Stratus Global: Eyeing a Strong Catch-Up (STRATUS MK, Outperform, TP: RM1.72)

Stripping out the impact of net foreign exchange gains (RM1m) and fair value gains on financial instruments (RM0.2m), the Stratus Global posted 1QFY27 core profit of RM8.4m, mainly contributed by markets in Malaysia, Europe, and the US.

Stratus Global

Although 1QFY27 core earnings accounted for only 14.4% of our full-year forecast, this was within expectations given the project-based nature of the Group’s business, where revenue is recognised only upon project completion, installation and customer acceptance, says PIB.

“We expect earnings momentum to pick up towards 2HFY27 due to completion of larger projects. No dividend was declared for the quarter. Maintain Outperform call with an unchanged TP of RM1.72 based on 30x FY28 EPS,” analysts say.

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