Malaysia Market Strategy "Q1 26: Below-expectation results; earnings rec..."

Research evidence excerpt

Malaysia Market Strategy "Q1 26: Below-expectation results; earnings rec..."

Global Research

4 June 2026ab

Malaysia Market Strategy Equity Strategy

MalaysiaQ1 26: Below-expectation results; earnings

recovery remains uneven Nicole Goh

Analyst

nicole.goh@ubs.com

+603-2781 1133

Below results driven by misses from Banks and Healthcare Permada Darmono

Within our Malaysia coverage, c.45% of companies reported earnings in line with or Analyst

above UBSe/consensus expectations, indicating a generally soft earnings season. Misses permada.darmono@ubs.com

+65-6495 3137

were concentrated in Banks (largely reflecting pressure on margins and weaker trading

income) and Healthcare (KPJ, Sunway Healthcare). In contrast, beats were limited and Haziq Haizan

idiosyncratic, led by non-banks financial-related names such as Bursa Malaysia and Associate Analyst

AEON Credit Service. Overall, results point to fragile earnings momentum, with weak haziq.haizan@ubs.com

+603-2781 1182

breadth across key sectors.

Thierrawat Jungprasert

Consensus earnings revised marginally upwards, but upgrades remain narrow Associate Analyst

thierrawat.jungprasert@ubs.com

Consensus earnings have been revised up modestly, with a c1.0% upgrade on a 2026 +65-6495 5590

YTD basis and broadly flat (+0.1%) revisions post-results. However, these upgrades are

highly concentrated, with Industrials seeing the largest upward revisions (+54% YTD),

driven primarily by Petronas Chemicals and Press Metal, while Gaming names

experienced the sharpest downgrades (-29% YTD), particularly Genting and Genting

Malaysia. Excluding these outliers, earnings revisions have been largely flattish,

suggesting that headline upgrades do not reflect broad-based improvement in

fundamentals.