{
  "id": 1644110,
  "title": "Malakoff's 2H outlook brightens on higher earnings from Tanjung Bin: RHB Research",
  "url": "https://urgent.news/2026/08/18/malakoffs-2h-outlook-brightens-on-higher-earnings-from-tanjung-bin",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T05:45:11.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1513667/malakoffs-2h-outlook-brightens-higher-earnings-tanjung-bin-rhb"
  },
  "original_language": "en",
  "account": "Malakoff Corp Bhd's prospects appear to be improving in the second half of 2026, according to RHB Research. This optimism stems from higher earnings anticipated from its Tanjung Bin power plant, following the recent resumption of operations for its rotor. The research firm projects a decrease in the power plant's unscheduled outage rate for 2027, which should lead to the full utilization of capacity payments. Additionally, the conveyor belts at Tanjung Bin's jetty have restarted operations since June, and the debris on-site has been completely cleared away. RHB Research anticipates positive upside potential from insurance claims related to these disruptions, and has estimated an additional RM40 million in transhipment costs for the 2026 financial year. During the second quarter of 2026, Malakoff's net profit dropped by half to RM31.7 million, and revenue decreased by 5.4% to RM1.91 billion. In the first half of the fiscal year ending December 31, 2026, net profit fell by 46.5% to RM51.8 million, and revenue declined by 19% to RM3.28 billion. While the company's 1H 2026 earnings fell below expectations at 30% of the full-year estimate, they met the consensus projection at 46% of the full-year figure. The primary discrepancy from the forecast was the high effective tax rate of 51% in Q2 compared to 17% the previous year. RHB Research expects Malakoff's performance to strengthen in the second half of 2026, driven by improved contributions from the Tanjung Bin power plant. However, the firm remains cautious until the commercial availability and stable operations of the power plant are confirmed. Public Investment Bank Bhd (PublicInvest) noted that the lack of an interim dividend was another negative surprise and may indicate a more cautious approach to liquidity management due to a significant increase in receivables. The firm remains cautious until commercial availability and stable operations of the Tanjung Power plant Unit 30 are demonstrated, as Malakoff's operating cash flow fell to RM116.8 million in the first half of 2026 from RM747.1 million a year earlier, mainly due to higher working capital requirements. This decline, combined with the absence of an interim dividend, reflects a more cautious liquidity stance pending the collection of receivables. RHB Research maintains a \"Buy\" rating on Malakoff with a target price of RM1.06, while PublicInvest retains an \"Underperform\" rating with a 74 sen target price.",
  "summary": "KUALA LUMPUR: Malakoff Corp Bhd’s performance is expected to improve in the second half of 2026 (2H 2026), RHB Research said.",
  "key_points": [
    "RHB Research sees brighter 2H outlook for Malakoff due to Tanjung Bin earnings",
    "Tanjung Bin power plant's unscheduled outage rate expected to decrease in 2027",
    "Conveyor belts at Tanjung Bin jetty restarted in June, clearing debris"
  ],
  "editors_take": "Malakoff's prospects are improving in the second half of 2026 due to higher earnings from Tanjung Bin power plant, which could lead to a stronger performance and positive upside potential.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}