KUALA LUMPUR (Feb 13): SKP Resources Bhd (KL:SKPRES) fell to its lowest in six years on Friday after the electronic manufacturing services firm’s latest results disappointed investors and analysts.
Net profit for the first nine months ended Dec 31, 2025 only accounted for just 67% of the consensus full-year forecast, prompting a wave of downgrades that erased all but one ‘buy’ call for SKP Resources.
CIMB Securities, which lowered its rating to ‘hold’ post-results, flagged headwinds from US tariffs weighing on consumer spending that soured near-term outlook for SKP Resources.
“We have turned more cautious on SKP’s revenue growth outlook,” the research house said in a note.
Kenanga Investment Bank, meanwhile, flagged lower earnings visibility from weaker order flows and sustained margin pressure.
The stock fell as much as 5.5 sen or nearly 10% to 51 sen, its lowest since April 2020. At 10am, SKP Resources was trading at 52 sen after 7.8 million shares changed hands. At the last price, the company had a market capitalisation of about RM813 million.
Shares of SKP Resources declined more 50% in 2025, wiping out some RM1 billion from its market capitalisation amid worries that its clients would delay or shrink their orders to weather US tariffs.
Post-results, six of seven research houses downgraded their recommendations for SKP Resources to ‘hold’ with Public Investment Bank having the sole ‘outperform’ call. The average target price is 58 sen, according to the average of eight analysts tracked by Bloomberg.
The current valuation has largely priced in near-term earnings risk for SKP Resources that trades mostly below its five-year forward earnings multiple average, Public Investment said.
“Despite the challenging environment, we remain optimistic on SKP’s medium-term prospects,” the house said, adding that the stock also offers attractive dividend yields of 6%-7% over the next two financial years, providing downside support amid earnings volatility.