PublicInvest cuts Kawan Renergy earnings forecasts, lowers target price to 39 sen
KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) has cut its earnings forecasts for Kawan Renergy Bhd by as much as 35 per cent as the company's margin recovery takes longer than expected amid elevated operating costs.
Kuala Lumpur: PublicInvest Bank has lowered its forecasts for Kawan Renergy Bhd and reduced its price target. Analyst Khairul Fahmi said the bank cut earnings forecasts by up to 35% due to slower-than-expected margin recovery amid high operating costs. The target price was lowered to 39 sen from 51 sen. While Kawan Renergy's core profit rebounded strongly in Q3 FY26, driven by the improvement in its Sabah power plant project, the company's earnings still fell short of expectations.
Revenue rose 1.4% quarter-on-quarter but fell short of the nine-month FY26 full-year estimate and consensus forecast. Industrial process equipment revenue grew strongly, while renewable energy revenue fell. The bank maintains a neutral stance on Kawan Renergy but lowered the target price due to the company's ongoing struggles with higher costs.
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