Latest news with #PublicInvest
New Straits Times
4 days ago
- Business
- New Straits Times
WCT set for stronger quarters with RM2.5bil order book and solid property sales
KUALA LUMPUR: WCT Holdings Bhd (WCT) is expected to deliver better quarters ahead, supported by a healthy RM2.5 billion construction order book, according to Public Investment Bank Bhd (PublicInvest). The firm added that the company has achieved RM300 million in year-to-date property sales, putting it on track to meet its financial year 2025 (FY25) target of RM1.1 billion. "Moving forward, WCT's earnings growth will largely depend on its project execution, cost recovery from completed projects and its ability to replenish the construction order book," it said. PublicInvest said the company fundamentals remain strong, although its core net profit decline of 47.3 per cent year-on-year to RM12 million in the first quarter of financial year 2025 (1QFY25) was largely due to slower activity in its engineering and construction (E&C) division as projects near completion. Revenue for the quarter rose marginally by 1.0 per cent to RM472.1 million, driven by significant growth in the property development (PD) and property investment and management (PIM) segments. The firm said the results came in below its own estimates but within market expectations, representing 12.9 per cent and 19.6 per cent of respective full-year forecasts. "We keep our estimates unchanged, however, anticipating lower interest expenses post the upcoming REIT listing, which is expected to be completed by June, next month. "The company's fundamentals show improvement, supported by de-gearing initiatives, project executions and order book replenishment," PublicInvest added. The firm kept its "Outperform" rating on WCT with an unchanged target price of RM1.08 a share, based on 0.4 times the price-to-book value.
New Straits Times
23-05-2025
- Automotive
- New Straits Times
Analyst reaffirms DRB-Hicom forecasts after profit rebound
KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) has maintained its earnings forecasts for DRB-Hicom Bhd after the group returned to profitability in the first quarter ended March 31, 2025 (1Q25), driven by stronger sales and improved cost efficiency. "The results were in line with our estimates but fell short of consensus, representing 22.6 per cent and 19.3 per cent of full-year forecasts, respectively," the research house said in a note. PublicInvest reaffirmed its 'Neutral' call on the counter with an unchanged sum-of-parts-based target price of RM0.84. DRB-Hicom posted a net profit of RM17.7 million for the quarter, reversing three consecutive quarters of losses. Excluding non-recurring items, core net profit is estimated at RM28.9 million, reflecting a stronger underlying performance. The improvement was supported by better cost control and healthier sales across most business segments, underscoring the group's operational turnaround. Looking ahead, PublicInvest cautioned that heightened competition, particularly from competitively priced Chinese carmakers, could pressure margins and pose challenges to earnings growth. It also noted that Malaysia's automotive sector is expected to normalise in 2025 after a record-setting year in 2024. The Malaysia Automotive Association reported a five per cent year-on-year decline in total industry volume for the first four months of the year, with full-year sales projected to ease 3.5 per cent to 780,000 units. PublicInvest said the anticipated softer demand is partly due to the easing of order backlogs and a potential increase in excise duties for completely knocked-down vehicles. Other contributing factors include the rollout of targeted RON95 fuel subsidies, and the introduction of a high-value goods tax.
New Straits Times
21-05-2025
- Business
- New Straits Times
Sports Toto ticket sales seen easing in Q4 after jackpot-driven boost
KUALA LUMPUR: Sports Toto Bhd is expected to see a moderation in ticket sales in the fourth quarter of the financial year ending 2025 (4QFY25), following a strong third quarter performance. According to RHB Research, the robust results in the third quarter (3QFY25) were primarily driven by a prolonged jackpot run that extended until January, coupled with a seasonal lift from Lunar New Year celebrations. "Illegal operators remain intense, while management is currently awaiting a decision on its appeal to resume operations in the northern states, which could help recover lost ground if approved. "Meanwhile, HR Owen plc's sales are also expected to moderate after a seasonally strong 3QFY25, with margins likely to remain under pressure due to persistently high operating costs," it said in a note. PublicInvest noted that the widespread presence of illegal operators will remain a persistent challenge for Malaysia's gaming industry. "The illegal gaming market is estimated at two to three times the size of the legal market of around RM9 billion a year. "The only way to tackle and deter the growth of the illegal operations is through stricter enforcement and penalties or by legalising online betting," it added. However, PublicInvest pointed out that implementing the latter would be more challenging due to the social dynamics of Malaysian society. Both RHB Research and PublicInvest have raised their FY25 earnings forecasts for Sports Toto Bhd, reflecting stronger-than-expected gaming revenue from the jackpot run. However, they maintained their financial year 2026 and financial year 2027 projections, anticipating a normalisation of earnings by 4QFY25. PublicInvest also upgraded Sports Toto to a 'Trading Buy' from 'Neutral', citing a 10 per cent upside potential to its unchanged target price of RM1.48.
New Straits Times
20-05-2025
- Business
- New Straits Times
Hartanah Kenyalang poised for growth amid Sarawak infrastructure boom
KUALA LUMPUR: Hartanah Kenyalang Bhd's earnings are expected to grow at a two-year compound annual growth rate (CAGR) of 16 per cent, according to Public Investment Bank Bhd (PublicInvest). In a note, the firm said this will be supported by a robust order book and continued government infrastructure spending in Sarawak. "We derive a fair value of RM0.22 by applying 11 times the forecast price-to-earnings ratio (PER) for financial year 2026 (FY26), which represents an approximately 20 per cent discount to the forward PE multiple of 14 times for Bursa's Construction Index. "This account for the group's positive outlook but relatively smaller scale of business," it noted. Going forward, PublicInvest said key downside risks for the group include dependency on government spending in Sarawak, competition, and reliance on labour and subcontractors. Hartanah Kenyalang is a Sarawak-based construction services firm, well-positioned to benefit from steady construction growth in the state. Through its subsidiary, the group is principally involved in building construction services, focusing on institutional buildings such as schools and other public buildings, as well as other non-residential buildings, and infrastructure construction services, particularly bridges and roads. According to PublicInvest, the group is qualified to undertake high-value building and infrastructure construction services for government projects, mainly for public buildings, bridges and roads in Sarawak. The group plans to capitalise on Sarawak's RM10.9 billion development budget for 2025 and continue bidding for public sector projects, including schools and other purpose-built buildings, high-rise buildings, bridges, roads, and substations. Besides enhancing operational capacity and efficiency, the group also aims to expand its design and build services through building information modelling (BIM) investment. Between FY21 and FY24, Hartanah Kenyalang's net profit increased from RM4.8 million to RM9.2 million, registering a CAGR of 24 per cent in line with higher revenue. However, the net profit margin declined from 14 per cent in FY22 to seven per cent in FY24, while the gross profit margin decreased from 24 per cent in FY21 to 18 per cent over the same period. The decline was primarily due to the completion of the higher-margin Pan Borneo Highway Project, coupled with rising costs for construction materials, subcontractors, staff costs, finance costs and other operating expenses. The group is seeking a listing with an enlarged issued and paid-up share capital of 620 million shares on Bursa Malaysia's ACE Market. Pursuant to the initial public offering (IPO) listing, the group's market capitalisation is RM99.2 million based on its IPO price of 16 sen.
New Straits Times
19-05-2025
- Business
- New Straits Times
PublicInvest: Maxis to deliver resilient FY25 earnings on steady postpaid, fibre growth
KUALA LUMPUR: Maxis Berhad is expected to deliver resilient earnings in the financial year 2025 (FY25), underpinned by steady domestic demand for affordable postpaid mobile services and growing adoption of fibre connectivity to homes. Public Investment Bank Bhd (PublicInvest) said the revenue came in flat in the first quarter of financial year 2025 (Q1 FY25) as the increase in fibre, postpaid and device revenue was offset by lower contribution from the prepaid segment. The firm noted that postpaid subscriber base was 10.3 per cent higher, driven mainly by Maxis Postpaid and Hotlink Postpaid, despite a 4.4 per cent year-on-year decline in average revenue per user (ARPU) to RM71.80. Consumer home connections were 5.1 per cent higher while ARPU declined by 3.9 per cent. Meanwhile, the decline in prepaid ARPU outpaced the growth in its subscriber base, falling 8.4 per cent year-on-year compared to a 2.3 per cent increase in users. On the company's investment in 5G wholesale network, PublicInvest said Maxis has recently proposed to acquire additional stake in Digital Nasional Bhd (DNB) from U Mobile for RM33,333, after the latter was appointed as the second 5G network provider by the government. Following the completion this by end-May, Maxis, CelcomDigi and YTL will hold an equal stake of 19.44 per cent (an increase from 16.3 per cent) each in DNB, with the remaining 41.67 per cent will be owned by the MoF. "Although the proposed investment is not expected to have any material financial impact in the immediate term, this helps to remove concern of Maxis having to spend a sizeable capital expenditure commitment in order to build its own 5G network. "While the three parties may have to explore infrastructure sharing arrangements that could complicate the rollout process, we believe this will be manageable as Maxis, Celcom and Digi have previously collaborated successfully to jointly develop and share fibre infrastructure," it said. Despite the stable earnings outlook, PublicInvest have downgraded Maxis' stock rating from "Buy" to "Neutral," citing limited upside potential with the stock trading near its target price (TP) of RM3.90.
