Rohas Tecnic Berhad Q1 2026 Financial Report – Detailed Investor Analysis

Key Highlights from the Q1 2026 Financial Report

• Revenue Surge: Rohas Tecnic Berhad recorded a significant revenue increase to RM90.3 million for Q1 2026, up by 73% compared to RM52.2 million in Q1 2025. This jump was mainly driven by the Engineering, Procurement, Construction and Commissioning (EPCC) segment, which contributed RM80.3 million, highlighting strong project execution and contract wins.
• Loss Reduction: Despite higher revenue, the Group posted a loss after tax of RM2.7 million, a 7% improvement from RM2.9 million loss in Q1 2025. Operating loss also narrowed by 55% to RM1.2 million from RM2.7 million a year ago.
• Margin Pressure & Segmental Insights:
  • Power transmission tower fabrication revenue dropped sharply (RM1.7 million vs RM19.6 million in Q1 2025).
  • Telecommunication towers saw a modest increase (RM2.7 million vs RM0.3 million).
  • EPCC revenue soared (RM80.3 million vs RM26.3 million), offsetting weaker tower fabrication performance.
  • Concession and other business activities held steady (RM5.7 million vs RM5.9 million).
• Cash Flow & Liquidity: Net cash used in operating activities was RM5.7 million, an improvement from RM14.3 million outflow in Q1 2025. The Group’s cash and cash equivalents stood at RM89.3 million at the quarter end, with total cash, bank balances, and deposits at RM128.7 million.
• Balance Sheet Strength: Total assets increased to RM628.7 million, up from RM615.4 million at end-2025. The Group’s equity attributable to owners decreased slightly to RM318.9 million from RM322.1 million, reflecting the period’s losses and currency translation differences.
• Borrowings: Total group borrowings were steady at RM129.7 million, with RM90.5 million secured and RM39.2 million unsecured. The company disclosed plans for a Proposed Share Buy-Back Authority (up to 10% of issued shares) and a Long-Term Incentive Plan (LTIP) covering up to 15% of share capital for directors and employees, both pending shareholder approval at the upcoming AGM.

Shareholder Price-Sensitive Issues

• Proposed Share Buy-Back Authority: Rohas Tecnic intends to seek shareholder approval for a share buy-back of up to 10% of its issued shares. If approved, this move could support share price stability, enhance shareholder value, and signal management’s confidence in the company’s prospects.
• Long-Term Incentive Plan (LTIP): The proposed LTIP could align management and employee interests with shareholders, potentially motivating performance and retention. However, it may lead to share dilution if fully exercised.
• Arbitration Outcome: HG Power Transmission Sdn Bhd (86.8% subsidiary) received a final arbitration award against Power Grid Company of Bangladesh Ltd. PGCB is ordered to pay HGPT USD1.89 million (~RM8.4 million) plus interest and partial arbitration costs. While the project was completed in 2020 and the award is not expected to materially impact group operations, the positive outcome adds to the company’s financial stability.
• Segmental Challenges:
  • EPCC Segment: Benefiting from Malaysia’s grid-strengthening and data centre expansion, but exposed to foreign exchange and material cost volatility.
  • Manufacturing Segment: Faces margin pressure due to project timing variability.
  • Water Segment: Execution challenges remain, with site possession and scheduling delays.
• No Dividend Declared: No dividend was declared for the period, reflecting management’s cautious stance amid ongoing operational challenges and external uncertainties.

Other Notable Details

• Effective Tax Rate: The Group reported a negative effective tax rate (-46%) due to losses before tax and deferred tax computations. Malaysian income tax remains at 24% statutory rate.
• Contingent Liabilities: Performance bonds and bank guarantees stood at RM108.5 million.
• Capital Commitments: Authorised and contracted capital expenditure for property, plant, and equipment was RM1.4 million.
• No Material Events or Changes: No material events, changes in group composition, or revaluation of assets reported.

Investor Sentiment & Outlook

Rohas Tecnic Berhad’s Q1 2026 results show a marked improvement in revenue and narrowing losses, driven by strong EPCC execution and resilience in telecommunications. The share buy-back and LTIP proposals, if approved, may positively influence share price and investor confidence. The arbitration win provides a modest financial boost, while ongoing challenges in manufacturing and water segments, coupled with global uncertainties, warrant shareholder caution. The absence of dividend and continued focus on operational discipline, cost management, and project delivery underline management’s prudent approach amid volatility.

Potential Share Price Movers

• Approval of share buy-back authority and LTIP at AGM.
• Arbitration award collection and impact on future cash flows.
• Continued strong performance in EPCC and telecommunications segments.
• Resolution of water segment execution delays.

Disclaimer:

This article is based on the unaudited Q1 2026 financial report of Rohas Tecnic Berhad and is intended for informational purposes only. Investors should conduct their own due diligence and consult financial advisors before making investment decisions. The views expressed are not investment advice and do not constitute a recommendation to buy or sell shares.

Versi Bahasa Malaysia: Laporan Kewangan Q1 2026 Rohas Tecnic Berhad – Analisis Pelabur

• Peningkatan Pendapatan: Rohas Tecnic Berhad mencatatkan peningkatan pendapatan kepada RM90.3 juta untuk Q1 2026, naik 73% berbanding RM52.2 juta pada Q1 2025. Lonjakan ini didorong terutamanya oleh segmen EPCC yang menyumbang RM80.3 juta.
• Pengurangan Kerugian: Walaupun pendapatan lebih tinggi, kumpulan mencatatkan kerugian selepas cukai sebanyak RM2.7 juta, penurunan 7% daripada kerugian RM2.9 juta pada Q1 2025. Kerugian operasi juga berkurang 55% kepada RM1.2 juta.
• Tekanan Margin & Segmen:
  • Fabrication menara penghantaran kuasa menurun dengan ketara (RM1.7 juta vs RM19.6 juta Q1 2025).
  • Fabrication menara telekomunikasi naik sedikit (RM2.7 juta vs RM0.3 juta).
  • Pendapatan EPCC melonjak (RM80.3 juta vs RM26.3 juta), mengimbangi prestasi fabrication yang lemah.
  • Aktiviti konsesi dan lain-lain kekal stabil (RM5.7 juta vs RM5.9 juta).
• Aliran Tunai & Kecairan: Tunai bersih digunakan dalam aktiviti operasi ialah RM5.7 juta, lebih baik daripada RM14.3 juta pada Q1 2025. Tunai dan setara tunai pada akhir suku ialah RM89.3 juta.
• Kekuatan Kunci Kira-kira: Jumlah aset meningkat kepada RM628.7 juta. Ekuiti berkurang sedikit kepada RM318.9 juta daripada RM322.1 juta.
• Pinjaman: Pinjaman kumpulan stabil pada RM129.7 juta (RM90.5 juta terjamin, RM39.2 juta tidak terjamin). Syarikat merancang cadangan Pembelian Balik Saham (hingga 10% saham) dan Skim Insentif Jangka Panjang (LTIP) untuk pengarah dan pekerja, menunggu kelulusan pemegang saham.

Isu Sensitif Harga Saham

• Cadangan Pembelian Balik Saham: Jika diluluskan, pembelian balik saham boleh menyokong harga saham dan memberi nilai kepada pemegang saham.
• LTIP: Cadangan LTIP boleh memotivasikan prestasi dan pengekalan, tetapi mungkin menyebabkan pencairan saham.
• Keputusan Arbitrasi: HG Power Transmission Sdn Bhd menerima anugerah arbitrasi terhadap Power Grid Company of Bangladesh Ltd, dengan pembayaran USD1.89 juta (~RM8.4 juta) dan kos arbitrasi. Walaupun projek selesai pada tahun 2020, keputusan ini menambah kestabilan kewangan.
• Cabaran Segmen:
  • EPCC: Manfaat dari pengukuhan grid dan pengembangan pusat data, tetapi terdedah kepada turun naik tukaran asing dan kos bahan.
  • Pembuatan: Tekanan margin akibat variasi masa projek.
  • Air: Cabaran pelaksanaan kekal dengan kelewatan pengambilan tapak.
• Tiada Dividen: Tiada dividen diisytiharkan untuk tempoh ini, mencerminkan langkah berhati-hati pengurusan.

Butiran Lain

• Kadar Cukai Efektif: Kadar cukai efektif negatif (-46%) akibat kerugian sebelum cukai dan pengiraan cukai tertunda.
• Liabiliti Kontinjen: Bon prestasi dan jaminan bank berjumlah RM108.5 juta.
• Komitmen Modal: Perbelanjaan modal yang diluluskan dan dikontrak RM1.4 juta.
• Tiada Peristiwa Material: Tiada perubahan material dalam komposisi kumpulan atau penilaian semula aset.

Sentimen Pelabur & Prospek

Rohas Tecnic Berhad menunjukkan peningkatan pendapatan dan pengurangan kerugian, didorong oleh prestasi EPCC dan telekomunikasi. Cadangan pembelian balik saham dan LTIP, jika diluluskan, boleh mempengaruhi harga saham dan keyakinan pelabur. Keputusan arbitrasi memberi dorongan kewangan, tetapi cabaran berterusan dalam segmen pembuatan dan air serta ketidakpastian global memerlukan berhati-hati.

Faktor Penggerak Harga Saham

• Kelulusan pembelian balik saham dan LTIP di AGM.
• Kutipan anugerah arbitrasi dan kesan terhadap aliran tunai masa depan.
• Prestasi berterusan segmen EPCC dan telekomunikasi.
• Penyelesaian kelewatan segmen air.

Penafian:

Artikel ini berdasarkan laporan kewangan Q1 2026 Rohas Tecnic Berhad yang tidak diaudit dan bertujuan untuk maklumat sahaja. Pelabur dinasihatkan membuat penilaian sendiri dan mendapatkan nasihat kewangan sebelum membuat keputusan pelaburan. Pendapat yang dinyatakan bukan nasihat pelaburan dan tidak merupakan cadangan untuk membeli atau menjual saham.

View ROHAS TECNIC BERHAD Historical chart here