Latest news with #RHBResearch
The Star
3 days ago
- Business
- The Star
Gabungan AQRS poised for rebound on potential job wins
PETALING JAYA: Gabungan AQRS Bhd is expected to see improved earnings ahead, supported by the rollout of major infrastructure and property projects, following weaker results for the nine months ended March 31, 2025 (9M25). According to RHB Research, the group could benefit from potential job wins linked to the reinstatement of five Light Rail Transit 3 stations, due to its prior experience working on the Shah Alam Stadium and Glenmarie stations. It is also poised to gain from Phase 1B of the Pan Borneo Highway in Sabah, where its 49%-owned SEDCO Precast Sdn Bhd is a contender to supply precast components worth an estimated RM400mil to RM500mil. The formation of new property joint ventures, such as the Serena Gambang project in Pahang, may further boost earnings. RHB Research noted that, as of today, the group has an outstanding construction order book of RM335mil, which the research house described as 'reasonable at this juncture, as job awards have yet to pick up.' Meanwhile, its Johor Baru development, The Peak, may gain traction due to its proximity to the Johor Baru–Singapore Rapid Transit System Link station. The group has unbilled property sales of RM191mil. In the third quarter of financial year ending June 30, 2025 (3Q25), Gabungan AQRS posted a net loss of RM7.88mil, or a basic loss per share of 1.45 sen. This compared with a net profit of RM3.18mil, or a basic earnings per share of 0.58 sen, in the same quarter last year. Revenue also dropped from RM66.96mil to RM41.08mil during the quarter. For 9M25, the group recorded a net loss of RM16.13mil, compared to a net profit of RM16.91mil in the same period last year. Revenue also dipped from RM376.05mil to RM151.31mil. The negative deviation was due to a weaker-than-expected property division and higher-than-estimated sales costs. While Gabungan AQRS' results missed the research house's forecasts, they exceeded street expectations, accounting for 56% and 115% of the respective full-year projections. Following the results, RHB Research trimmed its FY25 to FY27 earnings forecasts by 14%, 10% and 13%, factoring in slower property revenue recognition and more conservative cost assumptions. 'We also take the opportunity to ascribe a lower target price-to-earnings (PE) (ratio) of eight times, as Gabungan AQRS' remaining orders have not been replenished at the same pace as that of peers,' it added. Nonetheless, RHB Research maintained a 'buy' call on the group, with a revised target price of 33 sen. 'Given the plethora of catalysts and its track record in infrastructure projects like Mass Rapid Transit 1 and Sungai Besi-Ulu Klang Elevated Expressway, the stock remains undervalued relative to peers, trading more than two standard deviations below its five-year mean PE – which justifies our firm 'buy' call,' it added.
BusinessToday
4 days ago
- Business
- BusinessToday
Analysts Back Sime Darby Property On Its Solid Pipeline Of Projects
Sime Darby Property Bhd - Ready-built Warehouse (Source Official wesite Nov 2024) Sime Darby Property Bhd (SDPR) maintains strong analyst support with RHB Investment Bank Bhd (RHB Research) and Hong Leong Investment Bank Bhd (HLIB) both reaffirming their BUY calls. RHB Research assigns a target price of RM2.33, implying a 64% upside from the current market price of RM1.42, while HLIB maintains a slightly more conservative target price of RM2.05, projecting a 44.4% capital gain plus a dividend yield of 2.3%, resulting in an expected total return of 46.7%. The positive outlook reflects confidence in Sime Darby Property's resilient sales momentum and strategic development plans. According to RHB Research, Sime Darby Property's first quarter of fiscal 2025 earnings fell short of expectations due to delayed recognition of some industrial property sales. Nevertheless, property sales remained robust at RM928 million, putting the company on track to meet its annual sales target of RM3.6 billion. The quarter saw industrial products contributing half of total sales, with residential high-rise, landed residential, and commercial properties making up the remainder. RHB Research noted the upcoming launch of KLGCC Mall in the second half of 2025 and the timely delivery of two data centres as key growth drivers. The firm also highlighted improved cost efficiency and reduced finance expenses as positive factors, with net gearing slightly rising to 0.28 times. HLIB described the first quarter results as within expectations, with core profit after tax and minority interests (PATAMI) rising 20.1% quarter-on-quarter to RM115.6 million despite a 10.8% revenue decline. This was largely attributed to better profit margins from a favourable product mix and lower compliance costs. Sales for the quarter were steady at RM927.5 million, representing about 26% of the company's full-year sales target. HLIB also pointed to strong unbilled sales of RM3.84 billion, the highest since 2017, signalling healthy revenue visibility. The firm forecasts steady earnings growth, adjusting its FY25 and FY26 projections slightly while introducing a positive outlook for FY27 with core PATAMI expected to reach RM663.2 million. Both research houses highlight the strength of Sime Darby Property's industrial segment, with HLIB emphasising the ongoing construction of Google's hyperscale data centre, scheduled for completion in the second half of 2026. The company's investment property portfolio is expanding, with KLGCC Mall nearing opening and strong occupancy gains in its Metrohub industrial assets. These recurring income streams are expected to boost future earnings as leasing activity remains robust. Looking forward, analysts are optimistic about Sime Darby Property's prospects, citing its diversified product offerings across residential, commercial, and industrial sectors as a key advantage. The anticipated completion of the East Coast Rail Link (ECRL) by end-2026 is expected to benefit the company's industrial landbank near Klang station, improving sales and rental yields. Both RHB and HLIB believe the group's balanced approach, combining development-driven growth with steady expansion of its investment property segment positions Sime Darby Property well for sustainable long-term earnings growth. In conclusion, Sime Darby Property continues to deliver on its strategic goals with solid sales momentum and growing recurring income, backed by positive analyst ratings and substantial upside potential from current share prices. Related
New Straits Times
4 days ago
- Business
- New Straits Times
RHB: MISC poised for FPSO growth, 'Buy' at RM9.70
KUALA LUMPUR: MISC Bhd's outlook remains positive, underpinned by its stable operating cash flows and robust balance sheet that position the group well to capitalise on growth opportunities in the floating production storage and offloading (FPSO) market, said RHB Research. The firm said MISc's first quarter (Q1) 2025 core profit of RM667.9 million came broadly within its and consensus expectations, accounting for 29 per cent of full-year estimates. This was primarily driven by stronger contributions from the offshore segment following the start-up of Mero 3. "The Q1 2025 results were broadly in line with our expectations, as we foresee some softness in the gas and petroleum segments in the coming quarters due to ongoing market uncertainties," it said in a note. Meanwhile, RHB Research said MISC's offshore segment is poised for stronger performance following the first oil delivery from Mero 3, which is expected to generate steady long-term cash flows for MISC. It also said that the company guided that liquefied natural gas (LNG) shipping rates are expected to stay subdued due to vessel oversupply, driven by high newbuild deliveries and delays in LNG liquefaction projects. "The petroleum outlook is mixed, with VLCC rates forecasted to slightly outperform mid-sized tankers, supported by stagnant fleet growth and sustained long-haul crude demand from the Americas and the Middle East to Asia. In addition, mid-sized tanker rates are expected to ease, in MISCs view, amid increased vessel availability, normalising from the strong levels seen in 2023 and early 2024," it said. Overall, RHB Research has maintained its earnings estimates, as it expects some moderation from the gas and petroleum segments in light of ongoing market uncertainties. The firm maintain its Buy recommendation with an unchanged target price of RM9.70.
New Straits Times
5 days ago
- Business
- New Straits Times
UEM Edgenta slumps 16pct after Q1 loss, RHB ends coverage
KUALA LUMPUR: UEM Edgenta Bhd tumbled nearly 16 per cent or 13.5 sen, to 72.5 sen at midday after the company reported a net loss in the first quarter of its financial year 2025. At the last price, the company had a market capitalisation of about RM602.9 million. The share opened at 77 sen, down nine sen from Tuesday's close of 86 sen, and hovered between 72 sen and 77.5 sen throughout the morning session. A total of 7.43 million shares changed hands. The share price has been volatile since the beginning of this year, before peaking at 93 sen on May 16. Year-to-date, the stock has declined 10 per cent. UEM Edgenta's biggest shareholder is Khazanah Nasional Bhd's UEM Group Bhd, which owns 69.14 per cent of the company. This is followed by Urusharta Jamaah Sdn Bhd with a 5.75 per cent stake in the company. RHB Investment Bank Bhd (RHB Research) noted today that it is ceasing coverage on UEM Edgenta due to a reallocation of internal resources. The firm's last call was "Buy" with a target price of RM1.04. It stated that UEM Edgenta's core net loss of RM17.7 million in the first quarter of the financial year 2025 (1QFY25) came in below expectations. This was mainly attributed to a decline in the healthcare support division due to contract termination in Malaysia. The company also recorded lower revenue contribution from the infrastructure services segment, following changes in the scope of work performed during the quarter. "Seasonality factors and higher operational costs – primarily because of increased manpower expenses stemming from the minimum wage hike – also contributed to dragging UEM Edgenta into the red," RHB Research added.
The Star
6 days ago
- 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.
