Latest news with #PublicInvestmentBankBhd
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.
Malaysian Reserve
19-05-2025
- Business
- Malaysian Reserve
Maxis downgraded to Neutral, with an unchanged target price of RM3.90
Maxis Bhd posted a 5.1% year-over-year increase in 1QFY25 net profit to RM371m on the back of lower depreciation and net interest costs. The results came in within our and consensus expectations, accounting for 25.4% and 25% of full-year estimates, respectively. Revenue came in flat as the increase in fibre, postpaid and device revenue was offset by lower contribution from the prepaid segment. We expect earnings to remain resilient in FY25F, supported by a steady domestic demand for affordable postpaid mobile services as well as fibre connectivity to homes. However, given the limited upside potential to our target price of RM3.90, we downgrade our rating from Trading Buy to Neutral. A first interim dividend per share of 4.0 sen was declared (1QFY24: 4.0 sen per share). – Public Investment Bank Bhd (May 19, 2025) (Calls by analysts tracked by Bloomberg: 9 Buy, 13 Hold, 2 Sell; Consensus target price: RM3.99)
New Straits Times
08-05-2025
- Business
- New Straits Times
Oasis Home gears up for ACE Market listing with strong growth outlook
KUALA LUMPUR: ACE Market-bound Oasis Home Holding Bhd is poised for strong financial growth over the next three years, fuelled by the group's stronger sales from its live commerce segment. Public Investment Bank Bhd (PublicInvest) expects the company's revenue to grow by 11 per cent to 38 per cent between financial year 2025 and 2027 (FY25-27), fuelled by the group's strategic expansion of live commerce channels and recruitment of additional live hosts. "We also expect Oasis Home to be one of the beneficiaries from the booming live commerce industry in Southeast Asia," the firm said. The live commerce market in Southeast Asia is projected to grow at a compound annual growth rate (CAGR) of 42.5 per cent, reaching US$76.6 billion by 2027, according to data from Providence. "Therefore, we are projecting the group's earnings to increase by 20-50 per cent for FY25-27, driven by stronger sales coupled with better economies of scale," PublicInvest added. The firm also forecasts a 30 per cent dividend payout, in-line with the company's dividend payout target of minimum 30 per cent, representing a dividend yield of around 3.0 per cent. On net gearing, PublicInvest said Oasis Hiome is in a healthy financial position, given its net cash position of RM26.2 million based on its pro forma consolidated statements of financial position. As Bursa Malaysia's first listed live commerce marketing company, the firm said the company lacks a direct peer. "We have benchmarked the stock against Bursa Malaysia's Consumer Products Index, which trades at 14 times forward price-to-earnings (P/E), ascribing a 20 per cent to derive a fair value of 36 sen based on 11 times to earnings per share (EPS) of 3.3 sen for calendar year 2026 (CY26) of 3.3 sen. "We find the valuation justified, backed by strong earnings growth from the increase in new live commerce channels and product stock-keeping units (SKUs)," the firm added. PublicInvest said the company's competitive advantages comes from its omni-channel marketing and selling, evolving from departmental stores to live commerce, mobile application and web platforms to meet changing consumer trends. The company also offers a wide and growing range of about 5,228 SKUs across home and living, beauty and personal care, wellness and other categories, tailored to market trends and customer feedback. It has cultivated a strong and engaged customer base through its multi-channel marketing strategy, leveraging platforms like Facebook, Instagram, and TikTok to build brand visibility and drive traffic. The leadership team also brings a wealth of industry expertise that underpins the company's strategic direction and growth. The company is helmed by chief executive officer Datuk Teoh Yee Seang, who brings two decades of experience in marketing consumer lifestyle products, with a strong focus on the home and living segment.
