Latest news with #KenangaResearch
The Star
2 days ago
- Business
- The Star
Global condom market growth lifts Karex's outlook
PETALING JAYA: Analysts expect the global condom market to grow faster than the global economy, driven by rising sexual health awareness, a shift from government to private sector procurement and greater eCommerce adoption. This is expected to bode well for condom maker Karex Bhd , said Kenanga Research. 'This trend favours large, innovative manufacturers like Karex, which is well-positioned to capture more market share, high-value condom and lubricant orders through its diverse product portfolio, regulatory reach, and strong environmental, social and governance credentials. 'While near-term sales may be affected by evolving tender commercial dynamics, the group sees medium-term growth opportunities – particularly its higher margin synthetic condoms and lubricant products, which are gaining traction in key markets.' For its third quarter of financial year ended March 31, 2025 (3Q25), Karex's net profit dipped to RM5.09mil from RM6.02mil in the previous corresponding quarter, while revenue improved to RM135.72mil from RM127.05mil a year earlier. In a filing with Bursa Malaysia, Karex said the higher revenue was primarily due to stronger sales of both condoms and personal lubricants during the quarter. 'Despite the increase in sales, the implementation of minimum wage increases in Thailand and Malaysia, heightened logistics costs stemming from trade disputes and less favourable foreign-exchange rate movements resulted in a decrease in profitability. 'As a result, the 3Q25 profit before tax of RM6.6mil represented a decrease of RM1.7mil in comparison to the corresponding quarter in the previous financial year,' it said. For the nine-month period of financial year ended March 31, 2025 (9M25), Karex's net profit dropped to RM9.67mil from RM18.6mil, while revenue fell to RM377.63mil from RM383.93mil a year ago. Kenanga Research said 9M25 net profit fell short of expectations, accounting for only 47% of its forecast and 52% of consensus estimates. 'A five sen dividend was declared for the quarter, unchanged year-on-year.' Despite the improved outlook, the research house lowered the company's financial year 2025 (FY25) and FY26 net profit forecasts by 32% and 16%, respectively, to RM14mil and RM38mil after incorporating the weak 3Q25 results. It also reduced its margin assumptions to align with the prevailing trends. Correspondingly, it lowered its target price by 16% to 90 sen from RM1.07 previously, with an unchanged targeted FY26 price-to-earnings ratio (PER) of 25 times. 'This represents a 20% premium to the average historical five-year forward PER of its international peers to reflect its dominant market position and strong growth prospects.'
The Star
5 days ago
- Business
- The Star
Strong project pipeline boosts Kerjaya Prospek's outlook for FY25
PETALING JAYA: The market outlook for construction and property player Kerjaya Prospek Group Bhd remains solid after the company reported a 37% jump in net profit on the back of a 40% surge in revenue for the first quarter ended March 31, (1Q25) compared with the same quarter a year ago. The company also declared a first interim dividend of three sen per share payable on June 30. Several analysts have raised their target price on the stock following a meeting with Kerjaya's management, which was upbeat on achieving the company's target of RM1.6bil in new projects for this year, supported by year-to-date contract wins of RM870.3mil and an order book of RM4bil. Kenanga Research, which maintained an 'outperform' call on the stock and revised the target price to RM2.30 from RM2.10, said the company, in partnership with Samsung C&T Corp, expects decisions on three data centre projects worth RM3bil in 3Q25, in addition to listed subsidiary Eastern & Oriental Bhd 's planned launch of property projects worth RM2bil this year. The research house said the company's property arm can expect its 55%-owned Rivanis redevelopment project located in Butterworth, Penang, to anchor future earnings. BIMB Research said the higher interim dividend compared with an expected 2.5 sen reflected the management's confidence in its earnings outlook and strong cash position.
The Star
6 days ago
- Business
- The Star
Project pipeline boosts Kerjaya Prospek's outlook
PETALING JAYA: The market outlook for construction and property player Kerjaya Prospek Group Bhd remains solid after the company reported a 37% jump in net profit on a 40% surge in revenue for the first quarter ended March 31, 2025 (1Q25) compared to the same quarter a year ago that were largely in line with expectations. The company also declared a first interim dividend of three sen per share payable on June 30. Several analysts have raised their target price on the stock following a meeting with the Kerjaya's management, who were upbeat on achieving the company's target of RM1.6bil of new projects for the financial year ending December 31, 2025 (FY25) supported by year-to-date contract wins of RM870.3mil and an outstanding orderbook of RM4bil. Kenanga Research, which maintained an 'outperform' call on the stock and revised the target price to RM2.30 from RM2.10, said the company in partnership with Samsung C&T Corp expects decisions on three data centre projects worth RM3bil in 3Q25, in addition to listed subsidiary Eastern & Oriental Bhd 's planned RM2bil launch of property projects this year. It said the company's property arm can expect its 55%-owned Rivanis redevelopment project located in Butterworth, Penang to anchor future earnings. The research house has a neutral view of the company's 49% stake acquisition in Aspen Vision Land Sdn Bhd for RM98mil announced recently given the potential future capital commitments that could offset construction opportunities and property earnings. BIMB Securities said the higher first interim dividend declared compared to an expected 2.5 sen reflected the management's confidence in its earnings outlook and strong cash position. The research house expects a dividend payout of 12 sen for FY25, which translates to a dividend yield of 5.6% from the stock's last closing price. It has maintained a 'buy' call on the stock with an unchanged target price of RM2.59. TA Securities, which maintained a 'buy' call but revised its target price to RM2.97 from RM2.72, said the company have plans to expand its property development business through a capital expenditure allocation of RM550mil, with active scouting for landbank opportunities in Penang, the Klang Valley, and Johor backed by robust net cash position of RM336.7mil as at end-March 2025. RHB Research said earlier-than-expected wins of industrial jobs such as data centres before mid-FY25 and quicker-than-expected launches of the new phases of Aspen Vision City, which has an estimated gross development value of RM5bil on 14.16-ha of land could be re-rating catalysts for the stock, in which the brokerage has maintained a 'buy' call but revised upwards the target price to RM2.80 from RM2.67.
The Star
27-05-2025
- Business
- The Star
Samaiden to benefit from solar engineering projects
Analysts said the group's long-term growth remained intact. PETALING JAYA: Samaiden Group Bhd is expected to benefit from a surge in solar engineering opportunities amid Malaysia's push for a 70% renewable energy (RE) mix by 2050. Analysts said the group's long-term growth remained intact, despite short-term earnings hiccups linked to margin pressures and project timing. Samaiden's financial results for the nine months ended March 31, 2025 came in largely below expectations. RHB Research said the miss was due to softer margins amid ongoing progress of its corporate green power programme (CGPP) contracts. Kenanga Research similarly pointed to slower job execution and lower-than-expected margins in the CGPP, with the group's core net profit of RM13.1mil accounting for only 55% of its full-year forecast. Despite the earnings disappointment, research houses remained optimistic about Samaiden's prospects as large-scale solar (LSS) contract awards accelerate. RHB Ressearch highlighted that the group recently bagged its third engineering, procurement, construction and commissioning (EPCC) contract under LSS5 – a RM100.7mil project from GVU Fajar Timur Sdn Bhd for a 27.6MWac solar power plant in Kelantan. 'Including the award, the group has secured a total of 67.58MWac (worth RM254.3mil) in EPCC contracts under the LSS5,' it said. TA Research, taking into account recent wins, including the GVU job and a RM45mil award from Pax RE, estimated Samaiden's updated order book at RM588mil – a record high, representing 2.6 times the group's FY24 revenue. It noted that order book replenishment prospects are underpinned by an aggregate 4GW capacity under the LSS5 and LSS5+ auction cycle, which entail EPCC prospects of RM12bil to RM14bil. Kenanga Research added that Samaiden stood a strong chance to secure 10%, translating to RM500mil of the total photovoltaic system EPCC jobs under LSS5, valued at RM5bil. It expected a 'strong influx of job opportunities' with a deadline for LSS5 project completion by end-2026, alongside another 500MW quota under the net energy metering scheme. MIDF Research noted Samaiden was among the shortlisted bidders to develop a 99.99MW solar farm in Kelantan and it has inked a 21-year power purchase agreement with Tenaga Nasional Bhd . 'Samaiden is among the key beneficiaries of EPCC prospects under LSS5, other upcoming large-scale solar schemes, and the long-term RE growth potential from the National Energy Transition Roadmap,' it said. While TA Research and Kenanga Research had trimmed their target prices to RM1.38 and RM1.43, respectively, both retain 'buy' calls, citing strong fundamentals and RE tailwinds. RHB Research lowered its target price to RM1.44 but remained upbeat. 'We expect more positive news flow from the group in the near term – Samaiden targets at least 10% share of the available 2GW capacity,' it said. MIDF Research maintained its target price of RM1.59 and 'buy' rating on Samaiden.
The Star
27-05-2025
- Business
- The Star
Defensive earnings profile to support PetGas
Kenanga Research expects PetGas' 2Q25 numbers to be on the weak side. PETALING JAYA: Analysts generally have a constructive view of Petronas Gas Bhd (PetGas) despite it having to absorb at least a RM170mil charge to rehabilitate the Putra Heights area following the pipeline fire incident in April. CGS International (CGSI) Research stated PetGas' defensive earnings profile, underpinned by its ownership of gas infrastructure assets in Malaysia, remained a key strength that is backed by a healthy balance sheet. 'Visible free cash flow and dividend yields of over 4% support the sustainability of its payouts (dividends),' the research house stated in its latest report on PetGas. It added the RM170mil estimated charge represented 1.2% of PetGas' current book value and 9% of 2025 forecast net profit. CGSI Research has maintained a 'hold' call on PetGas with an unchanged discounted cash flow based target price (TP) of RM17.50 a share. Kenanga Research noted that while PetGas' first quarter (1Q25) financial results were slightly below expectations, the company's regulated asset base continues to provide resilient earnings visibility. The research house, however, expected PetGas' 2Q25 numbers to be on the weak side. This is due to the operational disruptions following the Putra Heights fire incident. 'We fine-tune our financial year 2025 (FY25) and FY26 earnings forecast lower by 5% and 3%, respectively, to reflect the guided RM60mil profit impact in FY25, to incorporate adjustments to gas transportation and regasification terminal tariffs and some housekeeping,' Kenanga Research added. It has a 'market perform' call on PetGas with a lower TP of RM16.80 a share. PetGas posted a 1Q25 core profit of RM466.2mil on the back of RM1.6bil in revenue. It announced a first interim dividend of 16 sen a share for the quarter. MIDF Research, however, downgraded the counter to 'neutral' with a TP of RM18.67 a share on the ground that all factors that could impact the company's share price had been priced in. It expected PetGas' FY25 performance to remain stable and resilient despite the operational setback caused by the pipeline incident. 'With higher demand for natural gas and liquefied natural gas, in tandem with the higher prices projected in 2025, all of PetGas' businesses will continue to perform on the positive. 'In line with the incident, we expect PetGas will strengthen its risk management, operational efficiency, and mitigation strategies,' MIDF Research said. Its TP on PetGas is pegged to a price earnings multiple of 19 times to the revised earnings per share for FY25 of 98 sen.
