Latest news with #RM12.9
BusinessToday
27-05-2025
- Business
- BusinessToday
HLIB Maintains Hold On FGV
Hong Leong Investment Bank Bhd (HLIB) Research has maintained a HOLD call on FGV Holdings Bhd with an unchanged target price of RM1.26, following the group's move to acquire full ownership of eight subsidiaries from Koperasi Permodalan Felda Malaysia Bhd (KPF) for RM229.8 million. The house noted that while the earnings uplift from the acquisitions is likely to be limited—especially after accounting for funding costs—the move enhances FGV's operational control, improves decision-making agility and aligns better with its long-term strategic goals. HLIB has kept its earnings forecasts unchanged for now, pending further updates from FGV's upcoming results briefing scheduled for 28 May 2025. The acquisitions involve remaining minority stakes in key units including a 16.67% stake in FGV Kernel Products for RM12.9 million, a 33.33% stake in FGV Refineries for RM17.9 million, and a 49% stake in FGV Transport Services for RM77.9 million, among others. The transaction will be funded via a mix of internal funds and bank borrowings, and is expected to be completed by the third quarter of 2025. HLIB stated that based on FY2024 earnings, the acquisitions are not expected to contribute significantly to bottom-line growth. However, the analyst added that the initiative may support long-term gains by streamlining management efficiency across the group's downstream and support businesses. On the balance sheet, the impact is anticipated to be modest, with net gearing projected to rise slightly from 0.27 times as at 31 December 2024 to 0.31 times post-acquisition. At the current share price of RM1.28, FGV is trading at a slight premium to HLIB's target price, with a projected capital downside of 1.3%. The expected total return is marginal at 0.3%, supported by a 1.6% dividend yield. Despite recent share price gains, HLIB believes the stock remains fairly valued, given muted earnings visibility and potential margin pressures in its core plantation segment. The research house will revisit its outlook following the management's briefing later this month. Related
BusinessToday
22-05-2025
- Business
- BusinessToday
Taliworks Delivers Strong 1Q Performance With 12.8% Revenue Growth
Taliworks Corporation Bhd, a prominent Malaysian infrastructure and utilities provider, has reported a solid first-quarter performance for the financial year ending Dec 31, 2025 (1Q25), buoyed by robust contributions from its construction and renewable energy segments. The group posted a profit after tax of RM12.9 million, on the back of RM105.3 million in revenue, marking a 12.8% year-on-year (YoY) increase. The rise was largely attributed to the sustained construction progress on Phase 1, Packages 2 and 3 of the Sungai Rasau Water Supply Scheme, which drove construction segment revenue from RM11.8 million in 1Q24 to RM27.9 million in the current quarter. Revenue from the group's renewable energy (RE) segment climbed 13.6% YoY to RM7.5 million, fuelled by an 11.4% increase in solar energy output following the replacement of solar panels across all its photovoltaic plants. This reflects the group's growing momentum in clean energy, positioning it as a future growth pillar. 'Our water treatment, supply, and toll highway operations remain the bedrock of our performance,' said Executive Director Kevin Chin. 'However, we're pleased with the continued traction in our renewable energy business and the contribution from construction, both of which align with our strategy to diversify and scale high-impact infrastructure investments.' Chin added that Taliworks remains focused on expanding its infrastructure and RE footprint while maintaining cost discipline across all segments. 'To support long-term growth, we are actively seeking new opportunities to expand our construction order book and optimise operational efficiency,' Chin noted. In line with its commitment to shareholder returns, Taliworks declared a first interim single-tier dividend of 0.5 sen per share, amounting to RM10.08 million, payable on June 30, 2025. Based on the closing price of RM0.68 on May 19, 2025, the trailing 12-month dividend yield stands at an attractive 5.9%. Related
BusinessToday
16-05-2025
- Business
- BusinessToday
OCBC Revises Malaysia's Monetary Policy Forecast
Malaysia's economy expanded by 4.4% year-on-year in the first quarter of 2025, matching advance estimates, but signs of a broader slowdown have prompted OCBC Bank to revise its monetary policy forecast, bringing forward expectations of Bank Negara Malaysia (BNM) rate cuts to the second half of this year. According to OCBC Malaysia's Senior ASEAN Economist Lavanya Venkateswaran, the unchanged GDP print—down from 4.9% in Q4 2024—masks underlying weakness in domestic demand and exports, both of which are expected to weigh on growth in the coming quarters. 'The final Q1 GDP figure reflects softening domestic consumption and investments, coupled with slower goods exports,' OCBC noted in its latest economic update. 'Given the rising external risks, particularly from US trade tariffs, we now expect BNM to cut its policy rate by a total of 50 basis points in 2H25, earlier than our previous forecast of 1H26″ she said. Domestic Demand and Exports Show Signs of Fatigue OCBC noted that the domestic final demand contributed 5.7 percentage points (pp) to GDP growth in Q1 2025, down from 6.0pp in Q4 2024. Household consumption growth moderated to 5.0%, while investment activity cooled to 9.7% from 11.8% in the previous quarter. Public sector spending remained stable, while government expenditure edged slightly higher to 4.3% from 4.0%. Net exports added just 0.8pp to GDP growth, a sharp drop from 2.0pp in Q4 2024. Goods exports grew by only 1.6% year-on-year, while services exports held up relatively well, rising 16.9% amid continued strength in tourism inflows. However, the Bank said inventory drawdowns continued to drag on growth, subtracting 2.2pp from headline GDP—a fifth consecutive quarter of negative contribution from inventories. Sectoral Trends and External Balances On the supply side, downward revisions were made to growth in the manufacturing, construction, and services sectors, although the construction and services sectors remained relatively resilient. The contraction in the mining and quarrying sector was revised to -2.7% from an earlier estimate of -4.9%. Malaysia's current account surplus widened to RM16.7 billion (3.4% of GDP) in Q1 2025, up from RM12.9 billion in Q4, supported by a stronger goods trade surplus and a smaller secondary income deficit. However, the capital and financial account posted a wider deficit of RM20.2 billion, led by increased portfolio outflows and a slight decline in FDI inflows. Growth Outlook Dampened by Global Uncertainty OCBC projects Malaysia's GDP growth to slow further to 4.3% in 2025, down from 5.1% in 2024. Key downside risks include the imposition of US tariffs on Malaysian exports—particularly in sectors like semiconductors and pharmaceuticals—as well as a broader cooling in household and corporate spending due to growing global uncertainty. The bank expects Malaysia's current account surplus to narrow slightly to 1.7% of GDP in 2025, from 1.4% last year. 'With businesses adopting a wait-and-see approach and households turning cautious, economic momentum could ease further,' OCBC said. 'This makes the case for a more accommodative monetary policy.' BNM Signals Readiness to Act At its latest meeting on 8 May, BNM adopted a more dovish tone, citing increased downside risks to the economy. The central bank also reduced the Statutory Reserve Requirement (SRR) from 2% to 1%, effective 16 May, injecting RM19 billion in liquidity into the system. BNM Governor Tan Sri Abdul Rasheed Ghaffour commented that the central bank 'has the policy space to act if needed,' signaling readiness to support the economy if conditions deteriorate. OCBC believes that the upcoming BNM meetings—scheduled for 9 July, 4 September, and 6 November—will be closely watched for signs of a rate cut, depending on incoming economic data and the outcome of US-Malaysia trade negotiations. Related
