Latest news with #RM89mil
The Star
03-06-2025
- Business
- The Star
AME Elite's presence in investment hotspots to lift results in FY26
PETALING JAYA: Despite missing forecasts on its earnings for its financial year 2025 ended March 31 (FY25), analysts are still maintaining a 'buy' call on AME Elite Consortium Bhd. According to a report by Philip Capital Research, the engineering and construction firm still has a presence in high-demand foreign-direct-investment hotspots Penang and Johor. The research house noted would will continue to be a positive element despite a drop in AME Elite's revenue. For FY25, its revenue fell 15% year-on-year to RM609mil on the back of weaker contributions from the property sector. 'Nevertheless, its earnings before interest, taxes, depreciation, and amortisation improved 5.2 percentage points to 25.1%, attributed to better progress milestones for construction and property development projects, cushioning core net profit decline to a marginal 2% to RM89mil,' the research house said. Philip Capital Research noted that overall, the group's results came in below expectations, accounting for 54% of its full-year forecast and 52% of consensus forecasts. 'The result miss was primarily due to the timing of recognition for its RM210mil land sale to Digital Hyperspace (M) Sdn Bhd, which is expected to recognise a net gain of RM85mil, pending the final payment of the remaining 85% of the total consideration,' the research house noted. However, the data centre client remains committed to the deal and has requested an extension for the final payment deadline to June with an optional extension to August. Meanwhile, the research house also noted that AME Elite surpassed its FY25 target in terms of sales, which was supported by the launch of a industrial-park project in Penang. The company's earnings for its third quarter ended Dec 31, 2024 saw its core net profit soar 77% quarter-on-quarter to RM33mil, attributed to margin improvement from its construction and property development, as well as the recognition of industrial property sales to AME Real Estate Investment Trust (AME-REIT). In March, AME Elite announced that it was proposing to sell three industrial properties in Johor to AME-REIT for RM100.8mil in a related party transaction. The properties comprise one industrial property in i-Park @ Senai Airport City and two industrial properties in i-TechValley at Southern Industrial Logistic Clusters. 'AME Elite recorded RM640mil in new sales in FY25, surpassing its internal RM550mil sales target, including strong sales of RM55.9mil in the fourth quarter of FY25 from its newly launched RM1.3bil Northern TechValley in Penang,' the research house said. It added that it raised its earnings forecast for AME Elite in FY26 by 78% to reflect the delay in the recognition of data centre land sale and faised FY27 earnings by 2% on housekeeping adjustments. It also introduced its FY28 earnings forecasts which is a 4% increase year-on-year. Philip Capital Research said it had trimmed its sum-of-parts-derived target price to RM2 from RM2.10 to reflect a higher forecast gearing level in FY26. AME Elite declared a second interim dividend of three sen per share, down from four sen last year, bringing the total dividend for the year to six sen. The dividend will be paid on July 4.
The Star
21-05-2025
- Business
- The Star
S P Setia first-quarter earnings at RM89mil
S P Setia president and chief executive officer Datuk Choong Kai Wai. PETALING JAYA: Property developer S P Setia Bhd recorded a profit before tax of RM141mil and a net profit of RM89mil for the first quarter ended March 31, 2025 (1Q25), mainly attributable to operational efficiency and effective cost management. For 1Q25, S P Setia posted a revenue of RM771mil as it continued to demonstrate financial resilience through delivering value to shareholders while also continuing to reduce borrowings by another RM156mil. This led to a net gearing ratio of 0.35 times that, on a quarter-to-quarter basis, aligned with the company's debt reduction strategies. 'Our financial performance during the quarter underscores our continued efforts, persistence and implemented strategies as we adjust to the current market needs and conditions,' S P Setia's president and chief executive officer Datuk Choong Kai Wai said in a statement. 'Despite the market volatility, we will continue to leverage our diversified portfolio while optimising our capital efficiency and expanding our presence across high-growth segments,' he said. He added that the company remains vigilant, monitoring market developments to manage potential impacts effectively. S P Setia would be rolling out RM5.1bil of property projects and RM300mil of planned industrial launches for the financial year ending Dec 31, 2025 (FY25) as the company continues to accelerate the portfolio of catalytic township developments, eco-industrial parks, strategic partnerships, land monetisation and capitalising on value creation across its key growth corridors. For overseas projects, the company's recently launched ATLAS Melbourne, with an estimated gross development value (GDV) of A$886.7mil (RM2.7bil), has shown continued momentum in contribution to overall sales, while in Vietnam, new residential launches have been scheduled within the successful developments of EcoLakes in FY25. The company also remains committed to achieving its RM4.8bil sales target for FY25 leveraging on an established reputation as one of the top-listed sustainable, master planned township developers in Malaysia. For FY24, the company recorded RM5bil against a target of RM4.4bil. For 1Q25, it has secured RM718mil in sales, with local projects contributing RM489mil or two-thirds of the total sales, and international projects contributing RM229mil. It noted that for the domestic market, RM284mil in sales was secured from the central region and RM189mil from the southern region. As of March 31, 2025, the company had an unbilled sales pipeline of RM3.8bil with 42 ongoing projects. It has a remaining landbank of 5,364 acres and an effective remaining GDV of RM120.1bil.
The Star
21-05-2025
- Business
- The Star
S P Setia remains resilient in 1Q25, aims for RM4.8bil in FY25 sales
S P Setia president and chief executive officer Datuk Choong Kai Wai PETALING JAYA: Property developer S P Setia Bhd recorded a profit before tax of RM141mil and a net profit after tax of RM89mil for the first quarter ended March 31, 2025 (1Q25), mainly attributable to operational efficiency and effective cost management. For 1Q25, S P Setia posted revenue of RM771mil as it continued to demonstrate financial resilience through delivering value to shareholders while also continuing to reduce borrowings by another RM156mil leading to a net gearing ratio of 0.35 times that, on a quarter-to-quarter basis, aligns with the company's debt reduction strategies. 'Our financial performance during the quarter underscores our continued efforts, persistence and implemented strategies, as we adjust to the current market needs and conditions,' S P Setia's president and chief executive officer Datuk Choong Kai Wai said in a statement. 'Despite the market volatility, we will continue to leverage on our diversified portfolio, while optimising our capital efficiency, and expanding our presence across high-growth segments,' he said, adding that the company remains vigilant amidst the fluctuation of market challenges and would continue to monitor the developments, assess potential impacts on its operations and evaluate appropriate strategies to mitigate any adverse effects. S P Setia would be rolling out RM5.1bil of property projects and RM300mil of planned industrial launches for the financial year ending December 31, 2025 (FY25) as the company continues to accelerate the portfolio of catalytic township developments, eco-industrial parks, strategic partnerships, land monetisation, and capitalising on value creation across its key growth corridors. For overseas projects, the company's recently launched ATLAS Melbourne, with an estimated gross development value (GDV) of A$886.7mil (RM2.7bil), has shown continued momentum in contribution to overall sales while in Vietnam, new residential launches have been scheduled within the successful developments of EcoLakes in FY25. The company also remains committed to achieving its RM4.8bil sales target for FY25 leveraging on an established reputation as one of the top-listed sustainable, master planned township developers in Malaysia. For FY24, the company recorded RM5bil against a target of RM4.4bil. For 1Q25, it has secured RM718mil in sales with local projects contributing RM489mil or two-thirds of the total sales and international projects contributing RM229mil. It noted that for the domestic market, RM284mil in sales was secured from the central region and RM189mil from the southern region. As of March 31, 2025, the company has an unbilled sales pipeline of RM3.8bil with 42 ongoing projects. It has a remaining landbank of 5,364 acres, and an effective remaining GDV of RM120.1bil.
