HLIB keeps HOLD on DRB-Hicom despite positive aerospace deal
While HLIB views the group's latest aerospace acquisition positively, it remains cautious on the automotive segment amid stiff competition, noting continued drag from Pos Malaysia Bhd and defence arm Deftech. These headwinds, however, are partially offset by stable contributions from Bank Muamalat and aerospace subsidiary Composites Technology Research Malaysia Sdn Bhd (CTRM).
CTRM has signed a conditional agreement to acquire Spirit AeroSystems Malaysia Sdn Bhd for US$95.2 million (RM446 million) from US-based Spirit AeroSystems, Inc. and Spirit AeroSystems International Holdings, Inc.
"We are positive with the acquisition, as Spirit AeroSystems Malaysia's stable earnings are expected to complement CTRM's operations and strengthen DRB-Hicom's overall financial performance," HLIB said in a note.
HLIB said the indicative price-to-earnings (P/E) multiple of 7.0x is in line with DRB-Hicom's projected 7.4x for FY2026 and 5.4x for FY2027.
"The deal is expected to yield a negative goodwill gain of RM223.2 million, while CTRM will eliminate RM12.7 million in profits related to unsold inventory."
The investment bank added that post-acquisition, annual earnings could rise by about RM45 million, equivalent to 21.5 per cent of FY2025 and 15.4 per cent of FY2026 earnings.
DRB-Hicom said the acquisition will give CTRM greater scale, technical capabilities, and supply chain leverage, enabling it to compete more aggressively in the global aerospace market while strengthening relationships with major OEMs, including Airbus (A220, A320, A350) and Boeing (737, 787).
Spirit AeroSystems Malaysia, based in Subang, produces advanced aerostructures and provides engineering, supply chain, and shared services for Airbus and Boeing programmes. For FY2024, it recorded a pre-tax profit of RM70.1 million and net assets of RM770.5 million.
With both Airbus and Boeing projecting rising aircraft deliveries this decade, DRB-Hicom believes the enlarged CTRM will be well-positioned to capture growing aerospace demand, diversify revenue streams, and boost operational efficiency.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
23 minutes ago
- The Star
Asean News Headlines at 10pm on Friday (Aug 15, 2025)
Malaysia: * Anwar calls for united front against national security, unity threats, including bullying * Armed Forces BIPs scheme expanded to cover more ranks, says Anwar * Nurul Izzah urges swift, stern action over attack on Rafizi's son * Najib betrayed public's trust, SRC International wants RM42mil back, says counsel * Financial incentives for civil servants pursuing higher education at own expense, says PM * Cops remind participants of Zara solidarity rally in KL to adhere to all instructions * Jakim denies viral video claims, says imported meats comply with Malaysian, Australian standards * Akmal under investigation for posting alleged hate content, say cops * MACC to investigate online media company over smuggling link * Sabah Law Society welcomes AGC decision for Zara Qairina inquest * Man sets woman, self on fire at Simpang Renggam toll plaza * Port Dickson shellfish still not safe to eat, third sampling next week * Steady 2Q25 GDP growth signals domestic resilience, momentum could continue in 2H * Don't take matters into your own hands, AGC urges public over flag issue * Bank Negara maintains 2025 GDP forecast at 4-4.8% amid tariff talks uncertainty * Bursa Malaysia poised for gains after stronger-than-expected GDP growth in 2Q * Ringgit strengthens 5.1% against US$ in 2Q25 - Bank Negara / Robust domestic demand drives 4.4% GDP growth in 2Q High school students hold flowers for a ceremony marking the 80th anniversary of the end of World War II, at the Ereveld Pandu cemetery where Dutch soldiers who died in the war are buried in Bandung, West Java, on Friday, August 15, 2025. -- Photo by TImur Matahari / AFP Singapore: * Pesona Anggerik at Gardens by the Bay marks 60 years of Malaysia-Singapore ties * Ong Beng Seng fined S$30,000 for abetting former Singapore minister Iswaran in obstructing course of justice * Sun Haiyan, ex-China ambassador to Singapore, detained for questioning: Sources * Trio accused of offences including maid abuse walk free after charges compounded * Singapore Tourism Board and top entertainment company Blast sign multi-year deal to host premier esports arena events * No service on Singapore's Sengkang-Punggol LRT line due to power fault * Singaporean actress Rebecca Lim says husband brought her peace, security she's never had * JPJ seizes four Singapore-registered vehicles for illegal e-hailing in Johor Indonesia: * Indonesia's 2026 budget is designed to make the country strong, President Prabowo says * More than 360 hit by food poisoning after eating free school meal in Central Java * Indonesian roof tilers flex muscles to keep local industry alive * Indonesia to crack down on illegal exploitation of resources, president says * Craft exporters from Yogyakarta's special region target Europe after US tariffs * Military takes lead on food security - nation has set up 100 army battalions to help with agriculture projects KUALA LUMPUR, Friday, Aug 15: Chairman of the Institute of Strategic and International Studies (ISIS) Malaysia, Datuk Prof Dr Mohd Faiz Abdullah, and Thailand's Ambassador to Malaysia, Lada Phumas (left), shake hands during the Thailand-Malaysia Strategic Dialogue at ISIS Malaysia today. -- Photo: Bernama Thailand: * Malaysia's role in Thai-Cambodia border talks show depth of bilateral trust, says Thai Ambassador * Malaysian tourists with burn injuries in Bangkok face long recovery and mounting expenses * Thai princess reported to suffer from 'severe' blood infection * Thailand reaffirms treaty pledge, urges Cambodia to stop using mines * Body of Thai soldier who shot two civilians in Surin found; Combat stress cited as possible factor * Thai soldier flees Surin camp, shoots civilians in Kap Choeng; two injured Philippines: * China accuses Philippine vessels of 'dangerous manoeuvres' after its own ships collided * Australian and Philippine forces launch largest military exercises near disputed South China Sea * Collision between Chinese ships expected to escalate tension in South China Sea * Online cockfighting thrives in Philippines despite ban and murders * Filipino seafarer loses job over video of him and wife kissing three-year-old son Farmers carry sun-dried bags of rice in Los Palacios, Pinar del Rio province, Cuba, on May 29, 2025. The Cuban government gave land to a private Vietnamese company for rice production in the face of the lack of local productive varieties and inputs to address the lack of this cereal on the island. The national average rice yield is 1.6 tons per hectare, and the first fields harvested within this plan had a yield exceeding six tons per hectare. -- Photo by Adalberto ROQUE / AFP Vietnam: * Plastic pollution treaty talks in Geneva end without an agreement * Action getting fast and furious as the Asean women's football championships fiesta in Vietnam moves into the knock-out rounds * VinFast to spin off assets in US$1.5bil deal with founder * Heavy rain, flash flood risks across 13 Vietnam provinces; strong winds at sea * Pioneering heart, lung transplant marks medical milestone in Vietnam Myanmar: * Chinese and Asean experts gather to explore the region's digital future * Foreign ministers of China, Laos, Myanmar, Thailand hold informal meeting in Kunming * Desperate Myanmar villagers scavenge for food as hunger bites * World's first humanoid robot games begin in China Philippine Foreign Secretary Theresa Lazaro, (centre) after attending a trade and investment conference at a hotel in Pasay, Philippines. -- AP Photo/Aaron Favila Cambodia: * China urges Cambodia and Thailand to restore peace at the border * Malaysia-led observer team checks on security along Thai-Cambodian border * Durian diplomacy: China welcomes Cambodia's first direct air shipments of fruit * Cambodia welcomes Chinese support for mine clearance in border areas Laos: * Vietnam willing to share experience in state-owned enterprises reform with Laos * China, Lao FMs meet in Beijing, pledge stronger ties * Laos, Philippines agree to enhance ties as they mark 70 years of relations Brunei: * Brunei expo unveils future of technology * Brunei economy maintains recovery amid global uncertainty Assam Police dog squads take part in a parade during the country's Independence Day celebrations in Guwahati, Friday, Aug. 15, 2025. -AP Photo/Anupam Nath AseanPlus: * Rajnikanth is back with a bang with 'Coolie' and hand it to the superstar to lift the Tamil movie-world out of its doldrums * Almost 100 Bangladeshis denied entry at KLIA, says border control agency * KLIA Aerotrain to close overnight for two weeks starting Aug 18 to optimise system * Malaysia: Local actor Parvin Nair Surendran, 33, killed in highway crash, family seeks dashcam footage * 72YO retired Malaysian engineer repairs toys and gives them back to charity * Warships make their way into Penang for Asean multilateral naval exercise * Kuala Lumpur to host regional underground construction gathering * Foreigners in JB charged with supporting terrorist group * Justin Trudeau among prominent speakers at sustainability forum in Kuching * Leo XIV calls for worldwide peace on his 100th day as pope * Chinese military 'warns off' US destroyer from vicinity of Scarborough Shoal * Local actress Anna Jobling expresses gratitude to mum on 25th birthday amid ongoing conflict * Anna Jobling's mother claims she was being treated 'like a stray dog', upset after receiving injunction order * A rickshaw driver and his dog are winning hearts in Nepal's Kathmandu * Japan posts unexpectedly strong GDP, helped by resilient exports * China's July factory output, retail sales growth slump in blow to economic momentum * China rolls out new visa type to draw young science and tech talent * Japan minister joins crowds at controversial shrine to mark 80 years since world war defeat * Chinese man spends US$120,000 on 300-year gym membership, then owner vanishes * Shaolin's 'CEO monk' scandal may prompt overhaul of how temples are run in China * Trio arrested for allegedly stealing HK$1 million from Hong Kong pet company * South Korea's Lee to end some military activity on border with North Korea * Gen Z women embrace an ancient code written for them * On India's Independence Day, Modi vows to punish Pakistan for future attacks * Indian rescuers scour debris after 60 killed in flood, scores of people are also missing * Tropical storm disrupts travel, courts and schools in China * Citing China's 'significant steps', Trump extends US tariff truce * Japan's PM Ishiba mentions wartime 'regret', toeing right-wing line * Why are there more fights on Hong Kong flights? Conditions, social media blamed * Kim's sister denies propaganda loudspeaker removal, rebuffs South overtures * 80 years on from WWII, China's interests lie in a peaceful Asia-Pacific: Mitter * Zebra stripes, polka dots: The youthful spirit of Copenhagen Fashion Week * Athletics - Fresh off another world record, Duplantis ready to push boundaries again * Olympics - LA28 to allow venue naming rights in first for Olympics; Comcast, Honda debut deals * Badminton - New challenges await Pearly-Thinaah in quest for historic podium spot
Barnama
2 hours ago
- Barnama
CPO Futures Close Higher On Stronger Export Data
By Rosemarie Khoo Mohd Sani KUALA LUMPUR, Aug 15 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) ended higher on Friday, buoyed by stronger export performance as outlined by cargo surveyors, said palm oil trader David Ng. According to cargo surveyors, Intertek Testing Services (ITS) and Amspec, exports for the first half of August rose by 16 per cent and 21 per cent, respectively, compared with the same period in July. However, Ng said the expectation of rising output in the coming weeks is weighing down on sentiments. 'We see prices supported at RM4,380 per tonne and resistance at RM4,500 per tonne,' he said to Bernama. Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani noted that Malaysia's strong August palm oil export, along with a resurgence in Chinese demand, has supported palm oil prices today, despite the bearish overnight soybean oil market on the Chicago Board of Trade. At the close, spot-month August 2025 was unchanged at RM4,338 per tonne, September 2025 rose RM67 to RM4,425 per tonne, and October 2025 increased RM69 to RM4,472 per tonne. The November 2025 contract rose by RM75 to RM4,511 per tonne, December 2025 expanded by RM78 to RM4,528 per tonne, and January 2026 climbed RM75 to RM4,526 per tonne. Trading volume slid to 81,890 lots from 88,920 lots on Thursday, while open interest rose to 249,718 contracts from 244,194 contracts previously.
The Sun
3 hours ago
- The Sun
UMediC expands into medical services
PETALING JAYA: Penang-based UMediC Group Bhd, a medical devices marketing and distribution provider that also manufactures its own range of medical consumables, has launched a new business segment under medical services. The strategic venture into medical services is part of UMediC's vertical expansion into the medical healthcare services. UMediC is synergistic, leveraging its existing business offerings to enhance its scale and active presence among hospitals and local healthcare providers. The new segment will offer services such as a care centre providing post-recovery care, ambulance solutions equipped with the latest medical devices onboard, as well as establishing a learning centre offering training workshops to raise public awareness of medical healthcare and provide medical training to medical professionals. UMediC executive director and CEO Lim Taw Seong said that with the launch of its medical services, the company is transforming its business by delivering a comprehensive spectrum of healthcare solutions aimed at addressing the gaps and pain points among local healthcare providers. This includes the lack of capacity to cater to all patients, given that there are only a limited number of beds available. 'Rather than sending them home, we are offering them a place for post-surgical care, which also helps release the burden of working-class families who might not be able to tend to their needs. 'Aside from that, the ambulance service is also a key area that we have identified as a strong growth area for us, given that we can cross-sell to hospitals as a complete solutions offering equipped with our latest offerings under our marketing and distribution arm. 'Looking ahead, we see immense opportunities coming from this space. We expect to gradually see more contributions in tandem with the growing ageing population,' he said at the launching event today. Lim said that at the heart of UMediC's manufacturing strength is its state-of-the-art facility in Batu Kawan Industrial Park. The recent expansion with the addition of Plant 2 has increased total manufacturing space to over 50,000 square feet. Combined with the upcoming ISO 5 cleanroom and sophisticated blow-fill-seal equipment, this positions the company at the forefront of global medical device production. 'Our pioneering centre of excellence and halal-certified facilities, along with our footprint in nearly 40 countries, enable us to deliver life-saving products that meet the highest standards of quality and safety,' Lim said. In line with its growth strategy, UMediC has also expanded its role beyond manufacturing to provide direct services to end users. The UMC Learning Centre now offers professional medical training to ensure that personnel across the industry are equipped with the highest level of skills. UMediC's ambulance services are fully equipped to deliver rapid and high-quality care while integrating ambulance-specific medical products. Complementing these is the UMC Healthcare Centre, staffed by professional medical and nursing personnel, including visiting doctors. 'Much like how working parents rely on daycare centres for their children, our healthcare centre offers a safe and professional environment for patients during the day while their families are at work,' Lim explained. The launch was officiated by Penang State Exco for Youth, Sports and Health Daniel Gooi Zi Sen, Bukit Tambun State Assemblyman and Penang Development Corporation board membe Goh Choon Aik, UMediC chairman Datuk Seri Ng Chai Eng, Invest-in-Penang Bhd CEO Datuk Loo Lee Lian, UWC Bhd executive director and chief operating officer Datuk Lau Chee Kheong, Penang Mida director Muhammad Ghaddaffi Sardar Mohamed.
