Analyst Report

Malaysia Smelting: Earnings Surge (SMELT MK, Outperform, TP: RM3.10)

Malaysia Smelting Corporation Bhd (MSC) reported a more than two-fold YoY increase in 2QFY26 net profit to RM34.0m, mainly driven by higher average tin prices of RM208,400 per MT (2QFY25: RM139,800) as a result of tighter global tin supply, resilient demand from AI and the energy transition sector.

In addition, it achieved operational efficiencies from the consolidation of smelting operations at the Pulau Indah plant and ongoing productivity enhancements in mining.

Malaysia Smelting

The cumulative 6MFY26 results came in broadly in line with both our and consensus estimates, achieving 56.7% and 47.5% of our and consensus’ full-year forecasts, respectively.

“We maintain our forecast and reiterate our Outperform call with an unchanged target price of RM3.10 based on 18x FY27F EPS,” says PIB.

#businessnews

Staff Writer

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