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New Straits Times
7 days ago
- Business
- New Straits Times
Sarawak collects RM4.3bil in first four months, eyes full-year target of RM14.2bil
KUCHING: Sarawak collected RM4.3 billion in revenue in the first four months of the year, or 30 per cent of its projected annual revenue of RM14.2 billion, Deputy Premier Datuk Amar Douglas Uggah told the State Legislative Assembly today. He said the state sales tax contributed RM1.76 billion of the total, while cash compensation in lieu of oil and gas rights accounted for RM1.17 billion. "A sum of RM608 million was derived from investment dividends, RM229 million from raw water royalty, and RM250 million from interest income," said Uggah, who is also the Second Minister of Finance and New Economy, during his winding-up speech in the State Assembly. He added that RM65 million came from forestry receipts, RM59 million from land premiums, RM25 million from federal grants and reimbursements, and RM137 million from land rent, mining royalties, and water sales. Uggah also told the assembly that the state sales tax on oil and gas has contributed a total of RM21.38 billion to the state coffers since 2019. He said the sales tax on oil and gas remains the major contributor to the overall state revenue. However, he said that given the challenging economic environment and ongoing geopolitical issues affecting global oil and gas markets, the state government anticipates that this year's revenue projection may be impacted.
New Straits Times
7 days ago
- Business
- New Straits Times
HLIB bullish on Sentral REIT's RM70mil Mont Kiara deal secured at 42.8pct discount
KUALA LUMPUR: Hong Leong Investment Bank (HLIB) holds a positive view on Sentral Real Estate Investment Trust's (Sentral REIT) proposed RM70 million acquisition of a strategic asset in Mont Kiara, citing its yield-accretive potential and attractive purchase price—secured at a notable 42.8 per cent discount to comparable properties in the vicinity. HLIB said the acquisition price of RM70 million for the light industrial asset at Arcoris Plaza—comprising a total net lettable area (NLA) of 67,593 sq ft (retail: 53,244 sq ft; al-fresco: 14,349 sq ft)—translates to RM1,035.60 per sq ft. This is notably below the average market valuation of RM1,810.94 per sq ft for retail properties in Mont Kiara, it said in a note. HLIB added that the RM70 million acquisition represents about 2.7 per cent of Sentral REIT's total asset value and will be fully financed through debt. It said that, assuming a borrowing cost of 4.6 percent, the acquisition is projected to increase distribution income by 0.8 percent in FY2025 and by 3.3 percent in both FY2026 and FY2027, with earnings contributions expected to commence in the fourth quarter of FY2025. Following the acquisition, Sentral REIT's gearing ratio is expected to edge up to 45.7 per cent, from 44.2 per cent previously forecasted for FY2025. Taking into account the earnings accretion and recent share price weakness, HLIB has upgraded its recommendation on Sentral REIT to BUY, with a revised target price of 79 sen (from 78 sen, based on FY2025 distribution per unit (DPU) and a targeted yield of 8.5 per cent. In a filing with Bursa Malaysia on Tuesday, Sentral REIT announced that it had signed a sale and purchase agreement (SPA) with UEM Sunrise Bhd's subsidiaries—Arcoris Sdn Bhd (ASB) and Sun Victory Sdn Bhd (SVSB). The deal involves the acquisition of 38 stratified retail units and 1,432 car park bays within Arcoris Plaza. The REIT said the acquisition would allow it to capitalise on economies of scale in Mont Kiara, enabling the team to leverage its existing property management and leasing capabilities for efficient operations. Sentral REIT, in which Malaysian Resources Corporation Bhd holds a 27.94 per cent stake, also pointed to the property's strategic location, strong accessibility, and stable rental income as key drivers of its long-term potential. The asset is currently fully tenanted, featuring a diverse mix of food & beverage, lifestyle, health, and education operators, many of whom are under a sales turnover rental model. The acquisition is expected to be completed in the fourth quarter of 2025 and is anticipated to contribute positively to earnings for the financial year ending Dec 31, 2025, it said in the filing. As of end-March 2025, Sentral REIT reported cash and cash equivalents of RM24.98 million, with long-term borrowings amounting to RM1.17 billion. Post-acquisition, its gearing ratio is projected to rise slightly from 44.6 per cent to 46.1 per cent.
New Straits Times
27-05-2025
- Automotive
- New Straits Times
Sime's nine-month net profit up 9.9pct to RM1.29bil
KUALA LUMPUR: Sime Darby Bhd reported a net profit from continuing operations of RM1.29 billion for the nine months ended March 31 2025, up 9.9 per cent from RM1.17 billion in the previous corresponding period. The was mainly attributable to the higher contribution from the UMW division and a higher one-off gain on disposal of Malaysia Vision Valley land, despite lower profits from the industrial and motors divisions. The group's revenue for the nine months increased 8.2 per cent to RM52.3 billion from RM48.3 billion in the previous financial year. For the third quarter (Q3), Sime's net profit fell 43.2 per cent to RM193 million from RM340 million a year ago, due to lower earnings from all its core divisions. Its revenue fell to RM16.31 billion from RM18.84 billion previously, the group's filing to Bursa Malaysia showed. As a result, the group registered lower earnings per share of 2.80 sen compared to 5.00 sen in Q3. The group's industrial division profits fell 38.4 per cent to RM221 million during the quarter, mainly due to lower profits from Australasia. Profit from Australasia was impacted by a currency-related parts price adjustment, unfavourable weather conditions and a weaker Australian dollar against the ringgit. Its motors division profits dropped 36.7 per cent to RM114 million mainly due to lower revenue and core profit from several markets, particularly Malaysia, Hong Kong and New Zealand. The group said these markets had been impacted by weaker demand and fierce competition. UMW Holdings Bhd's profit fell 26 per cent to RM194 million mainly due to losses at the lubricants business. Sime group chief executive officer Datuk Jeffri Salim Davidson said the group continued to face external headwinds, particularly in the motors division with ongoing economic uncertainty and the rise of Chinese automotive brands increasingly dominating the market. He added that the consumer segment remains challenging amid the continuing price war and industry overproduction in China. "For the UMW division, Toyota and Perodua continue to perform well in Malaysia. "Despite the impact of the currency-related parts price adjustment, the long-term prospects for our industrial division remains positive on the back of robust mining demand. "Across the group, we remain focused on cost discipline, efficient inventory management and operational agility to navigate the current environment," he said in a separate statement. Jeffri also said as a result of the group's efforts, the reduction in inventories has resulted in a RM1.7 billion improvement to its operating cash flow for the nine months ended March 31, 2025. "While the current landscape is undoubtedly tough, our operating cash flow is positive and our balance sheet is strong, underpinned by sustained revenue. "These are fundamentals that will see us through during these choppy waters," he noted. On its prospects, the group said there is significant uncertainty in the global economic outlook after the US announced tariffs to be imposed on most countries. It added that volatility has also increased in the financial markets, affecting foreign currency exchange rates and interest rates. Amid the uncertainty, business conditions are expected to be challenging for the group's industrial and motors businesses. However, the medium to long term demand for the group's products and after-sales service from the mining industry in Australia is expected to remain robust. Sime expects the core financial performance for the financial year ending June 30, 2025 to be lower than that of the previous financial year.
New Straits Times
20-05-2025
- Business
- New Straits Times
Aeon profit rises 18 pct to RM68.1mil in Q1
KUALA LUMPUR: Aeon Co (M) Bhd's net profit for the first quarter (1Q) of 2025 rose 18 per cent to RM68.10 million from RM57.39 million a year earlier, supported by seasonal spending uplift from the double festive celebrations within the quarter. Revenue increased by 6.6 per cent to RM1.24 billion from RM1.17 billion previously, with its retail business and property management services segments recording revenue growth. Aeon said its retail business segment achieved 6.1 per cent higher revenue of RM1.04 billion in the quarter under review, contributed by stronger consumer spending during the double festive periods. Its property management services segment reported a revenue growth of 9.4 per cent to RM204.4 million, supported by improved occupancy rate, effective tenancy renewals, and higher sales commissions driven by buoyant tenants' sales performance during festive periods. Managing director Naoya Okada said the retail industry is expected to proactively adapt to rising business costs throughout the year, while continuing to meet evolving consumer expectations and support resilient household spending. "Aeon remains focused on enhancing operational efficiency, expanding its private brand offerings, accelerating digital transformation, optimising tenant mix, strengthening its loyalty programme, as well as elevating the overall value of its retail spaces to attract greater foot traffic," he said. Looking ahead, Aeon said it will continue to deepen customer engagement, capitalise on emerging opportunities, and reinforce the foundations of its core businesses to deliver sustainable value for its customers, business partners, and shareholders, while remaining steadfast in its role to serve communities across Malaysia.
New Straits Times
29-04-2025
- New Straits Times
GOF raids illegal timber mill, RM1mil worth of logs and tools seized
KOTA BARU: More than 400 logs of various sizes and species as well as wood processing machines were seized in a raid on a timber mill suspected of operating illegally in Kampung Tok Limin, near Bunut Susu in Pasir Mas yesterday. General Operations Force (GOF) Southeast Brigade Commander Datuk Nik Ros Azhan Nik Ab Hamid said the raid by a team of Battalion 8 GOF members at 10.45am was carried out through Op Bersepadu Khazanah. "In an inspection, the mill did not have a valid licence from the Forestry Department and was obtaining timber supplies without permits and without taxes from the surrounding area. "Four local men aged between 34 and 67, were also detained to assist in the investigation. "Total value of the seizure, including timber, machinery and wood processing machines, is estimated at RM1.17 million," he said in a statement yesterday. He said the case was being investigated under Section 93(2) of the National Forestry Act 1984, and the suspects and seized items were handed over to the Kelantan Forestry Department for further action. He said the Southeast GOF Brigade will continue to intensify operations to combat illegal timber processing, especially in the country's border areas. – Bernama
