Latest news with #RM90mil
The Star
18 hours ago
- Business
- The Star
Public Mutual declares over RM90mil in fund distributions
KUALA LUMPUR: Public Bank Bhd 's wholly-owned subsidiary, Public Mutual Bhd, has declared over RM90mil in distributions for seven funds. In a statement, the unit trust manager declared gross distributions of 4.25 sen per unit for the Public Bond Fund, 4.00 sen per unit for the Public Islamic Select Bond Fund, 3.50 sen per unit for the Public e-Income Fund, and 3.50 sen per unit for the Public Islamic Income Fund. Public Mutual also declared a gross distribution of 3.00 sen per unit for the Public e-Islamic Income Fund. The Public Optimal Growth Fund will receive a gross distribution of 0.35 sen per unit. For the Public Far-East Property & Resorts Fund, a gross distribution of 0.20 sen per unit has been declared. Public Mutual is Malaysia's largest private unit trust company, managing over 180 funds and nine Private Retirement Scheme (PRS) funds. It operates 31 branches and customer service centres nationwide.
The Star
15-07-2025
- Business
- The Star
Econpile likely to surpass FY26 job-win target
PETALING JAYA: Piling specialist Econpile Holdings Bhd is expected to beat its new job wins target of RM400mil for its financial year ending June 30, 2026 (FY26) with the rollout of more government infrastructure, data centre, and industrial building projects, analysts say. Barely two weeks into its new financial year, analysts said the group is off to a good start with its second job win, a RM98.2mil contract from Eastmont Sdn Bhd to undertake bored piling works, basement construction and pile cap works within a proposed industrial development in Kapar, Klang. CGS International Research (CGSI Research) said in a report that with the new job, Econpile's FY26 new wins already total RM125mil, which is 31% of its target of RM400mil, bringing its order book to RM580mil as of last month. 'This is assuming revenue recognition of RM90mil in the fourth quarter of its FY25 (4Q25).' The gross profit margin for the latest project, which is estimated at 10%, is similar to Econpile's existing piling residential projects, the research house noted. On July 9, Econpile also announced a RM27mil piling and pile cap works contract from Bayu Melati Sdn Bhd for a proposed serviced apartment project with two 37-storey blocks in Selangor. CGSI Research said, 'More importantly, we believe the group's projects have no more lingering legacy issues.' Earlier this year, Econpile had faced some issues with a project in Mont Kiara, Kuala Lumpur, and road upgrading work in Pahang, which have since been gradually resolved. 'As such, we expect earnings to show some recovery in 4Q25, and then become more apparent in FY26 when recognition of most of its projects picks up steam,' the research house noted. CGSI Research reiterated an 'add' call on the stock with a target price of 46 sen per share. 'We like Econpile as a key beneficiary of a revival in government infrastructure spending as, according to the company, it has the largest number of bored pile machines in Malaysia currently.' Meanwhile, RHB Research said in a note to clients, 'Given that the majority of Econpile's contracts pertain to property development, the latest win indicates the group's comeback in the industrial space.' The research house estimated the group's current order book at RM570mil, while FY26 year-to-date job wins stand at RM125mil versus its full-year job win target of RM600mil. The group's tender book stands at about RM1bil, comprising jobs in both the private and public sectors. 'Profitability-wise, we expect the gross profit margin for this latest job to be between 5% and 8%,' it noted. RHB Research, which maintained a 'buy' call on Econpile, set a new target price of 48 sen per share. The research house added that the icing on the cake would come from the group's securing newer packages from infrastructure jobs with higher margins such as the Penang Light Rail Transit or the upcoming Johor Baru Elevated Autonomous Rapid Transit projects. The research house is also upbeat about the group's track record in infrastructure jobs compared with other piling contractors.
The Star
04-07-2025
- Business
- The Star
AEON Credit valuations to hinge on banking arm
AEON Bank is projected to see losses peak in FY26 and gradually ease from FY27 with breakeven targeted in FY28 and profitability by FY29. PETALING JAYA: Aeon Credit Service (M) Bhd 's valuations will likely be driven by the performance of its loss making subsidiary, AEON Bank (M) Bhd, which is Malaysia's first Islamic digital bank. AEON Credit's management expects the bank to only post a profit in financial year 2029 (FY29) and to run losses till then due to expansion and product development related costs. At its AGM on June 25, AEON Credit had guided to RM80mil to RM90mil in associate losses from its 50%-owned digital banking venture in FY26. 'This represents a 17.1% to 31.8% year-on-year (y-o-y) increase from the RM68.3mil loss recorded in FY25 and exceeds our RM75mil loss forecast by 7% to 20%. The updated guidance also surpasses consensus estimates of RM60mil by 33.3% to 50%. 'Further checks with AEON Credit revealed that the higher projected losses are driven by the rollout of expanded product offerings under AEON Bank, including a personal financing facility of up to RM10,000, business banking services and term deposit offerings,' CIMB Securities said in its report. The research house noted that the expansion entailed higher upfront costs, particularly in digital infrastructure and core banking systems, including cloud deployment, cybersecurity and regulatory compliance. AEON Bank is projected to see losses peak in FY26 and gradually ease from FY27 with breakeven targeted in FY28 and profitability by FY29. The financing company also guided to minimal impact on its business from the expanded sales and service tax (SST) apart from RM1.8mil in SST related costs for FY26 (year ending February). To improve its collections, AEON Credit expects to finalise discussions with two agencies to explore the potential implementation of a salary deduction scheme for civil servant borrowers by this month. This market segment accounts for 19% of its customer base. It might not fully mitigate the risk of rising impairments, particularly in light of elevated household debt levels and living costs. The recent increase in civil servant bankruptcies – triggered by the Malaysian Anti-Corruption Commission's 'Op Sky' investigation and the implementation of Malaysia's 'second chance policy' – may continue to weigh on the creditworthiness of this segment, potentially limiting the effectiveness of the salary deduction mechanism over the longer term. AEON Credit's impairment losses surged 32.9% y-o-y in FY25, driven by an 18.4% y-o-y increase in delinquent accounts. This resulted in a higher net credit cost of 3.87% in FY25 (FY24: 3.35%) and an increase in the non-performing loans ratio to 2.64% (FY24: 2.57%).
The Star
18-06-2025
- Business
- The Star
Bank ordered to pay RM90mil to NFCorp for breach of confidentiality
PUTRAJAYA: The Federal Court has ordered Public Bank Bhd to pay RM90mil in damages to National Feedlot Corporation (NFCorp), its chairman Datuk Mohamad Salleh Ismail, and three subsidiary companies for breaching confidentiality by leaking bank account information. A three-judge panel, chaired by Chief Judge of Malaya Justice Hasnah Mohammed, made the decision on the quantum of damages here on Wednesday (June 18). On May 26, the same panel dismissed an appeal by Public Bank in its final appeal in a RM560mil lawsuit brought by NFCorp over the confidentiality breach. More to come
The Star
14-06-2025
- Business
- The Star
New RM79mil Mara Professional College campus to serve Kapit students
KAPIT: A new Mara Professional College campus, costing RM79mil, will be constructed in Kapit to serve students in the division. The campus would have the capacity to accommodate up to 300 students and would emphasise soft skills instead of technical or TVET (Technical and Vocational Education and Training) courses. Works Minister Datuk Seri Alexander Nanta Linggi stated that the project was approved in 2019 but could not commence earlier due to various necessary processes that had to be completed. 'This project has been eagerly anticipated and is much needed, as it will be the only higher education institution available to students after secondary school in this remote area,' he said following a handover ceremony at the Kapit Civic Centre meeting room on Saturday (June 14). Nanta mentioned that the original allocation for the project was RM90mil, but after an open tender process, the contract was awarded for RM79mil. He said there would be only a one-time registration fee upon enrollment, with no tuition fees. 'Additionally, students will receive a monthly allowance of RM300,' he said. The project, located on Jalan Song-Kapit, is scheduled for completion on Dec 5, 2029. After the ceremony, Nanta attended the Gawai Dayak open house at Dewan Sarawak.
