Uzma earnings growth set to resume in Q2 FY27

KUALA LUMPUR: Uzma Bhd's earnings growth is expected to resume in the second quarter (Q2) of financial year 2027 (FY27), as seismic vessel utilisation recovers to above 90 per cent following the completion of dry-docking.

Phillip Capital Sdn Bhd said the recovery would coincide with a gradual pick-up in upstream oil and gas (O&G) activity following Petroliam Nasional Bhd's portfolio optimisation and operatorship realignment in Q1.

It said earnings should gain further traction through full-year contributions from the acquisition of Johnson Pump in December 2025 and a third-party access pipeline gas supply contract secured in Q3 FY26.

Higher contributions from Uzma's new energy business are also expected to support growth, backed by newly secured net energy metering projects. Power generation capacity is expected to ramp up to 150 megawatt (MW)-peak in FY27.

This will be complemented by the commissioning of SARA WIF2.0, which was 85 per cent complete as at end-August and is expected to start contributing from Q3 FY27.

"We gather that tender activity is gaining momentum, with the tender book rising 81 per cent quarter-on-quarter to RM5.6 billion as of June, split 67:33 between non-O&G and O&G," Phillip Capital said.

The firm said Uzma, one of Malaysia's top three Bumiputera solar players, is well positioned to participate in Package 2 of Large Scale Solar 6, which involves 300MW of solar capacity and 150MW of battery energy storage system capacity.

The group is also pursuing several natural gas contracts, each worth about RM100 million annually, as well as an eight-year satellite concession project with the Malaysian government.

"On the O&G front, heightened energy security concerns amid ongoing Middle East tensions are driving increased tender activity for well services projects across Thailand, Vietnam and Myanmar.

"Successful contract wins could provide upside to our FY27 earnings forecasts," Phillip Capital said.

The firm maintained its "Buy" call on Uzma with an unchanged target price of 76 sen.

At current levels, it said Uzma is trading at about three times its estimated FY27 price-to-earnings ratio, which it views as undemanding given the company's strengthening earnings outlook.