Latest news with #RM200mil
The Star
20 hours ago
- Business
- The Star
HE Group holds RM990mil in tenders despite market slump
PETALING JAYA: Despite HE Group Bhd 's results being in line with expectations, Phillip Capital Research is cutting its forecast of the company's earnings to account for lower order book replenishment amid a prolonged semiconductor market downturn. The research house said the mechanical, electrical and process contractor's tender book remains healthy at RM990mil, primarily consisting of data centres (80%) and utility-infrastructure (12%) projects. 'However, the timing of contract awards remains the biggest uncertainty, with management guiding for the third quarter of this year (3Q25). 'Given the continued delay in project awards, we revise our 2026 to 2027 order book replenishment forecast to between RM200mil and RM250mil (from between RM250mil and RM300mil) and cut earnings forecasts by between 12% and 15%,' the research house added. HE Group is an electrical engineering service provider focusing on power distribution systems for end-user premises such as industrial plants and industrial and commercial substations. The group recorded 1Q25 core net profit of RM2.9mil, while revenue declined by 51% year-on-year to RM32mil, weighed down by the power distribution and building systems segments. This mitigated the stronger performance from its electrical equipment hook-up and retrofitting services. 'The 1Q25 earnings before interest, tax, depreciation and amortisation margin improved 3.6 percentage points, attributable to a more favourable revenue mix from the higher-margin electrical equipment hook-up and retrofitting segment. 'Overall, 1Q25 results were in line with our expectations, accounting for 24% of our full-year forecasts for this year,' Phillip Capital Research said. The research house said it was raising its 12-month target price to 45 sen pfrom 44 sen after rolling forward its valuation horizon and slashing the target price-earnings (PE) multiple to 12 times from the previous 16 times. 'The lower PE multiple reflects a more cautious view, taking into consideration the softer market sentiment, and is in line with small and mid-cap valuations. 'Despite the absence of a near-term catalyst, the stock is trading below minus one standard deviation since listing,' the research house said. Phillip Capital Research maintained its 'buy' rating on the stock. 'Key risks include slower-than-expected order book replenishment, unforeseen project delays, and cost overruns,' the research house said.
The Star
3 days ago
- Business
- The Star
Age not the only factor behind moribund farms
The right help: With proper policies, incentives and technological help, local farmers will be able to produce bountiful crops to match major food producers like China, Japan and India, say agriculture and food security experts. PETALING JAYA: While ageing farmers are often blamed for the decline in food farming in Malaysia, experts argue that age alone is not the main issue, especially when countries like China, Japan, and India, which also have large populations of elderly farmers, remain major food producers. What sets these countries apart, they say, is the presence of the right policies and incentives that make growing food crops, instead of industrial crops like oil palm, a viable and sustainable livelihood. Their comments come in response to the recently released Agriculture Census 2024, which revealed that 45.4% of Malaysia's 1,008,829 individual farmers are aged over 60. The agriculture and food security experts said the key lies in policies that promote food crop cultivation using technology that makes optimum use of water, fertiliser and pesticide while being environmentally sustainable. They also stressed the need for federal support to incentivise state governments to allocate land for food crops, especially staples like rice. 'We need something similar to the policy that compensates states for not cutting down their forests,' said Prof Abd Shukor Juraimi of Universiti Putra Malaysia's (UPM) Tropical Agriculture and Food Security Institute. He was referring to the Federal government's Ecological Fiscal Transfer for Biodiversity Conservation programme, which allocated RM200mil last year for states to preserve key forest and marine areas. A similar framework should be applied to agricultural land, he added, because land used for food crops currently generates less tax revenue than land designated for residential, commercial or industrial purposes. Abd Shukor's remarks follow another key census finding: of the 7.5 million hectares of land used for agriculture nationwide, 6.5 million hectares are occupied by cash crops like oil palm and rubber. Only about one million hectares are used for food crops, with rice farming occupying just 500,000ha. The Statistics Department, which released the census, noted that the shrinking area for rice cultivation is affecting Malaysia's ability to produce enough of the staple grain. According to the National Agro-Food Policy 2021–2030 report, rice cultivation land has declined from about 700,000 hectares in 2018. The same report found that rice farmers operate on an average of just 3.48ha per person, far below the 10ha considered economically optimal. Prof Datin Paduka Fatimah Mohamed Arshad, another food security expert from UPM, said Malaysia could learn from India, which has emerged as one of the world's top rice exporters over the past decade, rivalling even Thailand and Vietnam. India, she said, achieved this despite not having large-scale agricultural schemes like Malaysia's Muda Agricultural Development Authority or the Kemubu Agricultural Development Authority. 'The Indian government supported tech start-ups that developed apps for the entire supply chain, from precision irrigation tools to sensors,' said Fatimah. 'These tools also help minimise risks from floods and droughts by predicting adverse weather to help farmers make better decisions.' Just like in Malaysia, a large proportion of farmers in India are senior citizens, she said, but this has not prevented them from producing good yields. 'With the right support and technology, they are able to make a sustainable living and thrive. So, age is not really the problem,' said Fatimah.
The Star
7 days ago
- Business
- The Star
Shin Yang moves closer to deal on patrol vessels
Radium Development Bhd managing director Datuk Gary Gan. KUALA LUMPUR: Radium Development Bhd is eyeing further growth in the medium to longer term with its plans to diversify into the provision of private healthcare. The property developer will soon open its 140-bed private hospital in Ayer Keroh, Melaka. The initiative will be spearheaded by Radium Healthcare's chief executive officer Dr Arun Kumar who was part of the team for what was then known as Manipal Hospital Klang before it was acquired and renamed to Bukit Tinggi Medical Centre. Radium Development's hospital will be named Radium Hospital @ Ayer Keroh and it is being designed as a tertiary-level medical facility to address the growing healthcare needs of communities in smaller towns. The site is adjacent to the Melaka International Trade Centre (MITC) which is the state government's administrative centre, less than 4km to the North–South Expressway via the Ayer Keroh Interchange and is about 12km to the Melaka city centre. The property company said its hospital is planned to begin operations in the first half of 2028. The hospital is also the core of Radium Centricity, a proposed 7.11 acre integrated development built around health, wellness and well-being, it said. The development will eventually incorporate residential and commercial components, supporting the hospital with ancillary healthcare businesses and lifestyle conveniences, it added. Radium Hospital @ Ayer Keroh will target both local patients and medical tourists, said Arun. The company said the venture, with an initial estimated capital expenditure of some RM200mil, will be funded via internal funds and borrowings. 'Being an industry veteran, we are confident that under the able leadership of Dr Arun Kumar, Radium Healthcare will be a strong private-hospital group in Malaysia. 'For Radium, this hospital is part of our broader mission for sustainable growth and positive income. We are committed to responsible investment,' Radium Development's group managing director Datuk Gary Gan said at the official unveiling of its plans yesterday. The group also said it will continuously invest in technological upgrades, rigorous safety protocols, and plans to pursue the Malaysian Society for Quality in Health accreditation eventually for the Melaka facility. 'After having built, operated and sold the hospital at Bukit Tinggi, Klang, it then dawned upon me as to what is next. I think there is still ample opportunity for new private hospitals around the country,' Arun said.
The Star
7 days ago
- Business
- The Star
Property group Radium to diversify into healthcare with Melaka project
Radium Development Bhd managing director Datuk Gary Gan. KUALA LUMPUR: Radium Development Bhd is eyeing further growth in the medium to longer term with its plans to diversify into the provision of private healthcare. The property developer will soon open its 140-bed private hospital in Ayer Keroh, Melaka. The initiative will be spearheaded by Radium Healthcare's chief executive officer Dr Arun Kumar who was part of the team for what was then known as Manipal Hospital Klang before it was acquired and renamed to Bukit Tinggi Medical Centre. Radium Development's hospital will be named Radium Hospital @ Ayer Keroh and it is being designed as a tertiary-level medical facility to address the growing healthcare needs of communities in smaller towns. The site is adjacent to the Melaka International Trade Centre (MITC) which is the state government's administrative centre, less than 4km to the North–South Expressway via the Ayer Keroh Interchange and is about 12km to the Melaka city centre. The property company said its hospital is planned to begin operations in the first half of 2028. The hospital is also the core of Radium Centricity, a proposed 7.11 acre integrated development built around health, wellness and well-being, it said. The development will eventually incorporate residential and commercial components, supporting the hospital with ancillary healthcare businesses and lifestyle conveniences, it added. Radium Hospital @ Ayer Keroh will target both local patients and medical tourists, said Arun. The company said the venture, with an initial estimated capital expenditure of some RM200mil, will be funded via internal funds and borrowings. 'Being an industry veteran, we are confident that under the able leadership of Dr Arun Kumar, Radium Healthcare will be a strong private-hospital group in Malaysia. 'For Radium, this hospital is part of our broader mission for sustainable growth and positive income. We are committed to responsible investment,' Radium Development's group managing director Datuk Gary Gan said at the official unveiling of its plans yesterday. The group also said it will continuously invest in technological upgrades, rigorous safety protocols, and plans to pursue the Malaysian Society for Quality in Health accreditation eventually for the Melaka facility. 'After having built, operated and sold the hospital at Bukit Tinggi, Klang, it then dawned upon me as to what is next. I think there is still ample opportunity for new private hospitals around the country,' Arun said.
The Star
21-05-2025
- Business
- The Star
Shah Alam project bolsters MRCB earnings
PETALING JAYA: The RM2.94bil Shah Alam Sports Complex project awarded to Malaysian Resources Corp Bhd (MRCB) by Menteri Besar Selangor Inc solidifies the company's engineering and construction expertise in large-scale public infrastructure, according to MIDF Research. It said this project builds on MRCB's track record from the successful delivery of the KL Sports City redevelopment in 2017. 'This latest undertaking is expected to enhance MRCB's technical standing, especially in public-sector and sports-related infrastructure,' the research house said, noting that this would be the company's fourth major contract in 2025. It added that projects won by MRCB this year would bolster the medium-term earnings visibility and reinforces confidence in the company's ability to consistently replenish its order book, where the construction order book stood at RM26.1bil as at end-December 2024. For this year, the order book has grown to RM6bil. As the contract sum for the project would be settled via a combination of cash and land, MIDF Research expects that the land swap, to be capped at RM200mil and subject to mutually agreed valuation, could present future upside in replenishing the company's property development inventory and support earnings. MRCB's landbank gross development value (GDV) stood at RM37.8bil as at end-December 2024, with additional parcels such as land in Cyberjaya still pending GDV confirmation. MIDF Research has maintained a 'buy' recommendation on the stock and maintained target price for the shares at 56 sen. It has kept its earnings forecast unchanged pending the release of the company's first quarter ended March 31, 2025 results to be released on May 30. It noted that together with the projects awarded this year and the reinstatement of five LRT stations, the latest project underscores the recommendation.
