UUE Holdings Misses Expectations Despite Record Order Book, Downgraded to HOLD

KUALA LUMPUR, 31 October — UUE Holdings Bhd’s second-quarter net profit for the financial year ending June 2026 (2QFY26) surged 230.4% quarter-on-quarter to RM6.2 million but declined year-on-year, bringing its first-half cumulative net profit to RM8.0 million. The results came in below expectations, accounting for only 28% of full-year forecasts.

The earnings shortfall was mainly attributed to slower-than-expected project execution in its Singapore operations. However, analysts expect the group’s performance to improve in the coming quarters, supported by accelerated heavy-duty (HDD) work execution in Malaysia.

UUE Holdings

UUE’s outstanding order book remains robust at a record high of RM454.6 million — equivalent to 2.7 times its FY25 revenue — providing solid earnings visibility and operational resilience.

Following the weaker-than-expected results, analysts have revised down UUE’s FY26F–FY28F core net profit forecasts by 4.8% to 12.8%, citing slower progress and softer order replenishment from Singapore. Consequently, the stock has been downgraded to HOLD with a lower target price of RM0.58, based on 17 times FY27 forecast earnings per share of 3.4 sen.

Business News