RHB Maintains 81 Sen Target Price for SumiSaujana as Earnings Outlook Remains Stable
Stronger export exposure and improving operations support positive investment view
PETALING JAYA, March 5 — RHB Investment Bank Bhd has maintained its earnings forecast for SumiSaujana Group Berhad while keeping its target price at 81 sen per share, reflecting continued confidence in the company’s growth potential.
In its latest research note, the investment bank said the valuation is based on a price-to-earnings (P/E) ratio of 11 times projected mid-financial year 2027 earnings.
According to RHB, this valuation benchmark is broadly in line with the 10 to 12 times range commonly used for companies within the Bursa Malaysia Energy Index.
Despite this alignment, SumiSaujana’s valuation is still considered attractive as it trades at a discount compared with global peers in the oil and gas services sector.
The research house noted that improving earnings visibility, expanding export markets and greater exposure to high-value specialty products are key factors supporting the company’s investment case.
These developments are expected to help the company maintain stronger profit margins over the medium term.
RHB reiterated its “buy” recommendation on the stock, highlighting that the target price implies a potential upside of approximately 55 per cent from current market levels.
The company’s financial performance for the financial year 2025 also reinforced the positive outlook.
SumiSaujana recorded core net profit of RM10.6 million, representing a 7.5 per cent increase compared with the previous year.
The result met about 99 per cent of RHB’s internal earnings forecast and significantly exceeded market consensus expectations, which were estimated at around 140 per cent.
According to the investment bank, the performance confirms that SumiSaujana’s earnings trajectory remains on a steady upward path.
The growth was supported by gradually improving demand within the industry as well as stronger export exposure.
During the fourth quarter of financial year 2025, the company reported core net profit of RM4.3 million after accounting for adjustments related to one-off items and impairment charges.
Revenue during the same period rose sharply by 50 per cent quarter-on-quarter to RM65.4 million.
The increase was largely driven by stronger domestic sales within Malaysia.
Local revenue climbed 67.9 per cent quarter-on-quarter to RM38.1 million, providing a major boost to the company’s overall financial performance.
Consequently, core earnings improved from RM1.2 million in the previous quarter to RM4.3 million, reflecting stronger operational efficiency.
SumiSaujana has also been expanding its presence in international markets, particularly the United States.
During the third quarter of 2025, the company delivered its first batch of emulsifier products to the US under a toll manufacturing agreement with two strategic partners.
Current shipments are estimated to range between 30 and 40 containers per month.
Looking ahead, SumiSaujana plans to strengthen its presence in the US market through a proposed joint venture with a local partner.
The joint venture is expected to be finalised by the first quarter of 2026.
Separately, the company signed a Memorandum of Understanding with CoolisT Group in December 2025 to supply bio-based products beginning this year.
Initial deliveries are expected to involve two to four containers per month, generating estimated annual revenue of RM4 million to RM5 million in the early phase.
Despite the positive outlook, RHB highlighted several potential risks that may affect the company’s earnings performance.
These include the possible depreciation of the US dollar against the Malaysian ringgit, which could impact export revenue.
Rising cost inflation may also put pressure on profit margins.
Additionally, the company remains exposed to fluctuations in its order book within its core business segment, meaning delays in project execution or weaker demand could affect revenue visibility.
Nevertheless, RHB believes SumiSaujana’s business fundamentals remain solid and that the company is well positioned to sustain its growth trajectory in the coming years.
-wilayah.com.my
