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Business Times
4 days ago
- Business
- Business Times
Maybank Q1 net profit rises 4% to RM2.6 billion
[SINGAPORE] Maybank's net profit for the quarter ended Mar 31, 2025, increased 4 per cent to RM2.6 billion (S$790 million), up from RM 2.5 billion in the previous corresponding period. Earnings per share increased to 21.45 sen, from 20.63 sen in the year-ago period. Return on equity was 11.3 per cent, up from 10.8 per cent in Q1 FY2024. In a business update on Monday (May 26), the lender attributed the improved performance to increases in both its net fund-based income and non-interest income, which brought net operating income up 1.8 per cent year on year at RM7.7 billion. Net fund-based income increased 2.3 per cent to RM5 billion. The group noted a stable net interest margin of 2.04 per cent, which was fuelled by a 3.2 per cent increase year on year in loans across all home markets and key segments. For the quarter, group loans increased in all markets, with Malaysia, Singapore and Indonesia up 8, 5.9 and 0.8 per cent year on year, respectively. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up However, the group added that annualised loans growth was lower at 2.2 per cent, which was 'reflective of the current operating environment which continued to be impacted by cautious business sentiment and moderated credit demands'. Non-interest income ticked up 0.8 per cent to RM2.8 billion, supported by a 28 per cent increase in wealth fees to RM300 million. However, the global markets segment dipped 4 per cent to RM700 million on reduced capital gains for bonds arising from economic uncertainties. Overhead costs increased to RM3.74 billion from RM3.66 billion on inflationary pressures, higher personnel expenses, marketing costs and software maintenance expenses. Maybank's president and group CEO, Khairussaleh Ramli, said that it continued to deliver commendable earnings growth for the first quarter, underpinned by stable net interest margins and better asset quality as well as disciplined cost management, despite ongoing global macroeconomic headwinds. Looking forward, the group notes a backdrop of uncertainty and volatility on the possibility of US reciprocal tariffs, which would slow global gross domestic product growth. Maybank added that it will continue to 'double down on penetration of its extensive customer base through focus on segments, cross-selling endeavours and leveraging ecosystem partnerships regionally' and focus on its 'super growth' areas of wealth management, mid-market cap, non-retail and bancassurance segments while tapping on global market flows. The group's FY2025 guidance sees loans growth at 5 to 6 per cent, return on equity of more than or equal to 11.3 per cent and net credit charge off rate of less than or equal to 30 basis points.
The Sun
4 days ago
- Business
- The Sun
Malaysia Smelting Corporation sees 2% YoY revenue growth despite one-off tax hit
KUALA LUMPUR: Tin miner and metal producer Malaysia Smelting Corporation Bhd (MSC) saw a revenue growth of 2.0% year-on-year (YoY) to RM369.8 million in the first quarter (Q1) ended March 31, 2025 (FY25), as compared to RM362.5 million in Q1 FY24. The growth was primarily fuelled by favourable average tin prices, increasing to RM142,000 per metric tonne (MT) in Q1 FY25 from RM124,900/MT in Q1 FY24. Meanwhile, net profit amounted to RM7.7 million in Q1 FY25, up from RM18.2 million posted in Q1 FY24. This was impacted by a one-off additional tax assessment raised by the Inland Revenue Board on Rahman Hydraulic Tin Sdn Bhd (RHT), the group's mining subsidiary. The tin mining segment's profit after tax (PAT) stood at RM10.8 million in Q1 FY25, compared to RM14.2 million posted in Q1 FY24. The lower contribution was primarily due to the one-off additional tax recognised during the quarter. Operationally, the segment remained stable. Meanwhile, the Group's tin smelting segment posted a PAT of RM4.1 million in Q1 FY25 from RM9.9 million in Q1 FY24. The moderated performance was mainly attributed to the prolonged effects of low incoming feed stemming from China's tin ore accumulation and stockpiling. This was in response to the supply challenges in tin-producing countries, including export restrictions in Myanmar and Indonesia, and ongoing geopolitical tensions. MSC Group CEO Datuk Dr Patrick Yong said as the company continue to navigate a fragile global economic landscape, marked by ongoing trade tensions, protectionist economic policies, and geopolitical uncertainties, it remains focused on what matters most - running the operations efficiently and staying competitive. 'Despite these external pressures, MSC's performance in Q1 FY25 demonstrates our resilience and ability to adapt in a complex operating environment. 'Looking ahead, we continue to take a measured and disciplined approach, remaining cautious in light of the external environment. 'Our focus remains on driving improvements across the group from technology and manpower to logistics and cost management, while also exploring opportunities in both our smelting and mining divisions. 'In our tin smelting business, the planned shutdown of our Butterworth plant is on track for 2025, with all future smelting activities to be consolidated at our smelting facility in Pulau Indah. 'This is expected to deliver cost savings and operational efficiencies for the Group. Furthermore, we are installing a new rotary furnace at Pulau Indah to support the continuity of tin production during the annual maintenance shutdowns. Additionally, the Pulau Indah plant utilises cleaner energy sources, including natural gas and solar, further minimising our carbon footprint. 'In the tin mining segment, we focus on increasing daily mining output and enhancing overall productivity. We are constructing a new processing plant to extract tin from the mine's sandy tailings and exploring new mining methods to enhance tin ore recovery and yield,' he said. The group reported revenue of RM369.8 million in Q1 FY25, up from RM448.5 million in Q4 FY24. This was primarily attributed to softer sales volumes of refined tin despite a higher average tin price of RM142,000/MT in Q1 FY25, as compared to RM133,700/MT in Q4 FY24. As a result, the group's net profit amounted to RM7.7 million in Q1 FY25, down from RM30.2 million in Q4 FY24. Yong said as the company continue to navigate a fragile global economic landscape, marked by ongoing trade tensions, protectionist economic policies, and geopolitical uncertainties.
BusinessToday
22-05-2025
- Business
- BusinessToday
Taliworks Betting On Air Selangor Projects
RHB Investment Bank Bhd (RHB Research) has reiterated its BUY call on Taliworks Corporation Bhd with a revised target price of RM1.01, up from RM0.98, projecting a 49% upside alongside a forecast dividend yield of around 7% for FY26. The valuation is supported by the counter's undemanding EV/EBITDA levels—currently two standard deviations below its five-year mean—and a domestic-centric business focus. However, Taliworks' 1Q25 core profit of RM10.5 million, down 30% year-on-year, came in below expectations, representing just 12% of RHB's full-year forecast. The research house attributed the earnings miss to weaker-than-anticipated metered water sales and slower construction progress at the Sungai Rasau water treatment plant. The project's first stage packages 2 and 3 have reached 24% and 11% completion respectively by end-1Q25, showing improvement from a year earlier, yet progress still lagged internal projections. While RHB Research still expects project completion by 2027, annual construction momentum is now likely to be backloaded towards the final year, prompting downward revisions to progress billings for FY25 and FY26, though upward adjustments were made for FY27. The water treatment and supply division saw a 5.4% decline in EBIT during the quarter due to Air Selangor's reallocation of surplus water from the southern to the northern region of Selangor. RHB has revised its earnings forecasts for FY25 to FY27 by -7%, -3%, and +3% respectively, incorporating more conservative assumptions for metered water sales under the new water distribution policy. This reassessment, along with a roll-forward of its valuation base year to FY26, contributed to the increase in the target price. Highway operations, while seeing improved average daily traffic at Grand Saga and Grand Sepadu, were impacted by a 50% toll discount offered during festive periods and higher maintenance costs. The renewable energy segment posted flat EBIT as revenue gains were offset by reduced sundry income. Meanwhile, the group's waste management associate posted deeper operating losses of RM7.7 million in 1Q25 compared to RM5.6 million a year earlier, due to softer profits from the associate's own operations. Taliworks has not secured new construction contracts since December 2021, but RHB noted that Air Selangor's plans to build four new water treatment plants by 2030 may offer upside. Job wins from these projects, along with a faster-than-expected tariff hike for the group's waste management associate, could serve as rerating catalysts for the stock. Related
BusinessToday
20-05-2025
- Business
- BusinessToday
PCG Disappoints With Q1 Loss Of RM18 Million, Cites Challenging Market
PETRONAS Chemicals Group Berhad announced its financial results for the first quarter (1Q 2025) in the financial year ending 31 December 2025, reporting a loss of RM18 million against a profit of RM668 million in the previous year's first quarter. The Group sustained its operational performance with plant utilisation rate of 94% in 1Q 2025, comparable to 4Q 2024. Revenue grew 3% quarter-on-quarter to RM7.7 billion driven by higher average prices of urea, methanol, and polyethylene as well as improved sales performance in the specialties segment. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 26% to RM892 million, supported by better spreads for urea, methanol, methyl tert-butyl ether (MTBE) and olefin derivatives, coupled with reduced operational costs. However, Profit After Tax (PAT) declined to RM18 million from RM668 million in the previous quarter, largely due to unfavourable foreign exchange movement. During the quarter, PCG said the Olefins & Derivatives (O&D) segment overcame utilities supply disruption that impacted several plants in Kertih, as well as reduced production at the Pengerang Petrochemicals Company Sdn. Bhd. (PPC) due to feedstock unavailability. These external issues, combined with the limited uplift in product prices amid industry oversupply, resulted in the O&D segment recording a 4% decrease in quarterly revenue to RM3.5 billion. The segment reported Loss Before Interest, Tax, Depreciation and Amortisation (LBITDA) of RM43 million, primarily attributed to lower contributions from PPC, mainly due to lower plant utilisation rate and unrealised foreign exchange loss on revaluation of payables. The Group's Fertilisers & Methanol (F&M) segment recorded an overall improvement in sales and earnings supported by stronger average product prices despite a slight decline in sales volume. Tight global supply and robust seasonal demand led to increase in prices of approximately 13% and 5% for urea and methanol, respectively. The F&M segment recorded a higher quarterly revenue of RM2.5 billion while EBITDA rose 22% quarter-on-quarter to RM892 million, driven by improved product spreads. Commenting on the 1Q 2025 performance, Mazuin Ismail, Managing Director/Chief Executive Officer of PCG, said 'Our resilience in navigating the challenging market landscape underscores the strength of our diversified portfolio. The improvement in EBITDA reflects our ongoing efforts on operational excellence with commendable plant utilisation rate achieved by our commodities business, despite setbacks in January 2025 that temporarily impacted operations at several plants in Kertih.' On the implications of US tariffs to PCG, Mazuin said, 'We are closely monitoring these developments and assessing broader implications on the overall market dynamics.' Related
Barnama
20-05-2025
- Business
- Barnama
PCG Demonstrates Resilience On Strength Of Diversified Portfolio
KUALA LUMPUR, May 20 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG or the Group), today announced its financial results for the first quarter (1Q 2025) in the financial year ending 31 December 2025, against the backdrop of an increasingly challenging chemicals market. The Group sustained its operational performance with plant utilisation rate of 94% in 1Q 2025, comparable against 4Q 2024. Revenue grew 3% quarter-on-quarter to RM7.7 billion driven by higher average prices of urea, methanol, and polyethylene as well as improved sales performance in the specialties segment. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 26% to RM892 million, supported by better spreads for urea, methanol, methyl tert-butyl ether (MTBE) and olefin derivatives, coupled with reduced operational costs. However, Profit After Tax (PAT) declined to RM18 million from RM539 million in the previous quarter, largely due to unfavourable foreign exchange movement.
