PETALING JAYA: MBSB Research has maintained a “buy” call on Hup Seng Industries Bhd
with an unchanged target price of RM1.09 on the food and beverage company after the latter reported first half financial year ending Dec 31, 2026 (1H26) results that reflected steady earnings growth.
MBSB Research said in a report that it remained positive on the group’s defensive staple-food exposure, healthy balance sheet and dividend appeal.
At last look, the stock was trading at 95 sen. MBSB research noted that Hup Seng posted second quarter ended June 30 revenue of RM86mil, a 1.3% year-on-year (y-o-y) growth, but a 5.7% slip quarter-on-quarter; with core profit after tax and non-controlling interests (Patanci) of RM10.5mil, representing a 22.3% y-o-y increase.
For 1H26, the group’s revenue was broadly flat at RM177.2mil, while core Patanci rose 10.3% y-o-y to RM21.3mil, broadly in line with expectations, accounting for 44% of MBSB Research’s full-year forecast but 41% of consensus.
For 2Q26, Hup Seng’s net profit surged by 21% y-o-y to RM10.34mil or earnings per share of 1.29 sen. Revenue for the quarter was up by 1% to RM85.98mil.
In 1H26, the group’s net profit was up by 10% y-o-y due to the lower cost of certain raw material.
