Latest news with #RM1bil
The Star
8 hours ago
- Business
- The Star
Johor Port invests in new cranes
JOHOR BARU: Johor Port Bhd (Johor Port) has formalised a RM72.3mil purchase of four level luffing cranes with supplier Sany Marine Heavy Industry Co Ltd. In a statement yesterday, Johor Port said the procurement is part of a broader RM1bil enhancement plan to modernise its port facilities and to support future growth. 'The new cranes with their improved lifting performance, improved reach and enhanced durability will improve berth productivity, reduce vessel turnaround time, and deliver a more seamless and efficient cargo handling,' the company said. Johor Port chief executive officer Md Derick Basir and Sany Marine general manager for overseas sales Tony Tang signed the deal yesterday. Johor Port covers 1,000 acres, of which 660 acres are designated as a free trade zone. It is part of utility and infrastructure group MMC Corp Bhd. — Bernama
The Star
a day ago
- Business
- The Star
Signature Alliance shares rise 13.71% on ACE Market debut
From left: SAG group chief financial officer Saw Gee Kai, independent director Datuk Boey Chin Gan, independent director Tan Poh Cheok, independent director Lim Sook Yee, promoter and CEO for central region Melvin Ng, executive director and CEO of northern region Mario Foo, executive director and group CEO Darren Chang, promoter Chiau Haw Choon, chairman Datuk Wan Ahmad Satria Wan Hussein, M&A Equity Holdings Bhd Datuk Bill Tan, promoter Datuk Seri Chiau Beng Teik, Chin Hin Group chief financial officer Michael Lim, SAG director Lau Kock Sang and M&A Securities Sdn Bhd head of corporate finance Gary Ting KUALA LUMPUR: Investors gave Signature Alliance Group Bhd (SAG) a warm welcome on its debut on the ACE Market of Bursa Malaysia, ramping up the newly-listed share to a 13.71% premium over its initial public offering (IPO) price. At the time of writing, the interior fit-out solutions provider, which raised RM161.2mil via an IPO fundraising, was trading at an intra-morning high of 70.5 sen a share, an 8.5 sen increase over its public issue price of 62 sen a share. It was the most active stock on the domestic market, with 63.9 million shares changing hands. Executive director and group CEO Darren Chang said post-listing ceremony the company is confident of securing between 15% and 20% of its RM1bil tender book by end-2025. He said the tenders primarily comprise commercial and industrial property projects valued at RM1.1bil as at April 15, 2025. "Based on our historical average tender success rate of around 15% to 20%, we are optimistic about meeting our target,' he added. Chang said the company's earnings visibility for the financial year ended Dec 31, 2025 (FY25) and FY26 will be supported by an unbilled order book of RM388.6mil as at April 16, 2025, in addition to anticipated contract wins. As at 16 April 2025, SAG has 69 ongoing projects with a total contract value of RM902.4mil. 'Our current ongoing projects of RM902.4mil, of which RM388.6mil are unbilled, clearly reflects market demand for our interior fitting-out services and provides earnings visibility for the next one to two financial years,' Chang added. SAG is on an expansion drive, allocating more than half of its IPO proceed to the development of a new corporate headquarters and production facility in Selangor. A sum of RM88mil or 54.6% of the total proceeds will go towards the new corporate and production facility, while an additional RM12mil will be used for establishing and expanding brand offices in Penang and Johor. SAG would also allocate RM30.1mil for working capital requirements and RM4mil for the acquisition of new machinery and equipment. The remaining proceeds would be used for the repayment of bank borrowings at RM20mil and to cover listing-related expenses at RM7.1mil. Pre-IPO, SAG was 50.7%-owned by Signature International Bhd , which is indirectly controlled by construction outfit Chin Hin Group Bhd . Following the IPO, Signature International's stake was diluted to 37.5%
The Star
a day ago
- Business
- The Star
Delay in major Uzma project remains a concern
The order book could grow by RM1bil following Uzma's latest win. PETALING JAYA: The delay in Uzma Bhd 's major project has caused analysts to be concerned about the impact on its earnings despite the substantial new contract wins of the oil and gas (O&G) company. UOB Kay Kian (UOBKH) Research stated the sailaway of the Sara water injection facility (WIF) to offshore Sabah site would likely be delayed to October this year or February next year instead of the April 2025 target due to various client-requested design changes. 'Uzma can deliver the WIF in October, but it will encounter the monsoon when it arrives at Hibiscus Petroleum's offshore site in Sabah. Under this scenario, Uzma may have to bear the high transportation and installation costs. 'Therefore, from a project cost perspective, it is better to sail away in February 2026 (but also means the startup will miss financial year 2026 (FY26) completely),' the research house stated. On the positive side, Uzma has grown its order book to RM4.1bil as of April but unfortunately many of the projects are small, UOBKH Research added. The order book could grow by RM1bil following Uzma's latest win. It has secured a two-year long-term charter contract from PETRONAS Carigali for the seismic vessel WOA, from March 14, 2025 to March 13, 2027. The contract involved comprehensive seismic data acquisition across Peninsular Malaysia and Sabah, in addition to providing ancillary services such as catering, according to Phillip Capital Research. It expected the charter to contribute about RM10mil in annual profit to Uzma. Uzma's order book growth was primarily O&G-driven (with O&G comprising 74% mix), and the bulk of the growth came from the production service segment, which surged from RM1.1bil to RM2bil quarter-on-quarter. Uzma will miss its five-year internal target of a recurring income mix of 60% due partly to the delay risk of Sara-WIF. 'We believe this downside risk is fully priced in, but recommend a wait-and-see approach for earnings delivery and the (environmental, social and governance) development. 'Retain 'buy' and target price (TP) of 76 sen a share,' UOBKH Research noted in its latest report on the company following a briefing with Uzma's management. The valuation is at an unchanged price earnings (PE) multiple of eight times. Phillip Capital Research also retained its 'buy' rating on Uzma with a TP of 76 sen a share, based on eight-times PE on FY26 earnings per share. The stock is currently trading at an attractive four-times forward FY26 PE, with a forward dividend yield of 5% providing additional support to the share price.
The Star
3 days ago
- Business
- The Star
Coastal well positioned to deliver long-term value
PETALING JAYA: Coastal Contracts Bhd is well positioned to deliver long-term value, backed by its strong cash reserves and a growing presence in shipbuilding and energy infrastructure. While short-term earnings for the integrated oil and gas services and energy infrastructure solutions provider are being weighed down by timing-related factors, the group's medium-term prospects remain intact. The group's robust financial footing stems from major contributions from its Mexican joint venture Coastoil Dynamic SA De CV (Cody), and proceeds from the sale of two offshore support vessels (OSVs). As a result, Coastal now holds approximately RM1bil in cash and cash equivalents, the majority of which is currently placed in short-term investments such as money market funds, said TA Research. This liquidity, the research house noted, 'provides room to pursue key growth initiatives'. Coastal's shipbuilding division is expected to drive earnings recovery, TA Research said. Three utility support vessels are currently under construction, with two scheduled for delivery in the second half of this financial year (2H25), and one in 1H26. The company also has three high-end OSVs in the pipeline, with staggered deliveries planned from 1H26 through 1H27. Beyond its core business, Coastal is exploring diversification into high-end hospitality, which would further boost its prospects. TA Research noted that the group is in discussions with luxury hotel operators to manage a resort development on Pulau Mabul. 'The capital expenditure for the first phase is estimated to be RM85mil and the room rate is expected to be more than US$500 per person per night,' the research house said. Given the project's timeline of one to two years and the fact that discussions are still ongoing, TA Research said it does not expect the hospitality segment to generate revenue until 2026. Meanwhile, Coastal's near-term financial results reflect a lull in project deliveries. For the first quarter ended March 31, the group reported core profit of RM17.7mil, which TA Research said was within its expectations at 22% of its full-year forecast, though it missed consensus forecasts at 15%. 'We anticipate earnings to grow from the shipbuilding division with two utility support vessels scheduled for delivery in 2H25,' the research house said. Quarter-on-quarter, revenue fell 58.2% to RM16.5mil, due to weaker contributions from shipbuilding and ship repair, while pre-tax profit dropped by 84.9%. Year-on-year, revenue declined by 7.1%, with pre-tax profit plunging 83.3% due to the absence of charter income from an OSV. TA Research maintained its 'buy' recommendation on Coastal with a target price of RM2.04 per share, based on a sum-of-parts valuation.
The Star
4 days ago
- Business
- The Star
German firm's Senai manufacturing facility a boost to state's industrial landscape
(From second left) Gan, Suresh Kumar, SICK supervisory board member Sebastian Glaser (sixth from left) and Lee (fifth from right) at the groundbreaking ceremony of SICK Malaysia's new factory. A GERMAN manufacturer has identified Johor's Senai Airport City for its operations, marking another milestone in the integrated development as a regional industrial hub. SICK Malaysia managing director Suresh Kumar Somasundram said the group manufactured sensor-based industrial automation solutions and the new factory would strengthen its supply chain and operational efficiency. 'The facility is designed to enhance production capabilities, improve operational efficiency and support sustainable growth in the Asia-Pacific region. 'With its strategic location in Senai Airport City, Johor, which is close to our key markets, the new factory will play an important role in SICK's long-term success,' he said in a statement. The groundbreaking ceremony of the manufacturing facility was attended by Johor investment, trade, consumer affairs and human resources committee chairman Lee Ting Han. In his speech, Lee said the project was more than just an expansion for SICK, but a transformation of Johor's industrial landscape. 'This ceremony reinforces Johor's standing as a preferred destination for high-value, innovation-driven industries. 'It also demonstrates the potential for international companies to grow alongside our local communities,' Lee said. He said phase one of the project, scheduled for completion next year, would see investments totalling RM280mil. 'By the final phase five, likely before 2045, total investment is expected to reach RM1bil. 'The total investment by SICK is projected to generate up to 2,500 jobs,' he said. Senai Airport City chief executive officer Gan Seng Keong said that the master-planned industrial development spanning over 1,099ha continued to attract global companies seeking strategic positioning in South-East Asia. 'The decision by a global leader like SICK to establish its advanced manufacturing hub here is a strong endorsement of our infrastructure readiness, world-class connectivity and strategic location. 'With 85% of our Free Zone land occupied, our expansion of the Free Zone from 161ha to 263ha further underscores its strategic importance,' he said, adding that this would enhance competitiveness and reinforce its contribution to Johor-Singapore Special Economic Zone (JS-SEZ).
