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...
Kelington Group Bhd (KL:KGB) is poised to post record quarterly earnings for the July–September period, backed by stronger margins and robust contributions from its advanced engineering division, according to RHB Research.
RHB estimates core net profit for the quarter could reach between RM35 million and RM40 million, buoyed by higher revenue from Singapore and Malaysia. The company is expected to announce its results on Nov 24, followed by an investor call the next day.
“We see the industrial gas business supported by steady demand, albeit weaker year-on-year, due to softer specialty gas sales and project revenue,” RHB said in a note, maintaining its ‘Buy’ call on the stock.
Momentum and Market View
Kelington — a key engineering and industrial gas provider — has been among Bursa Malaysia’s standout performers in 2025, with its shares rising over 50% year to date, defying broader market weakness.
Analysts remain broadly optimistic: according to Bloomberg data, the stock carries four ‘Buy’ ratings and one ‘Hold’, with an average target price of RM5.99, implying roughly 10% upside from current levels.
Semiconductor Boom and Project Outlook
The group continues to ride the global semiconductor expansion wave, as major chipmakers invest heavily in new fabrication plants across Asia and Europe.
RHB noted that the European Union’s Chips Act is spurring a surge in fab construction, though Kelington’s second German fab tender may be downsized, with parts of the work outsourced by its principal.
Still, the setback could be offset by new opportunities in India, where offset manufacturing is broadening the scope of outsourced engineering contracts.
Kelington’s order book exceeds RM1 billion as of end-September, providing solid visibility and workload well into 2027, RHB added.
Key Takeaways
Record earnings expected: RHB forecasts RM35–40 million core net profit in 3Q, driven by high-margin engineering work.
Stock outlook bullish: Four ‘Buy’ calls and 10% upside potential to RM5.99 target price.
Global chip boom tailwind: Demand for semiconductor fab projects continues to support growth.
Project pipeline solid: RM1 billion order book ensures earnings visibility through 2027.
Regional expansion: India’s offset manufacturing could compensate for trimmed German fab tender.
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