Latest news with #RM283
New Straits Times
5 days ago
- Business
- New Straits Times
Mr DIY set for steady 2H25 as expansion offsets weak sentiment"
KUALA LUMPUR: Mr DIY Group (M) Bhd is projected to deliver near-flat earnings in the second half of 2025 (2H25), with resilient demand and aggressive store expansion helping to counter soft consumer sentiment, according to CIMB Securities Sdn Bhd. The retailer added 70 net new outlets in 1H25 and remains on track to open 180 stores this year. CIMB expects revenue growth to be driven by the expanded store network, its value-for-money product mix, and increased consumer downtrading – particularly into its higher-margin white-label products. Following in line with the second quarter (Q2) and 1H25 results, CIMB has kept its FY2025-FY2027 earnings forecasts, "Buy" call, and RM2.15 target price. The valuation is based on 30 times price-to-earnings for calendar year 2026, representing a 20 per cent discount to the company's historical average since its discount reflects weak consumer sentiment under current inflationary pressures. The broker continues to favour Mr DIY for its defensive sales mix, leadership position, and solid balance sheet, with RM283 million net cash at the end of 2Q25. Dividend yields are projected at 3.3 per cent to 3.9 per cent based on an 80 per cent payout ratio. Overall, CIMB Securities has maintained a "Buy" rating on Mr DIY, with an unchanged target price of RM2.15. Hong Leong Investment Bank Bhd (HLIB) said that to date, Mr DIY has added 70 net new stores, predominantly under its core Mr DIY brand, representing 36 per cent of its full-year target of 190 openings and marginally trailing its internal run rate. It added that the company remains confident of meeting the target, citing an accelerated rollout in the coming quarters. Expansion priorities are focused on enlarging the store footprint, optimising revenue per square foot, and driving operational efficiency. Similarly, HLIB has maintained a "Buy" call on Mr DIY, with an unchanged target price of RM2.30. "We remain optimistic on the group's strategy of store expansion to defend its market share as the leading home improvement retailer," it said. Meanwhile, RHB Research said the gross profit margin expansion for Mr DIY is sustainable on favourable foreign exchange and increasing bargaining power capitalising on the trade war situation. "On the other hand, the group is working on right-sizing the staff count by lifting productivity and believes there is more room for improvement. In addition, utilisation rates of the automated warehouses have picked up progressively. These efficiency enhancement efforts should help to mitigate the rising opex from various reform measures," it added.
New Straits Times
17-07-2025
- Business
- New Straits Times
Ramssol backs loss-making subsidiary to deliver US$1mil profit post disposal
KUALA LUMPUR: Ramssol Group Bhd is backing its loss-making subsidiary, Rider Gate Sdn Bhd, to deliver a profit after tax of at least US$1 million following the disposal of a 40 per cent stake to NASDAQ-listed SAGTEC Global Ltd. The company clarified that the profit guarantee applies specifically to Rider Gate and not Ramssol, correcting an earlier announcement made on July 14. "Ramssol warrants and guarantees that Rider Gate shall deliver a profit after tax of no less than US$1 million in the following one full financial year after completion," it said in a stock exchange filing. The clarification comes after Bursa Malaysia requested additional information on the terms of the proposed disposal, which involves Ramssol receiving shares in SAGTEC in exchange for the 40 per cent equity interest. Rider Gate posted a net loss after tax of RM283,722 and a net liability of RM351,818 for the financial year ended Dec 31, 2024, while SAGTEC recorded a net profit of RM6.93 million and net assets of RM17.38 million. Ramssol stated that while the share sale agreement includes the profit guarantee, it does not contain any clause specifying enforcement mechanisms should the target not be achieved. "SAGTEC is entitled to pursue any legal remedy that they see fit if the profit guarantee is not met. However, the parties have mutually agreed to operate based on a trust-based commercial relationship and understanding between themselves," it said. The company said it considers the target achievable, citing Rider Gate's commercialisation since January 2025. "With more than 150 registered dealers and the potential to grow its network to 1,000 dealers within the first year of launch, the company is of the view that the profit guarantee is realistic," it added. Ramssol highlighted that there are no liabilities, including contingent liabilities, remaining with the group following the disposal, and no guarantees were extended to either SAGTEC or Rider Gate. The fair market value of Rider Gate's software platform is estimated between RM24.26 million and RM29.49 million, based on a valuation by Strategic Capital Advisory Sdn Bhd using the discounted free cash flow to firm method.
New Straits Times
28-05-2025
- Business
- New Straits Times
PPB posts higher net profit of RM375.83mil in 1Q25
KUALA LUMPUR: PPB Group Bhd's net profit rose to RM375.83 million in the first quarter ended March 31, 2025 (1Q 2025) from RM337.17 million in 1Q 2024, while its revenue also increased to RM1.35 billion in 1Q 2025 from RM1.29 billion previously. In a filing with Bursa Malaysia today, the group attributed its performance to higher contributions from Wilmar International Ltd, which increased to RM283 million in 1Q 2025 from RM266 million previously. PPB owns an 18.8 per cent equity interest in Wilmar, one of Asia's largest integrated agribusiness groups. "At the same time, core business segments recorded a 25 per cent increase in profit to RM127 million in 1Q 2025 (1Q 2024: RM102 million)," it said. On prospects, it said the grain and agribusiness segment will continue to closely monitor global grain prices and adopt prudent sourcing strategies, given the commodity market's vulnerability to adverse weather conditions in key grain-producing regions and evolving government policies. "These challenges are further compounded by heightened global uncertainties and economic pressures arising from the escalation of United States tariff measures. "Nonetheless, the group remains committed to upholding high product quality by leveraging its technical expertise and delivering reliable customer service. We are confident in our ability to remain resilient and deliver a satisfactory performance in 2025," it added. Meanwhile, PPB said the consumer products segment will continue to expand its product range and strengthen its market presence to enhance distribution efficiency amid rising operating costs. "Supported by resilient domestic household spending, a well-established distribution network and robust logistics infrastructure, the segment is well-positioned to respond effectively to evolving market demand and is expected to deliver a satisfactory performance in 2025," it said. — BERNAMA TAGS: PPB, result, 1Q 2025, Wilmar
New Straits Times
16-05-2025
- Business
- New Straits Times
MARKET PULSE AM MAY 16, 2025 [WATCH]
KUALA LUMPUR: News on the latest moves on the stock and crypto markets. Bursa Malaysia opened on a positive note Friday, as investors looked ahead to the release of Malaysia's first-quarter GDP data later in the day. The index is anticipated to trade within the 1,570 to 1,580 range throughout the day. In early trading, Fibromat was among the most actively traded stocks, rising by about six per cent to 54 sen. The gain followed news that its subsidiary secured a contract worth RM283 million for erosion control works in Kelantan. In the cryptocurrency market, Bitcoin is trading around RM444,586 level, while Ethereum is at approximately RM10,930. That's it for Market Pulse.
Malaysian Reserve
24-04-2025
- Business
- Malaysian Reserve
IJM acquires 50% stake in JRL Group for RM283m to drive UK expansion
IJM Corporation Bhd has acquired a 50% stake in financially troubled UK construction firm JRL Group Holdings Ltd for £50 million (approximately RM283 million), marking a bold expansion into the UK's competitive and inflation-hit building sector. The deal, completed via the subscription of new ordinary shares, gives IJM access to JRL's £1.45 billion (RM8.49 billion) order book and a vertically integrated operation comprising 14 specialist divisions. While JRL has faced industry-wide headwinds including rising construction costs and labour shortages, IJM sees the partnership as a long-term strategic move to deepen its footprint in the UK and diversify its earnings base. 'The completion of this acquisition marks a significant advancement in IJM's UK growth strategy,' said IJM Group CEO and MD Datuk Lee Chun Fai. 'JRL's strong project delivery credentials, specialised technical expertise and solid order book enhance our construction capabilities… aligning with IJM's long-term plans in the UK market.' Founded in 1996, JRL has delivered complex urban projects across the UK and is currently working on Phase 2 of Royal Mint Gardens — known as 88 Royal Mint Street — a mixed-use scheme that includes a 463-room Wilde Aparthotel and 79 residential units. JRL was also the contractor for Phase 1 of the development, completed in 2020. Though not explicitly framed as a rescue, JRL's need for recapitalisation has been clear. IJM's investment will strengthen JRL's balance sheet and help it deliver on a growing pipeline. JRL MD John Reddington called the partnership a major milestone, saying, 'Finalising this partnership marks a major milestone for JRL, built on mutual trust developed over years of collaboration… Together, we are well-positioned to unlock new opportunities and drive the next phase of growth in the UK.' The acquisition dovetails with IJM Land's property development ambitions in the UK, including its Innova joint venture with Network Rail Property, targeting rail-adjacent sites across London with a projected gross development value of RM17 billion. The collaboration is expected to benefit directly from JRL's ability to deliver complex infrastructure works, including over live rail corridors. JRL has also expanded into development, with some 2,400 build-to-rent and co-living units in the pipeline, and a gross development value of RM4.58 billion. Combined with IJM's other UK assets such as 25 Finsbury Circus and The Wheat Quarter in Hertfordshire, the move marks a clear step in building a full-spectrum presence across construction, development and recurring-income properties in a mature market. While the acquisition carries short-term risks tied to JRL's financial health, IJM is betting on synergy, technical alignment, and the long-term value of being embedded in a strategically important market. — TMR
