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DRB-Hicom Jumps 8% After Earnings Beat — Is the Turnaround Real?

Shares of  DRB-Hicom Bhd  surged to a three-month high after delivering earnings well above expectations. The stock climbed as much as 8% to RM1.24, valuing the group at roughly RM2.4 billion. But beneath the headline beat, analyst opinions remain sharply divided. What Drove the Surprise According to  Hong Leong Investment Bank : 4QFY2025 core PATAMI: ~RM136 million FY2025 core earnings: ~RM178 million Earnings came in at 189% of HLIB’s forecast Key drivers: Strong Proton vehicle sales Improved margins Land sales contribution Proton highlights: 19,800 units sold in January 2026 (record high) Over 100,000 bookings for Saga MC3 3,000+ deliveries of e.MAS 5 EV in January Consolidation of manufacturing at Tanjung Malim for cost efficiency Money Master Take This is a classic case of  headline beat vs structural sustainability . 1️⃣ Proton Is Carrying the Story The turnaround narrative rests heavily on Proton. Sales momentum is strong EV adoption gaining traction Geely reg...
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Netflix Walks Away — And the Market Just Voted in Its Favor

Netflix Inc. has officially exited the bidding war for Warner Bros. Discovery Inc., clearing the path for Paramount Skydance Corp. to proceed with its US$111 billion takeover.

Netflix shares jumped 13% after-hours.

That reaction is the real story.

1️⃣ The Market Rewarded Discipline, Not Size

Netflix refused to match the higher US$31 per share offer.

Instead of stretching its balance sheet:

  • It preserved capital

  • Avoided integration risk

  • Avoided regulatory drag

  • Avoided legacy cable exposure

Investor Signal: In 2026, capital allocation discipline is worth more than empire-building.

2️⃣ Paramount Just Shifted Into High-Leverage Mode

Paramount’s winning bid includes:

  • US$57.5B committed debt financing

  • US$2.8B termination payment to Netflix

  • US$7B regulatory failure protection

Add in political scrutiny and Senate hearings.

This is now:

  • A leverage-heavy transaction

  • A synergy-dependent story

  • A regulatory-risk discount situation

Risk profile increased materially.

3️⃣ Netflix Doesn’t Need the Deal

Netflix already has:

  • 325M+ global subscribers

  • Positive and expanding free cash flow

  • ~US$20B annual content investment

  • Improving operating leverage

Buying Warner would have added:

  • Linear TV exposure

  • Integration complexity

  • Higher fixed cost structure

By walking away, Netflix protects its margin trajectory.

Strategic Positioning: Netflix remains a cash-generating compounder, not a restructuring play.

4️⃣ Streaming Industry Phase Shift

This deal signals something bigger:

  • Legacy studios need consolidation to survive

  • Pure-play streaming leaders don’t

  • Investors now price regulatory risk aggressively

  • Cost of capital matters again

The era of growth-at-any-price is structurally over.

Investor Framework

CompanyRisk ProfileBalance Sheet ImpactMarket Reaction
NetflixLowerPreserved+13%
ParamountHigherLeveragedFlat
WarnerEvent-drivenExit liquidityVolatile

The price action tells you which model investors prefer.

Bottom Line

  • Netflix strengthened credibility.

  • Paramount increased execution risk.

  • Capital discipline is being repriced upward across media stocks.

Sometimes, the best acquisition strategy…
is walking away.

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