Latest news with #RM3bil
The Star
3 days ago
- Business
- The Star
Dayang poised to reap profit margin from new AWB purchase
PETALING JAYA: Dayang Enterprise Holdings Bhd could reap a profit margin of about one-fifth from the purchase of a new accommodation work boat (AWB). As for daily charter rate, the group's management anticipates it be around RM80,000. Dayang intends to acquire a new 60-tonne AWB with a capacity of 239 passengers at about RM130mil to replace an ageing vessel. The boat will be constructed by Shin Yang Group Bhd with completion targeted by the third quarter of financial year 2027 (3Q27). ]The acquisition will be financed through a 60:40 equity-to-debt ratio. 'Management anticipates a daily charter rate of circa RM80,000 and expects a 22% profit margin from the AWB. 'With full utilisation projected for 2028, we see the vessel acquisition as a strategic move to enhance Dayang's competitiveness in tender bids and optimise operational efficiency,' Phillip Capital Research said in a report. Despite a bad monsoon in the 1Q25, the research firm expects vessel utilisation rate to improve in the 2Q25 with Dayang's fleet operating at full capacity. Meanwhile subsidiary Perdana Petroleum Bhd 's fleet has been operating at 80% since April this year. According to the research firm, Dayang's current order book stood at RM5.1bil (versus RM5.2bil in 4Q24), and revenue recognition is expected to accelerate in the coming quarters following the completion of the maintenance, construction, and modification contract transition phase in March. 'We expect Dayang's strong order book will keep the group busy over the next four years until 2029. 'The RM3bil worth of offshore platform decommissioning tender – covering 31 platforms across Sabah, Sarawak, and Peninsular Malaysia over three years – is currently under commercial evaluation. 'We gathered that Sapura Energy Bhd is one of the bidders for the Sabah and Peninsular Malaysia areas.' The research firm said Dayang's management noted that the decommissioning contract allows for operational flexibility. Given its strong local presence, Dayang is well-positioned to secure the Sarawak package, it added. Trading ideas: Alliance, LSH, LYC, 7-Eleven, RHB, Master Tec, Mah Sing, CIMB, Capital A, SKP, Yinson, Berjaya, BAT, Bintulu, Bank Islam
The Star
7 days ago
- Business
- The Star
Strong project pipeline boosts Kerjaya Prospek's outlook for FY25
PETALING JAYA: The market outlook for construction and property player Kerjaya Prospek Group Bhd remains solid after the company reported a 37% jump in net profit on the back of a 40% surge in revenue for the first quarter ended March 31, (1Q25) compared with the same quarter a year ago. The company also declared a first interim dividend of three sen per share payable on June 30. Several analysts have raised their target price on the stock following a meeting with Kerjaya's management, which was upbeat on achieving the company's target of RM1.6bil in new projects for this year, supported by year-to-date contract wins of RM870.3mil and an order book of RM4bil. Kenanga Research, which maintained an 'outperform' call on the stock and revised the target price to RM2.30 from RM2.10, said the company, in partnership with Samsung C&T Corp, expects decisions on three data centre projects worth RM3bil in 3Q25, in addition to listed subsidiary Eastern & Oriental Bhd 's planned launch of property projects worth RM2bil this year. The research house said the company's property arm can expect its 55%-owned Rivanis redevelopment project located in Butterworth, Penang, to anchor future earnings. BIMB Research said the higher interim dividend compared with an expected 2.5 sen reflected the management's confidence in its earnings outlook and strong cash position.
The Star
29-05-2025
- Business
- The Star
Project pipeline boosts Kerjaya Prospek's outlook
PETALING JAYA: The market outlook for construction and property player Kerjaya Prospek Group Bhd remains solid after the company reported a 37% jump in net profit on a 40% surge in revenue for the first quarter ended March 31, 2025 (1Q25) compared to the same quarter a year ago that were largely in line with expectations. The company also declared a first interim dividend of three sen per share payable on June 30. Several analysts have raised their target price on the stock following a meeting with the Kerjaya's management, who were upbeat on achieving the company's target of RM1.6bil of new projects for the financial year ending December 31, 2025 (FY25) supported by year-to-date contract wins of RM870.3mil and an outstanding orderbook of RM4bil. Kenanga Research, which maintained an 'outperform' call on the stock and revised the target price to RM2.30 from RM2.10, said the company in partnership with Samsung C&T Corp expects decisions on three data centre projects worth RM3bil in 3Q25, in addition to listed subsidiary Eastern & Oriental Bhd 's planned RM2bil launch of property projects this year. It said the company's property arm can expect its 55%-owned Rivanis redevelopment project located in Butterworth, Penang to anchor future earnings. The research house has a neutral view of the company's 49% stake acquisition in Aspen Vision Land Sdn Bhd for RM98mil announced recently given the potential future capital commitments that could offset construction opportunities and property earnings. BIMB Securities said the higher first interim dividend declared compared to an expected 2.5 sen reflected the management's confidence in its earnings outlook and strong cash position. The research house expects a dividend payout of 12 sen for FY25, which translates to a dividend yield of 5.6% from the stock's last closing price. It has maintained a 'buy' call on the stock with an unchanged target price of RM2.59. TA Securities, which maintained a 'buy' call but revised its target price to RM2.97 from RM2.72, said the company have plans to expand its property development business through a capital expenditure allocation of RM550mil, with active scouting for landbank opportunities in Penang, the Klang Valley, and Johor backed by robust net cash position of RM336.7mil as at end-March 2025. RHB Research said earlier-than-expected wins of industrial jobs such as data centres before mid-FY25 and quicker-than-expected launches of the new phases of Aspen Vision City, which has an estimated gross development value of RM5bil on 14.16-ha of land could be re-rating catalysts for the stock, in which the brokerage has maintained a 'buy' call but revised upwards the target price to RM2.80 from RM2.67.
The Star
20-05-2025
- Business
- The Star
China's Haitian Group breaks ground on RM3bil manufacturing hub at Eco Business Park II
Haitian Group chairman Zhang Jian Ming (fifth from left) and Eco World Development Group Bhd president and chief executive officer Datuk Chang Khim Wah (fourth from left) at a groundbreaking ceremony that saw China-based Haitian Group breaking ground on Phase 1 of their regional manufacturing facilities situated at Eco Business Park II, Iskandar Malaysia. With them are (from left) Haitian Group Research Institute Dean Fu Nan Hong, Malaysia main distributor Chin Fook Lai, Haitian overseas integrated supply chain director Shi Nan Da, Haitian Machinery overseas department general manager Xiang Lin Fa, Haitian Group finance division director Chen Yun and Haitian Machinery Malaysia general manager Zhong Sai Er. PETALING JAYA: The Haitian Group, a leading industrial equipment manufacturer from China, has broken ground on Phase 1 of their regional manufacturing facilities situated at Eco Business Park II (EBP II), Iskandar Malaysia. In a statement, Eco World Development Group Bhd (EcoWorld Malaysia) said the 92-acre industrial site at EBP II was acquired by Haitian Machinery (Malaysia) Sdn Bhd in 2022 from Eco Business Park 2 Sdn Bhd, a wholly owned subsidiary of EcoWorld Malaysia. 'This is the Haitian Group's first project in Malaysia and apart from manufacturing facilities, the site will also house a research institute, employee dormitories and other amenities. 'The estimated total investment cost that the Haitian Group will be expanding on its planned facilities at the 92-acre site is approximately RM3bil.' Construction of Phase 1 is expected to be completed by the end of 2026 with production planned to start in 2027. Over the next five years, EcoWorld Malaysia said approximately 400 employees are expected to be employed at the facility, which will be producing sophisticated injection moulding machines and computer numerical control machines for the South-East Asian region. EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah said: 'This is a momentous occasion and the culmination of extensive and meticulous design and masterplanning by the Haitian Group to create a truly world-class manufacturing hub at EBP II. 'We are indeed privileged to have worked with them over the years to help realise their vision to expand their business in South-East Asia. Their decision to carry out not just high-tech manufacturing but also cutting-edge research at their facilities in EBP II will certainly contribute towards technology transfer, resulting in higher value jobs and increased business opportunities for Malaysians.'
The Star
07-05-2025
- Business
- The Star
South Korea presidential hopeful Han vows to create AI ministry
Outlining his first campaign pledge since he launched his presidential bid Friday, Han's campaign said he aims to boost cutting-edge AI semiconductor production and create a 1 trillion won (US$716mil/RM3bil) fund to nurture local talent and court overseas scientists as Korea strives to catch up with global peers. — AFP South Korea's former acting leader and current presidential hopeful Han Duck-soo vowed Wednesday to launch a new ministry to oversee the country's artificial intelligence strategies and science innovation if he wins the election. Outlining his first campaign pledge since he launched his presidential bid Friday, Han's campaign said he aims to boost cutting-edge AI semiconductor production and create a 1 trillion won (US$716mil/RM3bil) fund to nurture local talent and court overseas scientists as Korea strives to catch up with global peers. The "Ministry of AI Innovation Strategy' would integrate science and technology along with environment and AI policies, streamlining and relaxing regulations to help make AI a "central axis of national strategy,' his campaign said. Han, who currently has no affiliation with any party, is vying to represent the conservative camp even after the ruling People Power Party nominated Kim Moon-soo as its candidate on Saturday. Han's priority on AI shows he intends to emphasise his experience as a veteran policymaker and former trade and finance minister in a bid to consolidate support ahead of the June 3 presidential election. The main opposition Democratic Party's Lee Jae-myung holds a commanding lead in recent polls, with a 47% support rating. Han has 23%, while PPP candidate Kim has 13%, according to a survey conducted by JoongAng Ilbo newspaper and Gallup Korea on May 3–4. Some doubts over Lee's candidacy were cleared Wednesday when South Korea's high court delayed its first hearing on his election law violation case until June 18, ensuring he'll be able to run in the election. The snap election was triggered by former President Yoon Suk Yeol's impeachment and ouster over his bungled attempt to impose martial law in December. That debacle hangs over both conservative candidates, who were part of Yoon's cabinet. Kim won plaudits from conservatives for opposing Yoon's impeachment and refusing to apologise for the martial law decree, while Han apologised for the decree. The election comes at a critical time for Asia's fourth-largest economy as it faces slowing exports resulting from Donald Trump's sweeping tariffs campaign. Later Wednesday, Han and Kim are scheduled to meet for the first time since Han joined the race to discuss whether and how to unite their campaigns in a bid to rally conservative voters against Lee. Both have expressed their willingness to join hands, although the PPP leadership on Tuesday accused Kim of dragging his heals on unifying the campaigns as it aims to complete the process before the Sunday deadline for official candidate registration. Kim urged the party leaders to stop "interfering' with the discussions and let him take the lead as he seeks to generate his own momentum and jack up his support before ballot printing begins on May 25. – Bloomberg
