MISC Shares Down On Weaker 1Q FY2025 Results

KUALA LUMPUR, May 29 (Bernama) -- MISC Bhd’s shares fell in early trade after its net profit for the first quarter ended March 31, 2025 (1Q FY2025) dropped year-on-year on the back of lower revenue for the quarter. 

At 9.44 am, MISC slipped two sen to RM7.51, with 48,900 shares transacted.

In a filing with Bursa Malaysia yesterday, MISC’s net profit eased to RM705.70 million in 1Q from RM759.90 million a year earlier, while revenue declined to RM2.82 billion against RM3.64 billion.

The lower revenue was primarily weighed down by lower revenue from the marine and heavy engineering segment by 54.0 per cent, it said.

Despite the weaker performance, Hong Leong Investment Bank Bhd (HLIB) and CIMB Securities Sdn Bhd maintained their buy calls on a positive earnings outlook.

HLIB said despite a dismal outlook in MISC’s gas segment, it still expects group earnings growth in FY2025 to be driven by the petroleum division and offshore business.

“Our FY2025/2026 profit forecasts are adjusted slightly by -0.3 per cent/-3.7 per cent. We also introduce FY207 earnings forecast at RM2.49 billion,” it said in a note today.

CIMB Securities said it expects earnings to normalise in the following quarters, in the absence of the one-time gain from floating production storage and offloading (FPSO) vessel Bunga Kertas.

“A dividend per share of eight sen was declared, in line with our forecast.

“We expect the FY2025–FY2027 forecast earnings outlook to be supported by full-year contribution from FPSO Marechal Duque de Caxias and sustained performance from the petroleum segment,” it said.

CIMB Securities said MISC is currently trading at an attractive price-to-earnings ratio of 13.6 times, 15 per cent below its 10-year mean, while offering a decent 4.8 per cent yield.

-- BERNAMA