UUE Holdings’ Margins Hit by Cost Overruns, Outlook Remains Positive

UUE Holdings (UUE MK) reported 3QFY26 core PATAMI of RM6.4m, up 3.9% quarter-on-quarter, supported by stronger contributions from its underground utilities engineering segment in Singapore. However, year-on-year performance slipped 11.7% as cost overruns weighed on margins despite a 30.3% increase in segmental revenue. For the nine months, core PATAMI stood at RM14.2m, achieving just over half of both house and consensus full-year estimates.

UUE Holdings

Reflecting margin pressure and seasonally softer revenue expected in 4QFY26, earnings forecasts for FY26F were cut by 29.7%. Still, analysts maintain FY27F-FY28F projections, viewing the overruns as project-specific rather than structural, with activity expected to ramp up from 1QFY27. UUE’s orderbook remains robust at RM508.5m, providing earnings visibility for three years, underpinned by Tenaga Nasional’s higher capital expenditure under Regulatory Period 4. The stock retains an Outperform rating with unchanged target price of RM0.73, pegged to 18.0x CY26F EPS of 4.1 sen. – Source: Public Investment Bank

Business News

Staff Writer

Recent Posts

Huawei Launches FusionSolar9.0 in Malaysia

Huawei unveils FusionSolar9.0 in Malaysia, introducing AI‑powered, grid‑stabilising solar technology to boost clean energy transition…

1 hour ago

Private Markets Face Slower Adjustment as Higher Rates and AI-Driven Growth Reshape Global Finance

Private markets remain resilient but face mounting pressure from higher rates, weak exits, concentrated AI…

3 hours ago

Consumer Group Urges Clarity on Budget 2026 Cuts

Fomca urges government transparency on Budget 2026 cuts, warning healthcare reductions could harm patients, staff,…

24 hours ago

PETRONAS and ENEOS Reaffirm LNG Partnership for Energy Security

PETRONAS and ENEOS renew LNG partnership, securing 10% stake in MLNG Tiga to strengthen energy…

24 hours ago

UAE Exit: Weakens OPEC+’s Control Over Spare Capacity

UAE exits OPEC+, weakening spare capacity control and signaling shift toward capacity-driven competition, raising volatility…

1 day ago

Dunlop Enters New Chapter in Malaysia with EV-Ready Tyres

Dunlop launches EV-ready tyres under Toyotsu Binter, strengthening Malaysian presence with new products, dealer expansion,…

1 day ago

This website uses cookies.