Latest news with #RM2.4bil
The Star
29-05-2025
- Business
- The Star
Leong Hup's 1Q25 net profit jumps 80%
PETALING JAYA: Leong Hup International Bhd (LHI) remains cautiously optimistic despite ongoing uncertainties and challenges, as the group sees strong growth potential in per capita chicken and egg consumption across the countries where it operates. 'In addition, we expect margins to be cushioned with the easing of feed input costs, particularly corn and soybean meal. 'In light of the uncertainty and challenging times ahead, the group will exercise prudence in managing its financial resources. Barring any unforeseen circumstances, the group expects to deliver a satisfactory performance in 2025,' the integrated producers of poultry, eggs and livestock feed said. In the first quarter of financial year ended March 31 (1Q25), LHI's net profit jumped 80% to RM101.8mil against RM56.6mil in the year-ago quarter. Revenue, however, dipped 8.3% to RM2.21bil compared with RM2.4bil previously, while earnings per share rose to 2.81 sen from 1.55 sen last year.
The Star
29-05-2025
- Business
- The Star
Wasco set to expand as 1Q25 revenue increases
Wasco Bhd group chief executive officer and executive director Giancarlo Maccagno. KUALA LUMPUR: Energy solutions provider Wasco Bhd will continue exploring opportunities within the bioenergy sector, underpinned by growing demand for renewable-energy solutions. Group chief executive officer and executive director Giancarlo Maccagno reaffirmed the group's intentions to continue expanding and exploring vast opportunities presented in the bioenergy industry. Wasco is currently involved in the development of biomass power plants and steam turbines for plantation companies. 'Bioenergy demand is extremely high at the moment because it is clean energy. In Malaysia and Indonesia, there is an abundance of empty fruit bunches from palm oil that can be turned into energy,' he told the media during a media briefing following Wasco's AGM here, yesterday. He added that Malaysia offers an 'exciting future' as more companies are shifting their focus from solely solar energy to include biomass as part of their renewable strategies. This shift, he said, aligns well with Wasco's expertise in delivering full engineering, procurement, construction and commissioning services for biomass facilities. Maccagno said the group is assessing the potential to move into plant ownership to generate recurring income through long-term energy sales. However, he emphasised that any such investment would be made only when the conditions are commercially viable. 'We need to lock in both the source and the buyer. If either are missing, the economics don't work. But if all the boxes are ticked, it becomes a very exciting business,' he said. He added that the group is prepared to proceed when the opportunity is right. 'We are not going to jump straight into it. If the opportunity is not right, we won't do it. But when it is, we are ready,' he added. Wasco currently operates with two core business divisions, energy and renewable energy, with the latter contributing approximately 15% to the total order book of RM2.4bil. While energy continues to be the largest revenue contributor, Maccagno said both segments are expected to grow steadily over time. For the first quarter for the financial year ending Dec 31, 2025, the group recorded a slightly lower net profit of RM35.44mil and a basic earnings per share of 4.58 sen. This was down from RM57mil or 7.36 sen in the same quarter of the previous year. However, its revenue had increased from RM643.94mil to RM719.29mil. The energy segment continued to contribute to the group's revenue at RM657.3mil, while its bioenergy segment contributed RM61.4mil. These were up from RM592.3mil and RM51.6mil previously. Maccagno acknowledged that FY25 may not surpass FY24's record performance, citing some project delays and broader uncertainty in the oil and gas sector. However, he expressed confidence in the group's outlook, supported by a robust order book and a tender book of RM10bil, adding that strong recovery is expected in FY26 onwards once deferred projects resume.
The Star
29-05-2025
- Business
- The Star
LHI's 1Q net profit jumps 80% to RM101.8mil
KUALA LUMPUR: Leong Hup International Bhd (LHI) remains cautiously optimistic despite ongoing uncertainties and challenges, as the group sees strong growth potential in per capita chicken and egg consumption across the countries where it operates. 'In addition, we expect margins to be cushioned with the easing of feed input costs, particularly corn and soybean meal. 'In light of the uncertainty and challenging times ahead, the group will exercise prudence in managing its financial resources. Barring any unforeseen circumstances, the group expects to deliver a satisfactory performance in 2025,' the integrated producers of poultry, eggs and livestock feed said. In the first quarter ended March 31, LHI's net profit jumped 80% to RM101.8mil against RM56.6mil in the year-ago quarter. Revenue, however, dipped 8.3% to RM2.21bil compared with RM2.4bil previously, while earnings per share rose to 2.81 sen from 1.55 sen last year. LHI said its revenue from sales of livestock and poultry-related products marginally increased by 0.7% from RM1.3bil in 1Q24 to RM1.32bil in 1Q25. While the Philippines saw revenue growth driven by higher average selling price and sales volume of dressed chicken, this was offset by the reduction in Malaysia and Singapore markets, leading to minimal overall change in revenue. LHI said although average selling prices of day-old-chick and broiler chicken in Malaysia increased, the revenue decreased due to lower average selling price of eggs. Singapore's revenue decreased mainly from lower average selling price and sales volume of fresh chicken and lower sales volume of ducks. Meanwhile, the group's revenue from feedmill decreased by 19.2% from RM1.09bil in 1Q24 to RM882.7mil in 1Q25. The decrease was due primarily to lower average selling price in all countries that the group operates in, following the reduction in raw material costs and lower sales volume in Vietnam and Malaysia. LHI has declared a single-tier first interim dividend of 1.00 sen per ordinary share amounting to RM36mil in respect of the financial year ending Dec 31, 2025, payable on July 1.
The Star
27-05-2025
- Business
- The Star
Deal with U Mobile on 5G network to lift TM's showing
TA Research maintained its FY25 to FY27 earnings forecasts for TM. PETALING JAYA: Telekom Malaysia Bhd 's (TM) tie up with U Mobile Sdn Bhd for the deployment of the second 5G network in Malaysia is deemed as a positive development, though the earnings impact will be minimal, analysts say. The annual revenue contribution for TM is projected to be only 1.8% of TA Research's total revenue forecast for TM next year (FY26). The research house maintained its FY25 to FY27 earnings forecasts for TM and kept its 'buy' call on the stock with a target price of RM8.30 a share. TM signed a RM2.4bil 10-year contract with U Mobile yesterday to provide fibre backhaul services for the second 5G network. TM has the most extensive fibre coverage in Malaysia. UOB Kay Hian Research (UOBKH Research) said TM's initial contract with Digital Nasional Bhd for the first 5G network to supply fibre backhaul services was also valued at approximately RM2.5bil. Based on the previous contract, UOBKH research estimates that the annual revenue and net profit impact for TM is approximately 2% and 1%, respectively. It made no changes to its earnings forecast for TM and maintained its 'hold' call with a target price of RM7 a share. CIMB Research also maintained its 'buy' call with a 4% higher discounted cash flow based target price of RM7.55 a share. Kenanga Research lifted its target price by 1% to RM8.15 from RM8.07 a share based on an unchanged seven-times FY25 enterprise value to earnings before interest, taxes, depreciation and amortisation. It maintained its 'outperform' rating for the stock.
The Star
08-05-2025
- Business
- The Star
Sabah's unemployment remains high as economic recovery lags
Warisan president Datuk Seri Shafie Apdal holds up charts comparing Sabah's economic performance under Warisan and GRS during a press conference in Kolombong. KOTA KINABALU: Sabah's unemployment figures remain worryingly high, with 165,600 people still out of work in 2023, according to data from Warisan — a staggering increase from 114,300 in 2019. Warisan president Datuk Seri Shafie Apdal said this sharp rise in joblessness reflects a troubling reality for many young Sabahans, who continue to leave the state for better opportunities in places like Kuala Lumpur, Singapore, and Hong Kong. 'This is a serious issue. We need to create jobs within Sabah so our people do not have to migrate for work. If we do not address this, we risk losing our talent,' he said at a press conference in Kolombong, here, Wednesday (May 7). Shafie also pointed to the need for more investment in downstream industries to drive economic growth and create sustainable jobs, noting that Sabah's Gross Domestic Product (GDP) has struggled to recover. The state's GDP stood at RM83.2bil in 2023, still below its 2019 peak of RM85.6bil, marking a decline of RM2.4bil or 3% over four years. He cited the missed opportunity involving IKEA as a prime example of Sabah's struggle to attract major investments. Despite Sabah's rich timber resources, IKEA ultimately chose Sarawak over Sabah for its investment, raising concerns about the state's ability to support value-added industries. 'For instance, we produce cocoa, but where are the chocolate factories? Why are we just exporting raw materials? We need to add value locally to create jobs and strengthen our economy,' Shafie said. Shafie also took the opportunity to introduce Warisan's new slogan, 'Save Sabah' (Selamatkan Sabah), which he said captures the party's mission to address the state's critical issues, including unemployment, economic decline, and infrastructure gaps. 'Save Sabah from no basic infrastructure. Save Sabah from rising unemployment. Save Sabah from being left behind in terms of economic growth and development,' he said. He urged the people of Sabah to give Warisan a chance in the upcoming election, assuring them that the party can resolve the state's basic necessities challenges and build a stronger, more resilient Sabah. 'We are capable of solving our problems. We do not need to keep relying on others. We can manage our resources and address our challenges if given the chance,' Shafie said. The persistently high unemployment and sluggish GDP recovery also reflect broader challenges, including gaps in infrastructure, high logistics costs, and a lack of skilled labour, which must be addressed for sustainable growth.
