Latest news with #RM9mil
The Star
11-08-2025
- Business
- The Star
Tariff clarity likely to spur PIE orders rebound
PETALING JAYA: PIE Industrial Bhd is looking to turn the page on a subdued first half of 2025 (1H25), with analysts pointing to a potential rebound in orders following the finalisation of Malaysia's 19% tariff rate, which has restored parity with regional peers and reduced uncertainty for the group's key customers. Kenanga Research noted that 'the finalisation of Malaysia's tariff rate at 19% has lifted near-term uncertainty,' enabling PIE to resume discussions with customers, who had deferred major decisions. 'Pricing parity is expected to drive both new orders and resume previously delayed orders, particularly from its key customer,' the research house said. The group is actively engaging both existing and potential clients, with '10 potential customers from Vietnam and China' under discussion, according to Kenanga Research. Operationally, the Plant 5 expansion for PIE is on track for completion by the end of the last quarter of the year (4Q25), with a link bridge to Plant 3 scheduled for 1Q26. Plant 6 is ready for mass production of switches and awaiting qualification for server production. For 1H25 ended June 30, PIE posted a core net profit of RM24.6mil, down 3.8% year-on-year (y-o-y) and well below analysts' expectations. Maybank Investment Bank Research (Maybank IB) said earnings came in at '35% and 29% of our and consensus full-year estimates, respectively', attributing the shortfall to weaker-than-expected order loading from key customers. Revenue rose 4.9% y-o-y to RM503mil, supported by electronic manufacturing services (EMS) with a 5.5% y-o-y growth and wire harness sales, which grew 44%, but was offset by a 2% decline in raw wire and cable sales. Gross profit margin contracted to 7.1% from 8.4% a year earlier, while core net margin eased 0.4 percentage points to 4.9%. Quarter-on-quarter (q-o-q), revenue fell 15% to RM231mil in 2Q25, with EMS sales tumbling 23% as customers adopted a 'wait-and-see approach' amid the US tariff uncertainty. The weaker sales mix pushed gross margin down 2.5 percentage points to 5.8%, dragging core net profit 45% lower to RM9mil, according to Maybank IB. The brokerage firm has taken a more cautious stance, cutting its earnings forecasts for PIE for financial year ending 2025 (FY25) to FY27 by 22% to 26% and downgrading PIE to 'hold' with a lower target price of RM3.56 from RM4.70 previously. This is pegged at 17 times FY26 price-to-earnings ratio at minus 0.5 standard deviation of its five-year forward mean. 'Risks include delays in customer onboarding, muted demand visibility, high customer concentration, subdued operating leverage and persistent labour constraints,' the research house warned. Kenanga Research, however, maintained its 'market outperform' call with a target price of RM4.60, citing optimism over the post-tariff order recovery. It values PIE at 21.6 times FY25 earnings per share, a 10% discount to artificial intelligence server-related peers such as NationGate. PIE's 2Q25 performance was also hit by a RM3.6mil net foreign-exchange loss, compared with a RM2.6mil gain a year earlier. While EMS remains the dominant revenue driver, other segments showed resilience. Still, EMS pre-tax profit margins fell sharply to just 0.1% in 2Q25 from 4.9% in 1Q25, while raw wire and cable margins improved to 16% from 14.8%. Nevertheless, both research houses cited PIE's diversified and evolving client base, spanning communication devices, power tools and decentralised finance equipment – as a strength. Maybank IB also pointed to its 'ready and available production capacity of 280,000 sq ft' to serve new customers and growing exposure to supply chain diversification trends. While near-term earnings visibility remains clouded, upside catalysts include earlier-than-expected customer onboarding, large contract wins and favourable forex movements. Conversely, risks extend to order losses, labour shortages and adverse trade policies.
The Star
08-08-2025
- Business
- The Star
Unlicensed futures trader gets 20 years' jail, RM9mil fine for unlicensed trading, fraud
The Securities Commission of Malaysia building in Kuala Lumpur PETALING JAYA: The Kuala Lumpur Sessions Court has sentenced Mohd Azhidi Laili to a total of 20 years imprisonment and a fine of RM9mil for unlicensed activities and derivatives fraud. In a release, the Securities Commission noted Azhidi had falsely represented himself as a futures trader and committed the offences between May 2013 and March 2014. The sentence was passed after Azhidi pleaded guilty yesterday to nine charges under section 206(b) of the Capital Markets and Services Act 2007 (CMSA). According to the facts of the case he had deceived nine victims of a total of RM1.45mil for a purported futures crude palm oil (FCPO) investment scheme under AmFutures Sdn Bhd, which did not exist. He was sentenced to two years imprisonment and a fine of RM1mil in default three months imprisonment, for each charge, with the imprisonment terms to run concurrently. "If Azhidi does not pay the fine, he will face a further imprisonment of 27 months after the completion of his imprisonment term," the release noted. Azhidi also pleaded guilty to one charge under section 59(1) of the CMSA for holding himself out as a representative of AmFutures Sdn Bhd without being licensed nor a registered person for dealing in derivatives, an activity regulated by the SC pursuant to Schedule 2 of the CMSA. The court sentenced him to two years imprisonment for this offence, to be served concurrently with the offences under section 206(b) of the CMSA.
The Star
31-07-2025
- Business
- The Star
Bursa Malaysia slips as trade uncertainty weighs on sentiment
KUALA LUMPUR: Bursa Malaysia closed lower on Thursday as cautious sentiment ahead of a key trade announcement weighed on investor activity. At close, the 30-stock index fell 11.25 points, or 0.74%, to 1,513.25 — its biggest drop since July 16, when it lost 0.91%. For the month, the index declined 1.28%. The index is on track for its largest weekly decline since the week ended May 30, slipping 1.3% so far. In the broader market, gainers outnumbered decliners 545 to 475, while 483 counters remained unchanged. Turnover stood at 3.8 billion shares worth RM3.1bil. Dealers said investor sentiment remained cautious ahead of the trade negotiation deadline, with many staying on the sidelines amid ongoing uncertainty over a potential deal. Prime Minister Datuk Seri Anwar Ibrahim said U.S. President Donald Trump has agreed to announce Malaysia's tariff rate on Friday (Aug 1), following a phone call on Thursday (July 31). 'After we spoke, he decided to delay the tariff announcement to tomorrow (Aug 1). God-willing, this will help us and not burden the economy,' Anwar said when tabling the 13th Malaysian Plan in Parliament today. Among the losers on Bursa Malaysia, Hong Leong Bank slid 30 sen to RM19, Tenaga Nasional fell 26 sen to RM13.02, PETRONAS Chemicals lost 19 sen to RM3.68 and British American Tobacco declined 15 sen to RM5.17. Malaysian Pacific Industries , the top gainer on Bursa Malaysia, jumped 74 sen to RM20.14. Nestle rose 68 sen to RM88.08, Heineken added 20 sen to RM23.92 and Hong Leong Industries gained 16 sen to RM13.06. According to Bursa Malaysia data, foreign investors and local institutions sold RM34mil and RM9mil worth of equities, respectively, on Wednesday, while retailers bought RM43mil. Meanwhile, the ringgit fell 0.38% to 4.2592 against the US dollar but rose 0.12% to 3.2895 against the Singapore dollar. Asian markets ended mixed today. Japan's Nikkei 225 rose 1.02%, while South Korea's Kospi slipped 0.28%. Hong Kong's Hang Seng fell 1.6%, China's CSI300 dropped 1.82%, and the Shanghai Composite lost 1.18%.
The Star
16-06-2025
- General
- The Star
Under-used hostel gets more support
A HOSTEL at SJK (T) Ladang Midlands is only housing 20 pupils, although it was built for 200 people, Makkal Osai reported. Shah Alam Tamil school board chairman K. Uthaya Sooriyan said the school and hostel were completed at a cost of RM9mil. The school board, management and parent-teacher association are working to get more students to stay at the hostel. Selangor exco member V. Papparaidu, said the state government will provide RM100,000 to help finance the operations of the school and hostel. The state will monitor the hostel and provide more help if needed. > The daily also reported that a tree in India became a pilgrimage site after one of its stumps began secreting 'holy water'. The tree, located in a public park in Pune, apparently began secreting water about a week ago. Locals began worshipping it and the stump was adorned with turmeric, kumkum and even claimed the water could cure illnesses. However, an investigation found that the liquid came from a leaking underground pipe and the water started coming through a gap in the hollow stump. It was unclear if it was repaired or if people had stopped coming. The above articles are compiled from the vernacular newspapers (Bahasa Malaysia, Chinese and Tamil dailies). As such, stories are grouped according to the respective language/medium. Where a paragraph begins with a, it denotes a separate news item.
The Star
24-05-2025
- Politics
- The Star
Families get homes after decades of waiting
Compiled by KHOO GEK SAN, ALLISON LAI and R. ARAVINTHAN AFTER a 40-year struggle, 32 Indian families in Perak have finally received the deeds to their homes, Makkal Osai reported. These families had built their houses on JKR-owned land after the Ladang Bikam plantation, where they previously resided, was sold off decades ago. State exco member A. Sivanesan confirmed that the state government intervened after JKR said it no longer needed the land. The government then took over the land and issued the long-awaited land deeds. Similarly, 52 families in Kampung Baru Kuala Bikam are seeing resolutions to their own nearly five-decade-long land issues. Some have already received their land deeds, while others are in the process. The Kampung Senggai families received their deeds from Sivanesan during the opening ceremony of the RM9mil Dewan Muhibbah Bidor. The above articles are compiled from the vernacular newspapers (Bahasa Malaysia, Chinese and Tamil dailies). As such, stories are grouped according to the respective language/medium. Where a paragraph begins with a >, it denotes a separate news item.
