Ranhill shares snap three-day slide with 8pct rebound

KUALA LUMPUR: Ranhill Utilities Bhd's shares experienced a three-day decline followed by an 8% rebound on Wednesday, as reported by Bursa Malaysia. Initially, the utility company's stock opened unchanged at RM2.36 from Monday's close and eventually surged as high as RM2.55, marking an 8.05% increase. By the noon break, Ranhill was trading 18 sen, or 7.63%, higher at RM2.54, positioning it as the 12th biggest gainer on Bursa Malaysia.

This brought the company's market capitalization to around RM3.29 billion. The stock's year-to-date performance stands at 49.4%. The rebound came after a series of losses, with Ranhill tumbling 14.8% during three consecutive trading sessions, from RM2.77 on August 19 to RM2.36 on Monday. The decline began last Thursday, following the company's latest financial results and concerns over its high valuation.

The selling intensified when Ranhill reported a net profit of RM70.08 million for the fourth quarter ending June 30, 2026, pushing full-year earnings to RM196.61 million. Despite the short-term sell-off, investor optimism persisted due to expectations of rising water demand in Johor, driven by the expansion of the state's data-center industry.

However, some analysts cautioned that the stock's strong performance this year may have pushed its valuation beyond its fundamentals. Research houses, including BIMB Securities and MBSB Research, downgraded Ranhill, stating that its valuation had outpaced its earnings outlook. Maybank Investment Bank maintained a "Hold" rating and highlighted the lack of dividends following the latest results.

Analysts currently have a consensus "Hold" rating on Ranhill, with three recommending "Hold" and two suggesting "Buy" calls.