Latest news with #RM170mil
The Star
28-05-2025
- Business
- The Star
Last-minute selling pushes FBM KLCI to intraday low
KUALA LUMPUR: Last-minute selling pushed the FBM KLCI lower on Wednesday, after spending the day vacillating between gains and losses. At 5pm, the benchmark index closed down 2.68 points, or 0.18% to 1,523.48, its intraday low. There were 435 gainers against 474 decliners while 499 counters unchanged. About 2.5 billion shares, valued at RM2.04bil, changed hands. Dealers said the spate of lacklustre corporate results has dampened market sentiment, causing more investors to stay on the sidelines. They added that this cautious mood is likely to persist, limiting market momentum. Among the decliners, Nestle fell 50 sen to RM81, Kuala Lumpur Kepong lost 46 sen to RM19.90, Dutch Lady eased 30 sen to RM29 and MBM Resources declined 20 sen to RM5.36. Sunway Construction rose 49 sen to RM5.95, PETRONAS Dagangan added 40 sen to RM20.20, Hong Leong Industries climbed 22 sen to RM14 and Carlsberg gained 20 sen to RM19.50. Among the banks, Maybank declined one sen to RM9.84, CIMB eased three sen to RM6.87, Public Bank fell five sen to RM4.33, RHB Bank lost 18 sen to RM6.67, while Hong Leong Bank rose two sen to RM19.90. According to Bursa Malaysia data, foreign investors continued to sell local equities, disposing of RM170mil on Tuesday, while local institutions and retailers bought equities worth RM120mil and RM50mil, respectively. Meanwhile, the local currency rose 0.17% against the US dollar to 4.2315, gained 0.23% versus the Singapore dollar at 3.2853, and strengthened 0.54% against the pound sterling to 5.7110. Asian bourses closed mixed today, with Japan's Nikkei 225 down 0.004%, South Korea's Kospi up 1.25%, Hong Kong's Hang Seng down 0.53%, and China's CSI 300 Index falling 0.08%.
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
26-05-2025
- Business
- The Star
PETRONAS Gas expects resilient year despite operational disruption
KUALA LUMPUR: Petronas Gas Bhd anticipates an overall resilient and stable performance in the financial year 2025, despite operational disruption caused by the pipeline fire incident in Putra Heights on April 1, 2025. In the first quarter ended March 31, 2025 (1QFY25), PETRONAS Gas posted a net profit of RM468.8mil, up from RM456.65mil in the year-ago quarter. The group reported in a filing with Bursa Malaysia that quarterly revenue dipped to RM1.59bil from RM1.62bil in the previous comparative quarter, while earnings per share rose to 23.69 sen from 23.08 sen previously. In line with the performance, the board of directors declared a first interim dividend of 16 sen per share, with an entitlement date of June 12, 2025, and payable on June 24, 2025. Meanwhile, PETRONAS Gas said in an update to the stock exchange it expects the financial impact of repair works and asset restoration resulting from the Putra Heights fire to be about RM170mil. This figure is subject to the final findings of the investigation and is based on the current site conditions and the extent of asset damage, it said. A significant portion of this amount is expected to be capitalised under the company's capital expenditure, with partial recovery anticipated through insurance claims. Revenue loss due to service interruption is projected to be minimal at approximately RM20mil. The total profit impact to the group, combining repair costs and revenue loss, is currently estimated at RM60mil for FY25. "The group remains firmly committed to maintaining the highest standards of safety, operational excellence, disciplined cost management, and long-term strategic growth. "In light of the recent incident, the group is further strengthening its risk management and mitigation frameworks to ensure continuity, resilience, and sustainability across its operations," it said.
The Star
21-05-2025
- Business
- The Star
Gradual recovery forecast for PetChem
Kenanga Research has cut its projected FY25 and FY26 earnings on lower polyolefin price assumptions. PETALING JAYA: Petronas Chemicals Group Bhd 's (PetChem) valuations appear lofty at the moment and could be vulnerable to any weakness moving forward. Maybank Investment Bank Research (Maybank IB) expects a profit contraction in the financial year 2025 (FY25) due to the consolidation of Pengerang Petrochemical Co's (PPC) losses into PetChem's financials. 'We believe that the worst is not over for the petrochemical sector. 'We deem PetChem's valuations rich at 22 times price-to-earnings ratio (PER) of our revised forecast FY26 earnings per share, given the cyclical nature of the industry and challenging sector outlook,' it said. The PPC registered a wider earnings before interest, taxes, depreciation, and amortisation loss of RM170mil in the first quarter on Pengerang Refining Company's (PRC) unscheduled maintenance, which was extended till June 2025 from March 2025 previously. The research house noted PetChem's recent first-quarter results appeared weak with a core net profit of RM79mil, which it said missed its and consensus' full-year estimates. Compared to its expected forecasts, its financial results were impacted by weaker-than-expected olefins and derivatives product spreads and the operational disruption in Kerteh, Terengganu in the quarter. Maintaining its 'sell' rating, Maybank IB lowered its target price on the counter to RM2.59 from RM3.06 before based on a rolled-over forecast FY26 PER of 15 times from 17.5 times, in line with its five-year mean PER valuation multiples. Meanwhile, Kenanga Research said polyolefin prices remain weak below US$1,000 per tonne due to the weaker near-term demand outlook, although the recent development in the US-China tariff war meant a relief from a potential severe global economic downturn. 'Urea prices are expected to remain firm as China still restricts exports of fertilisers. As for PPC, we do not expect a swift turnaround in profitability as it is uncertain whether its feedstock supply issue will be solved in the near term,' it said. 'In the near term, demand weakness coupled with oversupply will still plague petrochemical prices, but the bottom could be near given lower recession risks,' it added. Kenanga Research has maintained its 'market perform' rating and cut projected FY25 and FY26 earnings on lower polyolefin price assumptions. The research house raised its target price to RM3.40 from RM3.11, rolling forward its valuation to FY26 forecast price to book value of 0.7 times from 0.6 times on the tariff relief.
The Star
30-04-2025
- Politics
- The Star
Ismail Sabri probe now at 20%
On the ground: Azam (centre) attending the South-East Asia Anti-Corruption Conference 2025 at Putrajaya. — Bernama PUTRAJAYA: Although Datuk Seri Ismail Sabri Yaakob has been called in for questioning nine times over the last two and a half months, investigations into corruption allegations against him have only reached 15% to 20%. The former prime minister is expected to be called in again – for a 10th session – in two weeks, says Malaysian Anti-Corruption Commission (MACC) chief Tan Sri Azam Baki. 'He (Ismail Sabri) has been asked to prepare several documents. The probe is ongoing and, as I mentioned earlier, it concerns his asset declaration. 'Such investigations generally require time as the individual served with a notice has to explain the source of their assets, among others, and satisfy us as the issuing agency,' he told reporters after attending the South-East Asia Anti-Corruption Conference 2025: Recalling Jakarta Statement here yesterday. Azam said it was essential to verify whether the declared assets were accurate, Bernama reported. 'If the declaration is found to be false or insufficient, further action can be taken,' he said. The Bera MP is being investigated over alleged corruption and money laundering involving expenditure and procurement of funds for the promotion and publicity of the Keluarga Malaysia programme during his premiership from August 2021 to November 2022. On March 3, Azam said Ismail Sabri was a suspect after the MACC discovered about RM170mil in cash in various currencies, along with 16kg of gold bars in a safe house during a raid. On another corruption scandal, involving several Sabah state assemblymen linked to mineral mining licensing, Azam said investigations are expected to be completed in a week. He said forensic reports had been obtained on 10 viral video recordings – including one that was released only yesterday. 'I expect it (the analysis results) to be ready in about a week. I've asked for updates; I don't want this matter to be delayed,' he said. 'Everyone is asking why it's taking so long. But we have to understand, this involves 10 videos, not just one. So we need to examine them very carefully. Recently, several video recordings allegedly showing conversations involving bribery between certain individuals and several Sabah lawmakers related to mineral licensing in the state went viral. Meanwhile, the whistleblower in the matter submitted nearly 300 pages of fresh evidence to the MACC yesterday. His lawyer, Mahajoth Singh, said it included the new video, witness names, WhatsApp conversations, call logs, documents and a mobile phone containing original chat records.
