Corporate Malaysia Wraps Up August 2025 Earnings Season on a Positive Note - Opportunities Strengthen in Banks, Construction, Plantations and Selective Tech

KUALA LUMPUR, 17 September 2025 – The August 2025 reporting season for Malaysian equities wrapped up on a broadly positive note, reaffirming the resilience of Corporate Malaysia and unveiling fresh opportunities as investors prepare for the final quarter of the year. Despite global macroeconomic uncertainties, earnings momentum across several blue-chip sectors underscored the solid fundamentals underpinning the domestic equity market.

The plantation sector delivered in line with expectations, as IOI Corporation, Sime Darby Plantation (SD Guthrie) and Kuala Lumpur Kepong reported earnings underpinned by firmer crude palm oil prices and improved downstream margins. Banks stood out as the season’s performers, with CIMB, Maybank and Public Bank posting resilient results supported by healthy loan growth and stable asset quality.

The telecommunications sector met forecasts, supported by stable subscriber bases across the industry. In construction, Sunway Construction and Gamuda showcased continued strength, benefiting from robust orderbooks and consistent new project wins. Oil and gas counters posted results broadly in line with expectations, even as upstream and downstream divisions experienced some margin compression.

Technology names produced mixed performances. NationGate Holdings reported a net profit of RM27.8 million in 2QFY25, in line with market forecasts, on the back of robust demand from its data-computing segment. By contrast, P.I.E. Industrial underperformed, achieving just 28% of consensus first-half earnings estimates due to delayed orders and an unfavorable product mix. ITMAX Systems, however, outshone peers with more than 20% year-on-year earnings growth in 2QFY25, supported by stronger contributions from its digital infrastructure solutions business.

Consumer counters delivered steady results, aided by a firmer ringgit and resilient domestic demand. Nestlé Malaysia reported over 20% growth in net profit to RM112.1 million on higher sales and disciplined cost control. 99 Speed Mart continued its expansion drive, recording a 22% rise in earnings, while MR D.I.Y. achieved a modest 2.2% increase in net profit from contributions by newly opened outlets.

The energy sector was divergent. Tenaga Nasional’s 1HFY25 results fell short of expectations, with core profit for 2QFY25 down 32% year-on-year to RM1.01 billion as non-fuel operating costs weighed on margins. In contrast, YTL Power delivered a strong FY6/25 showing, reporting core profit of RM2.9 billion – about 12% above consensus expectations – driven by robust performance in its power and water operations.

Commenting on the reporting season, Kenny Yee, Head of Research at Rakuten Trade said, “The August 2025 reporting season highlighted the resilience of key sectors such as plantations, banking, construction and consumer retail, which all continued to post steady results despite external headwinds. Even within the more volatile technology space, companies like NationGate and ITMAX delivered results that either met or exceeded expectations, underscoring opportunities for selective positioning. We see recent market weakness as a chance for investors to accumulate quality counters, particularly in sectors with visible earnings catalysts.”

Kazumasa Mise, Chief Executive Officer of Rakuten Trade added, “Earnings seasons often trigger pivotal market movements. Rakuten Trade empowers Malaysian retail investors to capture these opportunities seamlessly via our fully digital platform, which combines real-time data, in-house research insights, cross-border access, and competitive brokerage rates. We continue to encourage investors to rebalance their portfolios – locking in gains from over-performers while reallocating towards resilient sectors like plantations, banks, construction and consumer staples, and keeping an eye on emerging leaders in technology.”

Looking ahead, Rakuten Trade Research expects corporate earnings growth to remain healthy in 2025, supported by stable macro conditions and firmer commodity prices. Defensive play in plantations, banking and consumer staples should continue to provide steady dividends, while selective technology counters and construction provide upside potential. Conversely, energy and semiconductor segments may face challenges from cost pressures and order delays.