Latest news with #RM5.1bil
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
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
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
21-05-2025
- Business
- The Star
S P Setia first-quarter earnings at RM89mil
S P Setia president and chief executive officer Datuk Choong Kai Wai. PETALING JAYA: Property developer S P Setia Bhd recorded a profit before tax of RM141mil and a net profit of RM89mil for the first quarter ended March 31, 2025 (1Q25), mainly attributable to operational efficiency and effective cost management. For 1Q25, S P Setia posted a revenue of RM771mil as it continued to demonstrate financial resilience through delivering value to shareholders while also continuing to reduce borrowings by another RM156mil. This led to a net gearing ratio of 0.35 times that, on a quarter-to-quarter basis, aligned with the company's debt reduction strategies. 'Our financial performance during the quarter underscores our continued efforts, persistence and implemented strategies as we adjust to the current market needs and conditions,' S P Setia's president and chief executive officer Datuk Choong Kai Wai said in a statement. 'Despite the market volatility, we will continue to leverage our diversified portfolio while optimising our capital efficiency and expanding our presence across high-growth segments,' he said. He added that the company remains vigilant, monitoring market developments to manage potential impacts effectively. S P Setia would be rolling out RM5.1bil of property projects and RM300mil of planned industrial launches for the financial year ending Dec 31, 2025 (FY25) as the company continues to accelerate the portfolio of catalytic township developments, eco-industrial parks, strategic partnerships, land monetisation and capitalising on value creation across its key growth corridors. For overseas projects, the company's recently launched ATLAS Melbourne, with an estimated gross development value (GDV) of A$886.7mil (RM2.7bil), has shown continued momentum in contribution to overall sales, while in Vietnam, new residential launches have been scheduled within the successful developments of EcoLakes in FY25. The company also remains committed to achieving its RM4.8bil sales target for FY25 leveraging on an established reputation as one of the top-listed sustainable, master planned township developers in Malaysia. For FY24, the company recorded RM5bil against a target of RM4.4bil. For 1Q25, it has secured RM718mil in sales, with local projects contributing RM489mil or two-thirds of the total sales, and international projects contributing RM229mil. It noted that for the domestic market, RM284mil in sales was secured from the central region and RM189mil from the southern region. As of March 31, 2025, the company had an unbilled sales pipeline of RM3.8bil with 42 ongoing projects. It has a remaining landbank of 5,364 acres and an effective remaining GDV of RM120.1bil.
The Star
21-05-2025
- Business
- The Star
S P Setia remains resilient in 1Q25, aims for RM4.8bil in FY25 sales
S P Setia president and chief executive officer Datuk Choong Kai Wai PETALING JAYA: Property developer S P Setia Bhd recorded a profit before tax of RM141mil and a net profit after tax of RM89mil for the first quarter ended March 31, 2025 (1Q25), mainly attributable to operational efficiency and effective cost management. For 1Q25, S P Setia posted revenue of RM771mil as it continued to demonstrate financial resilience through delivering value to shareholders while also continuing to reduce borrowings by another RM156mil leading to a net gearing ratio of 0.35 times that, on a quarter-to-quarter basis, aligns with the company's debt reduction strategies. 'Our financial performance during the quarter underscores our continued efforts, persistence and implemented strategies, as we adjust to the current market needs and conditions,' S P Setia's president and chief executive officer Datuk Choong Kai Wai said in a statement. 'Despite the market volatility, we will continue to leverage on our diversified portfolio, while optimising our capital efficiency, and expanding our presence across high-growth segments,' he said, adding that the company remains vigilant amidst the fluctuation of market challenges and would continue to monitor the developments, assess potential impacts on its operations and evaluate appropriate strategies to mitigate any adverse effects. S P Setia would be rolling out RM5.1bil of property projects and RM300mil of planned industrial launches for the financial year ending December 31, 2025 (FY25) as the company continues to accelerate the portfolio of catalytic township developments, eco-industrial parks, strategic partnerships, land monetisation, and capitalising on value creation across its key growth corridors. For overseas projects, the company's recently launched ATLAS Melbourne, with an estimated gross development value (GDV) of A$886.7mil (RM2.7bil), has shown continued momentum in contribution to overall sales while in Vietnam, new residential launches have been scheduled within the successful developments of EcoLakes in FY25. The company also remains committed to achieving its RM4.8bil sales target for FY25 leveraging on an established reputation as one of the top-listed sustainable, master planned township developers in Malaysia. For FY24, the company recorded RM5bil against a target of RM4.4bil. For 1Q25, it has secured RM718mil in sales with local projects contributing RM489mil or two-thirds of the total sales and international projects contributing RM229mil. It noted that for the domestic market, RM284mil in sales was secured from the central region and RM189mil from the southern region. As of March 31, 2025, the company has an unbilled sales pipeline of RM3.8bil with 42 ongoing projects. It has a remaining landbank of 5,364 acres, and an effective remaining GDV of RM120.1bil.
