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Straits Times
4 days ago
- Business
- Straits Times
Penang to start using durian tracking system to curb fraud, report says
The system involves tagging the durians with a QR code that, once scanned, allows each fruit to be traced back to its farm. PHOTO: THE BUSINESS TIMES Penang to start using durian tracking system to curb fraud, report says KUALA LUMPUR – Malaysia's state of Penang has urged its durian growers to register for a tracking system to curb the spread of counterfeit versions of the prickly, pungent fruit from June 1, according to national news agency Bernama. The state plans to make the 'Track and Trace' system mandatory for its 200 durian farmers as it seeks to restore consumer confidence in the fruit, State Agrotechnology, Food Security and Cooperative Development Committee's Fahmi Zainol was cited as saying. About 60 growers have committed to using the system, which involves tagging the durians with a QR code that, once scanned, allows each fruit to be traced back to its farm, he said. The plan came about after local growers complained about the misuse and misrepresentation of Penang durians, he added. The fruit, with its creamy-like flesh and powerful aroma, is popular in Malaysia and much of South-east Asia. Malaysia exports durians to countries including China, and expects outbound shipments to rise to RM1.8 billion (S$547.5 million) by 2030, according to a 2024 Bernama article. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Malaysian Reserve
6 days ago
- Business
- Malaysian Reserve
TM's 1Q net profit down 5.5% on 5G costs despite stable revenue
TELEKOM Malaysia Bhd (TM) saw a 5.5% year-on-year drop in net profit to RM401.26 million for the first quarter ended March 31, 2025 (1Q25), down from RM424.81 million a year earlier, mainly due to 5G access costs and higher device expenses. Revenue inched up 0.5% to RM2.85 billion, supported by stronger business-to-business (B2B) digital solutions, carrier-to-carrier (C2C) demand, and the education segment, helping offset weaker business-to-consumer (B2C) performance. '1Q25 revenue grew as expected, within the projected low single-digit range,' the group said. Operating costs rose 7.6% year-on-year to RM1.8 billion, though lower net finance costs helped partially offset the pressure. TM invested RM280 million, or 9.8% of revenue, in capital expenditure focused on digital infrastructure such as data centres, domestic fibre, and submarine cables. Looking ahead, group CEO Amar Huzaimi Md Deris said TM is focusing on core strengths to tap into opportunities like data centres, GPU-as-a-Service, cloud, and smart services, aiming for disciplined execution and long-term value creation. — TMR
New Straits Times
21-05-2025
- Business
- New Straits Times
PetChem faces near-term headwinds, recovery likely in second half
KUALA LUMPUR: Petronas Chemicals Group Bhd's (PetChem) earnings are expected to remain subdued in the second quarter of financial year 2025 (2QFY25), with a significant recovery anticipated only in the second half of 2025 (2H25). Urea and methanol prices, which had earlier contributed commendably to the group's performance, have eased going into 2Q25 as earlier supporting factors, including stronger feedstock prices and supply constraints, have gradually dissipated. As such, Hong Leong Investment Bank Bhd (HLIB Research) expects the group's fertilisers and methanol segment to record softer earnings in the coming quarter. The research house also expects the olefins and derivatives (O&D) division to remain under pressure in 2Q25, as ongoing feedstock disruptions at Petrochemicals Company Sdn Bhd (PPC) and utility supply issues in Kertih continue to weigh on the segment's profitability. In addition, polyolefin prices are expected to trend lower, amid a potential demand slowdown triggered by the United States' sweeping tariffs and a recent decline in oil prices that has reduced naphtha feedstock costs. "In light of the operational hiccups in Kertih and PPC, we expect PCG's bottom line to stay depressed in 2QFY25 and will only stage a meaningful recovery in 2H25," it noted. HLIB Research has maintained a 'Sell' call on PetChem, with a lower target price of RM2.50. The firm expects the petrochemical sector to remain challenging on the back of China's aggressive capacity expansion drive, coupled with unexciting demand outlook from the downstream sectors. "Not helping is PCG's PPC operations, which contribute a substantially higher depreciation and interest cost base that is not covered by PPC's negative earnings before interest, tax, depreciation, and amortisation contribution, thus resulting in significant earnings dilution going forward," it said. In line with this, HLIB Research has also lowered its FY25 and FY26 earnings forecasts by 38 per cent and six per cent, respectively, and introduced an FY27 forecast of RM1.8 billion. PetChem recorded subdued 1Q25 core earnings of RM79 million which came in below HLIB Research's and street estimates at five per cent of FY25 forecasts. Core earnings dropped 84 per cent year-on-year (YoY) as O&D business slipped into negative territory. The earnings shortfall was attributed to extensive operational disruptions in the O&D segment, affecting both PPC and Kertih.
New Straits Times
12-05-2025
- Business
- New Straits Times
Kerjaya Prospek's Johor win boosts order book to RM4.6bil
KUALA LUMPUR: Kerjaya Prospek Group Bhd's maiden project win in Johor has pushed its outstanding order book to RM4.6 billion, providing earnings visibility for the next three years. Kenanga Research is positive on this sixth contract job win for financial year 2025 (FY25), which is Kerjaya Prospek's first non-related party win for the year. "It has guided a 10 per cent profit after tax margin for this project. This win brings year-to-date contract wins to RM870.3 million, against our FY25 job replenishment assumption of RM1.8 billion. "This formed 48 per cent of our target and 54 per cent of management's target. Its current total outstanding order book stands at RM4.6 billion, which will keep them busy for the next three years," it said in a note. Kerjaya Prospek's subsidiary Kerjaya Prospek (M) Sdn Bhd has secured a RM162 million building contract in Johor Baru from Majestic Gen Sdn Bhd. The contract involves main building works for Gen Rise, a 47-storey transit-oriented serviced apartment development located near customs, immigration and quarantine and the Bukit Chagar rapid transit system. Additionally, Kerjaya Prospek has set a job replenishment target of RM1.6 billion for FY25, backed by a RM2 billion tender book for building jobs. In addition, together with its joint venture partner Samsung, the company is tendering for three data centre jobs worth RM3 billion with targeted outcomes by the third quarter of 2025. "Its related party company E&O plans to launch projects with building jobs worth RM2 billion in 2025. For its property development segment, its 55 per cent-owned Rivanis will sustain its construction and property earnings in the next seven years," it added. Kenanga Research maintained its 'Outperform' call on the stock with an unchanged target price of RM2.10.
New Straits Times
08-05-2025
- Business
- New Straits Times
RHB Research cuts CelcomDigi forecast on delayed integration, rising opex
KUALA LUMPUR: CelcomDigi Bhd's network integration timeline is now expected to be pushed to the second half of 2025 (2H25), delayed from its initial target of mid-2025, following changes in Digital Nasional Bhd's (DNB) operating model. The revised model is expected to affect the remaining 25 per cent of sites pending integration. "CelcomDigi believes the mobile network operators (MNOs) or shareholders to come to a landing soon with DNB that would result in a revised wholesale framework. "This is as 5G traffic would be shared with U Mobile as the second 5G infrastructure provider," said RHB Investment Bank Bhd (RHB Research) in a note. While no discussion has taken place with the latter, the firm said CelcomDigi acknowledged that a fresh wholesale agreement inked going forward would be commercially-driven. "We understand the existing wholesale structure allows MNOs to terminate their respective agreements within 30 days of an alternative 5G network becoming available or before Jan 2028 with prior notice given. "This suggests the earliest an MNO could do so would be in 2H26, based on U Mobile's reported rollout timeline," it said. The firm expects stronger commercial execution and realisation of merger synergies from the completion of CelcomDigi's network integration. Meanwhile, it said the bulk of CelcomDigi's capital expenditure for financial year 2025 (FY25) of between RM1.8 billion and RM2 billion will be for IT system upgrades which would translate to higher operating expenditure (opex) in the short-to-medium term. "The higher opex and accelerated depreciation charges for network assets are baked into CelcomDigi's pre-tax earnings guidance for FY25 of a low-to mid-single digit growth which also factors in higher 5G wholesale charges," said the firm. RHB Research adjusted its earnings forecasts for CelcomDigi down by 6.9 per cent and 8.8 per cent for FY25 and FY26 respectively, and an increase of 0.3 per cent in FY27, mainly to reflect higher IT integration cost. The firm maintained a 'Buy' call on the stock with a target price of RM4.40.
