DKSH Holdings (M) Bhd delivered a resilient first half of FY26 (1H26), with core earnings rising 4.2% year-on-year (YoY) to RM94.9 million as broad-based revenue growth and distribution efficiencies offset supply-chain reorganisation costs, according to Hong Leong Investment Bank Bhd (HLIB Research).
HLIB Research said 2Q26 core profit came in at RM32.6 million, down 47.5% quarter-on-quarter but 0.6% higher YoY, while revenue rose 10.8% YoY to RM2.21 billion. The first-half result represented 48% of HLIB Research’s full-year forecast and was within expectations.
YoY revenue growth was led by Healthcare, which expanded 18.4%, followed by Other businesses at 6.5% and Consumer Goods at 4.6%, supported by organic volumes, new client onboarding and pricing revisions at Famous Amos.
For 1H26, revenue increased 8.3% to RM4.56 billion, with Healthcare growing 11.9% and Consumer Goods up 5.4%. HLIB Research said distribution productivity helped absorb higher trade receivable allowances and labour costs.
HLIB Research expects earnings momentum to strengthen in 2H26 as restructuring costs ease and newly secured healthcare accounts, including Pfizer, AbbVie and Sanofi, make more meaningful contributions. The rollout of AI-powered customer relationship management platforms across Consumer Goods is also expected to support operating efficiency.
The research house kept its FY26 forecasts unchanged and maintained its ‘Buy’ rating with a target price of RM7.33. Against HLIB Research’s reference price of RM5.98, the target implies 22.6% capital upside.
HLIB Research said DKSH’s defensive product portfolio, fee-based pass-through business model and exposure to rising healthcare expenditure continue to underpin its positive view on the stock.
