{
  "id": 5052929,
  "title": "Steel Hawk earnings visibility cloudy despite RM576mil tender book",
  "url": "https://urgent.news/2026/09/02/steel-hawk-earnings-visibility-cloudy-despite-rm576mil-tender-book",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-02T08:53:55.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/09/1524294/steel-hawk-earnings-visibility-cloudy-despite-rm576mil-tender"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: Steel Hawk Bhd's earnings visibility remains uncertain despite a sizable tender pipeline, as the company is cautious about the oil and gas (O&G) environment. TA Securities noted that Steel Hawk's current orderbook of RM63.4 million provides limited revenue visibility into the second half of FY26, though it accounts for 76.1% of the orderbook and 77.9% of the RM576 million tender book, highlighting the company's diversification into power, utilities, infrastructure, data centres, and healthcare. However, only 10-20% of the tender book is expected to be converted, making earnings visibility beyond 2H FY26 cautious. Steel Hawk anticipates breaking even in Q3, with Q4 profitability supported by the current orderbook, but remains nervous about the recovery pace due to a sharp decline in 1H FY26 gross profit margin from 41.2% to 10.4%. Lower work-order utilisation, higher raw material costs, and SST absorption have impacted margins, and management's recovery assumptions depend on tighter cost control and on-time project execution. The O&G environment remains concerning, with subdued work-order activity and intensified competition, though the completion of Petronas' manpower rationalisation and delays to some construction tenders could marginally aid recovery. TA Securities maintains a \"Sell\" rating on Steel Hawk with an unchanged target price of 10 sen, based on six times FY27 earnings per share, as the timing of new O&G awards remains uncertain.",
  "summary": "KUALA LUMPUR: Steel Hawk Bhd's orderbook visibility remains limited in the near term despite its sizeable tender pipeline, as the company remains cautious about the oil and gas (O&G) environment.",
  "key_points": [],
  "editors_take": null,
  "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."
}