KUALA LUMPUR (Dec 15): Malakoff Corporation Bhd’s (KL:MALAKOF) stock price may be under pressure following last Friday’s deadly crane collapse, CGS International flagged.

The incident, the second material episode at Tanjung Bin Complex in Johor in just three months, may lead to heightened regulatory scrutiny and raise environmental-social-governance (ESG) risks, the research house said in a note. Other uncertainties include repair timelines and potential liabilities, the house added.

“The recent recurring incidents may create an extended overhang on the share price and result in elevated risk-premium ascribed over the near term until the investigations are completed and clarity on the future prospects restored,” CGS International said.

Malakoff disclosed an incident on Dec 13 during maintenance work at the jetty of Tanjung Bin Complex which killed two and injured three other people. The deaths were also the company’s first fatal workplace incident since its 2015 listing.

Shares of Malakoff were down as much as 3.5 sen or about 4% to 82 sen on Monday, bucking gains in the broader market. The stock however has lost nearly all of its gains in 2025 following a set of weaker-than-expected results.

A majority of analysts, including CGS International, are still bullish with six ‘buy’, two ‘hold’ and three ‘sell’ calls. The average target price is 99 sen, according to Bloomberg, which implies a potential upside of nearly 19% in the next 12 months from current prices.

CGS International stressed that any implications for future project tenders remain uncertain at this juncture even as the incident introduces headline and ESG-related risks.

For now, the house is keeping its ‘add’ call on the stock as investors appear to be valuing Malakoff’s existing asset base at a steep discount to CGS International’s estimate of about 95 sen per share with zero value to the secured growth pipeline and upside potential from a new gas plant.