The stock closed 10.6% or 6 sen lower at 50.5 sen, its lowest level since April 2020, with 19.3 million shares traded. The stock has fallen 55% over the past one year. At the current price, the company has a market capitalisation of RM789 million.
Net profit for the quarter ended Dec 31, 2025 (Q3 FY2026) dropped to RM16.13 million from RM25.61 million a year ago while revenue fell 9.2% to RM457.19 million from RM503.73 million.
The steep fall in Q3 profit was attributed to softer sales volumes, with customers scaling back orders in response to global tariff measures.
For the nine months ended Dec 31, net profit shrunk nearly 20% to RM70.83 million from RM88.3 million a year ago, while revenue fell 8.3% to RM1.51 billion from RM1.64 billion previously.
The cumulative net profit accounted for only 67% of the consensus full-year forecast, prompting a wave of downgrades by research firms covering the stock.
Six of seven research houses downgraded their recommendations to “hold” with Public Investment Bank (PublicInvest) having the only “outperform’”call.
In a note today, CIMB Securities said headwinds from US tariffs weighed on consumer spending that soured near-term outlook for SKP.
“We have turned more cautious on SKP’s revenue growth outlook,” said the research house, which downgraded its call to “hold”.
PublicInvest remains optimistic on SKP’s medium-term prospects despite the challenging environment.
“The stock also offers attractive dividend yields of 6%-7% over the next two financial years, providing downside support amid earnings volatility,” it added.
In a statement yesterday, SKP said it plans to continue expanding its printed circuit board assembly, injection moulding and engineering capabilities to support a more varied product mix.
It also acknowledged that it faced significant credit concentration risk stemming from its reliance on a major customer and said it is working on diversifying its client base.
Its major customer is Dyson, with revenue from this client accounting for around 70% of its revenue historically.
SKP was founded in 1974 by the late Gan Kim Huat. The company began operations as Sin Kwang Plastics in Johor Bahru – a plastic manufacturer before transforming into a leading EMS provider.
The company is currently led by his son Gan Poh San, 49, who serves as the managing director.