PETALING JAYA: Analysts at CIMB Research believe that the financial results season for the fourth quarter of financial year 2025 (4Q25) thus far has been “off to a good start”.
In a report, the research house noted that as of Feb 19, 27 companies under its coverage (30% of total coverage) have released their results.
“Of these, 30% (eight companies) beat expectations, 11% (three companies) underperformed expectations, and the remaining 59% (16 companies) met expectations.
“This translates into a beat-to-miss ratio of 2.7 times, a marked improvement from 0.78 times in 3Q25 and 0.55 times in 2Q25.”
Meanwhile, among the KLCI constituents under its coverage, CIMB Research said four out of 30 (13%) delivered results in line with expectations.
“Within the rubber glove sector, both Top Glove Corp Bhd and Hartalega Holdings Bhd reported better-than-expected earnings.
“Top Glove’s outperformance was mainly driven by lower raw material costs, while Hartalega benefitted from improved operating efficiency, cost optimisation initiatives, and a lower effective tax rate.”
In the technology sector, CIMB Research said two companies exceeded its forecasts, namely Malaysian Pacific Industries Bhd (MPI) and VS Industry Bhd (VSI).
“MPI delivered stronger-than-expected earnings despite a firmer ringgit, supported by improved margins from better cost control, a favourable sales mix, and lower tax expenses, while VSI outperformed on the back of higher customer orders for its Malaysian operations.”
It added that Westports Holdings Bhd also beat expectations, primarily owing to lower operating costs, particularly electricity expenses.
“Lower electricity costs have similarly supported real estate investment trust (REIT) earnings, with IGB-REIT exceeding expectations on stronger-than-anticipated contributions from the newly acquired Mid Valley Southkey mall.”