Kuala lumpur: The third-quarter results for 2025 have shown a positive trend compared to the second quarter, enhancing market sentiment with improved earnings in the technology and rubber glove sectors, according to CIMB Securities Sdn Bhd. These sectors were previously underperforming in the first half of the year.
According to BERNAMA News Agency, CIMB Securities reported a 1.1 percent increase in aggregate net profit for the companies that have disclosed their results, with significant contributions from the construction, real estate investment trusts, transport, and non-banking financial institutions sectors. However, on a year-on-year basis, total net profit experienced a decline of 2.1 percent, primarily due to losses at Petronas Chemicals Group Bhd.
The report indicated that 65 companies under CIMB Securities’ coverage, which represent 70 percent of the total, have published their results. Of these, 23 percent (15 companies) exceeded expectations, 23 percent fell short, and 54 percent (35 companies) met expectations as of November 26. This results in a beat-to-miss ratio of 1.00, marking an improvement from the previous quarters.
Regarding dividends, 18 percent of the companies under coverage declared higher year-on-year payouts for the third quarter of 2025, while eight percent announced reduced distributions.
Among the KLCI constituents under coverage, 19 out of 30 companies (63 percent) have reported results, with 32 percent (six companies) surpassing expectations and 16 percent (three companies) not meeting expectations. This results in a beat-to-miss ratio of 2.0, significantly stronger than the 1.0 ratio for the broader coverage universe, suggesting that large-cap companies are delivering more robust results.
CIMB Securities highlighted SD Guthrie Bhd and KL Kepong Bhd for outperforming expectations, driven by stronger plantation contributions and higher average selling prices for palm products. Additionally, AMMB Holdings Bhd and Malayan Banking Bhd surpassed expectations due to lower net provisions and impairments, along with stable fund-based income.