Hibiscus

[winston]

not vested

5199 HIBISCS (HOLD)
Below estimates

Hibiscus reported 1H26 core net profit of RM104.9m (-14% YoY), below both ours/consensus estimates at 43%/35%, mainly due to lower-than-expected offtake volumes.

Declared second interim dividend of 2 sen per share.

Despite the missed earnings, we maintain our FY26f-27f earnings forecasts as we expect UK’s Anasuria’s production and offtake volumes to recover following the restoration.

While we believe the realised oil prices are likely to remain volatile amid ongoing geopolitical tensions, which could continue to influence near-term sentiment, we remain cautious on the strengthening of the ringgit (vs USD).

Maintain our HOLD call on Hibiscus with an unchanged SOTP-derived TP of RM1.41.

Source: HLIB

[winston]

vested

March 2, 2026

Riding the oil price upside

1HFY6/26 core net profit was 93% of our FY26F forecast and 61% of LSEG consensus due to deferred tax income provisions at Anasuria Cluster.

Nevertheless, we think the results are broadly in line with our forecasts as we expect deferred tax expenses to be booked in in 2HFY26F.

Reiterate Add with lower DCF-based TP of RM2.59 on account of our weaker US$ assumption of RM4 vs. RM4.20 previously.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 9CD4B91135

[winston]

vested

Hibiscus to benefit from sustained geopolitical risk in the oil market

AmInvestment projects FY26 core net profit at RM312.1mil, up about 10% year-on-year.

Sales volume is projected at 4.7 million barrels of oil equivalent (boe) in 2H26 versus 4.4 million boe in 1H26.

Average operating expenditure is estimated at US$21 to US$23 per boe, allowing Hibiscus to remain profitable even under weaker oil scenarios.

Hibiscus had RM786mil in cash and bank balances as at Dec 31, 2025, while cash generated from operating activities reached RM923mil in 1H of FY26.

Source: The Star

https://www.thestar.com.my/business/bus ... oil-market

[winston]

not vested

5199 HIBISCS (BUY)
Riding on elevated Brent prices

Rystad Energy estimates that c.44% of crude supply from key Middle Eastern producers has been taken offline since the onset of the Iran war, highlighting the severity of the disruption.

Even at sustained oil prices of USD100/bbl, replacing displaced Middle East oil volumes remains challenging.

A mixed outlook is seen for Southeast Asia’s E&P sector, with near-term operational disruptions but longer-term structural upside.

We expect a recovery in 2HFY26 for Hibiscus, supported by higher offtake volumes and stronger realised oil prices, driving sequential earnings improvement.

Maintain BUY on Hibiscus with an unchanged SOTP-derived TP of RM2.74.

Source: HLIB