PETALING JAYA: Malakoff Corp Bhd
’s operational disruptions at its coal-fired plants, which have persisted since 2025, are now largely resolved, paving the way for a potentially strong earnings rebound in the second half of 2026 (2H26), according to CGS International (CGSI) Research.
In a note to clients, the brokerage said the second quarter (2Q26) should deliver an improvement in earnings, supported by a full quarter of contributions from Tanjung Bin Energy (TBE), the restart of Tanjung Bin Power (TBP) Unit 2, and the Prai Power plant extension reaching commercial operation in April 2026.
“We expect a more meaningful uplift in 2H26 as most units return to full operations in 3Q26 and the fleet is completely back online by 4Q26 – the first time in over a year,” CGSI Research said.
It added that the cost drag from the ship‑to‑ship coal transshipment workaround – introduced in February 2026 to maintain supply to the Tanjung Bin Complex or TBC while unloader belts were being repaired – ended in late July 2026.
Its cessation is estimated to provide an earnings boost of RM24mil to RM28mil in 2H26.
The brokerage said: “We believe this increases the need for reliable, dispatchable power capacity.
“As such, we expect at least one of Malakoff’s two initial letter of notifications (ILONs) for 2.8GW to convert into a firm LON within the next six months, with a good chance of both converting, given that turbines have already been secured for the full 2.8GW capacity.
CGSI Research reiterated its “add” call on Malakoff with an unchanged target price of RM1.20 per share.
