KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
A sharp earnings miss and persistent demand weakness have cast a long shadow over Amway Malaysia Holdings Bhd, with analysts turning increasingly cautious as structural headwinds mount.
Earnings Disappointment Raises Red Flags
Amway Malaysia’s latest quarterly report delivered a stark message to the market: profitability remains under pressure. For the first half of FY2025, the company reported net income amounting to less than 28% of full-year consensus estimates, missing expectations and prompting two out of three analysts to downgrade the stock to a sell rating.
This marks a continuation of its earnings slide, with Q2 FY2025 becoming the 10th consecutive quarter of year-on-year revenue contraction — a clear sign that the company is still grappling with demand erosion.
“Sales will likely stay muted due to weak consumer sentiment, especially for premium direct-selling products,” said BIMB Securities, maintaining its bearish stance.
Stock Under Pressure: Down 20% YTD
Following the results, Amway’s share price fell as much as 10% intraday to RM4.52, its lowest level since April 2025, before recovering slightly to RM4.71. The stock is now down 20% year-to-date, erasing approximately RM245 millionfrom its market capitalization, which now stands at RM774 million.
The sharp decline reflects investor unease over both macro headwinds and industry-specific challenges. Despite once being favored for its robust dividend yield, all analysts now carry “sell” calls on the stock.
CIMB Securities downgraded the counter to reduce, warning that persistent earnings weakness could jeopardize dividend sustainability.
🛑 Demand Softness Meets Rising Cost Pressures
Amway’s challenges are rooted in structural shifts:
Weakened Consumer Sentiment: Higher cost of living has dampened appetite for discretionary and premium wellness products.
Industry Competition: A saturated and highly competitive MLM landscape continues to put pressure on topline growth.
Cost Pressures: Inflationary pressures and currency volatility have weighed on margins.
While analysts acknowledge Amway’s commitment to cost control and efficiency, there is consensus that such efforts may only provide short-term margin cushioning rather than long-term recovery.
Valuation & Outlook: Limited Upside, Heightened Risks
Current Share Price: RM4.71
Average Target Price: RM4.55
Implied Downside: ~3% over the next 12 months
With limited upside and elevated earnings risks, the stock offers little appeal at current levels. The consensus view suggests that investors remain better off on the sidelines until there are clear signs of earnings stabilization or an inflection in consumer demand.
Investment Takeaway
Amway Malaysia is facing a confluence of challenges — declining revenue, soft consumer sentiment, and rising operating costs. With the once-defensive stock now losing its dividend allure and consensus turning universally bearish, the near-term outlook remains clouded.
Until a turnaround in top-line performance materializes, Amway is likely to remain under pressure — both operationally and in the market.
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