Malakoff: No Interim Dividend Amid Recovery

Malakoff reported 2QFY26 headline PATAMI of RM31.7m (+57.6% QoQ, -49.5% YoY), supported by a full quarter contribution from Tanjung Bin Energy (TBE) following its resumption on 28 January 2026 and the gradual recovery of Tanjung Bin Power (TBP), with Unit 20 returning on 12 April 2026.

However, core earnings remained weak as the headline was supported by an undisclosed amount of insurance claim receivables, contributing to elevated other income of RM71.0m versus RM129.7m in 1QFY26, which included RM85m of insurance claims.

Malakoff – No Dividend

“The QoQ improvement was also supported by higher share of profit from associates and JVs of RM57.6m versus RM28.6m in 1QFY26. Pending clarification at today’s briefing, we expect 1HFY26 core earnings to remain loss-making,” says PIB.

As such, headline 1HFY26 PATAMI of RM51.8m was not comparable with our and consensus FY26F PATAMI estimates of RM59.5m and RM96.1m, respectively.

The absence of an interim dividend was another negative surprise and may indicate a more cautious liquidity stance amid the sharp increase in receivables.

“While the post result installation of TBP Unit 30’s rotor supports a potential 2HFY26 recovery, we remain cautious until commercial availability and stable operations are demonstrated. We maintain our Underperform call and TP of RM0.74.”

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