Latest news with #RM600mil
The Star
13 hours ago
- Business
- The Star
Alliance poised to ramp up customer acquisition
Kenanga Research noted that the group presented a FY26 loans growth guidance of 8% to 10%. PETALING JAYA: Analysts have maintained their outperform call with a lower target price of RM4.85 for Alliance Bank Malaysia Bhd (ABMB), following its recently completed rights issue exercise. Kenanga Research told clients in a report it believes that the proceeds from the exercise would enable the group to ramp up its customer acquisition efforts. It has cut its financial year ending March 31, 2026 (FY26) earnings by 8%, reflecting lower net interest margins from the recent 25 basis points (bps) overnight policy rate cut and aligned its credit cost assumptions to 35 bps from 31, being the upper range of guidance. Citing a recent meeting with the lender, Kenanga Research noted that the group presented a FY26 loans growth guidance of 8% to 10% which is below the 12% achieved in FY25. The research firm said its model assumptions are conservatively kept at around 8% in line with the lower band of guidance. The group's recently completed rights issue generated cash proceeds of RM600mil in capital to fuel its growth strategies. 'We gather that ABMB is likely deploying across all markets as opposed to accelerating its position in a specific market. 'Amid macro-economic challenges, we opine the bank may benefit from a larger collateralised portfolio (mortgage) as delinquency risks may emerge from its commercial segment, namely from small medium enterprises which are 34% of its loan book.'
The Star
15 hours ago
- Business
- The Star
EcoWorld Malaysia well positioned for growth
RHB Research noted that recurring income from data centres will bump up EcoWorld Malaysia's earnings for its financial year ending Oct 31, 2028. PETALING JAYA: Eco World Development Group Bhd (EcoWorld Malaysia) has a solid war chest to grow its property investments and for land acquisitions, analysts say. RHB Research said the property developer's disposal of 410 acres of industrial land has provided proceeds of RM1.71bil. In addition to RM5.22bil in unbilled sales and RM600mil in sukuk funding, the cash inflows come in handy to fund working capital to kick-start new projects, finance investments in data centre facilities and acquire new land. The research house said such initiatives would propel EcoWorld Malaysia into a high-growth phase. 'We expect net gearing to hover around the current level of 0.55 times over the next one to two years, as EcoWorld Malaysia is in an expansionary mode.' The research house also noted that recurring income from data centres will bump up EcoWorld Malaysia's earnings for its financial year ending Oct 31, 2028 (FY28). 'FY28 earnings should see a quantum leap on maiden contributions from EcoWorld Malaysia's build-to-lease data centre for Pearl Computing Malaysia. 'We estimate initial contributions from the lease income at around RM100mil-RM110mil a year, representing over 20% of our FY27 earnings estimates. 'Key risks are an unexpected slowdown in economic growth and unfavourable turn in regulations for data centres,' the research house said. EcoWorld Malaysia is also seen as the best proxy to Malaysia's the current property sector upcycle. The developer's land is strategically located in key high-growth areas, such as the Klang Valley and Iskandar Malaysia in Johor, which are benefitting from upcoming infrastructure projects and influx of foreign direct investments in Johor and Selangor. The company has total land holdings of 4,611 acres, of which 3,515 acres, 943 acres and 153 acres are located in the central, southern, and northern regions, respectively. 'The rapid monetisation of 410 acres of industrial land over the past year, on top of usual land utilisation, indicates highly efficient land turnaround time and solid management execution track record.' Going forward, RHB Research said three key projects are set to drive EcoWorld Malaysia's property sales from FY26. It has been a few years since EcoWorld Malaysia kick-started any sizeable greenfield development. In the pipeline are Eco Radiance in Semenyih, Selangor; Eco Botanic 3 in Iskandar Malaysia Johor; and Eco Business Park VII in Negri Sembilan. 'Cash flow should be manageable too, given the rest of its projects are entering their life cycles of eight to 10 years. Hence, cash flow from these mature projects should be consistent,' the research house said. RHB Research initiated coverage on EcoWorld Malaysia with a 'buy' call and a target price of RM3 per share.
The Star
a day ago
- Business
- The Star
Alliance Bank rights issue to bolster customer acquisition efforts
PETALING JAYA: Analysts have maintained their outperform call with a lower target price of RM4.85 for Alliance Bank Malaysia Bhd (ABMB), following its recently completed rights issue exercise. Kenanga told clients in a report it believes that the proceeds from the exercise would enable the group to ramp up its customer acquisition efforts. It has cut its financial year financial year ending March 31, 2026 (FY26) earnings by 8%, reflecting lower net interest margins (NIMs) from the recent 25 basis overnight policy rate cut and aligned its credit cost assumptions to 35 basis points from 31, being the upper range of guidance. Citing a recent meeting with the lender, Kenanga noted that the group presented a FY26 loans growth guidance of 8%-10% which is below the 12% achieved in FY25. The research firm said its model assumptions are conservatively kept at around 8% in line with the lower band of guidance. The group's recently completed rights issue generated cash proceeds of RM600mil in capital to fuel its growth strategies. "We gather that ABMB is likely deploying across all markets as opposed to accelerating its position in a specific market. "Amid macro-economic challenges, we opine the bank may benefit from a larger collateralised portfolio (mortgage) as delinquency risks may emerge from its commercial segment, namely from small medium enterprises (SME) which are 34% of its loan book." Kenanga noted that ABMB's FY25's reported NIMs of 2.45% could see further deterioration where asset yields could come off should the group's business loans be outpaced by its household loans. Meanwhile, the recent 25 basis points cut would reflect a 2 basis points impact to ABMB's NIMs, per its sensitivity analysis. However, thanks to some relief by the reduction in Statutory Reserve Requirement or SRR in addition to the abovementioned rights issue's capital injection, the group may likely ease on its deposits growth strategies, thereby lowering its funding cost, the research firm said. Aside from the adjustments in overnight policy rate, which led to a 2% trimming to earnings, Kenanga has raised credit cost expectations to 35 basis points out of prudency amid higher asset quality concerns from the group's heavier SME comprised loans book. It has also introduced its FY27 earnings which reflects a 13% earnings growth from credit cost normalisation and better cost management per the group's long-term strategies. At last look, shares of ABMB were at RM4.50 a piece.
The Star
16-07-2025
- Business
- The Star
Cap on flight ticket prices for Sabah voters mooted
Chan (seventh left) launching the Gawai and Kaamatan celebration with Nelson (fourth left), Yeo (sixth left) Wong (eighth left) at Pasar Budaya Borneo in Seri Kembangan. Deputy Plantation and Commodities Minister Datuk Chan Foong Hin is proposing to cap flight ticket prices for Sabah voters flying home for the upcoming state election. Chan said he would propose to Transport Minister Anthony Loke for the price to be capped at RM599. 'This will ease the financial burden of Sabah folks working in the Klang Valley, who want to return home and fulfil their duty to vote,' he said. Chan, who is Kota Kinabalu MP, said the Madani government's commitment to Sabah and Sarawak was reflected in its policies. 'Special grants to Sabah and Sarawak have increased to RM600mil. 'Full regulatory authority over power supply and renewable energy has been returned to both state governments, while the Bintulu Port has been handed back to Sarawak,' he said, speaking after launching the Gawai and Kaamatan celebration at the Borneo Cultural Market in Seri Kembangan, Selangor. Chan added he would allocate RM10,000 for the 10th Gawai and Kaamatan celebration at Pasar Budaya Borneo next year. This year's celebration saw cultural performances, a variety of food from Sabah and Sarawak, activities such as batik painting, folk games, karaoke competition and a lucky draw. Organised by Pasar Budaya Borneo Seri Kembangan Association in collaboration with National Unity Ministry, the event received strong support from the local community. Wilma Osingku, from Kudat in Sabah, has been a vendor at the market since 2017. The 39-year-old Iban said she was proud to see the cultures of Borneo featured in peninsular Malaysia. 'We get to taste the food from home, which is different from the food here,' she said. Meanwhile, Puchong MP Yeo Bee Yin announced a contribution of RM30,000. 'Part of the allocation will go towards installing a prominent signboard for Borneo Cultural Market. 'Three main focus areas for the market development are improving basic facilities, ensuring continuous cultural activities and creating an interactive visitor experience. 'We will work closely with local authorities to address basic facility issues such as toilets and access to clean water for the comfort of visitors and traders,' she said. Yeo expressed her hope for the event to be held annually as a part of the Puchong parliamentary events calendar, as Borneo Cultural Market has great potential to become a cultural destination of international standing. 'Pasar Budaya Borneo should serve as a space that brings people together, a place that feels like home away from home for Sabahans and Sarawakians living in peninsular Malaysia. 'We fully support the community's efforts to establish it as a proud cultural landmark just like Sigar in Penampang or the cat statue in Kuching.' Also present were Seri Kembangan assemblyman Wong Siew Ki, Seri Serdang assemblyman Abbas Salimmi Che Adzmi@Azmi, Borneo Cultural Market chairman Nelson Entap, programme director Nilisip Juin and representatives from Rumah Sarawak and Rumah Sabah.
The Star
12-07-2025
- Politics
- The Star
'Rumah Kita, Kita Jaga' slogan not anti-federal, says PBS info chief
Parti Bersatu Sabah information chief Datuk Joniston Bangkuai stressing a point during the joint PBS-Sabah STAR Convention in Penampang on Saturday (July 12). KOTA KINABALU: The slogan 'Rumah Kita, Kita Jaga' (Our Home, We Protect) is not a sign of hostility towards the Federal Government, says Datuk Joniston Bangkuai said. 'Instead, the slogan is a patriotic reminder that Sabahans should take responsibility for their own future,' the Parti Bersatu Sabah (PBS) information chief said at the first joint convention between PBS and Sabah STAR in Penampang on Saturday (July 12). He added that the phrase reflects the deep emotional connection Sabahans have with their homeland and echoes the values expressed in the state anthem, namely unity, pride, and ownership. 'This slogan was never meant to reject the Federal Government. Instead, it highlights our belief that Sabah should be treated as an equal partner in Malaysia,' he said. He explained that the Gabungan Rakyat Sabah (GRS) coalition adopted the slogan to promote local empowerment and decision-making, particularly by Sabah-based parties. Citing lyrics from the state anthem such as 'Sabah tanah airku, negeri kita yang tercinta' and 'Sabah negeri merdeka', he said these lines mirror the sentiment behind the slogan, a call for Sabahans to protect and take pride in their state. 'Sabah is committed to Malaysia. But our development, education, and infrastructure policies must reflect our local realities. Decisions made in Putrajaya without understanding our challenges only hinder our progress,' he added. Bangkuai took aim at several top-down decisions made without consulting the Sabah government, including the establishment of the Jawatankuasa Kemajuan Desa Madani (JKDM) and the federal announcement on joint oil and gas development in Ambalat waters. While acknowledging the recent increase in Sabah's special grant from RM53mil to RM600mil as a step forward, he reiterated GRS' firm demand for the return of Sabah's 40% revenue entitlement as stated in the Federal Constitution. He also dismissed claims that the slogan was mere political rhetoric. ''Rumah Kita, Kita Jaga' is a sincere and urgent call for fair treatment and shared responsibility. It is about respecting Sabah's right to shape its own destiny within the Malaysian federation,' he said. Bangkuai expressed hope that if the concept behind the slogan is embraced, it will foster stronger trust and cooperation between Sabah and the Federal Government. 'Fulfilling what is rightfully Sabah's will go a long way in building a more united, harmonious, and stronger Malaysia,' he said. --
