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The Sun
2 days ago
- Business
- The Sun
Southern Cable in line to win MRT3 deals: Apex Securities
KUALA LUMPUR: Southern Cable Group Bhd is well-positioned to secure a substantial share of the MRT3 cable supply package, building on its strong track record in MRT2, comprehensive product range, and established market leadership. In a recent report, Apex Securities Bhd estimated that, assuming a cable supply package valued at RM600 million, with 60% market share and a blended gross profit margin of 15%, Southern Cable could generate RM54 million in gross profit from MRT3—equivalent to 25% of the research firm's FY25 forecast. 'This would provide a meaningful uplift to earnings visibility over the medium term,' Apex said. The MRT3 project has received final approval from the Transport Ministry, enabling the land acquisition process to begin. The project is targeted for completion by end-2026. The MRT3 Circle Line will span 51km, comprising 31 stations. Construction is scheduled to begin in 2027, with full operations expected by 2032. In rail infrastructure projects, cable supply contracts are usually split across several key work packages including power supply systems, signalling and control systems, track works, and station components. As a reference point, MRT2, which spans 52.2km with 36 stations, has a total project cost of RM56.9 billion. Cable supply contracts for MRT2 were estimated at around RM550 million, according to market sources. 'Given the comparable scale of MRT3, we estimate the cable supply package to be valued at RM600 million,' Apex added. In light of MRT3 and other infrastructure rollouts such as the Penang LRT, Apex Securities has revised its earnings forecasts upward by 9.5% for FY26 and 18.5% for FY27. The research firm noted that cable orders for large infrastructure projects are typically distributed across multiple packages and subcontractors. This results in staggered purchase orders, rather than a single lump-sum entry in Southern Cable's order book. 'We raise our price-earnings (PE) multiple from 15x to 17x to reflect Southern Cable's improving earnings visibility and robust growth outlook. 'Valuation remains attractive, with a price/earnings-to-growth (PEG) ratio of 0.4x, based on our projected EPS compound annual growth rate (CAGR) of 33.9% for FY24–27. 'Our revised target price of RM2.14, up from RM1.72, is based on a 17x FY26 EPS of 12.6 sen, and supported by a three-star ESG rating. 'We maintain a 'Buy' call on Southern Cable. We remain positive on the company, given its position as a proxy for Malaysia's rising power demand, growing need for high-voltage power cables, and export exposure to the US market,' Apex Securities concluded.
New Straits Times
6 days ago
- Business
- New Straits Times
NST Leader: Vigilance key to stopping scams
EFFORTS to stamp out financial scams, which are increasing in sophisticatication and resourcefulness, can't succeed if victims are consistently ignorant and naive. Various enforcement outfits, like the police, Bank Negara Malaysia and the Malaysian Communications and Multimedia Commission (MCMC), have done their best but scammers are still having a field day. The situation is akin to the authorities fortifying homes with formidable security systems but homeowners continue to fail to lock the doors. The cybersecurity measures against scammers are useless if the gullible allow themselves to be duped. We say this as the police take over the National Scam Response Centre (NSRC) previously helmed by various enforcement outfits. Nevertheless, it makes sense that police control the NSRC: it speeds up victim support, improves recovery rates and adds legal muscle to freeze assets and prosecute scam syndicates. However, the NSRC must stay inclusive, leveraging expertise across all stakeholders like Bank Negara, MCMC, banks and telecommunications providers. The stakeholders must remain part of the anti-scam effort, especially for education, prevention and rapid action, like Singapore's "shared responsibility framework" where everyone maintains a fair, multi-prong system. They have to: in 2024, scammers bilked a staggering RM54 billion, roughly three per cent of Malaysia's gross domestic product. According to a survey of Malaysians by trust tech company Gogolook, about 74 per cent of respondents encountered scams every month through phone calls, messaging apps and social media platforms. Investment scams make up 23 per cent, followed by identity theft (21 per cent) and shopping scams (20 per cent). Unfortunately, 70 per cent of victims refused to report being scammed, mostly due to embarrassment but also scepticism on the effectiveness of alerting the authorities. Bearing this in mind, the NSRC's most vital task is constant education on how to spot a scam. Awareness campaigns are key but the only way is to develop a scam-resilient society. Scammers know they cannot beat a secure financial environment, but they understand human frailty. Victims often succumb to sweet talk or threats of legal action to part with their money. Other than managing public education, improving technology and artificial intelligence defences, and formulating stronger laws and international cooperation, the NSRC may have to deal with victims' emotional toll and the fact that financial scams threaten Malaysia's socio-economic foundations. In a nutshell, everyone, not just individuals, but also companies and the government, must keep reminding themselves to always be smart and vigilant.
New Straits Times
16-07-2025
- Business
- New Straits Times
IJM approached to invest in Prolintas
KUALA LUMPUR: IJM Corp Bhd has been approached to invest in Permodalan Nasional Bhd's (PNB) toll road assets under Projek Lintasan Kota Holdings Sdn Bhd (Prolintas), sources said. PNB had reached out to IJM to do a due diligence on the prospect, they added. Instead of an outright sale of Prolintas to investors, they said PNB might offer Prolintas' controling stake in Prolintas Infra Business Trust, which was listed on the Main Market of Bursa Malaysia on March 25 last year. PNB reportedly was considering selling Prolintas in a deal that could be worth RM3 billion. It had reached out to potential investors, including industry players and private equity firms, to gauge initial interest. In its reply to Business Times today, PNB said: "For now, we have nothing further to share beyond what we have officially shared with Bloomberg. They have captured our official statement in their article. "As a long-term investor committed to delivering sustainable returns, PNB regularly reviews its investment portfolio for opportunities to enhance value, including potential divestments or strategic repositioning. "All decisions are guided by a rigorous governance process aligned with our investment objectives. It is PNB's policy not to comment on market speculation or rumours," it added. Prolintas operates a network of six major highways in the Klang Valley. They are Ampang-Kuala Lumpur Elevated Highway (Akleh), Guthrie Corridor Expressway (GCE), Kemuning-Shah Alam Highway (LKSA), Kajang Dispersal Link Expressway (Silk), Sungai Besi-Ulu Klang Elevated Expressway (Suke) and Damansara-Shah Alam Elevated Expressway (Dash). Four of the highway assets are parked under Prolintas Infra Business Trust, which was listed on the Main Market of Bursa Malaysia on March 25 last year. The trust manages Akleh, GCE, LKSA and Silk with Prolintas holding a controlling 51.02 per cent stake. Other notable unitholders include the Employees Provident Fund with 7.78 per cent, Urusharta Jamaah Sdn Bhd with 5.78 per cent and Lembaga Tabung Haji with 5.45 per cent. IJM, meanwhile, operates a slew of toll highways namely Lebuhraya Sungai Besi (Besraya), New Pantai Expressway (NPE), Lebuhraya Kajang-Seremban (Lekas) and West Coast Expressway (WCE). The company's toll division is currently unprofitable, but its medium to long-term outlook is bright, according to some industry observers. Once impairment and forex issues ease, IJM's core local toll operations are forecast to contribute steady, recurring income, they added. The division recorded a pre-tax loss of RM0.1 million in the year ended March 31 2025. This was primarily due to a RM54 million impairment related to the WCE and share of losses from overseas associates amounting to RM66.7 million. Last month, IJM's wholly-owned New Pantai Expressway Sdn Bhd received approval from the Works Ministry to proceed with the RM1.4 billion construction of the NPE Extension. NPE will undertake a 15-kilometre elevated highway extension, including the construction of one new toll plaza.
Borneo Post
12-07-2025
- Business
- Borneo Post
Former SOGDC CEO refutes Masidi's claims on Sabah oil and gas progress
Abdul Kadir Abdullah Damsal KOTA KINABALU (July 12): A former senior figure in Sabah's oil and gas industry has pushed back against recent remarks by Finance Minister Datuk Seri Masidi Manjun, calling him 'misleading' and lacking historical context in relation to the state's petroleum development. In a press statement, former Chief Executive Officer of Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) Abdul Kadir Abdullah Damsal and a practising lawyer questioned Masidi's claim that Sabah's oil and gas sector only began to evolve following the establishment of SMJ Energy (SMJE) in 2021. Abdul Kadir asserted that long before SMJE came into the picture, several state-linked companies had already been actively involved in the industry. These included Sabah Energy Corporation (SEC), Sabah International Petroleum (SIP), subsidiaries under Yayasan Sabah and SOGDC itself. He credited much of the earlier momentum to the then-Barisan Nasional (BN) administration, noting that Petronas had, under a period of political stability, launched the Sabah Integrated Oil and Gas Project (SIOGP) in 2014, an initiative involving investments totalling nearly RM54 billion. 'These projects laid the foundation for Sabah's current oil and gas infrastructure, created thousands of jobs and supported local engineering and service firms,' he said. He also pointed to the formation of a Joint Working Committee (JWC) between the State Government and Petronas, which he said facilitated increased gas allocations to Sabah and significantly boosted local capacity development, including the appointment of a Sabahan as CEO of Petronas' Sabah Ammonia Urea (SAMUR) plant. 'Contrary to recent claims, the industry was not dormant prior to the formation of SMJE. Sabahans have long played a critical role in the oil and gas sector, without resorting to political pressure on local entities such as SAMUR,' he said. Abdul Kadir also cast doubt on the claim that Sabah-based oil and gas firms secured RM2 billion worth of Petronas contracts in 2024, suggesting the figure could be misleading without proper breakdown. 'The contracts may not necessarily have been awarded within Sabah alone and the public deserves clarity on how much actually went to genuinely Sabahan-owned firms,' he added. Touching on SMJE's reported RM362 million profit in 2024, Abdul Kadir clarified that the figure represented group earnings, not solely derived from its upstream interest in the Samarang field. 'A significant portion of that profit came from SIP's 10 per cent equity in LNG Train 9 in Bintulu, a deal initiated during the BN administration and finalised under Warisan,' he explained. He went on to highlight that other state-owned entities including Suria Capital, Sawit Kinabalu and Qhazanah Sabah, have long operated as billion-ringgit asset-based companies, stressing that SMJE's growth should not be portrayed as an isolated success story. Abdul Kadir concluded by urging the State Government to present a more accurate narrative to the public. 'Sabahans deserve the truth, not exaggerated claims or selectively curated retellings of the state's economic journey,' he concluded.
Daily Express
11-07-2025
- Business
- Daily Express
Ex-SOGDC CEO refutes Masidi's claims on SMJ Energy's role in Oil & Gas
Published on: Friday, July 11, 2025 Published on: Fri, Jul 11, 2025 Text Size: Kadir (left) challenged Masidi's (right) assertion that Sabah's oil and gas industry only began to turn around with the formation of SMJ Energy (SMJE) in 2021. Kota Kinabalu: A former senior Sabah oil and gas official refuted recent remarks by State Finance Minister Datuk Seri Masidi Manjun, calling them 'misleading' and lacking historical context regarding the state's petroleum development. Abdul Kadir Abdullah Damsal, former CEO of Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC) and a practicing advocate and solicitor, challenged the Finance Minister's assertion that Sabah's oil and gas industry only began to turn around with the formation of SMJ Energy (SMJE) in 2021. Abdul Kadir pointed out that multiple state-linked companies, including Sabah Energy Corporation (SEC), Sabah International Petroleum (SIP), Yayasan Sabah subsidiaries and SOGDC itself, were actively engaged in the sector well before SMJE's establishment. He credited the state's earlier momentum to the Barisan Nasional (BN) administration, noting that Petronas, encouraged by political stability at the time, launched the Sabah Integrated Oil and Gas Project (SIOGP) in 2014 — an initiative involving investments totalling close to RM54 billion. 'These projects laid the groundwork for Sabah's current oil and gas infrastructure, creating thousands of jobs and supporting local engineering and services companies,' he said in a statement. Abdul Kadir also emphasised that a Joint Working Committee (JWC) was formed to facilitate cooperation between the state and Petronas. This collaboration reportedly led to increased gas allocations for Sabah and significant progress in local capacity building, including the appointment of Sabahan CEOs at Petronas' Sabah Ammonia Urea (Samur) plant. 'Contrary to claims, the industry did not lie dormant until SMJE arrived. In fact, Sabahans have long played key roles in oil and gas operations, without resorting to political pressure tactics to 'Sabahanise' entities like Samur,' he stated. He further criticised the assertion that Sabah-based oil and gas firms secured RM2 billion worth of Petronas contracts in 2024, describing the figure as potentially misleading without a proper breakdown. 'The contracts may not have been awarded solely within Sabah, and the public deserves clarity on how much was awarded to truly local, wholly Sabahan-owned firms,' Abdul Kadir said. On the matter of SMJE's financial performance, Abdul Kadir claimed that the company's reported RM362 million profit in 2024 was a group figure and not solely attributable to its upstream stake in the Samarang field. 'Significant contributions came from SIP's 10 per cent equity in LNG Train 9 in Bintulu — a deal initiated during the BN government and completed under Warisan,' he said. He also noted that other state-owned entities, such as Suria Capital, Sawit Kinabalu, and Qhazanah Sabah, have long operated as billion-ringgit asset-based corporations, suggesting that SMJE's growth should not be portrayed as an isolated success story. Abdul Kadir urged the State Government to present a more accurate narrative to the public. 'The people of Sabah deserve the truth — not exaggerated claims or selective retellings of the state's economic development,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
