Latest news with #RM60mil
The Star
27-05-2025
- Business
- The Star
Defensive earnings profile to support PetGas
Kenanga Research expects PetGas' 2Q25 numbers to be on the weak side. PETALING JAYA: Analysts generally have a constructive view of Petronas Gas Bhd (PetGas) despite it having to absorb at least a RM170mil charge to rehabilitate the Putra Heights area following the pipeline fire incident in April. CGS International (CGSI) Research stated PetGas' defensive earnings profile, underpinned by its ownership of gas infrastructure assets in Malaysia, remained a key strength that is backed by a healthy balance sheet. 'Visible free cash flow and dividend yields of over 4% support the sustainability of its payouts (dividends),' the research house stated in its latest report on PetGas. It added the RM170mil estimated charge represented 1.2% of PetGas' current book value and 9% of 2025 forecast net profit. CGSI Research has maintained a 'hold' call on PetGas with an unchanged discounted cash flow based target price (TP) of RM17.50 a share. Kenanga Research noted that while PetGas' first quarter (1Q25) financial results were slightly below expectations, the company's regulated asset base continues to provide resilient earnings visibility. The research house, however, expected PetGas' 2Q25 numbers to be on the weak side. This is due to the operational disruptions following the Putra Heights fire incident. 'We fine-tune our financial year 2025 (FY25) and FY26 earnings forecast lower by 5% and 3%, respectively, to reflect the guided RM60mil profit impact in FY25, to incorporate adjustments to gas transportation and regasification terminal tariffs and some housekeeping,' Kenanga Research added. It has a 'market perform' call on PetGas with a lower TP of RM16.80 a share. PetGas posted a 1Q25 core profit of RM466.2mil on the back of RM1.6bil in revenue. It announced a first interim dividend of 16 sen a share for the quarter. MIDF Research, however, downgraded the counter to 'neutral' with a TP of RM18.67 a share on the ground that all factors that could impact the company's share price had been priced in. It expected PetGas' FY25 performance to remain stable and resilient despite the operational setback caused by the pipeline incident. 'With higher demand for natural gas and liquefied natural gas, in tandem with the higher prices projected in 2025, all of PetGas' businesses will continue to perform on the positive. 'In line with the incident, we expect PetGas will strengthen its risk management, operational efficiency, and mitigation strategies,' MIDF Research said. Its TP on PetGas is pegged to a price earnings multiple of 19 times to the revised earnings per share for FY25 of 98 sen.
The Star
26-05-2025
- Business
- The Star
Shin Yang in talks to build MMEA patrol vessels
KUCHING: Shin Yang Group Bhd 's (SYG) wholly owned subsidiary Shin Yang Shipyard Sdn Bhd is likely to build two offshore patrol boats for the federal government. Shin Yang Shipyard had signed a letter of intent (LoI) with the Home Affairs Ministry for the proposed construction of the two offshore patrol vessels for Malaysian Maritime Enforcement Agency (MMEA) at the Langkawi International Maritime and Aerospace Exhibition 2025 last week. The LoI sets the foundation for detailed negotiations and technical planning that will lead to the finalisation of a shipbuilding contract. 'Negotiations for the contract are expected to take two to three months,' Shin Yang Shipyard executive director Vincent Ling Lu Yew told StarBiz. The contract value for the two vessels based on the LoI is RM298.5mil. Ling said the vessels will have a length of 83m and beam of 13.7m, with a top speed of 21 knots. The vessel's endurance is up to 21 days at sea without resupply. The planned features and equipments of the vessels include two rigid hull inflatable boats (RHIBs) and one fast interceptor craft, and a helicopter landing pad. The vessel is expected to accommodate up to 70 personnel. A RHIB is a vessel featuring a rigid (often aluminium or fibreglass) hull surrounded by inflatable collars or tubes. The vessel's performance include high speed, lightweight, remarkably stable in rough water and ideal for patrol or rescue mission. 'The LoI marks a significant step forward in the government's effort to enhance national maritime security and reflects a strong confidence in local shipbuilding capabilities,' said Ling. Last month, Shin Yang Shipyard delivered KM Banggi to MMEA in Sabah after completing the repair and repowering of the coastal patrol boat for a contract value of about RM60mil. KM Banggi was the biggest repowering job ever undertaken by the Miri-based shipbuilder and repairer. The company posted a jump in its net profit to RM42.42mil in the second quarter of its financial year ending June 30 (2Q25) from RM19.52mil a year ago. This was on the back of higher revenue of RM611mil in 2Q25 versus RM235.27mil a year earlier. The company attributed the significant pre-tax profit and revenue growth to income from the newly acquired automotive segment during the current quarter. The automotive segment contributed RM359.9mil to the group's revenue and RM25.2mil to its pre-tax profit. However, its shipping segment's revenue fell 4.6% to RM169.4mil in 2Q25 from RM177.6mil in the same quarter last year. This decrease in revenue was primarily due to the normalisation of freight rates in the shipping segment. However, the increase in pre-tax profit for the shipping segment was mainly attributed to an improvement in load factors and cargo volume in the container segment and a gain of RM5mil from the disposal of three vessels. Moving forward, it plans to expand its investments in container depots, haulage services, including warehouse facilities, to capture new business opportunities. Shin Yang is optimistic about its prospects in the newly acquired segment in the automotive business, considering that Toyota is a well-established brand and its cars business have been among the top five best-selling cars in Malaysia for many years.
The Star
22-05-2025
- Business
- The Star
Duopharma aiming for big govt insulin tender
Duopharma group managing director Leonard Ariff Abdul Shatar. KLANG: Duopharma Biotech Bhd is hoping to secure a sizeable contract to supply insulin to the Health Ministry (MoH) in the near term, which will help propel its growth. 'The significant jump (in contract value) has already occurred based on the announcements we made. I think we've announced all the significant jumps that we can foresee (for now). 'The next significant one will be the results of the insulin tender. That will be sizeable enough for us to make an announcement,' said group managing director Leonard Ariff Abdul Shatar. 'Our extension goes on till the end of October. While the tender (process) started (in May), I must caution that MoH traditionally for insulin always gives the contract to two parties. 'If only one party bids, MoH will wait until there's capability for a second party to bid,' he told reporters after the company's AGM yesterday. Its wholly-owned subsidiary, Duopharma Marketing Sdn Bhd, and India Biocon Ltd's local unit, Biocon Sdn Bhd, recently secured a six-month contract extension from MoH for the supply of insulin to public hospitals. Duopharma said the latest extended agreement is effective from April 29 until Oct 28, 2025. While the contract value was not disclosed in the filing, Leonard Ariff estimated the value of the six-month extension to be worth between RM30mil and RM35mil, about half of the annualised value of RM60mil to RM70mil. Duopharma, in which Yayasan Pelaburan Bumiputra holds a 44.11% stake, was awarded contracts totalling RM684.15mil to supply a combined total of 100 pharmaceutical and non-pharmaceutical products to healthcare facilities operated by the government, until Dec 31, 2026. The contracts are for products listed under the MoH's Approved Products Purchase List. Meanwhile, Leonard Ariff aims to increase the company's export business, which accounted for around 8% of its revenue in 2024, focusing on Asean countries mainly due to familiarity with regulatory environments and sizable markets. The company operates in about 30 markets, but its primary focus remains on Asean, as countries like Indonesia, the Philippines, Vietnam, Singapore, Brunei, and Thailand represent a significant portion of the global market, he explained. He added that Duopharma has made inroads into Timor-Leste, having won a government tender to supply halal pharmaceuticals. However, he expects higher demand for halal pharmaceuticals from Indonesia compared to Qatar and other Middle Eastern markets, which are still in the early stages. He said Indonesia is moving towards implementing a law, originally slated for 2022 or 2023, that mandates halal certification for over-the-counter pharmaceutical products. 'They have delayed its implementation to 2026 or 2027. That would be a more viable opening for Duopharma products, rather than the Middle East,' Leonard Ariff explained. The main focus for Duopharma this year will be on removing the bottleneck at its facilities in Klang and Bangi, Selangor, to cater to the needs of both the public and private sectors, ensuring its production capacity aligns with demand. 'We have more than enough capacity for the public sector. It is all about balancing (demand from the public and private sectors). We do not want to put all our eggs in one basket,' he said.
The Star
25-04-2025
- Business
- The Star
Sultan Azlan Shah Airport upgrade will boost trade and industry as well as tourism, says PM
IPOH: The upgrading of the Sultan Azlan Shah airport here is expected to enhance trade, industry and tourism among other areas, says Datuk Seri Anwar Ibrahim. The Prime Minister said this was another step forward by Malaysia Airports Holdings Berhad (MAHB) to boost its capacity. "Previously, when the government aimed to expand the facilities, our efforts were hindered because of limited flights from Kuala Lumpur to Ipoh," he said when launching the airport upgrading project here on Friday (April 25). ALSO READ: Govt okays RM60mil for Sultan Azlan Shah Airport expansion 'People often choose to travel by car instead. But now, we are thinking more broadly with routes from Senai, from Singapore, and possibly expanding to areas such as Kota Kinabalu and Kuching. 'These developments will give the airport a unique appeal. 'That is why... the Transport Ministry (was picked) as one of the key ministries for such projects that are deemed a priority,' he added. Present were Perak Mentri Besar Datuk Seri Saarani Mohamad, Transport Minister Anthony Loke, Housing and Local Government Minister Nga Kor Ming, and MAHB managing director Datuk Mohd Izani Ghani. Anwar added that, from a national budget perspective, the cost of developing transport infrastructure is always high. ALSO READ: Ipoh needs better air hub 'But we must push forward, as this is strategic not only for the country's development but also for tourism. 'Currently, with several private initiatives and independently funded companies like MAHB, the burden on the government can be reduced. 'This network can be developed with non-government funding, just like the upgrade of the Ipoh airport, which creates opportunities without drawing on government resources,' he added. Anwar also said cooperation among federal ministries and the state government is a critical factor in the project's success. 'I would like to take this opportunity to express my appreciation and gratitude. As you all know, this airport is near Tambun, so I felt compelled to attend, and I am truly pleased to be here. 'This is just the beginning. To Datuk Mohd Izani, I extend my thanks. ALSO READ: Perak wants faster MAHB action on airport expansion as phase one nears completion 'And to all the staff, do continue to work well, with efficiency. Every contribution you make has meaning not only to your own family but also to the greater family of our nation. 'Today, Malaysia is recording impressive figures in terms of economic growth, investment, and a significant increase in tourism, including here in Perak, especially in Ipoh and the surrounding areas,' he added. On Jan 31, Nga said the government had approved an allocation of RM60mil for the expansion of the airport. The project will be carried out in two phases, the first costing RM8mil and the second, RM52mil. It aims to increase the airport's capacity to 700,000 passengers annually from 500,000 at present. The upgrade includes a cargo terminal spanning over 10ha of land owned by the Perak State Development Corporation near the airport.
