PETALING JAYA: Exsim Hospitality Bhd’s outstanding order book of RM131.7mil and the addition of 2,000 ready-to-operate hospitality units in January are expected to deliver a strong earnings uplift in the next quarter, says TA Research.
“We expect the design and fit-out division to remain the group’s primary earnings contributor, supported by a sizeable unbilled order book,” the research house said following the announcement of Exsim Hospitality’s financial results for the second quarter ended Dec 31, 2025 (2Q26).
TA Research said the group has secured RM48.8mil of new jobs year-to-date in the financial year 2026 (FY26), making up 19.5% its full-year new job win assumption of RM250mil.
“While this appears modest at this stage, we believe replenishment momentum remains intact, supported by a steady pipeline of internal awards from Exsim Group’s active property developments and management’s participation in several large-scale tenders, including the potential interior fit-out works for Merdeka 118 for Maybank,” it said.
The group’s hospitality segment added 198 keys in 2Q26, raising its total number of keys under management to 1,637 units.
In January 2026 alone, the group further secured over 2,000 ready-to-operational units, which the research house said should materially contribute to the group’s earnings in the near term.
According to TA Research, Exsim Hospitality’s net profit of RM16.8mil for the first half of its FY26 came largely in line with expectations. As a result, the research house’s earnings forecast for the company remains unchanged.
“Quarter-over-quarter, revenue contracted marginally by 1.3%, mainly due to weaker contributions from the interior fit-out segment (minus 19.3%) as projects remained at the early stage of the S-curve, resulting in a slower order book burn.”
The group saw a 944.2% year-on-year surge in core earnings, although this was largely attributable to a low base in FY25, which had minimal contributions from the hospitality and interior fit-out segments.
The research house maintained its “buy” call and target price of 40 sen per share.
