Econpile may face further margin squeeze: CIMB Securities PETALING JAYA: Econpile Holdings Bhd will likely face a challenging outlook for the second half (H2) of 2026, with CIMB Securities Sdn Bhd flagging the stock may face further margin compression heading into the period. largely driven by a normalisation of site activities following earlier project delays due to delays in obtaining regulatory approvals, it said. worth about RM10 million, secured in Q3 FY6/26.

Meanwhile, the softer YoY earnings trajectory for Q3 FY6/26 was due to higher administrative expenses, driven primarily by staff bonus payouts recognised during the quarter. Nevertheless, 9M FY6/26 core earnings rose 53% YoY on the back of higher progress billings, partly offset by the staff bonuses. As a result, 9M FY6/26 gross margins remained flattish YoY, at 9.5%, CIMB Securities said. The research firm noted that as of March 31, 2026, Econpile’s outstanding order book has contracted by 15% QoQ to RM576 million. Meanwhile, its tender book stands at RM1.5 billion, relatively unchanged from end December 2025 levels. Nevertheless, there are only two bids worth over RM50 million (both are property-related jobs in the Klang Valley). “We note that the tender environment for large-scale infrastructure jobs remains muted,“ it said. Econpile has maintained its FY26 new order book win target of RM400 million. For year-to date (YTD) FY26, Econpile has secured RM356 million in new projects (89% of the group’s full year target). This includes its maiden data centre contract