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Stock has, within 6 months, drifted from 85c to 65 in a bearish trend. Q/Qeps plunges 0.6 to 0.06c, with annual EPS 5.8, one can expect it to fall further below 60c if future Qeps fails to improve. Do your own diligence ya
Kenanga Q2 FY2026: A Deep Dive into the Profit Paradox 📉📊
Why has Kenanga’s share price fallen from RM1.25 in 2024 to RM0.67 today? Is the market missing a massive asset play, or is it correctly pricing in a structural shift in profitability?
In our latest analysis of KIBB’s 1H FY2026 performance, we uncover the "Perfect Storm" hitting the bank:
✅ The Positives:
• AUA Expansion: Assets Under Administration grew 16.2% YoY to RM27.9 billion.
• Stockbroking Turnaround: The division flipped from a loss to a RM0.5 million PBT, capturing more institutional market share.
• Deep Discount: At RM0.67, the stock trades at just 0.46x P/B against a Net Asset Value of RM1.45.
❌ The Challenges:
• Profit Squeeze: While revenue rose slightly to RM417.5 million in 1H26, Profit After Tax plummeted 65.7% to RM4.1 million.
• The Cost Floor: Heavy investments in cybersecurity, regulatory compliance, and a one-off trading system upgrade have significantly raised the Bank's operating expense base.
• IB Slump: Investment Banking PBT fell 81.2% due to softer trading and investment income.
The Big Question: At RM0.67, has the market already priced in the weakness?
With a 7.46% dividend yield (based on the last 5.00 sen payout), the valuation floor looks strong, but the annualised ROE of under 1% suggests the market is waiting for proof that Kenanga's digital investments can translate into bottom-line growth.