PETALING JAYA: Analysts mostly have revised downwards SKP Resources Bhd
’s earnings projections for the upcoming quarters, following the group’s disappointing second-quarter of financial year 2026 (2Q26) results.
In a report, Kenanga Research said it has cut SKP’s financial year 2026 (FY26) and FY27 net profit forecasts by 17% and 11%, respectively, alongside a 13% and 10% reduction in revenue.
The revision reflects lower orders for a legacy product from a key customer as the model is gradually phased out, it added.
Nevertheless, Kenanga Research expects the impact in FY27 to be partially mitigated by the commencement of mass production for the newly secured European Union-based customer in the consumer household segment.
The group also focuses on expanding its Printed Circuit Board Assembly (PCBA), injection moulding, and engineering capabilities to tap into a broader product portfolio.
“Looking ahead, we believe the group’s growth trajectory will be underpinned by sustained orders from existing customers as well as incremental contributions from new customer engagements,” it noted.
The research house has an “outperform” call on the stock and lowered the target price to RM1.18 per share.
RHB Research, meanwhile, maintained a “buy” call on SKP with a target price of 92 sen. In a note to clients, it said the first-half results were disappointing, as “our anticipated seasonal volume ramp-up was softer than expected”.
The US tariff policy could bring about near-term margin compression, but SKP should be able to weather the challenges, thanks to its entrenched fundamentals.
Moreover, its diversification drive could also accelerate as brand owners increasingly look to de-concentrate their production sources.
“Post-results, we cut FY26 to FY28 earnings by 20%, 18% and 12% to account for the tariff impact to our sales and margin assumptions,” said RHB Research.
On SKP’s outlook, TA Research said order visibility from its key customer has moderated in light of the current tariff landscape.
“Our in-house estimates suggest that about 20% of the group’s revenue is directly exposed to the US market. Management also guided that the group is bidding for two new consumer models from its key customer,” it noted.
Overall, TA Research said it remained cautiously optimistic on the group’s medium to long-term outlook, driven by new customer onboarding, product portfolio expansion, and China Plus One opportunities.
Given the weaker-than-expected results, the research house has revised downward SKP’s earnings forecasts for FY26, FY27 and FY28 by 20.3%, 24.1% and 17.4%, respectively, after factoring in lower sales assumptions from its key customer.
TA Research has also reduced the stock’s target price to 88 sen from RM1.25, while maintaining a “buy” call.
