Latest news with #RM300mil
The Star
3 days 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
S P Setia to rebound on upcoming launches
PETALING JAYA: Despite mixed reactions to S P Setia Bhd's financial results for the first quarter of financial year ended March 31, (1Q25), there is broad consensus the property developer is poised to perform better from 2Q25 onwards, driven by more property launches. Analysts who met with the company's management following the release of the 1Q25 results noted that, while views were mixed, upcoming quarters are expected to show improvement. RHB Research, which maintained a 'buy' call on the stock with an unchanged target price of RM1.72 a share, said earnings missed expectations due to slower property launches and sales, resulting in a muted quarter. The research house said the bulk of S P Setia's property launches are scheduled for the next two quarters. Earnings are expected to improve from sales of industrial land in Setia Alaman in Selangor, the recognition of land sales in Taman Pelangi, Johor, and newly launched projects in Australia and Vietnam. Meanwhile, MIDF Research kept a 'neutral' call on the stock and revised its target price to RM1.17 from RM1.21. The research house said management remains committed to achieving a new sales target of RM4.8bil on the back of the planned launch of RM5.1bil worth of property developments and RM300mil in industrial properties.
The Star
26-05-2025
- Business
- The Star
Sarawak FTES to cost RM300mil in first year, says state education minister
State Education, Innovation and Talent Development Minister Datuk Seri Roland Sagah (seated centre) speaking to reporters at the Sarawak Legislative Assembly media room on Monday (May 26). KUCHING: Sarawak's free tertiary education scheme (FTES) is estimated to cost RM300mil in its first year of implementation, says Datuk Seri Roland Sagah. The state Education, Innovation and Talent Development Minister estimated that about 10,000 students were eligible for the scheme when it starts next year. "In the following year, the amount will be more as the number of students increases," he told a press conference after delivering his winding-up speech at the Sarawak Legislative Assembly on Monday (May 26). Sagah also said over 9,000 eligible Sarawakian students at institutions of higher learning in Malaysia had received free laptops under an initiative launched last year. Additionally, he said some 3,000 students had received book vouchers worth RM500 to date. The free laptop and book voucher assistance is meant for Sarawakian students from families with a per capita income of RM1,500 and below, who are studying full-time at public or private higher learning institutions across Malaysia. In his speech earlier, Sagah said FTES was only for Sarawakian students at state-owned institutions comprising Swinburne University of Technology Sarawak, Curtin University of Malaysia, University of Technology Sarawak and i-CATS University College. He said the scheme would first focus on undergraduate degrees in STEM-related fields, law, medicine, accounting, finance and psychology. "However, there is other financial assistance in the form of scholarships or loans provided by Yayasan Sarawak to cater for any other courses, so nobody is left out," he said. At this point, Chong Chieng Jen (DAP-Padungan) stood to seek clarification on why the scheme only covered certain courses instead of being extended to all courses. In reply, Sagah said the scheme focused initially on the talents required by Sarawak in the next few years. "We must spend wisely. It doesn't mean that we offer it for these courses and stop at that. "We will look at it and this is the first step," he said.
The Star
22-05-2025
- Business
- The Star
SP Setia to see better performance ahead
PETALING JAYA: Despite mixed reactions to property developer SP Setia Bhd 's first quarter ended March 31, 2025 (1Q25) financial results released on Wednesday, there is broad consensus that the company should perform better from 2Q25 onwards on more property launches. Analysts who met the company's management following the release of its 1Q25 results were mixed in their reactions but noted that the upcoming quarters would see improvement. RHB Research, which maintained a 'buy' call on the stock with an unchanged target price of RM1.72, said the company missed earnings expectations as slower property launches and sales resulted in a largely muted quarter. Keeping its earnings forecast unchanged for now, it said management shared that the bulk of property launches should come in the next two quarters, with earnings to pick up and improving from industrial land sales in in Setia Alaman, recognition of the Taman Pelangi land sale, and newly launched projects in Australia and Vietnam. MIDF Research, which maintained a 'neutral' call on the stock and revised the target price to RM1.17 from RM1.21, said management remains committed to meet new sales target of RM4.8bil on the back of planned launch of RM5.1bil of property development and RM300mil industrial property. TA Securities believes the sales target for the financial year ending December 31, 2025 (FY25) can be achieved as year-to-date sales including for bookings have reached 23% of target and the planned roll out of new launches, with a fifth of the target to be driven by land sales together with potential upside from the finalisation of additional land transactions from joint ventures in Tanjung Kupang and Setia Alaman. The brokerage has not made changes to FY25 to FY27 earnings forecast. It said the management has viewed 1Q25's results 'as a temporary blip', also confirmed that plans for a diversified real estate investment trust (REIT) comprising malls, offices, schools, convention centres, hotels and industrial properties remained in place with an expected valuation of RM1.5bil or more. It noted that an advisor has been appointed, and the REIT listing targeted for the first half of next year. 'We estimate that retaining a 40% to 60% stake in the REIT could generate RM600mil to RM900mil in cash proceeds, strengthening SP Setia's liquidity for future growth,' it said. It has maintained a 'buy' call with a revised target price of RM1.97 from RM1.92. HLIB Research has also maintained a 'buy' call on the stock with an unchanged target price of RM1.80, viewing that results were in line with stronger quarters ahead supported by the strategic portfolio restructuring through monetising land and assets, debt reduction and cost optimisation to enhance financial resilience, with new revenue streams providing additional growth levers anchored by core property development business.
The Star
16-05-2025
- Business
- The Star
Johor set to receive RM300mil boost to digital network
Endless options: Fahmi (centre) visiting a National Information Dissemination Centre in Taman Sri Skudai, Johor Baru. — Bernama JOHOR BARU: The Federal Government will allocate RM300mil over the next two years to enhance digital infrastructure, expand 5G coverage and strengthen cybersecurity awareness in Johor, especially in areas linked to the Johor-Singapore Special Economic Zone (JS-SEZ), says Datuk Fahmi Fadzil. The Communications Minister said the initiative, carried out in collaboration with the Malaysian Communications and Multimedia Commission (MCMC) and the Johor government, is aimed at supporting the state's digital transformation and economic growth. 'This is in line with the Federal Government's aspiration to help states like Johor improve Internet access, accelerate digitalisation efforts and raise public awareness on online safety and cybersecurity,' he said. He added that development would prioritise high-impact areas, such as public transport hubs, industrial zones, data centre projects, as well as tourist attractions and stadiums – particularly around the JS-SEZ. Fahmi said this after an exchange of memorandum of understanding (MoU) between the MCMC and the Johor government at Menara MBJB here yesterday. The state government was represented by Johor state secretary Tan Sri Dr Azmi Rohani and MCMC by its executive chairman Tan Sri Mohamad Salim Fateh Din. The ceremony was witnessed by Johor Regent Tunku Mahkota Ismail Ibni Sultan Ibrahim, Johor Mentri Besar Datuk Onn Hafiz Ghazi and Fahmi. According to Fahmi, the first phase of the programme would focus on improving mobile network coverage and expanding 5G infrastructure in key JS-SEZ areas. 'The state government will assist with land matters, and we will also coordinate with local authorities to fast-track implementation,' he said. Fahmi said MCMC will also work with the state to install public WiFi access points under the Johor Safe City initiative, aimed at providing secure Internet access for both residents and visitors. He added the initiative further supports efforts to digitalise public and private sector services through the adoption of artificial intelligence and smart technology applications. Meanwhile, Johor works, transportation, infrastructure and communication committee chairman Mohamad Fazli Mohamad Salleh said the MOU aligns with the state's broader Smart City and Safe City initiatives. 'As part of Safe City efforts, we will expand closed-circuit television (CCTV) coverage in the Greater Johor Baru area from the current 1,251 units. 'Within the Johor Baru City Council (MBJB) alone, we plan to install an additional 3,000 units,' he said. Mohamad Fazli said Johor had identified 1,169 industrial hotspots within the JS-SEZ that require digital infrastructure upgrades, especially transitioning from 4G to 5G. 'As of now, Johor's 4G coverage stands at 99.9%, with Johor Baru at 99.99%. For 5G, Johor Baru has reached 94.8%, Kulai 93.7% and the state's overall coverage is at 84%,' he said. Johor, he noted, has been recognised as the fastest-growing data centre hub in South-East Asia, with total capacity expected to exceed 2.7GW by 2027.
