Latest news with #RM1.5bil
The Star
an hour ago
- Business
- The Star
OCK targets bigger FY26 earnings from contracts
Phillip Capital Research said FY25 has been a challenging year due to sluggish order book replenishment. PETALING JAYA: OCK Group Bhd 's earnings in financial year 2026 (FY26) could surpass that of FY25 as it bids for more contracts to replenish its order book in the near-to-medium term. Phillip Capital Research said FY25 has been a challenging year due to sluggish order book replenishment following the completion of major projects such as Malaysia's first 5G network and Jendela Phase 1. OCK's RM250mil order book is led by telecommunication network services (62%), mechanical and electrical (30%), with RM1.5bil in activice bids. It said U Mobile Sdn Bhd intends to co-share about 160 existing towers with OCK, which is expected to enhance infrastructure efficiency and support the expansion of network capacity. The 5G infrastructure collaboration covers the deployment of towers, in-building coverage and related services with potential contract value exceeding RM500mil.
The Star
a day ago
- Business
- The Star
E&O's earnings outlook brightens on RM2bil project pipeline
PETALING JAYA: Eastern & Oriental Bhd (E&O) has about RM2bil worth of projects slated for rollout over the next 12 months which is expected to generate about RM850mil sales in its financial year 2026 (FY26), analysts say. RHB Research has raised its FY26 and FY27 earnings outlook for the company by 8% and 7%, respectively. E&O's unbilled sales rose to RM1.5bil from RM1.46bil in the third quarter of FY25 (3Q25). The research house maintained its 'buy' call on the stock but lowered its target price to RM1.17 from RM1.38 per share, citing persistent market volatility arising from regulatory changes that are expected to affect global trade and sentiment. The new target price is now based on a 50% discount to the property developer's revalued net asset value, compared with 40% previously. Upcoming property launches include its Senna and Fera homes in Penang with gross development value of RM306mil in July or August, maiden shop offices and three-storey terrace homes in Elmina development in Selangor, as well as a new block of mid-range waterfront service apartments on Andaman Island, Penang. E&O's results for its fourth quarter of financial year ended March 31 once again beat the research house's expectations. Earnings continued to be underpinned by ongoing projects and were boosted by the disposal of Esca House in London. Revenue remained stable on a quarter-on-quarter basis, supported by billings from ongoing projects such as The Meg, Arica, and Senna and Fera landed homes at Andaman Island, as well as the RM75mil sale of Esca House. However, headline pre-tax profit for FY25 was skewed by an unrealised foreign-exchange loss of RM29mil. Excluding this, FY25 core earnings would have been RM210mil versus RM100mil in gearing rose to 0.62 times from 0.59 times in the previous quarter. No final dividend was declared, with the FY25 dividend per share amounting to only one sen.
The Star
5 days ago
- Business
- The Star
IJM Corp upbeat about construction activity
IJM Corp group chief executive officer and managing director Datuk Lee Chun Fai. PETALING JAYA: IJM Corp Bhd is confident of delivering satisfactory operational performance for the financial year ending March 31, 2026 (FY26). In a statement, group chief executive officer and managing director Datuk Lee Chun Fai said the group's RM7.6bil outstanding order book would be complemented by a further RM3.5bil from its 50% acquisition of JRL Group post the financial year-end, strengthening its construction capabilities and expanding our presence in the United Kingdom. 'Looking ahead, IJM Corp is well-positioned to benefit from national growth priorities such as infrastructure investment, the development of special economic zones in Johor and the rising demand for digital infrastructure.' For the fourth quarter ended March 31, 2025 (4Q25), IJM Corp's net profit dipped to RM128.95mil from RM305.52mil in the previous corresponding period, while revenue rose to RM1.79bil from RM1.76bil a year earlier. For FY25, IJM Corp's net profit dropped to RM403.38mil from RM600.28mil in the previous corresponding period, while revenue grew to RM6.25bil from RM5.92bil previously. IJM Corp said the construction division remained the key revenue contributor, supported by a high level of construction activity, while the industry division continued to benefit from a strong order book and the ongoing rollout of data centres and infrastructure projects. The group's improving outlook is further supported by resilient property sales in FY25, sustained unbilled sales, and steadfast efforts to grow its business, backed by strategic locations of its developments and the strength of its established brand. The property division recorded RM1.5bil in sales for FY25, supported by unbilled sales of RM1.5bil. According to Lee, the group is also positioning its overseas property portfolio as a key engine for growth. 'The redevelopment of 25 Finsbury Circus presents a rare opportunity to transform a historic landmark into a modern, high-performance workspace. 'The building is undergoing a sustainability-led refurbishment that will increase its total footprint by 26%. 'Securing a 20-year lease with an international law firm enhances our recurring income profile and affirms the long-term potential of our UK property strategy,' Lee said. Additionally, IJM Corp said that Kuantan Port recorded lower cargo throughput in FY25, achieving 24.3 million tonnes. 'However, the long-term growth prospects for the port remain strong, underpinned by new foreign direct investments at the Malaysia-China Kuantan Industrial Park (MCKIP). 'The government's continued infrastructure investment in the region, particularly via the East Coast Rail Link, reinforces Kuantan Port's role as a strategic logistics and trade hub for the East Coast,' he said. As the port operator and infrastructure enabler, IJM Corp said it is well-positioned to benefit from the growing industrial activity and cargo throughput driven by MCKIP. Commenting on the group's FY25 performance, Lee said: 'Despite external headwinds, our results underscore the group's operational resilience and progress on key strategic fronts.' 'We remain focused on execution, strengthening fundamentals, and driving long-term growth across all business divisions,' he added.
The Star
5 days ago
- Business
- The Star
IJM Corp confident of delivering satisfactory operational performance
IJM Corp group chief executive officer and managing director Datuk Lee Chun Fai. PETALING JAYA: IJM Corp Bhd is confident it can deliver satisfactory operational performance for the financial year ending March 31, 2026 (FY26). In a statement, group chief executive officer and managing director Datuk Lee Chun Fai said the group's RM7.6bil outstanding order book will be complemented by a further RM3.5bil from its 50% acquisition of JRL Group post the financial year-end, strengthening its construction capabilities and expanding our presence in the UK. 'Looking ahead, IJM is well-positioned to benefit from national growth priorities such as infrastructure investment, the development of special economic zones in Johor and the rising demand for digital infrastructure.' For the fourth quarter ended March 31, 2025 (4Q25), IJM Corp's net profit dipped to RM128.95mil from RM305.52mil in the previous corresponding period, while revenue rose to RM1.79bil from RM1.76bil a year earlier. For FY25, IJM Corp's net profit dropped to RM403.38mil from RM600.28mil in the previous corresponding period, while revenue grew to RM6.25bil from RM5.92bil previously. IJM Corp said the construction division remained the key revenue contributor, supported by a higher level of construction activity, while the industry division continued to benefit from a strong order book and the ongoing rollout of data centres and infrastructure projects. 'The group's improving outlook is further supported by resilient property sales in FY25, sustained unbilled sales, and steadfast efforts to grow its business, backed by strategic locations of its developments and the strength of its established brand. The property division recorded RM1.5bil in sales for FY25, supported by unbilled sales of approximately RM1.5bil. Lee said the group is also positioning its overseas property portfolio as a key engine for growth. 'The redevelopment of 25 Finsbury Circus presents a rare opportunity to transform a historic landmark into a modern, high-performance workspace. 'The building is undergoing a sustainability-led refurbishment that will increase its total footprint by 26%. Securing a 20-year lease with an international law firm enhances our recurring income profile and affirms the long-term potential of our UK property strategy.' Additionally, IJM Corp said that Kuantan Port recorded lower cargo throughput in FY25, achieving 24.3 million tonnes. 'However, long-term growth prospects for the port remain strong, underpinned by new foreign direct investments at the Malaysia-China Kuantan Industrial Park (MCKIP). 'The Government's continued infrastructure investment in the region, particularly via the East Coast Rail Link, reinforces Kuantan Port's role as a strategic logistics and trade hub for the East Coast. As the port operator and infrastructure enabler, IJM Corp said it is well-positioned to benefit from the growing industrial activity and cargo throughput driven by MCKIP. Commenting on the group's FY25 performance, Lee said: "Despite external headwinds, our results underscore the group's operational resilience and progress on key strategic fronts.' 'We remain focused on execution, strengthening fundamentals, and driving long-term growth across all business divisions.'
The Star
6 days ago
- Business
- The Star
E&O's FY25 net profit surges to RM169mil
E&O managing director Kok Tuck Cheong. KUALA LUMPUR: Eastern and Oriental Bhd 's (E&O) net profit jumped to RM168.65mil in its financial year ended March 31, (FY25) from the previous year's RM133.60mil. Revenue increased by 75.3% to RM741.08mil from RM422.83mil in FY24. In a statement yesterday, E&O said the performance was driven by strong sales from its properties segment, which contributed RM630.5mil in revenue, an increase of 102% year-on-year (y-o-y), equivalent to 85.1% of the group's total revenue. 'Additionally, joint-venture projects such as Conlay, The Peak, and Avira Garden Terraces contributed RM428.9mil in revenue, marking a 61.5% increase. 'On an aggregate basis, the total revenue generated by the properties segment, including joint ventures, reached RM1.06bil,' it said. For the fourth quarter ended March 31 (4Q25), the group's net profit rose to RM69.84mil from RM36.47mil in the same quarter last year, while revenue jumped to RM236.65mil from RM121.32mil previously. E&O managing director Kok Tuck Cheong said the group's performance reflects the impact of its strategic direction and focus on sustainable growth. 'At Andaman Island in Penang, we have five ongoing projects with an estimated gross development value of RM2.7bil. 'Furthermore, we have plans to launch four developments comprising a mix of residential and retail properties strategically located on Penang Island and Klang Valley,' he said. During a virtual press conference held in conjunction with the company's FY25 results announcement, Kok said the group aims to realise RM1.5bil in property sales between FY26 and FY29. To date, the property development company has RM1.5bil in unbilled sales. Kok noted that the sales projection is supported by its development projects located in the Klang Valley, Johor Baru, and Penang. 'The total gross development value (GDV) for our project called The Meg, located at Andaman Island, Penang, amounts to RM691mil and is expected to be completed in April 2026. 'Our next projects, which are expected to be completed next year, are the Senna and Fera homes, also located in Penang,' he said, adding that the GDV for the 69 units of three-storey homes on 1.60ha is estimated at around RM280mil. Kok also noted that the group will not solely focus on the Penang market and intends to expand its business to other locations as well. He said the group is constantly on the lookout for potential land acquisitions, with most current opportunities coming in the form of pocket developments. 'We are also exercising a bit more caution, as we have already established this primary segment of our strategic direction and want to maintain that focus,' he added. — Bernama
