KUALA LUMPUR: The consumer products sector will continue to provide earnings resilience and visibility, underpinned by stable domestic consumption and ongoing fiscal support, according to RHB Research.
In a note yesterday, the research house said measures such as Sumbangan Asas Rahmah and targeted fuel subsidies should help support consumer spending amid soaring global energy prices.
It added that the temporary adjustment of the monthly purchase limit for the Budi Madani RON95 to 200 litres implied a limited immediate impact on the mass market.
“Overall, we do not expect any near-term policy shifts that could materially disrupt consumption trends,” it said.
However, RHB Research noted that a prolonged West Asia conflict could pose second-order risks via inflation.
Meanwhile, it said the sector’s performance for the fourth quarter of financial year 2025 was in line with its expectations, as nine of the 17 stocks under its coverage met expectations.
The research house added that margin expansion was widely observed during the period, driven by several factors including the increasing scale of operations and higher sales volumes recorded by companies such as Nestle (M) Bhd
, 99 Speed Mart Retail Holdings Bhd, MR DIY Group (M) Bhd, Eco-Shop Marketing Bhd and Farm Fresh Bhd.
“As usual, there was a pick-up in consumer spending towards the year-end, particularly with the consumer discretionary players. This was spurred by favourable seasonality and could also suggest a steady consumption trend in tandem with the improving consumer sentiment,” RHB Research said. — Bernama
