Latest news with #Patmi
The Star
5 days ago
- Business
- The Star
Single digit 2Q growth for banks predicted
RHB Research said operating expenditure among banks would likely be mixed. PETALING JAYA: Malaysian banking stocks are expected to post low to single-digit percentage growth for the second quarter of this year (2Q25), says RHB Research. It said the growth in profit after tax and minority interest (Patmi) would likely come from stronger operating income led by non-interest income with mixed net interest income as well as contributions from associates. The research house, which maintained a 'neutral' rating on banking stocks, said growth expectations have been reset lower, with no expectations of major Patmi downgrades, although there could be possible downside risks to loans growth and net interest margins (NIM). 'Most banks are set to announce interim dividends too, which we see driving near-term sector outperformance,' the research house said, adding that credit costs could rise from the absence of chunky writebacks rather than asset-quality pressures. Loan growth for 2Q25 could show a deceleration from 7% year-on-year (y-o-y) in 2Q24 after taking into consideration Bank Negara Malaysia's data showing 5% increase y-o-y in June 2025 versus June 2024 at 6%, with some banks citing slower drawdowns from non-retail sectors due to tariff uncertainties and foreign -exchange impacts. 'While domestic NIM could likely expand quarter-on-quarter (q-o-q) partly helped by the statutory reserve requirement cut and banks frontrunning July's overnight policy rate cut, NIM from overseas operations should see continued pressure from falling benchmark rates and tight liquidity conditions,' it noted. 'On the other hand, declining bond yields, with the average Malaysian Government Securities 10-year yield for 2Q25 down about 20 basis points q-o-q, are positive for trading gains, while market volatility and uncertainty should benefit foreign exchange and hedging activities. We think these could compensate for any weakness from lower loan and wealth-related fees,' it added. RHB Research said operating expenditure among banks would likely be mixed but expect them to exercise tight control amid tougher conditions to grow revenue. 'On asset quality, first-order impacts from the US tariffs appear contained and there have been no major tariff-related asset-quality issues observed,' it said. Its top picks remain Malayan Banking Bhd with a target price of RM10.90, Hong Leong Bank Bhd at RM24.30 and CIMB Group Holdings Bhd at RM8.40. All have 'buy' ratings.
The Star
6 days ago
- Business
- The Star
Banks' 2Q growth expected in single-digits
PETALING JAYA: Malaysian banking stocks are expected to post low to single-digit percentage growth for the second quarter ended June 30, 2025 (2Q25) in profit after tax and minority interest (Patmi) on stronger operating income led by non-interest income with mixed net interest income as well as contributions from associates, says RHB Research. The research house, which has maintained a 'neutral' rating on banking stocks, said growth expectations have been reset lower, with no expectations of major Patmi downgrades, although there could be possible downside risks to loans growth and net interest margin (NIM). 'Most banks are set to announce interim dividends too, which we see driving near-term sector outperformance,' it said, flagging that credit cost could rise from the absence of chunky writebacks rather than asset quality pressures. Loans growth for 2Q25 could show a deceleration from 7% year-on-year (y-on-y) in 2Q24 after taking into consideration Bank Negara's banking system data showing 5% increase y-on-y in June 2025 versus June 2024 at 6%, with some banks citing slower drawdowns from non-retail due to tariff uncertainties and forex impact. 'While domestic NIM could likely expand quarter-on-quarter (q-on-q) partly helped by the statutory reserve requirement cut and banks frontrunning July's overnight policy rate cut, NIM from overseas operations should see continued pressure from falling benchmark rates and tight liquidity conditions,' it noted. 'On the other hand, declining bond yields (2Q25 average Malaysian Government Securities 10-year yield down c.20 basis points q-on-q) is positive for trading gains, while market volatility and uncertainty should benefit forex and hedging activities. We think these could compensate for any weakness from lower loan and wealth-related fees,' it added. RHB Research said operating expenditure among banks would likely be mixed but expect them to exercise tight control amid tougher conditions to grow revenue. 'On asset quality, first-order impacts from the US tariffs appear contained and there have been no major tariff-related asset quality issues observed,' it said. Its top picks remain Malayan Banking Bhd with target price (TP) of RM10.90, Hong Leong Bank Bhd with TP of RM24.30 and CIMB Group Holdings Bhd with TP of RM8.40. All have 'buy' ratings.
New Straits Times
08-08-2025
- Business
- New Straits Times
SD Guthrie's 2H profit outlook brightened by RM500mil land disposal gains
KUALA LUMPUR: SD Guthrie Bhd is poised for a stronger headline profits in the second half of 2025 (2H25), lifted by RM500 million land disposal gains, said Maybank Investment Bank Bhd (Maybank IB). Its senior analyst Ong Chee Ting said the potential gains is expected to lift earnings despite weaker plantation performance on lower average selling prices (ASPs). He said the group's second quarter FY25 core profit after tax and minority interests (Patmi) once again beat market expectations, largely driven by higher-than-expected ASPs supported by forward sales earlier in the year. SD Guthrie posted a core Patmi of RM466 million for the quarter, up 16 per cent on yearly basis but down 14 per cent from the first quarter. This brings the first half core Patmi to RM1.01 billion, a 61 per cent jump from the same period last year and equivalent to 61 per cent of Maybank IB's and 58 per cent of consensus full-year estimates. Tan said SD Guthrie maintained its full-year fresh fruit bunches growth guidance at 3-5 per cent, with Maybank IB forecasting the upper end at five per cent. Meanwhile first half output, up three per cent, represented 46 per cent of FY25 estimates. On pricing strategy, the group has limited forward sales for the rest of the financial year, averaging around RM4,100 per tonne. Despite guiding for a stable full-year unit cost of RM2,500 per tonne, SD Guthrie expects improving yields to lower second half of the year's (2H25) cost below the RM2,600 per tonne recorded in 1H25. "Following the strong set of results, we raise our financial year 2025 (FY25) core Patmi by six per cent mainly on higher upstream contribution on higher crude palm oil ASP while trimming downstream earnings. "Our FY26-FY27 core Patmi estimates are kept broadly unchanged. Our earnings forecasts have yet to factor in potential land sales gains in 2H25," Tan added. The firm kept its "Buy" call on SD Guthrie with a higher target price of RM5.64.
The Star
09-06-2025
- Business
- The Star
Distribution division to affect UMedic's profitability
PETALING JAYA: UMediC Group Bhd 's distribution division may continue to see soft earnings, which will drag the group's profitability lower for financial year 2025 (FY25) and the next two years. UMedic is involved in the marketing and distribution of branded medical and consumable devices, as well as the development, manufacturing and marketing of own brand medical consumables. In the third quarter ended April 30, 2025 (3Q25), it posted a profit after tax and minority interest (Patmi) of RM1.8mil. This result was below the consensus of research firms. Nine-month Patmi stood at RM5.4mil, down close to 20% year-on-year. According to Hong Leong Investment Bank (HLIB) Research, the negative deviation was mainly due to lower-than-expected revenue at UMedic's distribution division due to the lower appetite for medical devices and consumables. 'As such, we cut the FY25-FY27 profit forecasts by 10%/12%/11% respectively to reflect lower revenue assumption for its distribution division. 'Following three consecutive quarters of earnings underperformance, we have also decided to downgrade the stock to a 'hold' from a 'buy' with a lower target price of 43 sen from 69 sen before,' HLIB Research said in a report. On the other hand, the manufacturing division saw a strong rebound from the previous quarter, mainly supported by demand for respiratory-related products. 'Going forward, we believe the sales volume of respiratory products within the manufacturing division will be supported by global healthcare megatrends, particularly the growing ageing population. 'However, this positive outlook may be partially offset by ongoing uncertainty at the distribution division,' added the research firm. It said its revised 43 sen target price is based on a lower price-earnings multiple of 19 times, which is minus two standard deviations below its three-year mean. 'This is down from our previous valuation of 26.5 times average against its reduced 2026 earnings per share of 2.3 sen from 2.6 sen before. The lower valuation multiple reflects the series of profit disappointments and our more cautious outlook going forward,' said the research firm. Shares of UMedic were trading at 40 sen at the time of writing, down more than one-third since the start of the year.
The Sun
28-05-2025
- Business
- The Sun
IHH Healthcare in transformation and expansion mode
KUALA LUMPUR: IHH Healthcare Bhd will continue to strengthen its presence across the healthcare continuum in key markets such as Singapore and Hong Kong, expanding into the ambulatory care segment alongside its existing primary care clinics. On the inorganic growth front, the group is on the lookout for strategic acquisitions, including hospitals in Malaysia, India and Turkiye. Group CEO Dr Prem Kumar Nair said while underperforming assets in China represent only a small fraction of IHH's overall portfolio, they have recently shown signs of improvement. 'In fact, the group remains optimistic about its prospects in China and is set to invest in a major ambulatory care centre in Shanghai,' he told reporters after the company's annual general meeting today. Dr Prem said what is particularly significant at this stage is the recognition that IHH must undergo – a comprehensive transformation to achieve many of its strategic goals. 'As a well-established organisation, some of our hospitals have been serving communities for decades – Punggol East in Singapore, Gleneagles with a 65-year legacy, Mount Elizabeth approaching 50 years, as well as Gleneagles Penang and Pantai Hospital Kuala Lumpur, both with over half a century of service. 'Given this legacy, we are now shifting our focus towards key transformation areas. 'One of the most important is the introduction of a new care model, which we have already begun implementing in markets like Singapore and Hong Kong. We are also actively encouraging other countries within our network to adopt this forward-looking approach to healthcare delivery,' Dr Prem said. The group's revenue in FY24 increased 16% to RM24.4 billion, and earnings before interest, taxes, depreciation and amortisation) stood at RM5.4 billion, a 17% growth from FY23. Profit after tax and minority Interest (Patmi) declined 10% to RM2.7 billion, mainly due to the one-off gain from the disposal of the International Medical University in 2023. Excluding extraordinary items, Patmi grew 32% from a year ago to RM1.7 billion. Return-on-equity (ROE) growth remains a key focus, and on the back of the strong financial performance, IHH declared a total of 10 sen per share in ordinary dividends in FY24, an increase from 9 sen per share in FY23. 'Many have asked whether factors like tariffs and geopolitical uncertainty – including developments in Turkiye and the US presidency of Donald Trump – have had an impact on us. 'Despite these external challenges, we have demonstrated strong resilience, delivering double-digit revenue and profit growth and achieving an ROE of 9%, edging closer to our target of double-digit ROE,' Dr Prem said. He said IHH's success is defined by meeting or exceeding a comprehensive set of indicators for each value-driven care procedure. Currently, the group is tracking eight high-volume procedures under this framework – including total knee replacement, colonoscopy, and breast cancer – monitoring over 360 indicators every month. These procedures account for about 20% of all inpatient admissions across the network, representing a significant portion of patient care and clinical activity. 'By next year, we plan to expand this programme to include two additional procedures, such as Caesarean sections, allowing more patients to benefit from outcome-driven care. 'To achieve and elevate the level of quality we aim for, we are making strategic investments in cutting-edge medical equipment and improved infrastructure,' Dr Prem said. As a group, he pointed out, IHH reinvests its profits into clinical research, quality improvement programmes and innovations aimed at enhancing patient outcomes. The company has embraced technology-driven care, such as ProtonBeam therapy for cancer treatment, and is creating seamless digital experiences to elevate service quality, including through the MyHealth360 app, which gives patients direct access to their healthcare. Equally important, Dr Prem said, IHH is committed to empowering both patients and staff by investing in continuous learning, development and modern work tools to enable its people to deliver exceptional care and perform at their best.
