Malaysia Smelting's earnings to dip after temporary halt at RHT subsidiary

Malaysia Smelting Corp Bhd faces a near-term earnings decline after its subsidiary Rahman Hydraulic Tin suspended mining operations for about 4.3 weeks. Apex Securities Bhd calculated that the interruption could reduce the group's Q3 FY26 net profit by roughly RM11-12 million, based on a weekly earnings impact of RM2.7 million after factoring in the 80% ownership stake. The firm derived this figure from the prior quarter's mining segment profit after tax of RM44.1 million.

Public Investment Bank Bhd expects production to fall 30% and the mining segment to post a pre-tax loss of around RM20-25 million, which could trim the FY26 earnings forecast by 15-18%. However, the bank maintains its positive view on the tin market and leaves its earnings target unchanged, citing higher London Metal Exchange prices since early July 2026. Tin smelting operations remain unaffected, helping to offset some lost volume.