Insas Berhad Q3 2026 Financial Results: Detailed Investor Update

Key Highlights and Financial Performance

• Revenue and Profit: Insas Berhad reported a sharp decrease in revenue to RM32.7 million for Q3/2026, down 49% from RM64.4 million in Q3/2025. Despite this, pre-tax profit rose 10% to RM30.7 million compared to RM27.9 million previously. Net profit for the quarter increased 23% to RM27.8 million, while profit attributable to shareholders stood at RM25.8 million, up 23% year-on-year.
• Earnings Per Share (EPS): Basic and diluted EPS rose to 3.82 sen for the quarter, up from 3.16 sen and 3.05 sen respectively in Q3/2025. For the nine months, basic EPS was 12.81 sen (previously 11.19 sen).
• 9M26 Performance: For the nine months ended 31 March 2026, revenue surged 41% to RM213.5 million (9M25: RM151.8 million), and profit before tax climbed 28% to RM117.1 million (9M25: RM91.3 million). Net profit for the period reached RM91.7 million, a 17% increase year-on-year.

Divisional Performance and Major Events

• Financial Services and Credit & Leasing: This division achieved higher revenue of RM19.2 million in Q3/2026 driven by structured finance activities, but pre-tax profit was lower at RM5.7 million due to reduced corporate advisory fee income.
• Investment Holding and Trading: Revenue dropped to RM9.2 million due to lower trading activity, but pre-tax profit surged to RM23.7 million, mainly on higher fair value gains from financial assets. For the nine months, this division delivered RM114.3 million revenue and RM64.8 million pre-tax profit, benefiting from robust trading and valuation gains.
• Technology and IT-related Manufacturing, Trading & Services: Revenue plunged to RM0.6 million for the quarter (Q3/2025: RM22.0 million), with pre-tax profit at RM1.0 million (Q3/2025: RM15.8 million). The decline was due to lower trading in digital infrastructure and lower equity-accounted profits from Inari Amertron Berhad. For the nine months, revenue stood at RM17.5 million (9M25: RM23.5 million) and pre-tax profit at RM20.9 million (9M25: RM62.6 million), reflecting the absence of major disposals and reduced associate income.

Balance Sheet and Cash Flow

• Strong Asset Base: Total assets rose to RM3.33 billion as at 31 March 2026 (30 June 2025: RM3.16 billion). Net assets per share stood at RM3.66.
• Healthy Cash Position: The Group ended the period with cash and cash equivalents of RM856.3 million, though this was a decline from RM977.1 million at the end of 9M25, reflecting outflows from investing activities, dividend payments, and the redemption of redeemable preference shares.
• Borrowings: Total group borrowings increased to RM511.3 million, mainly due to higher revolving credit utilization. The company fully redeemed its RM132.6 million in redeemable preference shares during the period, which is a significant capital management event that may affect future dividend and gearing profiles.

Corporate Actions and Price-Sensitive Events

• Major Disposal of Inari Amertron Shares: On 19 May 2026, Insas Berhad announced the disposal of 100 million shares in Inari Amertron Berhad, raising RM186 million and realizing an estimated net gain of RM84 million after tax. This is a major capital recycling event—post-disposal, Insas’ stake in Inari drops to 9.666%, which may impact future earnings from associates and the Group’s balance sheet strength.
• Convertible Warrants and Capital Changes: During the period, 30.2 million new ordinary shares were issued from warrant conversions. Unexercised 301 million warrants expired on 27 February 2026. The Group also redeemed all outstanding redeemable preference shares, further strengthening its equity base.
• Dividend Payments: An interim dividend of 3.0 sen per share (total RM19.9 million) was paid, alongside several preference share dividends. Such payouts reinforce the company’s commitment to shareholder returns.
• Associate Company Developments: Microlink Solutions Berhad (MSB) became an associate after Insas’ group companies subscribed for 479.5 million new shares and warrants under a rights issue. Insas now holds 32.89% of MSB, expanding its footprint in technology and IT services.
• Group Rationalization and Wind-Ups: Several minor subsidiaries and associates were either wound up or struck off, including M&A Securities (HK) Limited and Ideal Dragon Sdn Bhd, with no material financial impact.
• New Subsidiary in Data Services: M&A Equity Holdings Berhad acquired a 60% stake in Klever Stock Sdn Bhd, entering the data hosting and processing space, which could offer new growth avenues.

Other Notable Financial and Operational Developments

• Exceptional and Non-Recurring Gains/Losses: The quarter saw a RM5.1 million gain from the derecognition of a subsidiary and a RM4.8 million gain from fair value changes on financial assets. However, there was a RM3.5 million fair value loss on derivatives, highlighting market volatility.
• Segmental Shifts: The investment holding and trading division was the key profit driver this quarter due to market gains, while technology and trading segments lagged due to lower associate profits and subdued digital infrastructure sales.
• Tax Expense: Effective tax rate for 9M26 was elevated due to non-allowable expenses and lower tax-exempt income. Total group tax expense for 9M26 was RM25.4 million.

Prospects and Guidance

• Cautious Outlook: The Board expects macroeconomic uncertainties, especially due to geopolitical tensions and inflationary pressures, to continue affecting market conditions. Nevertheless, Insas’ diversified operations, strong financial position, and prudent cash management are expected to support sustainable long-term value.
• Business Segment Outlook:
  • Financial services and credit & leasing are expected to remain robust due to growth in corporate finance, margin finance, and asset management activities.
  • Investment trading will be driven by market conditions, which remain volatile.
  • Technology and IT-related activities may see upside from Inari Amertron’s strategic initiatives, but remain exposed to global supply chain and forex risks.

What Investors Should Note

• Large Disposal of Inari Shares: The divestment of Inari shares and subsequent reduction in associate stake is a significant event that will impact future recurring associate income but adds strong cash reserves and a disposal gain. This is potentially price sensitive and may affect Insas’ valuation.
• Capital Restructuring: The full redemption of preference shares and expiry of warrants significantly alters the company’s capital structure, reducing potential future dilution and gearing. This is a positive for long-term shareholders.
• Dividend Continuity: The consistent dividend payout demonstrates management’s commitment to shareholder returns, which may support share price stability.
• Volatility in Trading Gains/Losses: The group’s earnings are increasingly sensitive to market-driven fair value changes, especially in the investment division, which may lead to earnings volatility going forward.

Disclaimer

This article is prepared for informational purposes only and does not constitute investment advice. Investors are encouraged to conduct their own research or consult with a licensed financial advisor before making any investment decisions. The author and publisher bear no responsibility for decisions made based on this article.

Versi Bahasa Malaysia

Keputusan Kewangan Suku Ketiga 2026 Insas Berhad: Ulasan Lengkap untuk Pelabur

Sorotan Utama dan Prestasi Kewangan

• Hasil dan Keuntungan: Insas Berhad melaporkan penurunan ketara hasil kepada RM32.7 juta untuk S3/2026 (turun 49% dari S3/2025). Namun, untung sebelum cukai meningkat 10% kepada RM30.7 juta, dengan untung bersih suku tahun meningkat 23% kepada RM27.8 juta dan keuntungan milik pemegang saham meningkat 23% kepada RM25.8 juta.
• Keuntungan Setiap Saham (EPS): EPS asas dan cair meningkat kepada 3.82 sen. Untuk sembilan bulan, EPS asas adalah 12.81 sen (sebelum ini 11.19 sen).
• Prestasi 9B26: Untuk sembilan bulan berakhir 31 Mac 2026, hasil meningkat 41% kepada RM213.5 juta manakala untung sebelum cukai naik 28% kepada RM117.1 juta. Untung bersih tempoh tersebut meningkat 17% kepada RM91.7 juta.

Prestasi Bahagian dan Peristiwa Utama

• Perkhidmatan Kewangan & Kredit: Bahagian ini mencatat peningkatan hasil kepada RM19.2 juta tetapi untung sebelum cukai lebih rendah pada RM5.7 juta, terutama akibat pendapatan yuran penasihat korporat yang rendah.
• Pelaburan & Perdagangan: Hasil turun kepada RM9.2 juta namun untung sebelum cukai melonjak kepada RM23.7 juta, didorong oleh keuntungan nilai saksama aset kewangan. Untuk sembilan bulan, bahagian ini menjana hasil RM114.3 juta dan untung sebelum cukai RM64.8 juta.
• Teknologi & IT: Hasil jatuh kepada RM0.6 juta dengan untung sebelum cukai RM1.0 juta. Untuk sembilan bulan, hasil RM17.5 juta dan untung sebelum cukai RM20.9 juta, menurun kerana kurang keuntungan pelupusan dan sumbangan syarikat sekutu.

Kedudukan Kewangan & Aliran Tunai

• Asas Kewangan Kukuh: Jumlah aset meningkat kepada RM3.33 bilion pada 31 Mac 2026. Nilai aset bersih sesaham ialah RM3.66.
• Kedudukan Tunai Sihat: Tunai dan setara tunai berakhir pada RM856.3 juta, menurun dari RM977.1 juta pada tahun sebelumnya.
• Pinjaman: Jumlah pinjaman kumpulan meningkat kepada RM511.3 juta, terutamanya daripada kredit bergilir yang lebih tinggi. Syarikat telah menebus sepenuhnya saham keutamaan boleh tebusnya semasa tempoh ini.

Tindakan Korporat dan Peristiwa Sensitif Harga

• Pelupusan Besar Saham Inari Amertron: Pada 19 Mei 2026, Insas mengumumkan pelupusan 100 juta saham Inari Amertron, menjana RM186 juta dan keuntungan selepas cukai sekitar RM84 juta. Selepas pelupusan, pegangan Insas dalam Inari menurun kepada 9.666%.
• Waran dan Perubahan Modal: 30.2 juta saham baru diterbitkan hasil penukaran waran. 301 juta waran yang tidak digunakan telah luput pada 27 Februari 2026. Semua saham keutamaan boleh tebus telah ditebus sepenuhnya.
• Pembayaran Dividen: Dividen interim 3.0 sen sesaham (jumlah RM19.9 juta) dibayar, bersama dividen keutamaan. Ini menunjukkan komitmen kepada pulangan pemegang saham.
• Perkembangan Syarikat Sekutu: Microlink Solutions Berhad menjadi syarikat sekutu selepas Insas melanggan 479.5 juta saham baharu dan waran. Insas kini memegang 32.89% MSB, memperluas jejaknya dalam ruang teknologi.
• Rasionalisasi Kumpulan: Beberapa subsidiari dan syarikat sekutu telah dilupuskan atau digulung, tanpa impak kewangan material.
• Subsidiari Baharu dalam Perkhidmatan Data: M&A Equity Holdings Berhad memperoleh 60% kepentingan dalam Klever Stock Sdn Bhd, memasuki ruang hos data dan pemprosesan data.

Perkembangan Kewangan dan Operasi Lain

• Keuntungan/Rugi Luar Biasa: Suku ini melihat keuntungan RM5.1 juta dari pelupusan subsidiari dan RM4.8 juta dari perubahan nilai saksama. Namun, terdapat kerugian nilai saksama derivatif RM3.5 juta.
• Pergeseran Segmen: Bahagian pelaburan dan perdagangan adalah pemacu utama keuntungan suku ini, manakala segmen teknologi dan perdagangan ketinggalan.
• Cukai: Kadar cukai efektif untuk 9B26 meningkat kerana perbelanjaan tidak dibenarkan dan pendapatan tidak bercukai yang lebih rendah. Jumlah cukai kumpulan ialah RM25.4 juta.

Prospek dan Panduan

• Pandangan Berhati-hati: Lembaga Pengarah menjangka ketidaktentuan makroekonomi berterusan. Namun, asas kewangan kukuh Insas dan pengurusan tunai berhemat dijangka menyokong nilai jangka panjang.
• Prospek Segmen Perniagaan:
  • Perkhidmatan kewangan dan kredit dijangka kekal kukuh.
  • Pelaburan dan perdagangan bergantung kepada keadaan pasaran yang kekal tidak menentu.
  • Teknologi dan IT mungkin mendapat manfaat dari inisiatif strategik Inari Amertron namun kekal terdedah kepada risiko rantaian bekalan dan forex.

Apa yang Perlu Diperhatikan Pelabur

• Pelupusan Saham Inari: Pelupusan saham dan pengurangan pegangan dalam syarikat sekutu adalah peristiwa penting yang akan mempengaruhi pendapatan berulang masa depan tetapi menambah rizab tunai dan keuntungan pelupusan yang kukuh.
• Penyusunan Semula Modal: Penebusan penuh saham keutamaan dan luput waran menurunkan potensi pencairan masa depan dan kadar hutang. Ini positif untuk pemegang saham jangka panjang.
• Keberterusan Dividen: Pembayaran dividen yang konsisten menunjukkan komitmen pengurusan kepada pemegang saham.
• Volatiliti Keuntungan: Keuntungan kumpulan semakin sensitif kepada perubahan nilai pasaran, yang boleh membawa kepada turun naik pendapatan pada masa hadapan.

Penafian

Artikel ini disediakan untuk tujuan maklumat sahaja dan bukan nasihat pelaburan. Pelabur digalakkan membuat kajian sendiri atau berbincang dengan penasihat kewangan bertauliah sebelum membuat sebarang keputusan pelaburan. Penulis dan penerbit tidak bertanggungjawab atas sebarang keputusan yang dibuat berdasarkan artikel ini.

View INSAS BERHAD Historical chart here