Life Water: Wrapping Up On A Stronger Note

Life Water’s 4QFY26 headline net profit rose 21.0% YoY to RM11.0m, driven by margin expansion from higher sales volume of drinking water, coupled with the selling price revision implemented in May 2026, and the consolidation of Twinine S/B’s operational results.

Life Water

“The company’s full-year FY26 core net profit came in at RM36.6m, in line with our estimate but slightly below consensus, accounting for 101% and 94% of our and consensus full-year forecasts, respectively. We raise our FY27-28F forecasts by ~5%, in anticipation of stronger bottled water demand, benefitting from the warmer weather due to the El Niño effect and accelerating tourism activities amid the on-going Visit Malaysia 2026-2027 campaign.

“We remain optimistic about Life Water’s earnings prospects, bolstered by resilient consumer demand, expanded production capacity and the resumption of tourism activities. All told, we reiterate our Outperform call on Life Water with a higher TP of RM1.80 (from RM1.72), pegging c.17x PER to its CY27F EPS of 10.5 sen. On a side note, Life Water declared a dividend of 1.8 sen, representing a dividend yield of 1.1%,” PIB says.

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