Latest news with #CLMT
The Star
4 days ago
- Business
- The Star
CLMT's RM250mil fundraise to reduce gearing
TA Research said the placement would support the REIT's continued diversification into logistics and industrial assets. PETALING JAYA: Capitaland Malaysia Trust 's (CLMT) proposed private placement to raise up to RM250mil is being viewed positively as a successful placement will enable the real estate investment trust (REIT) to reduce net gearing that has climbed due to borrowings to acquire industrial assets. Maybank Investment Bank Research, which has maintained a 'buy' recommendation on the stock and raised the target price to 76 sen from 75 sen, projects the REIT's net gearing to be reduced to 39.6% post-placement from 44.1% in the first quarter ended March 31, 2025 (1Q25) based on existing borrowings for the industrial asset acquisitions. 'We are positive on this exercise as it enhances CLMT's balance sheet strength and provides additional headroom for future yield-accretive acquisitions,' the research house said, as proceeds from the placement would be used to partly refinance borrowings of RM400mil of completed and pending logistics as well as industrial assets. It added that these acquisitions would be expected to contribute RM20mil in gross rental income annually or around 4% of the financial year ending Dec 31, 2026 (FY26) revenue. 'Post-acquisition, CLMT's industrial and logistics exposure will rise from 2.8% to 7.9% of assets under management, which is expected to contribute around 9% of FY26 net property income,' it said. 'We expect its retail assets to remain resilient with mid-to-high single-digit range rental reversion and steady occupancy for its ex-Klang Valley malls. 'Despite short-term dilution, longer-term earnings visibility, diversification and improved gearing, support our positive view,' it added. TA Research said the placement would support the REIT's continued diversification into logistics and industrial assets in which more stable and recurring income can be expected. 'We are positive on CLMT's proposed placement, which reflects a proactive and forward-looking approach to strengthening its capital base while preserving balance sheet flexibility,' the research house said. It has reiterated a 'buy' call on the stock with an unchanged target price of 82 sen. It pointed out that while there would be some near-term dilution to earnings per unit, the longer-term benefits from improved gearing, enhanced portfolio mix and rising rental contributions from logistics assets outweigh the short-term impact.
Business Times
4 days ago
- Business
- Business Times
CapitaLand Malaysia Trust proposes sale of 435.4 million units to raise RM250 million
[SINGAPORE] The manager of CapitaLand Malaysia Trust (CLMT), a subsidiary of CapitaLand Investment , on Tuesday (Jun 3) proposed a placement of up to 435.4 million new units to raise gross cash proceeds of up to RM250 million (S$75.8 million). This will represent around 14.9 per cent of the total number of units in issue. The number of placement units was determined based on an issue price of RM0.5741 per unit, representing a discount of around 10 per cent to the volume weighted average market price of RM0.6379 per unit over the five trading days up to and including the latest practicable date. The final number of placement units will be determined at a later stage, the manager said in a bourse filing. Proceeds from the sale may be temporarily parked in interest-bearing deposit accounts, short-term money market instruments, or other permissible investments in accordance with CLMT's trust deed. According to the manager, the proposed placement aims to raise funds to partially repay existing bank borrowings that were previously drawn to finance the acquisition of industrial and logistics assets in 2022 and 2023. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The proceeds will also be used to fund the acquisition costs of several proposed properties currently pending completion. CLMT previously acquired the Valdor Logistics Hub in Penang for RM80 million in December 2022 and the Glenmarie Distribution Centre in Selangor for RM39.7 million in August 2023, both funded through bank borrowings. In addition, CLMT is expected to complete the acquisition of three freehold industrial properties in Senai Airport City for RM72 million, another three freehold industrial properties in Nusajaya Tech Park in Iskandar Puteri, Johor, for RM27 million and an automated logistics facility in Selangor for RM180 million. These are all expected to be completed by the second half of 2025. 'After due consideration of the various funding options available for the funding of the projects and also future acquisitions, the Board is of the view that the proposed placement is the most appropriate avenue for fund-raising,' the manager said. CLMT's portfolio comprises six retail properties and two logistics assets with a total net lettable area of 4.3 million square feet, across three key urban centers in Malaysia. Units of CLI ended Tuesday 0.4 per cent or S$0.01 higher at S$2.51. Units of CLMT, which is listed on Bursa Malaysia, closed 0.8 per cent or RM0.005 lower at RM0.635 on Tuesday.
Business Times
5 days ago
- Business
- Business Times
Stocks to watch: CapitaLand Investment, Nio, Japfa, Stoneweg E-Reit, Grand Venture, Frencken
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Wednesday (Jun 4). CapitaLand Investment (CLI) : The manger of CapitaLand Malaysia Trust (CLMT), a CLI subsidiary, on Tuesday proposed a placement of up to 435.4 million new units to raise gross cash proceeds of up to RM 250 million (S$75.8 million). The manager may place the proceeds in interest-bearing deposit accounts with licensed financial institutions, short-term money market deposits or other permissible investments allowed under the trust deed of CLMT. Units of CLMT ended on Tuesday 0.8 per cent or 0.005 ringgit lower at 0.635 ringgit, before the announcement. Nio : The Chinese electric vehicle maker on Tuesday posted a net loss of US$949.6 million for its first quarter of 2025. This is a 31.1 per cent increase from the the year-ago period and a 3.4 per cent decrease from the previous quarter. Vehicle deliveries stood at 42,094 for Q1 2025, up 40.1 per cent on the year but down 42.1 per cent on the quarter. The counter ended on Tuesday 0.3 per cent or S$0.01 higher at US$3.53, before the announcement. Japfa : The agri-food company will be delisted from the official list of the Singapore Exchange (SGX) with effect from Jun 6, 2025, 9 am, as the board has received confirmation that payment of the adjusted scheme consideration was made to each entitled scheme shareholder on Tuesday. This comes as shareholders approved the scheme resolution proposed by family members of the group's founder to take the business private. The counter ended on Tuesday unchanged at S$0.615, before the announcement. Stoneweg European Real Estate Investment Trust (Stoneweg E-Reit) : The manager on Wednesday announced that the Reit will be converted into a stapled group. Each unit of Stoneweg E-Reit will be stapled to each unit in Stoneweg European Business Trust to form one stapled security in a stapled entity known as Stoneweg Europe Stapled Trust. The stapled securities will be traded on the SGX with effect from Jun 16, 2025, 9 am, as Stoneweg E-Reit units will cease to trade on the bourse from Jun 13, 2025, 5 pm. The counter ended on Tuesday 1.3 per cent or 0.02 euros higher 1.54 euros. Grand Venture : The manufacturing-service provider on Tuesday posted a first-quarter net profit after tax of S$2.6 million for the three months ended Mar 31, up 27.7 per cent from S$2 million a year ago. Earnings before interest, tax, depreciation and amortisation grew as well, by 29 per cent to S$8.4 million, from S$6.5 million previously, said the company. Shares of GVT closed flat at S$0.925 on Tuesday, before the announcement. Frencken : The semiconductor maker will invest S$63 million to build a new and larger five-storey manufacturing facility in Kaki Bukit. The new site will be built on a plot of land leased from Jurong Town Corporation to its subsidiary ETLA for a period of 33 years, from Aug 18, 2025, the group said on Tuesday. Shares of Frencken closed flat at S$1.14, before the announcement.
Yahoo
14-04-2025
- Business
- Yahoo
Calumet, Inc. (CLMT): A Bull Case Theory
We came across a bullish thesis on Calumet, Inc. (CLMT) on Twitter by Zerosumgame33. In this article, we will summarize the bulls' thesis on CLMT. Calumet, Inc. (CLMT)'s share was trading at $9.91 as of April 11th. CLMT's trailing and forward P/E were 23.06 and 11.35 respectively according to Yahoo Finance. A technician in a protective suit testing a variety of different lubricants and filters. Calumet Specialty Products (CLMT) has undergone a punishing 50% drawdown, primarily due to its leveraged equity structure and fears of a recession weighing on already depressed—but ultimately temporary—margins. A wave of selling was triggered by event-driven funds exiting after a Department of Energy (DOE) catalyst, exacerbated by a lack of institutional support and nearly 10 million shares shorted. Despite this, the long-term bull thesis remains intact. The key driver is an imminent margin inflection in the biodiesel (BD) market, where the supply-demand imbalance is becoming acute. Based on January EPA data, BD production fell by ~150 million gallons in a single month, pushing total supply below the 2025 Renewable Volume Obligation (RVO) level. With the D4 RIN bank likely to be exhausted within months, this sets the stage for a sharp recovery in margins as demand exceeds supply. Montana Renewables (MRL), CLMT's crown jewel, is in a uniquely advantaged position. Unlike peers still running soybean oil, MRL uses a more cost-effective 50/50 blend of corn oil and tallow, supporting better margins. The real catalyst is the upcoming 2026–2028 RVO, expected to be released around August or September. While the current RVO was set too low by the Biden administration (creating a margin overhang), a Trump administration is likely to revise this upward based on the new renewable diesel capacity that's come online. Once that happens, margins could return to $2.00/gal, putting MRL at $250M EBITDA and CLMT at a $500M run-rate on a $2.9B pro forma EV—an exceptionally cheap valuation at $10/share. Even under more conservative assumptions, MRL's EBITDA would support a robust valuation. Warburg's base case targets a $3.3B exit EV by early 2028, translating to a $40 CLMT share price. Calumet, Inc. (CLMT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held CLMT at the end of the fourth quarter which was 9 in the previous quarter. While we acknowledge the risk and potential of CLMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CLMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
