Ranhill Utilities Berhad’s latest results brought EPS in above expectations, leading analysts to raise their forecasts for next year. The market outlook has improved slightly as a result, although the share price fell in the week following the results announcement.
Ranhill Utilities Berhad reported revenue of approximately RM2.5 billion and EPS of RM0.16 in its latest full-year results, significantly exceeding analysts’ expectations. Forecasts immediately before the results had put EPS at RM0.15, but estimates were revised upward following the release.
The consensus of 5 analysts forecasts 2027 revenue of RM2.68 billion and EPS of RM0.16. This represents an upward revision from the pre-results EPS forecast of RM0.15, with revenue growth expected to reach 7.7% annually.
Alongside the consensus revisions, the target price was reportedly raised 19% to RM2.90. The most optimistic target price is RM3.26, while the most pessimistic is RM2.39.
Revenue growth over the next 12 months is expected to be 7.7%, compared with annual growth of 12% over the past five years. Although this points to a slowdown in growth, it is still expected to exceed the industry average.