PETALING JAYA: With the latest results season having been wrapped up, there have been some strong performers, although others have struggled to keep pace.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said some of the key sectors that recorded significant net profit growth included consumer, energy, transport and logistics, property, real estate investment trust (REITs) and technology.
He added that corporate earnings in the fourth quarter (4Q25) particularly were generally quite favourable – in line with higher gross domestic product growth of 6.3% during that period.
“Conducive macroeconomic environment such as full employment, accommodative monetary policies, expansionary fiscal policies and the strong ringgit are some of the factors.
“An improved business sentiment with the purchasing managers’ index sustained at above 50 points during November and December 2025 have allowed listed companies to record higher earnings growth,” he said to StarBiz.
Mohd Afzanizam said he remains positive on the outlook for 2026, although external uncertainties could intermittently affect market sentiment.
“With the Malaysian economy continuing to remain resilient, corporate earnings should also be moving in the same direction.”
Fortress Capital chief executive officer Datuk Thomas Yong weighed in on the subject matter, saying the recent reporting season was constructive, albeit with some nuances.
He reckons more or less for the top 100 companies, earnings have been better – combined 4Q25 earnings rose a solid low-double-digit year-on-year, with 67 companies delivering profit growth and 56 posting sequential expansion.
He said the banking sector was steady and earnings supportive – evident by the net profit growths of Malayan Banking Bhd
, RHB Bank Bhd and AMMB Holdings Bhd’s which all came in within the 4% to 9% range.
Other sectors where Yong thought did relatively well included consumer staples and construction.
It is worth noting the construction sector has been gaining more contracts for work on data centres, infrastructure and a recovering property pipeline.
As for sectors that performed more moderately, Yong said these included companies within the plantation sector.
PPB Group Bhd went into the red after recognising an impairment charge of RM4.17bil – resulting in the group posting a net loss of RM2.73bil for the financial year ended December last year.
Groups like Petronas Chemicals Group Bhd also registered RM754mil net loss for 4Q25, marking its fourth straight quarterly loss.
The group is likely to face more headwinds this year on the back of new capacity in China and subdued demand.
Moving forward, Yong said he favours companies that combine genuine operating leverage, proven execution track records, durable earnings visibility, while being supported by structural tailwinds.
“We are interested in three subsegments where Malaysian-listed companies have genuine and growing relevance.
“These are namely automated test equipment, wide band gap power semiconductors and companies weighted toward data centre construction,” he noted.
Meanwhile, UOB Kay Hian (UOBKH) Research said it will remain positioned for a constructive yet selective 2026.
“This will be underpinned by pre-general election domestic liquidity, the ringgit’s appreciation, corporate earnings growth recovery and stable policy settings,” the research firm said in a report.
According to UOBKH Research, strategy will be risk-on but quality focused especially amidst a fluid global backdrop.
“Tactically, defensive sectors and high yielding stocks would outperform amid the near-term geopolitical uncertainty in the Middle East.
“This favours particularly domestic oriented sectors such as utilities, consumer, healthcare and REITs. Oil and gas stands to be the only interim beneficiary sector.”
