Latest news with #RM250mil
The Star
6 days ago
- Business
- The Star
CLMT's RM250mil fundraise to reduce gearing
TA Research said the placement would support the REIT's continued diversification into logistics and industrial assets. PETALING JAYA: Capitaland Malaysia Trust 's (CLMT) proposed private placement to raise up to RM250mil is being viewed positively as a successful placement will enable the real estate investment trust (REIT) to reduce net gearing that has climbed due to borrowings to acquire industrial assets. Maybank Investment Bank Research, which has maintained a 'buy' recommendation on the stock and raised the target price to 76 sen from 75 sen, projects the REIT's net gearing to be reduced to 39.6% post-placement from 44.1% in the first quarter ended March 31, 2025 (1Q25) based on existing borrowings for the industrial asset acquisitions. 'We are positive on this exercise as it enhances CLMT's balance sheet strength and provides additional headroom for future yield-accretive acquisitions,' the research house said, as proceeds from the placement would be used to partly refinance borrowings of RM400mil of completed and pending logistics as well as industrial assets. It added that these acquisitions would be expected to contribute RM20mil in gross rental income annually or around 4% of the financial year ending Dec 31, 2026 (FY26) revenue. 'Post-acquisition, CLMT's industrial and logistics exposure will rise from 2.8% to 7.9% of assets under management, which is expected to contribute around 9% of FY26 net property income,' it said. 'We expect its retail assets to remain resilient with mid-to-high single-digit range rental reversion and steady occupancy for its ex-Klang Valley malls. 'Despite short-term dilution, longer-term earnings visibility, diversification and improved gearing, support our positive view,' it added. TA Research said the placement would support the REIT's continued diversification into logistics and industrial assets in which more stable and recurring income can be expected. 'We are positive on CLMT's proposed placement, which reflects a proactive and forward-looking approach to strengthening its capital base while preserving balance sheet flexibility,' the research house said. It has reiterated a 'buy' call on the stock with an unchanged target price of 82 sen. It pointed out that while there would be some near-term dilution to earnings per unit, the longer-term benefits from improved gearing, enhanced portfolio mix and rising rental contributions from logistics assets outweigh the short-term impact.
The Star
6 days ago
- Business
- The Star
Kompleks Arena Seremban to open soon
Strategic push: Datuk Seri Lee Tian Hock (right) and Datin Seri Yong Chou Lian posing with the official mascot of Kompleks Arena Seremban during the press conference for Sinaran Karisma, ahead of its grand launch on June 28, 2025. PETALING JAYA: Kompleks Arena Seremban, a RM250mil integrated development in the heart of Seremban, aims to position itself as a multi-functional urban and community hub. Developed by Karisma Perwira Sdn Bhd, a subsidiary of Lee Tian Hock Chou Lian (L) Foundation, the project will be officially launched and open on June 28, 2025. Spanning 4.45 acres with 650,000 sq ft of built-up space, the complex brings together hospitality, retail, residential, office and event facilities in a single location. It is also designed to host a variety of activities ranging from business functions and sporting events to cultural showcases and community programmes. According to the developer, Kompleks Arena Seremban is intended to support a variety of events such as corporate launches, sports tournaments, cultural programmes and community gatherings. The project adds to the growing number of integrated developments outside major urban centres, particularly in state capitals. 'With strong infrastructure, strategic location, and purpose-built design, the complex aims to attract a broad spectrum of stakeholders – from event organisers and corporate clients to families and tourists,' it said in a statement. The complex includes five core components, namely, Karisma Arena, a seven-storey indoor stadium with a 3,000-seat capacity, which opens ahead of the main launch on June 8, 2025. The Arena Premier Hotel, already in operation, offers 99 rooms along with function halls and F&B facilities. Menara Karisma adds commercial office space, while Arena Square offers retail and dining options across 10 shop units. The residential component, Arena Residences, comprises a 20-storey serviced apartment tower scheduled for completion by end-2025. The launch will be officiated by Negri Sembilan Mentri Besar Datuk Seri Aminuddin Harun. Ticketing for the public opening is available via Ticket2U starting June 8, 2025.
The Star
7 days ago
- Business
- The Star
OCK targets bigger FY26 earnings from contracts
Phillip Capital Research said FY25 has been a challenging year due to sluggish order book replenishment. PETALING JAYA: OCK Group Bhd 's earnings in financial year 2026 (FY26) could surpass that of FY25 as it bids for more contracts to replenish its order book in the near-to-medium term. Phillip Capital Research said FY25 has been a challenging year due to sluggish order book replenishment following the completion of major projects such as Malaysia's first 5G network and Jendela Phase 1. OCK's RM250mil order book is led by telecommunication network services (62%), mechanical and electrical (30%), with RM1.5bil in activice bids. It said U Mobile Sdn Bhd intends to co-share about 160 existing towers with OCK, which is expected to enhance infrastructure efficiency and support the expansion of network capacity. The 5G infrastructure collaboration covers the deployment of towers, in-building coverage and related services with potential contract value exceeding RM500mil.
The Star
03-06-2025
- 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
26-05-2025
- Business
- The Star
NexG plans RM250mil secure ID documents facility
PETALING JAYA: NexG Bhd plans to invest approximately RM250mil to develop an Industry 4.0-ready secure ID documents production plant, marking a quantum leap in production capacity and significantly enhancing product precision through fully automated processes. In a statement, the IT service management company said the investment will be implemented in three phases, with ongoing optimisation and enhancements expected to raise annual production capacities to over 15 million units for secure ID documents in each phase. 'The establishment of a new manufacturing facility, equipped with advanced security infrastructure, is projected to generate between US$100mil (RM421mil) and US$200mil (RM843mil) in revenue per phase—subject to type of document and/or solution, country-specific requirements, project scope, and the level of embedded document security. 'Once completed, the new facility is projected to add an additional estimated capacity of 50 million of secure ID documents to NexG's current production capacity, significantly enhancing the group's ability to meet growing international demand for secure identity infrastructure.' The RM250mil investment will be financed through a combination of internally generated funds, equity fundraising, strategic partnership and borrowings. The upgraded facility is also expected to support future innovation in research and development, system integration, and identity technology. 'We believe that by strengthening our production capabilities and creating a dedicated global platform, NexG will be well-positioned to bring Malaysian-developed secure identity technologies to more countries around the world," NexG executive chairman and CEO Datuk Hanifah Noordin said.
