Quick Summary Nvidia posted a 75.2% adjusted gross margin , among the highest in Big Tech AI hyperscalers plan US$650B capex in 2026 , much flowing to Nvidia Rivals like AMD, Alphabet and Amazon are gaining traction Long-term margin sustainability remains the key investor question Margins Steal the Show While investors already expected strong demand, NVIDIA Corp surprised with something even more impressive: Adjusted gross margin of 75.2% , the highest since late 2024 — and management expects similar levels next quarter. For a nearly US$5 trillion company , that margin signals extraordinary pricing power in AI hardware. AI Spending Wave Still Intact AI hyperscalers are forecasting ~US$650 billion in capex for 2026 , up roughly 60% from 2025. Nvidia remains the primary beneficiary as demand for data centre GPUs continues to surge. But maintaining 75% margins depends on two big factors: 1️⃣ Supply Constraints Rising memory costs remain a ris...
Quick Summary
4QFY2025 net profit plunged 64% YoY to RM30.3m
Revenue fell 15.5% on lower CPO and palm kernel prices
RM27.2m biological asset fair value loss hit earnings
FY2025 profit down 39%, dividend trimmed sharply
Earnings Hit by Price Weakness & Fair Value Loss
Shares of Hap Seng Plantations Holdings Bhd remained flat despite a sharp earnings drop, as the group reported a weak fourth quarter driven by softer palm oil prices and valuation losses.
4QFY2025 Highlights
Net profit: RM30.34m (-64.3% YoY)
EPS: 3.79 sen (vs 10.63 sen last year)
Revenue: RM197.3m (-15.5% YoY)
The decline was mainly due to:
Lower average selling prices (ASP) for crude palm oil (CPO)
Lower sales volumes
A RM27.2m loss on biological asset fair value adjustments, reversing last year’s RM24.4m gain
CPO Prices Under Pressure
CPO ASP: RM4,353/tonne (-9.1% YoY)
Palm kernel ASP: RM3,483/tonne (-1.6% YoY)
Margins narrowed as weaker pricing outweighed any operational efficiencies.
Full-Year Performance
For FY2025:
Net profit: RM124.86m (-39% YoY)
Revenue: RM702.4m (-6.7% YoY)
Dividend was also reduced:
Second interim dividend: 6.1 sen (vs 11 sen last year)
Total FY2025 payout: 7.6 sen (-39% YoY)
Outlook: Cautious Amid Policy & Price Risks
Management expects FY2026 results to depend on:
Palm oil production levels
Commodity price movements
Global economic uncertainty
While CPO prices currently enjoy support from:
Seasonally lower production
Strong festive demand
The near-term outlook is clouded by Indonesia’s decision to delay its B50 biodiesel mandate, which may slow demand growth and weigh on prices.
Bottom Line
Hap Seng Plantations faces near-term headwinds from weaker CPO prices and valuation losses.
Although palm oil prices have found short-term support, policy delays in Indonesia and global uncertainties may continue to cap upside. Investors will likely watch for production recovery and price stabilisation before sentiment improves.
Key Takeaways
4Q earnings sharply lower due to weaker prices
Biological asset loss amplified decline
Dividend payout cut significantly
FY2026 outlook hinges on CPO price direction
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