Latest news with #RM1.6bil
The Star
7 days ago
- Business
- The Star
Strong project pipeline boosts Kerjaya Prospek's outlook for FY25
PETALING JAYA: The market outlook for construction and property player Kerjaya Prospek Group Bhd remains solid after the company reported a 37% jump in net profit on the back of a 40% surge in revenue for the first quarter ended March 31, (1Q25) compared with the same quarter a year ago. The company also declared a first interim dividend of three sen per share payable on June 30. Several analysts have raised their target price on the stock following a meeting with Kerjaya's management, which was upbeat on achieving the company's target of RM1.6bil in new projects for this year, supported by year-to-date contract wins of RM870.3mil and an order book of RM4bil. Kenanga Research, which maintained an 'outperform' call on the stock and revised the target price to RM2.30 from RM2.10, said the company, in partnership with Samsung C&T Corp, expects decisions on three data centre projects worth RM3bil in 3Q25, in addition to listed subsidiary Eastern & Oriental Bhd 's planned launch of property projects worth RM2bil this year. The research house said the company's property arm can expect its 55%-owned Rivanis redevelopment project located in Butterworth, Penang, to anchor future earnings. BIMB Research said the higher interim dividend compared with an expected 2.5 sen reflected the management's confidence in its earnings outlook and strong cash position.
The Star
29-05-2025
- Business
- The Star
Project pipeline boosts Kerjaya Prospek's outlook
PETALING JAYA: The market outlook for construction and property player Kerjaya Prospek Group Bhd remains solid after the company reported a 37% jump in net profit on a 40% surge in revenue for the first quarter ended March 31, 2025 (1Q25) compared to the same quarter a year ago that were largely in line with expectations. The company also declared a first interim dividend of three sen per share payable on June 30. Several analysts have raised their target price on the stock following a meeting with the Kerjaya's management, who were upbeat on achieving the company's target of RM1.6bil of new projects for the financial year ending December 31, 2025 (FY25) supported by year-to-date contract wins of RM870.3mil and an outstanding orderbook of RM4bil. Kenanga Research, which maintained an 'outperform' call on the stock and revised the target price to RM2.30 from RM2.10, said the company in partnership with Samsung C&T Corp expects decisions on three data centre projects worth RM3bil in 3Q25, in addition to listed subsidiary Eastern & Oriental Bhd 's planned RM2bil launch of property projects this year. It said the company's property arm can expect its 55%-owned Rivanis redevelopment project located in Butterworth, Penang to anchor future earnings. The research house has a neutral view of the company's 49% stake acquisition in Aspen Vision Land Sdn Bhd for RM98mil announced recently given the potential future capital commitments that could offset construction opportunities and property earnings. BIMB Securities said the higher first interim dividend declared compared to an expected 2.5 sen reflected the management's confidence in its earnings outlook and strong cash position. The research house expects a dividend payout of 12 sen for FY25, which translates to a dividend yield of 5.6% from the stock's last closing price. It has maintained a 'buy' call on the stock with an unchanged target price of RM2.59. TA Securities, which maintained a 'buy' call but revised its target price to RM2.97 from RM2.72, said the company have plans to expand its property development business through a capital expenditure allocation of RM550mil, with active scouting for landbank opportunities in Penang, the Klang Valley, and Johor backed by robust net cash position of RM336.7mil as at end-March 2025. RHB Research said earlier-than-expected wins of industrial jobs such as data centres before mid-FY25 and quicker-than-expected launches of the new phases of Aspen Vision City, which has an estimated gross development value of RM5bil on 14.16-ha of land could be re-rating catalysts for the stock, in which the brokerage has maintained a 'buy' call but revised upwards the target price to RM2.80 from RM2.67.
The Star
27-05-2025
- Business
- The Star
Defensive earnings profile to support PetGas
Kenanga Research expects PetGas' 2Q25 numbers to be on the weak side. PETALING JAYA: Analysts generally have a constructive view of Petronas Gas Bhd (PetGas) despite it having to absorb at least a RM170mil charge to rehabilitate the Putra Heights area following the pipeline fire incident in April. CGS International (CGSI) Research stated PetGas' defensive earnings profile, underpinned by its ownership of gas infrastructure assets in Malaysia, remained a key strength that is backed by a healthy balance sheet. 'Visible free cash flow and dividend yields of over 4% support the sustainability of its payouts (dividends),' the research house stated in its latest report on PetGas. It added the RM170mil estimated charge represented 1.2% of PetGas' current book value and 9% of 2025 forecast net profit. CGSI Research has maintained a 'hold' call on PetGas with an unchanged discounted cash flow based target price (TP) of RM17.50 a share. Kenanga Research noted that while PetGas' first quarter (1Q25) financial results were slightly below expectations, the company's regulated asset base continues to provide resilient earnings visibility. The research house, however, expected PetGas' 2Q25 numbers to be on the weak side. This is due to the operational disruptions following the Putra Heights fire incident. 'We fine-tune our financial year 2025 (FY25) and FY26 earnings forecast lower by 5% and 3%, respectively, to reflect the guided RM60mil profit impact in FY25, to incorporate adjustments to gas transportation and regasification terminal tariffs and some housekeeping,' Kenanga Research added. It has a 'market perform' call on PetGas with a lower TP of RM16.80 a share. PetGas posted a 1Q25 core profit of RM466.2mil on the back of RM1.6bil in revenue. It announced a first interim dividend of 16 sen a share for the quarter. MIDF Research, however, downgraded the counter to 'neutral' with a TP of RM18.67 a share on the ground that all factors that could impact the company's share price had been priced in. It expected PetGas' FY25 performance to remain stable and resilient despite the operational setback caused by the pipeline incident. 'With higher demand for natural gas and liquefied natural gas, in tandem with the higher prices projected in 2025, all of PetGas' businesses will continue to perform on the positive. 'In line with the incident, we expect PetGas will strengthen its risk management, operational efficiency, and mitigation strategies,' MIDF Research said. Its TP on PetGas is pegged to a price earnings multiple of 19 times to the revised earnings per share for FY25 of 98 sen.
The Star
23-05-2025
- Business
- The Star
Paramount eyes RM1.5bil sales target for 2025
PETALING JAYA: Paramount Corp Bhd remains confident in achieving a sales target of RM1.5bil in 2025 underpinned by contributions from ongoing projects. In a Bursa filing, the group noted its unbilled sales amounted to RM1.6bil as of March 31, 2025, and will provide near term visibility to cashflow. However, it pointed out that 'the conversion into billings may largely depend on the projects' work progress'. Paramount posted a net profit of RM14.43mil or earnings per share (EPS) of 2.32 sen for the first quarter ended March 31, 2025 (1Q25). This was up from RM7.71mil or EPS 1.24 sen in the same quarter of the previous year. Revenue for the period jumped by 26.2% year-on-year to RM217.84mil driven by improvement in its property segment, which posted a revenue of RM205.9mil during the quarter. The largest revenue contributors were the group's development in Selangor, The Atera, followed by Utropolis Batu Kawan and Paramount Palmera in Penang. In the quarter, Paramount's property division sold properties with a gross development value of RM230mil, 128% higher than sales of RM101mil in 1Q24, underpinned by a larger base of products available for sale. As for its coworking segment, Paramount saw the division generating a revenue of RM6.6mil in 1Q25, up some 75% y-o-y. Despite the higher revenue, the coworking segment recorded a loss before tax (LBT) of RM500,000 during the quarter, attributable to the rental cost of the NU Sentral space, which had commenced operation in 2Q25, coupled with an increase in headcount of Scalable Malaysia. Paramount's investment and others segment recorded a slightly lower revenue of RM7.3mil in 1Q25 in comparison to RM7.5mil in 1Q24. The segment also posted a higher pre tax loss of RM9.1mil, which the group said was mainly due to higher interest expense arising from the issuance of the sustainability-linked sukuk as well as new borrowings that was used to partially finance the group's investment in EcoWorld International Bhd. Paramount did not declare any dividend for the quarter ending March 31, 2025.
The Star
08-05-2025
- Business
- The Star
Kerjaya Prospek unit bags JB construction works for RM162mil
From left: Ta Wee Dher, executive director of Majestic Gen; Datuk Hoo Kim See, CEO; Tee Eng Tiong, CEO and executive director of Kerjaya Prospek Group; and Chia Sow Teck, senior contract manager of Kerjaya Prospek (M) Sdn Bhd KUALA LUMPUR: Kerjaya Prospek Bhd's wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd has secured an award from Majestic Gen Sdn Bhd for building contract works in Johor Bahru for RM162mil. The group said in a stock exchange filing the job entails the main building works of a 47-storey service apartment with 732 units and nine level so fpdoum parking. The development also includes one level of basement parking and mechanical and electrical (M&E) facilities, one level of parking and M&E facilities with one commercial unit and three levels of recreational facilities. The contract will commence on Aug 1, 2025, and be completed within 36 months. It is expected to provide an additional stream of revenue for the group over the next three years. "We are honoured to be entrusted with the construction of Majestic Gen's maiden project in Johor, which also represents our first contract win in the state for 2025. "Geographically, our focus remains on three growth regions, namely Klang Valley, Penang and Johor, where we see strong demand and vibrant development activities continue to shape the future of urban living," said Kerjaya Prospek CEO and executive director Tee Eng Tiong in a statement. According to Tee, the group's year-to-date new contract wins have reached RM870.3mil, putting it on track to achieving its RM1.6bil target for the year. He added that total outstanding order book stands at RM4.6bil, providing healthy earnings visibility and solid foundation for continued growth over the next four financial years.
