NationGate Holdings Bhd – Fourth‑Quarter Performance and Market Impact

NationGate Holdings Bhd (Ticker: NATGATE) announced that its fourth‑quarter net profit fell 90 % year‑on‑year, primarily due to a sharp decline in revenue from its artificial intelligence (AI) server business. The company’s shares dropped as much as 12 % in early trading on 26 Feb 2026, reflecting investors’ concerns over the slowdown in the AI sector and its implications for the firm’s earnings outlook.

Quarterly Results

  • Net Profit: 90 % decline YoY.
  • Contributing Factor: A substantial contraction in AI server revenue, which had been a significant contributor to the company’s profit in the previous period.
  • Other Operations: NationGate continues to produce high‑quality reinforced concrete (HRC) and offers project management, construction, and maintenance services. However, the revenue from these segments did not offset the loss in AI‑related earnings.

Share Price Reaction

  • Opening: 26 Feb 2026 saw an initial rise in Bursa Malaysia as investors weighed the broader earnings releases expected that day.
  • Mid‑Morning: The market slipped into negative territory, largely due to profit‑taking after early gains.
  • Closing: NationGate’s shares fell by approximately 12 % by market close, bringing the closing price to MYR 1.02 (vs. MYR 1.13 at the start of the day).
  • Market Context: Bursa Malaysia’s benchmark, the FTSE Bursa Malaysia KLCI, ended the session lower, reflecting a broader sell‑off in financial stocks and a cautious market stance amid earnings announcements.

Dividend and Corporate Actions

  • Book Closure Notice: On 25 Feb 2026, NationGate issued a notice of book closure for the interim single‑tier dividend of 0.25 sen per share for the financial year ended 31 December 2025.
  • Dividend Impact: The dividend is modest relative to the company’s market cap of MYR 2,323,200,000 and the current price‑to‑earnings ratio of 12.71.

Company Profile

  • Sector: Industrials – Electronic manufacturing services and construction.
  • Primary Activities: Production and distribution of iron and steel products, HRC manufacturing, project management, construction, and maintenance.
  • Additional Ventures: Property development and investment management.
  • Location: Kuala Lumpur, Malaysia.
  • Founded: 1970.
  • Exchange Listing: Bursa Malaysia.
  • Currency: Malaysian Ringgit (MYR).

Investor Outlook

The sharp decline in AI server revenue signals a slowdown in the high‑growth segment that had previously driven the company’s profitability. While the firm’s core construction and steel operations remain stable, the loss of a significant profit contributor raises questions about future earnings resilience. Investors will likely monitor subsequent quarterly results to gauge whether the AI slowdown is an isolated event or indicative of a broader market shift.