KUALA LUMPUR (Jan 14): Malaysian utilities are expected to see a modest earnings recovery in 2026 after a difficult 2025, according to Maybank Investment Bank (Maybank IB). Major operational and regulatory overhangs are easing although upside remains capped by regulatory constraints and already-stretched valuations, the research house said. Earnings growth in 2026 is expected to be driven by Tenaga’s contingent capex deployment, Malakoff’s Tanjung Bin recovery and Ranhill Utilities Bhd’s (KL:RANHILL) full-year benefit from Johor’s 2025 water tariff hike. Meanwhile, domestic gas prices are expected to trend lower year-on-year in 2026, which could pressure Gas Malaysia’s retail margins. Given that sector valuations are already around or above their five-year averages, Maybank IB "does not expect significant share price appreciation for most stocks in 2026 arising from further expansion of multiples".

Source: The Edge Markets January 14, 2026 05:16 UTC