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MFCB: Dividend Payout Will Offset Softer Earnings Outlook Ahead

Don Sahong Reliance Will Hurt Renewables While Hope Persists

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MFCB
AnalystLowTarget
Not Invested
Published 24 Aug 2025

Update shared on 16 Dec 2025

Fair value Decreased 7.07%
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AnalystLowTarget's Fair Value
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1Y
-26.0%
7D
1.6%

Analysts have trimmed their price target on Mega First Corporation Berhad from RM3.68 to RM3.42, citing slightly higher perceived risk, softer revenue growth expectations, and modestly lower profit margin forecasts, partially offset by a higher anticipated future P/E multiple.

What's in the News

  • Board declares an interim single tier dividend of 4.75 sen per ordinary share for the financial year ending 31 December 2025, which signals confidence in cash flow and earnings sustainability (Key Developments).
  • Dividend timetable set, with ex date on 06 October 2025, entitlement date on 07 October 2025, and payment date on 17 October 2025, providing clearer visibility on near term shareholder returns (Key Developments).

Valuation Changes

  • The consensus analyst price target was reduced modestly from MYR 3.68 to MYR 3.42, reflecting a slightly more cautious stance on valuation.
  • The discount rate edged up slightly from 9.69 per cent to 9.74 per cent, indicating a marginally higher perceived risk profile.
  • Revenue growth was downgraded from an expected decline of 8.16 per cent to a steeper decline of 9.56 per cent, signalling softer top line expectations.
  • The net profit margin was revised down from 31.66 per cent to 29.06 per cent, pointing to a moderate compression in expected profitability.
  • The future P/E increased slightly from 10.48 times to 11.05 times, suggesting a somewhat higher multiple being applied to forward earnings despite the more conservative forecasts.

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