KUALA LUMPUR (June 3): SKP Resources Bhd (KL:SKPRES) shares slid in early trade on Wednesday after its latest quarterly results trailed estimates, triggering a few analyst downgrades.

The stock hit an intraday low of 31 sen before paring some losses to close at 35 sen. At its last price, the stock was down one sen or 1.41%, valuing the company at RM547 million.

The electronics manufacturing services provider posted a net loss of RM37.28 million for its fourth quarter ended March 31, 2026 (4QFY2026), compared with a net profit of RM28.73 million a year earlier.

Quarterly revenue fell 47.22% to RM305.12 million from RM578.09 million a year ago, mainly due to lower order volumes from certain customers amid tariff measures and geopolitical tensions in the Middle East. Gross margin narrowed to 2% from 9.1%, driven by underutilised manufacturing capacity, resulting in an inability to effectively absorb fixed overhead costs.

TA Securities, in a note on Wednesday, said excluding the impairment loss on property, plant and equipment of RM14.0 million, SKP’s FY2026 core profit of RM47.6 million came in below expectations, accounting for 59.8% of its full-year estimate and 58.4% of the consensus forecast. 

Consequently, the research house downgraded the stock to 'sell' from 'hold', cutting its earnings forecasts by 46% for FY2027 and by 39% for FY2028 and lowering its target price to 33 sen. TA Securities also reduced SKP’s target price-to-earnings multiple from 12 times to 10 times.

Meanwhile, CIMB Securities slashed its earnings forecasts by 86% for FY2027 and by 43% for FY2028, citing soft global consumer demand and US tariff cost-sharing. 

It downgraded SKP to 'sell' from 'hold', with a lower target price of 27 sen from 36 sen earlier, noting slower sales growth and higher operating costs.

PublicInvest Research was the most bearish, cutting its target price to 23 sen and revising its call to 'underperform' from 'neutral' after SKP’s 4QFY2026 core net loss of RM37.3 million left full-year earnings at just 41% of the consensus forecast.

Analysts across the board flagged subdued consumer sentiment, tariff uncertainties, and geopolitical tensions as key risks, warning that margin pressure is likely to persist amid underutilised manufacturing capacity.

According to Bloomberg, SKP currently has four 'hold', four 'sell', and no 'buy' calls, with a consensus 12-month target price of 35 sen.

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Impairment and tariff-hit orders drag SKP Resources into the red