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New Straits Times
2 days ago
- Business
- New Straits Times
Southern Cable likely frontrunner for next wave of data centre cable jobs
KUALA LUMPUR: Southern Cable Group Bhd is poised to clinch a major share of the next wave of power cable contracts linked to at least 10 electricity supply agreements (ESAs) for data centre projects, said an analyst. This follows Tenaga Nasional Bhd's (TNB) recent announcement of five signed ESAs for data centres totalling 666 megawatts (MW) in the first quarter of this year, with another 10 contracts expected to be signed by year-end. Apex Securities analyst Tan Sue Wen said the surge in demand for medium- and high-voltage (MV and HV) power cables is expected to benefit Southern Cable, which operates in a segment with limited competition. "With its entrenched position in the MV and HV cable segments, and limited competition in this space, Southern Cable is well-positioned to capture a large portion of these upcoming infrastructure opportunities," she said in a note. Besides its role in domestic infrastructure, Tan said Southern Cable is also seen as a beneficiary of United States-bound exports, being one of the few local cable suppliers with distribution access to the American market. Apex Securities has raised its earnings forecast for Southern Cable by 21 per cent across financial years 2025 to 2027, citing robust margin expansion and resilient demand for power cables. The group's power segment, which accounts for the bulk of its revenue, saw gross profit more than double year-on-year in the first quarter ended March 31, 2025, as demand for MV and HV cables surged. These products made up over 30 per cent of the segment's revenue during the quarter, according to the research firm. Excluding a one-off forex loss, core net profit rose 113.7 per cent to RM29.1 million in the quarter, accounting for 28 per cent of the full-year forecast, a performance it described as exceeding expectations. "We expect stronger performance in the remaining quarters of the financial year. The outperformance was largely due to stronger-than-anticipated margins of power cables and wires in the power segment," it said. Southern Cable has RM1.3 billion worth of orders in hand, about 90 per cent of which are for power cables, which Apex Securities believes provides solid earnings visibility for the rest of the year. In line with the revised earnings outlook, the firm raised its target price for the group to RM1.72 from RM1.42 and reiterated a 'Buy' call, noting the stock's undemanding valuation at 12 times 2025 forecast earnings. "Risks to the outlook include a spike in raw material prices such as copper and steel, and the potential failure to secure new contracts," it added.
New Straits Times
2 days ago
- Business
- New Straits Times
AmanahRaya Reit acquires RM39mil industrial property in Teluk Panglima Garang
KUALA LUMPUR: AmanahRaya Real Estate Investment Trust (ARReit) has acquired a single-storey detached factory in Teluk Panglima Garang, Selangor, from Alpha Express Sdn Bhd for RM39 million. The manager of ARReit, AmanahRaya Kenedix Reit Manager Sdn Bhd (AKRM), said ARReit had entered into two agreements under a sale and leaseback arrangement with Alpha Express for a duration of 10 years. AKRM managing director Mohd Iskandar Dzulkarnain said the acquisition aligns with ARReit's strategy to strengthen its industrial asset portfolio with income-generating properties secured under long-term leases. "The asset acquisition benefits ARReit by expanding its existing portfolio, which previously included only one asset in this particular industry. This second asset strengthens our position in the sector and allows us to further grow our industrial asset sub-portfolio. "In general, this collaboration supports industry players who meet our criteria to expand their businesses, while also allowing them to offload assets they consider to have potential to ARReit, which in turn has a positive impact on the economy," he told Bernama at the ARReit Connect 2025 signing ceremony and stakeholders showcase held here today. In addition to the signing ceremony, ARReit Connect 2025 served as a platform to strengthen strategic partnerships, bringing together key stakeholders including Amanah Raya Bhd, HELP University, Alfa University College, Knight Frank, Anytime Fitness and IMT Tech. Meanwhile, Iskandar noted that the total assets under AKRM's management now stand at RM1.3 billion. "We will return to the company's core focus, which is on asset industries involving the healthcare and wellness sectors, as well as educational assets. This remains ARReit's main focus in efforts to expand its existing asset portfolio. "This growth will not stop here — it is expected to continue steadily over the next three years," he said. Additionally, ARReit also announced the successful conclusion of its annual general meeting (AGM), where all resolutions were passed with unanimous shareholder approval. "The AGM reaffirmed continued investor confidence in ARReit's direction and governance, particularly as we embark on a more dynamic portfolio management strategy focused on triple net lease structures, environmental, social, and governance-aligned investments and market diversification," ARReit said.
New Straits Times
2 days ago
- Business
- New Straits Times
Tropicana reverses Q1 2024 loss with RM1.3mil net profit in Q1 2025
KUALA LUMPUR: Tropicana Corporation Bhd posted a net profit of RM1.3 million for the first quarter to March 31 2025 to reverse its RM9.1 million net loss a year ago. The company's revenue, however, fell 10.6 per cent to RM260.4 million from RM291.3 million previously. Tropicana, in a statement today, said this was due to the completion of the divestment of several investment properties, resulting in a reduction of recurring income. On a positive note, its finance costs were lower in line with its ongoing strategy to reduce overall debt levels through asset monetisation initiatives. "We will continue to strive forward and strengthen our stakeholder engagements, focusing on value creation as well as establishing strategic marketing and sales campaigns across our online and offline platforms. "We believe that the demand for properties in Tropicana's established, mature and developing townships will persist and that the property market should maintain its positive momentum in 2025," it added. Tropicana said its unbilled sales stood at RM2.1 billion, placing the company in a comfortable position to deliver sustainable earnings. The company said 10 of its development across Malaysia achieved full take-up over the past few months, including Tropicana Miyu, Edelweiss Serviced Residences, Freesia Residences, Gemala Residences, Hana Residences and SouthPlace Residences in the Klang Valley. In the northern and southern regions, Assana and Merissa Serviced Suites in Langkawi, as well as Aster Heights and Summit Commercial Hub in Johor, posted full take-up. Tropicana Alam, the company's latest township at Puncak Alam, introduced its Avisa Residences show units, resulting in a positive 76 per cent take-up for the first phase. Tropicana's current landbank stood at 540.73 hectares, with a total potential gross development value of RM168.4 billion The company said the recent appointment of world-class architectural firm Skidmore, Owings & Merrill to lead the transformation of 65.97 hectares Lido Waterfront Boulevard (LIDO) will add more value, placing LIDO as its most prime piece of land in Johor. "This strong land portfolio positions the group to unlock significant value, drive growth and deliver sustainable performance in the next few years," it added.
The Star
2 days ago
- Business
- The Star
Amanahraya REIT acquires RM39mil industrial property in Teluk Panglima Garang
From left: KDA Capital Malaysia director Naoto Kojima, Alpha Express Sdn Bhd director Lee Kiam Hoong, AmanahRaya Bhd group managing director Ahmad Feizal Sulaiman Khan, Pacific Trustee Bhd director Edward Cheah Ken Sze, AmanahRaya Kendix REIT Manager managing director Mohd Iskandar Dzulkarnain Ramli and AmanahRaya Kendix REIT Manager non-independent non-executive chairman Datuk Mohd Radzif Mohd Yunus. KUALA LUMPUR: AmanahRaya Real Estate Investment Trust (ARREIT) has acquired a single-storey detached factory in Teluk Panglima Garang, Selangor, from Alpha Express Sdn Bhd for RM39mil. The manager of ARREIT, AmanahRaya Kenedix REIT Manager Sdn Bhd (AKRM), said ARREIT had entered into two agreements under a sale and leaseback arrangement with Alpha Express for a duration of 10 years. AKRM managing director Mohd Iskandar Dzulkarnain said the acquisition aligns with ARREIT's strategy to strengthen its industrial asset portfolio with income-generating properties secured under long-term leases. "The asset acquisition benefits ARREIT by expanding its existing portfolio, which previously included only one asset in this particular industry. This second asset strengthens our position in the sector and allows us to further grow our industrial asset sub-portfolio. "In general, this collaboration supports industry players who meet our criteria to expand their businesses, while also allowing them to offload assets they consider to have potential to ARREIT, which in turn has a positive impact on the economy," he told Bernama at the ARREIT Connect 2025 signing ceremony and stakeholders showcase held here today. In addition to the signing ceremony, ARREIT Connect 2025 served as a platform to strengthen strategic partnerships, bringing together key stakeholders including Amanah Raya Bhd, HELP University, Alfa University College, Knight Frank, Anytime Fitness and IMT Tech. Meanwhile, Iskandar noted that the total assets under AKRM's management now stand at RM1.3 billion. "We will return to the company's core focus, which is on asset industries involving the healthcare and wellness sectors, as well as educational assets. This remains ARREIT's main focus in efforts to expand its existing asset portfolio. "This growth will not stop here - it is expected to continue steadily over the next three years," he said. Additionally, ARREIT also announced the successful conclusion of its annual general meeting (AGM), where all resolutions were passed with unanimous shareholder approval. "The AGM reaffirmed continued investor confidence in ARREIT's direction and governance, particularly as we embark on a more dynamic portfolio management strategy focused on triple net lease structures, environmental, social, and governance-aligned investments and market diversification,' ARREIT said. - Bernama
New Straits Times
4 days ago
- Business
- New Straits Times
Matrix Concepts beats FY25 sales target, eyes RM1.6bil launches in FY26
KUALA LUMPUR: Matrix Concepts Holdings Bhd recorded a 10.4 per cent increase in new property sales to RM1.38 billion for the financial year ended March 31, 2025 (FY25) from RM1.25 billion a year earlier. The growth was driven by strong market demand and an increase in new launches across its diverse development portfolio. The new property sales significantly surpassed the the property developer's sales target of RM1.3 billion, bolstered by strong performances from its projects. This includes its core township developments, Sendayan Developments and Bandar Seri Impian, as well as the Klang Valley high-rise project, Levia Residences. The sales also included the company's first industrial land sales from the highly anticipated Malaysia Vision Valley City (MVV City). Taking advantage of favourable market conditions, Matrix Concepts launched projects with a total gross development value (GDV) of RM1.45 billion in FY25, a 9.8 per cent rise from RM1.32 billion last year. The overall take-up rate for FY25 launches stood at 73 per cent as of March 31, 2025, indicating strong buyer confidence. Datuk Mohamad Haslah Mohamad Amin said that surpassing the FY25 sales target reflects the enduring trust and confidence of homeowners across generations. Datuk Mohamad Haslah Mohamad Amin said the FY25 surpassing our sales target for the year reflects the lasting trust of homeowners across generations. He stated that for nearly three decades, the commitment to delivering premium-quality, trend-driven homes at accessible prices has driven strong take-up across Matrix Concepts' developments in Negri Sembilan, Johor and the Klang Valley. "FY26 is positioned for transformative growth, supported by a launch target of RM1.6 billion in GDV of new projects. "These upcoming launches include the first phase of the MVV City's industrial land, a key catalyst for our next growth phase. "Spanning 964.1 hectares with a projected GDV of RM15 billion, the MVV City development is poised to provide a clear earnings trajectory in the near term and reinforce our long-term confidence," Mohamad Haslah added. In FY25, the company's revenue declined 11.2 per cent to RM1.19 billion from RM1.34 billion previously due to the timing of launches and revenue recognition for properties sold in Sendayan Developments and Bandar Seri Impian. Its net profit also fell 12 per cent to RM214.1 million from RM244.3 million previously. Matrix Concepts' unbilled sales stood at RM1.46 billion as of March 2025, providing significant earnings visibility for the next 15 to 18 months. The company declared a fourth quarter interim dividend of 1.35 sen per share that will be paid on July 10, 2025. Mohamad Haslah said the company is expanding its footprint within the high-growth Klang Valley region, particularly Selangor. He said the recent investments have established a robust platform for future developments in the Banting and Sepang areas. "Beyond our core property development activities, we are strategically expanding into high-potential sectors such as hospitality, education and healthcare. "These complementary ventures are designed to create diversified and recurring income streams, strengthening our resilience and enhancing long-term value creation," he added.
