Latest news with #RM14.7
New Straits Times
26-05-2025
- Business
- New Straits Times
HLIB: Oriental Kopi's growth driven by brand, expansion
KUALA LUMPUR: Oriental Kopi Holdings Bhd's long-term growth prospects remain intact, driven by a strong brand presence, an expanding outlet network, and rising consumer demand. Hong Leong Investment Bank Bhd (HLIB Research) believes that current valuations fairly reflect these positives. "Key strategic initiatives, including the development of a new head office, central kitchen, and warehouse, as well as expansion into domestic and overseas markets, are promising but will take time to fully materialise. "The upcoming operational facility in Selangor, targeted for completion by the fourth quarter of 2026 (4Q26), is expected to enhance operational efficiency and support product innovation," it said in a note. HLIB Research also highlighted that the group is diversifying its product offerings, with upcoming launches of new menu items and packaged goods, aimed at expanding its customer base and deepening engagement. It noted that in parallel, Oriental Kopi is also engaging overseas distributors to introduce its brand beyond Malaysia. "Its disciplined, location-focused expansion strategy, prioritising high-traffic sites, continues to differentiate it from peers and reinforces its commitment to quality, positioning the group for sustained long-term growth," it said. As such, HLIB Research has maintained a "Hold" call on Oriental Kopi with a lower target price of RM0.76 from RM0.81. The firm noted that a near-term catalyst for the group could stem from the potential Shariah-compliant status, which may enhance liquidity and investor interest. Meanwhile, Oriental Kopi reported a revenue of RM103.2 million and a core profit after tax (PAT) of RM14.7 million in 2Q25, which brought the first half of the financial year 2025 (1H25) sum to RM28.2 million. HLIB Research said the results fell short of both the firm's and consensus' expectations, making up 44 per cent and 46 per cent of full-year forecasts, respectively. "The variance was primarily due to softer-than-anticipated sales. 1H25 core PAT was adjusted to exclude RM1.3 million in listing expenses," it noted. Sequentially, the group's revenue grew six per cent quarter-on-quarter (QoQ) to RM103.2 million, driven by stronger performance from both the café chain segment and distribution & retail of packaged foods. This was largely attributable to increased footfall during the Chinese New Year festive period and contributions from newly opened outlets. The café chain remained the key revenue driver, contributing RM96.4 million (93 per cent), followed by packaged food sales at RM6.4 million (six per cent) and other revenue streams at RM0.4 million (0.4 per cent). On the back of this, core PAT rose nine per cent QoQ to RM14.7 million.
BusinessToday
21-05-2025
- Business
- BusinessToday
Kenanga Revises Malaysia's FY GDP Downward To 4.3%
Malaysia's exports surged 16.4% year-on-year in April, marking a four-month high and far exceeding expectations, driven by robust demand for electrical and electronic (E&E) products and stronger shipments to major trade partners such as the US and Singapore, according to a trade report by Kenanga Investment Bank (KIBB). The export growth sharply beat market forecasts (KIBB: 7.2%, consensus: 7.8%) and followed a 6.8% rise in March. However, on a month-on-month (MoM) basis, exports dipped 2.7% following a strong 16.1% jump in March, indicating a cooling in momentum. E&E Products and US Demand Power Growth Exports were buoyed by a 35.4% surge in E&E products, the fastest pace since September 2022, amid a broader global tech upcycle driven by artificial intelligence and new tech product launches. By destination, shipments to the US jumped 45.6%, while exports to Singapore rose 26.1%. There were also rebounds in exports to Japan (6.8%) and China (2.1%), though growth to the EU moderated to 5.8%. By sector, manufacturing exports soared 19.0%, the highest in 31 months. However, this was partially offset by weaker mining exports (-1.3%) and a slower pace in agriculture exports (3.5%). Notably, liquefied natural gas (LNG) exports rebounded 6.7% after four consecutive months of contraction. Imports Rebound Sharply Imports surprised to the upside, rebounding 20.0% year-on-year after a 2.9% decline in March, smashing expectations (KIBB and consensus: 3.3%). The rebound was led by a 46.0% surge in re-exports and a 12.9% recovery in retained imports. Capital goods imports skyrocketed 114.1%, offsetting continued weakness in intermediate (-1.7%) and consumption goods (0.7%). On a monthly basis, imports rose 14.1%, a sharp acceleration from 6.5% in March, defying typical seasonal patterns. Trade Surplus Shrinks Sharply Despite the export gains, Malaysia's trade surplus narrowed drastically to RM5.2 billion, far below KIBB's forecast of RM19.0 billion and the consensus estimate of RM14.7 billion. This was due to the significant rise in imports outpacing export growth. Total trade surged 18.2% year-on-year, the highest in eight months, though MoM growth slowed to 4.8% from March's 11.6%. Outlook: Short-Term Boost, Long-Term Risks Despite the strong April figures, Kenanga has revised Malaysia's 2025 export growth forecast downward to 3.1% (from 5.0%), citing mounting risks in the second half of the year. Key drivers include: A front-loading of exports in Q2 as businesses move to avoid potential US tariffs. Ongoing strength in the global tech sector, particularly in AI and semiconductor-related products. Possible trade diversion amid continued US-China decoupling. However, risks abound, particularly from US policy uncertainty tied to the 90-day pause in President Trump's reciprocal tariff measures, which may end in July. The potential reimposition of tariffs could weigh on global trade, particularly in 2H25. A sluggish recovery in China also adds downside risk. GDP Forecast Cut Following weaker-than-expected Q1 GDP growth (4.4%), Kenanga has revised Malaysia's full-year 2025 GDP forecast to 4.3% from 4.8%. Still, the bank expects robust Q2 trade activity, as shown in April's numbers, to provide some buffer against anticipated headwinds in the latter half of the year. 'April's trade performance reflects strong global demand and pre-tariff frontloading. But sustainability remains in question as geopolitical and macroeconomic risks mount,' the report noted. Related
New Straits Times
19-05-2025
- Business
- New Straits Times
Australia-led industrial strength powers bright outlook for Sime Darby
KUALA LUMPUR: Sime Darby Bhd's growth outlook remains bright, underpinned by resilient performance from the industrial segment, said CIMB Securities Research. The firms said Australia remains one of Sime Darby's most important growth engines, contributing 53 per cent of Sime's core profit before interest and tax (PBIT) and 33 per cent of its revenue in the financial year 2024 (FY24). Within the industrial division, it said Australian operations accounted for 77 per cent of Sime Darby Industrial's (SDI) revenue and 87 per cent of its core PBIT in FY24, up from 60 per cent and 67 per cent, respectively, in FY19. "Sime Darby Industrial (SDI) is emerging as a key growth engine fuelled by strong performance in Australia, rising mining capex, strategic commodities diversification, and growing contribution from high-margin aftersales and rental services," it said in a note. According to CIMB Securities, the SDI segment provides annuity-like returns, supported by a growing installed base and multiple machine rebuild cycles. The firm has conducted a scenario analysis to assess SDI's standalone valuation, offering an alternative basis for sum-of-parts consideration. "We estimate SDI could be worth RM10 billion to RM12 billion, based on a trailing 2024 price-to-earnings (P/E) of 15 times to 18 times — representing 69–82 per cent of Sime Darby's current market cap of RM14.7 billion. "In our view, a re-rating is warranted, underpinned by SDI's strong fundamentals, resilient earnings, and attractive margin profile. "With accelerating digitalisation, expanding aftermarket penetration, and infrastructure-driven tailwinds, SDI presents a compelling industrial pure play with monetisation potential," it said. With solid PBIT margins and a potential standalone valuation (RM10 to RM12 billion), CIMB Securities sees room for a re-rating for Sime Darby. The research firm is maintaining its "Buy" call on Sime Darby with an unchanged target price of RM3.00. "We like Sime for its commendable dividend yields of 7.0 per cent and 7.3 per cent for the calendar year 2025 (CY25) and CY26, respectively," it added.
Malay Mail
23-04-2025
- Business
- Malay Mail
Sources: Singapore's PSA weighs 20pc stake sale in CK Hutchison ports amid controversial BlackRock deal
CK Hutchinson's ports business includes ports along the Panama Canal CK Hutchinson's plan to sell to BlackRock consortium pleases Trump, irks China PSA bought its stake in the business for US$4.4 billion (RM14.7 billion) in 2006 SINGAPORE, April 23 — Singapore's PSA International is exploring the sale of its 20 per cent stake in CK Hutchison's ports business, two people with knowledge of the matter said, joining the Hong Kong conglomerate in its controversial plans to sell. Tycoon Li Ka-shing's CK Hutchison announced last month it would sell its 80 per cent holding in the business which includes two ports along the strategically important Panama Canal to a BlackRock-led consortium. The holding has an equity value of US$14.2 billion. US President Donald Trump hailed the deal as a 'reclaiming' of the canal. Chinese state media, however, have criticised it as a betrayal of China's interests and the country's market regulator has launched an antitrust review. Whether PSA, a ports operator wholly owned by Singapore state investor Temasek, ultimately decides to sell will depend on whether CK Hutchison goes ahead with the transaction, the two people said. CK Hutchison and the BlackRock-led consortium have agreed to exclusive talks for 145 days. The people, who were not willing to be identified due to the sensitivity of the issue, declined to comment on a potential sale price for PSA's stake. PSA declined to comment. CK Hutchison did not immediately respond to a request for comment. The deal between CK Hutchison and the BlackRock consortium encompasses 43 ports in 23 countries. The business has an enterprise value, which includes debt, of US$22.8 billion. Overall, the Hong Kong conglomerate has interests in 53 ports. Ports in Hong Kong and mainland China were not included in the deal. PSA bought its 20 per cent stake for US$4.4 billion in 2006 and has looked at selling previously. Reuters reported in late 2022 that PSA weighed a potential sale. But the two sources said it put the process on hold months later after global shipping activity weakened. Outside of its stake in CK Hutchison, PSA has 70 terminals in 45 countries, including its two flagship ports in Singapore and Belgium, according to its website. — Reuters
