Latest news with #RM505mil
The Star
7 days ago
- Business
- The Star
SD Guthrie set for stable 2H25 on firm CPO prices
PETALING JAYA: SD Guthrie Bhd is expected to record steady performance in the second half ending Dec 31, 2025 (2H25), underpinned by firm palm oil prices despite a seasonally stronger harvest. In the second quarter of financial year 2025 (2Q25), the group posted a net profit of RM505mil, translating to a basic earnings per share of 7.30 sen. This was up from RM415mil, or six sen, in the same quarter a year ago. The group's revenue increased from RM4.97bil in 2Q24 to RM5.17bil in 2Q25. Cumulatively, SD Guthrie reported a net profit of RM1.07bil and revenue of RM9.99bil for 1H25, up from RM626mil and RM9.31bil, respectively, in the same period of last year. RHB Research stated that the group's earnings beat expectations, with core profits accounting for 62% to 70% of its and the street's FY25 forecasts. 'This was from lower-than-expected interest costs, higher-than-expected crude palm oil (CPO) average selling prices (ASPs) in Malaysia and Papua New Guinea, and stronger-than-expected downstream margins,' the research house said in a report. It maintained a 'buy' call on the stock with a higher target price of RM6.10 per share. RHB Research also raised its earnings forecasts for SD Guthrie by 21.8%, 15.1% and 15.5% for FY25 to FY27, respectively, citing higher ASP premiums in Papua New Guinea, lower interest rates and higher downstream margins. Meanwhile, Kenanga Research said the group's 1H25 core earnings amounted to about 63% of its and 59% of consensus full-year estimates. It noted that in 1H25, core net profit jumped to RM1.02bil. Looking ahead, the research house expects the group's 2H25 profit to remain healthy. Meanwhile, Kenanga Research forecasts CPO prices of RM4,100 and RM4,000 per tonne for FY25 and FY26, respectively. While labour costs are on the rise, healthy palm kernels yields are helping to keep overall costs manageable. Fresh fruit bunch output is also improving on a yearly basis, while fertiliser costs have declined thanks to a stronger ringgit. However, the downstream segment is expected to face weak demand and margins in FY25, with a modest recovery projected in FY26 amid subdued global economic growth. While SD Guthrie has yet to win any projects under the fifth large-scale solar (LSS5) programme, it is expected to continue bidding for future LSS projects and pursue direct supply agreements with buyers. That said, due to engineering, procurement, construction, and commissioning constraints over the next 12 to 18 months, meaningful solar contributions are only expected to begin in FY28. As for its industrial property segment, Kenanga Research expects development profits of RM20mil to RM30mil by FY27, with potential to grow to RM100mil to RM500mil in the following years. The research house kept a 'market perform' rating on SD Guthrie, with a higher target price of RM4.80. It also reaffirmed its CPO price forecast of RM4,100 per tonne in FY25 and RM4,000 per tonne in FY26.
The Star
08-08-2025
- Business
- The Star
SD Guthrie's shares rise on strong 2Q earnings
KUALA LUMPUR: Shares in SD Guthrie Bhd rose in early trade Friday after reporting better-than-expected financial results in the second quarter ended June 30 (2Q25). The plantation group rises 1.89%, or nine sen, to RM4.86 at 10.07 am, gaining more than 2.5% over the past month. SDG posted a net profit of RM505mil in 2Q25, up from RM415mil in the same quarter last year. It reported revenue of RM5.17bil compared to RM4.97bil in 2Q24. Over the six-month period, net profit came to RM1.07bil against RM626mil in 1HFY24, while revenue rose to RM9.99bil from RM9.31bil in the year-ago period. Hong Leong Investment Bank Research (HLIB Research) said SD Guthrie's 1H25 core net profit of RM1.06 bil, up 69%, exceeded expectations, making up 60.7% to 60.9% of both its and consensus full-year forecasts, driven mainly by stronger-than-expected Papua New Guinea (PNG) operations and lower finance costs. 'We raise our FY25-27 core net profit forecasts by 4.6%/4.3%/6.1%, mainly to account for CPO production cost at PNG operations and lower finance cost assumptions,' the research house said. HLIB Research has maintained its 'buy' rating on SD Guthrie with a higher target price of RM5.37, based on 21 times the revised FY26 core EPS of 25.6 sen. Meanwhile, RHB Research said SD Guthrie's 2Q25 core earnings beat expectations, rising 24% year-on-year but easing 8% quarter-on-quarter, with 1H25 core profit making up 62% to 70% of its and consensus' FY25 forecasts. The outperformance was driven by lower interest costs, higher-than-expected CPO average selling prices in Malaysia (from forward sales) and PNG, as well as stronger downstream margins. SD Guthrie declared an interim dividend of 7.8 sen, representing a 50% payout. RHB has maintained its 'buy' call on SD Guthrie, raising its SOP-based target price to RM6.10 from RM5.45 after increasing earnings forecasts by 21.8%, 15.1% and 15.5% for FY25F to FY27F. The upgrades stem from higher ASP premiums for PNG, lower interest rates, and improved downstream margins. Valuation remains attractive at 19.6 times 2026F P/E, compared with peers' range of 17 to 22 times.
The Star
07-08-2025
- Business
- The Star
US tariffs unlikely to impact SD Guthrie exports
SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha. KUALA LUMPUR: SD Guthrie Bhd does not expect any near-term impact from the US tariffs, says group managing director Datuk Mohamed Helmy Othman Basha. According to him, while it does export to the United States, it only consists of very small volumes – about 2% only. 'The fact is, products can only come from Malaysia or Indonesia, and as Indonesia has the same tariff rates, we don't see any impact at all, at least not in the immediate term,' he told reporters after the group's second-quarter results announcement here yesterday. The palm oil producer posted a higher net profit of RM505mil for the second quarter ended June 30, 2025 as well as a higher revenue of RM5.17bil, compared to RM4.97bil in the same quarter last year. Mohamed Helmy said the increase in earnings was on the back of strong results from its upstream segment. 'We have a bit of a double tailwind in the sense that we expect production to remain strong for our operations. We also expect crude palm oil (CPO) prices to stabilise at around RM4,000 and RM4,100 for the rest of the year,' he noted. The group's downstream segment, however, faced a number of headwinds. This segment was the only negative in its results, registering RM126mil in profit before interest and taxes, a decrease from the RM225mil posted in the same quarter last year. The drop was due to weaker profits generated by the refineries and operations across Asia Pacific and Europe, impacted by both lower margins and reduced volume demand, further compounded by the lower share of profits from joint ventures. For the six-month period ended June 30, 2025, SD Guthrie's net profit rose to RM1.07bil against RM626mil in the same period last year, while revenue grew to RM9.99bil from RM9.31bil in the first half of 2024. Similar to its quarterly earnings, the increase was mainly due to strong upstream operations, which resulted from higher year-on-year (y-o-y) average realised CPO and palm kernel prices which rose by 3% and 50% y-o-y to RM4,146 and RM3,247 per tonne, respectively. On top of that, its fresh fruit bunch (FFB) production increased by 4%, as all segments registered higher FFB production. Moving forward, Mohamed Helmy said he expects the upstream segment to carry more of the growth for this year. He opined that the rest of the year will continue to have a positive trajectory. Among the key drivers include the two business pillars the group has been focusing on lately – industrial parks and renewable energy. 'These two pillars have gained traction, but there is still a lot of work in the pipeline. 'Some have translated into joint ventures and we expect profit recognition by the third quarter,' he said. He added that by 2030, the plan is that the two business pillars will contribute nothing less than RM700mil to RM800mil to the group's bottom line. 'That should be close to about 30% to the overall contribution' he noted. Meanwhile, Mohamed Helmy said while the group has been aware of the impact in terms of costs related to the 5% charge from the sales and service tax, it is hoping for an exemption. 'There is a request in relation for an exemption for this. We are hoping to hear about the exemption and chances are, it will come in.'
