KUALA LUMPUR (Aug 27): Uzma Bhd (KL:UZMA) climbed to a three-month high on Wednesday in active trade after posting record earnings while analysts raised their outlook for the oil-and-gas services firm.
Net income for the financial year ended June 30, 2025 (FY2025) was nearly 16% higher than consensus estimates. Public Investment Bank upgraded the stock to ‘outperform’ post-results, making Uzma a unanimous ‘buy’ among the three research houses tracking the stock.
Uzma’s pivot away from cyclical oil-and-gas business appears to have begun to bear fruit, said Public Investment Bank, highlighting its solar engineering, procurement, construction and commissioning (EPCC) billings as well as recurring income from solar plant in Kuala Muda, Kedah.
“We believe the successful and timely execution demonstrates Uzma’s capability to deliver solar EPCC projects, strengthening its credentials to secure future order book wins,” the research house said.
Uzma shares rose by as high as 9.52% or four sen to 46 sen, their highest since June 16. At the closing bell, the stock traded at 45 sen, still up 8.43% or 3.5 sen, valuing the company at RM264.80 million. A total of 10.34 million shares changed hands.
Wednesday’s gains helped cut Uzma’s year-to-date loss to about 23%. The average target price is now 69 sen, according to Bloomberg, implying a potential gain of 57% in the next 12 months from the current price.
“We view the sharp correction in share price as unwarranted, given the strong earnings momentum with new multiple growth drivers,” Phillip Capital said.
Uzma could see a 30% earnings-per-share growth in FY2026, according to the research house’s estimates, on the back of a seismic vessel contract, large-scale solar farms, water injection facility lease and its latest satellite venture.
The new two-year charter to provide a seismic vessel alone is expected to contribute additional RM10 million to profit in FY2026, the research house noted.
Uzma’s net profit rose 27.7% year-on-year to its record high of RM19.88 million in the fourth quarter of 2025 (4QFY2025), bringing FY2025 earnings to an all-time high of RM53.54 million.