Latest news with #RM400mil
The Star
13 hours ago
- Business
- The Star
Pavilion-REIT forecast to continue solid showing
HLIB Research said the outlook for Pavilion-REIT for financial year 2025 remains positive. PETALING JAYA: Analysts expect stronger earnings for Pavilion Real Estate Investment Trust 's (Pavilion-REIT) in the second half of this year (2H25) as the group's growth continues to gain momentum. The group reported its second quarter of financial year 2025 (2Q25) core net profit of RM78.7mil earlier this week, down 13% quarter-on-quarter and up 17.2% year-on-year, bringing 1H25's total to RM169.1mil, which was in line with most consensus expectations. Hong Leong Investment Bank Research (HLIB Research) said in a report the outlook for Pavilion-REIT for financial year 2025 (FY25) remains positive, underpinned by sustained tourism-driven footfall at key malls such as Pavilion Kuala Lumpur and Pavilion Elite, which contributed about 67% of 1H25 revenue. 'This, along with management's low to mid-single-digit rental revision guidance, supports our view of a resilient FY25 performance,' it added. HLIB Research noted that Pavilion-REIT's management had observed a notable increase in tourist footfall at Pavilion KL and Pavilion Elite over the past two to three weeks. 'This aligns with our 2H25 outlook, where we expect sustained high footfall at these prime malls supported by Visit Malaysia 2026 initiatives and the mutual visa exemption between Malaysia and China,' the research house said. HLIB Research, which maintained a 'buy' call on the stock with an unchanged target price of RM1.77, said it remains positive on the REIT, underpinned by a favourable tourism outlook, which is expected to boost footfall and spending in key assets like Pavilion KL and Pavilion Elite, reinforcing its growth momentum. CGS International Research (CGSI Research) said it continues to see Pavilion-REIT as a proxy for growing private consumption, an uptick in tourism and accelerated earnings expansion from Pavilion Bukit Jalil (PBJ). The research house said the group is expected to post higher 2H25 earnings backed improving occupancy and earnings from PBJ, incremental contributions from the newly acquired Banyan Tree Kuala Lumpur hotel and Pavilion Hotel Kuala Lumpur as well interest savings following the overnight policy rate cut on July 9. On key takeaways from Pavilion-REIT's 2Q25 briefing earlier this week, CGSI Research said management highlighted that PBJ's valuation has been maintained at RM2.2bil following a recent revaluation exercise by consultants Knight Frank and KPMG. Therefore, the outstanding acquisition consideration remains unchanged at RM400mil (with RM1.8bil already paid), which is due next month. 'We believe this could lead to a modest increase in gearing, as it draws down additional debt to fund the remaining consideration,' the research house said. CGSI Research reiterated an 'add' call on the REIT with a target price of RM1.79 per share. RHB Research, meanwhile, kept a 'buy' call with a new target price of RM2 per share. It said Pavilion-REIT's 1H25 results were in line with expectations and supported by the solid performance of PBJ. According to the research house, Pavilion REIT's stands to benefit from its robust asset quality, the recovery in tourism, and exposure to floating-rate debt (88%), which makes it a beneficiary of recent interest rate cuts. On the REIT's outlook, RHB Research said it expects 3Q25 retail sales to remain soft, due to the absence of festival-related spending, before picking up in the seasonally stronger 4Q25.
The Star
2 days ago
- Business
- The Star
Diversification likely to buoy CapitaLand
Kenanga Research anticipates the trust's positive trajectory to continue into FY25 and FY26. PETALING JAYA: Analysts are positive on Capitaland Malaysia Trust 's (CLMT) diversification efforts, which are expected to enhance earnings visibility and help mitigate retail sector volatility. Maybank Investment Bank Research (Maybank IB) said CLMT's ongoing share placement exercise – aimed at raising up to RM250mil to fund acquisitions and reduce debt – will increase the company's industrial and logistics exposure to 7.9%, up from 2.8% of its assets under management (AUM). 'Proceeds from the placement (to be completed in the third quarter of financial year 2025 [3Q25]) is expected to partly refinance borrowings for RM400mil of completed and pending logistics/industrial acquisitions, including Glenmarie Distribution Centre (retrofitting completed in January 2025), Senai Airport City, and upcoming assets in Elmina Business Park and Nusajaya Tech Park,' it said. The research house expects CLMT's gearing to fall from 44.1% (post-acquisitions) to 39.6% post-placement. Moving forward, Maybank IB forecasts full contributions from the logistics assets beginning in 3Q25, with annualised gross rental income of RM20mil, or about 4% of revenue for the financial year ending December 2026 (FY26). CLMT also benefitted from positive rental reversions, and full-quarter income from Glenmarie Distribution Centre (from January 2025) and initial contributions from Senai Airport City from June. Meanwhile, Kenanga Research anticipates the trust's positive trajectory to continue into FY25 and FY26, given the promising developments in Penang. 'The group will continue its direction in acquiring and expanding its industrial segment, with a focus on logistics assets as part of its strategy to diversify portfolio income streams. 'Currently, industrial assets make up less than 5% of the group's net property income (NPI). 'It aims to increase the composition mix from its industrial segment to 20% of its total AUM in approximately three years,' the research house said. Kenanga Research kept its FY25 earnings forecast for CLMT, noting that the ongoing share placement will likely contribute less than 2% of the group's total NPI. However, it increased its FY26 earnings estimate by 8% to incorporate income contribution from the newly acquired Senai Airport City assets and interest savings from the proposed placement. That said, the resulting dilution is expected to reduce CLMT's FY26 net dividend per unit to 4.7 sen, down from five sen.
The Star
15-07-2025
- Business
- The Star
Malaysia to be focus of DayOne's plans
ISKANDAR PUTERI: Global data centre operator DayOne is deepening its long-term commitment to Malaysia by positioning the country as a key hub in the regional digital supply chain, with major investments centred on Johor. DayOne Data Centers Malaysia Sdn Bhd general manager Jimmy Yan said the company is currently developing two hyperscale campuses in Nusajaya Tech Park and Kempas Tech Park, each covering hundreds of acres and targeting a combined capacity of up to 500 megawatts. 'Our goal is not just to build data centres, but to embed ourselves in Malaysia's digital economy by localising our supply chain, developing skilled local talent, and building long-term partnerships with both federal and state governments,' Yan said. According to Yan, the project is already generating significant economic spillover, with an estimated RM400mil in supply-chain investments already. — Bernama
The Star
15-07-2025
- Business
- The Star
Econpile likely to surpass FY26 job-win target
PETALING JAYA: Piling specialist Econpile Holdings Bhd is expected to beat its new job wins target of RM400mil for its financial year ending June 30, 2026 (FY26) with the rollout of more government infrastructure, data centre, and industrial building projects, analysts say. Barely two weeks into its new financial year, analysts said the group is off to a good start with its second job win, a RM98.2mil contract from Eastmont Sdn Bhd to undertake bored piling works, basement construction and pile cap works within a proposed industrial development in Kapar, Klang. CGS International Research (CGSI Research) said in a report that with the new job, Econpile's FY26 new wins already total RM125mil, which is 31% of its target of RM400mil, bringing its order book to RM580mil as of last month. 'This is assuming revenue recognition of RM90mil in the fourth quarter of its FY25 (4Q25).' The gross profit margin for the latest project, which is estimated at 10%, is similar to Econpile's existing piling residential projects, the research house noted. On July 9, Econpile also announced a RM27mil piling and pile cap works contract from Bayu Melati Sdn Bhd for a proposed serviced apartment project with two 37-storey blocks in Selangor. CGSI Research said, 'More importantly, we believe the group's projects have no more lingering legacy issues.' Earlier this year, Econpile had faced some issues with a project in Mont Kiara, Kuala Lumpur, and road upgrading work in Pahang, which have since been gradually resolved. 'As such, we expect earnings to show some recovery in 4Q25, and then become more apparent in FY26 when recognition of most of its projects picks up steam,' the research house noted. CGSI Research reiterated an 'add' call on the stock with a target price of 46 sen per share. 'We like Econpile as a key beneficiary of a revival in government infrastructure spending as, according to the company, it has the largest number of bored pile machines in Malaysia currently.' Meanwhile, RHB Research said in a note to clients, 'Given that the majority of Econpile's contracts pertain to property development, the latest win indicates the group's comeback in the industrial space.' The research house estimated the group's current order book at RM570mil, while FY26 year-to-date job wins stand at RM125mil versus its full-year job win target of RM600mil. The group's tender book stands at about RM1bil, comprising jobs in both the private and public sectors. 'Profitability-wise, we expect the gross profit margin for this latest job to be between 5% and 8%,' it noted. RHB Research, which maintained a 'buy' call on Econpile, set a new target price of 48 sen per share. The research house added that the icing on the cake would come from the group's securing newer packages from infrastructure jobs with higher margins such as the Penang Light Rail Transit or the upcoming Johor Baru Elevated Autonomous Rapid Transit projects. The research house is also upbeat about the group's track record in infrastructure jobs compared with other piling contractors.
The Star
10-07-2025
- Business
- The Star
Fibre network probe: MACC seizes RM620mil worth of assets, including golf club, luxury cars
SHAH ALAM: The Malaysian Anti-Corruption Commission (MACC) has seized several properties and other assets estimated to be worth over RM620mil following an investigation into the approval of a bank loan to a company involved in a fibre network development project valued at approximately RM400mil in 2012, Sinar Harian reports. Sources told the Malay language daily that MACC had recorded statements from nine witnesses to aid the investigation. "The seized properties include bungalows, condominiums, office premises, plots of land, and a golf club located around the Klang Valley, valued at about RM620mil. The suspect is also believed to be a shareholder in the golf club," the source told Sinar Harian. Additionally, four luxury vehicles worth approximately RM2mil were also seized. Further, the source revealed that 72 accounts, comprising personal and company accounts amounting to about RM390,000, have been frozen. MACC special operations senior director Datuk Mohamad Zamri Zainul Abidin confirmed the information when contacted, adding that a Declaration of Assets Notice under Section 36(1) of the MACC Act 2009 will be issued to the suspect and 23 other individuals starting July 10, 2025. On June 30, MACC remanded a company director, a man with the title Datuk Wira in his 50s, suspected of involvement in money laundering amounting to approximately RM75mil. The suspect is believed to have undertaken these actions in 2012 to secure a loan approval of RM400mil for a fibre network development project. Initial investigations by MACC suspect that the RM75mil was channeled into the suspect's company.
