PETALING JAYA: Ranhill Utilities Bhd
’s stronger-than-expected results for its first quarter for financial year ending June 30, 2026 (1Q26) have prompted analysts to lift their earnings forecasts. Most research houses have turned more positive on water margins, data centre demand and the impact of the recent water tariff hike.
RHB Research said Ranhill’s 1Q26 core profit of RM29.9mil, up 113% year-on-year (y-o-y), exceeded its estimates and street consensus, comprising 58% and 41% of full-year projections, respectively, driven by stronger-than-expected margins and its water segment.
Effective Aug 1, Ranhill SAJ Sdn Bhd implemented a targeted tariff revision covering higher-tier domestic users (above 35 cubic metres), non-domestic consumers, strata properties with bulk meters and the shipping category, while introducing a new RM5.33 per cubic metre tariff specifically for data centres.
RHB Research said the tariff changes helped lift Ranhill’s water revenue to a record high of RM414.4mil, up 19% y-o-y.
TA Research maintained its “buy” call with a higher target price of RM2.18 from RM1.59, noting that Ranhill is a proxy for demand driven by data centres and the Johor–Singapore Special Economic Zone.
