{
  "id": 5245624,
  "title": "Strong earnings growth on the cards this year",
  "url": "https://urgent.news/2026/09/03/strong-earnings-growth-on-the-cards-this-year",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-03T04:27:25.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/09/1524810/strong-earnings-growth-cards-year"
  },
  "original_language": "en",
  "account": "Malaysian corporate earnings are projected to experience significant growth this year, according to analysts. This positive outlook follows a season of better-than-expected second-quarter results, with more companies beating earnings forecasts and fewer missing them. Ivy Ng Lee Fang, head of Malaysia research at CIMB Securities, noted that the earnings beat-to-miss ratio improved dramatically, reaching 0.95 times in Q2 2026 from 0.52 times in Q1. Notably, 18% of 98 companies covered by CIMB Securities beat expectations in Q2, up from 12% in Q1, while the percentage missing estimates fell to 19% from 24%. The surge in earnings was driven by sectors such as auto, plantation, rubber gloves, and transport. Auto companies benefited from stronger contributions from affiliated businesses and a recovery in China motor operations, while plantation companies saw gains from improved fresh fruit bunch production and higher crude palm oil average selling prices. Rubber glove manufacturers enjoyed stronger sales volumes and pricing, and transport players benefited from increased cargo volumes and petroleum shipping earnings. Similarly, Hong Leong Investment Bank (HLIB Research) head Jeremy Goh reported an improvement in earnings surprises, with 57% of the 110 stocks under its coverage beating expectations, up from 10% in Q1. The proportion of positive surprises rose to 16% from 10% in Q1, while negative surprises fell to 26% from 29%, resulting in a positive-to-negative surprise ratio of 0.62 times. Goh highlighted that while oil and gas showed the strongest year-on-year growth at 179%, transport, auto, and plantations also outperformed expectations. However, construction, gaming, and glove sectors faced disappointments, while auto stocks surpassed forecasts. Aggregate core earnings for HLIB Research's coverage universe increased 9.4% quarter-on-quarter and 10.5% year-on-year in Q2 2026, bringing first-half growth to 5.8%. For the FBM KLCI, Goh estimated core earnings among its 27 constituents rose 8.3% quarter-on-quarter and 13.5% year-on-year, resulting in an 8% growth for the first half. Despite the promising earnings growth, both analysts caution that the pace may moderate in 2027. They also note that the Malaysian market could face external and domestic challenges in the second half of 2026, including the potential re-escalation of the Iran war, a hawkish US Federal Reserve, and general election uncertainties. Both CIMB Securities and HLIB Research remain cautiously optimistic about the long-term prospects of Malaysian equities, citing improving corporate earnings, attractive dividend yields, and domestic catalysts as supporting factors.",
  "summary": "KUALA LUMPUR: Malaysian corporate earnings are expected to grow strongly this year, but momentum is likely to ease in 2027, said analysts.",
  "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."
}