Latest news with #SDGuthrieBhd
The Star
2 days ago
- Business
- The Star
SD Guthrie's shares rise on strong 2Q earnings
KUALA LUMPUR: Shares in SD Guthrie Bhd rose in early trade Friday after reporting better-than-expected financial results in the second quarter ended June 30 (2Q25). The plantation group rises 1.89%, or nine sen, to RM4.86 at 10.07 am, gaining more than 2.5% over the past month. SDG posted a net profit of RM505mil in 2Q25, up from RM415mil in the same quarter last year. It reported revenue of RM5.17bil compared to RM4.97bil in 2Q24. Over the six-month period, net profit came to RM1.07bil against RM626mil in 1HFY24, while revenue rose to RM9.99bil from RM9.31bil in the year-ago period. Hong Leong Investment Bank Research (HLIB Research) said SD Guthrie's 1H25 core net profit of RM1.06 bil, up 69%, exceeded expectations, making up 60.7% to 60.9% of both its and consensus full-year forecasts, driven mainly by stronger-than-expected Papua New Guinea (PNG) operations and lower finance costs. 'We raise our FY25-27 core net profit forecasts by 4.6%/4.3%/6.1%, mainly to account for CPO production cost at PNG operations and lower finance cost assumptions,' the research house said. HLIB Research has maintained its 'buy' rating on SD Guthrie with a higher target price of RM5.37, based on 21 times the revised FY26 core EPS of 25.6 sen. Meanwhile, RHB Research said SD Guthrie's 2Q25 core earnings beat expectations, rising 24% year-on-year but easing 8% quarter-on-quarter, with 1H25 core profit making up 62% to 70% of its and consensus' FY25 forecasts. The outperformance was driven by lower interest costs, higher-than-expected CPO average selling prices in Malaysia (from forward sales) and PNG, as well as stronger downstream margins. SD Guthrie declared an interim dividend of 7.8 sen, representing a 50% payout. RHB has maintained its 'buy' call on SD Guthrie, raising its SOP-based target price to RM6.10 from RM5.45 after increasing earnings forecasts by 21.8%, 15.1% and 15.5% for FY25F to FY27F. The upgrades stem from higher ASP premiums for PNG, lower interest rates, and improved downstream margins. Valuation remains attractive at 19.6 times 2026F P/E, compared with peers' range of 17 to 22 times.
The Star
2 days ago
- Business
- The Star
Trading ideas: SD Guthrie, Mah Sing, ITMAX, Annum, Golden Pharos, Sentral REIT
KUALA LUMPUR: Stocks likely to attract trading interest today include SD Guthrie Bhd , Mah Sing Group Bhd , ITMax System Bhd , Annum Bhd , Golden Pharos Bhd , and Sentral Real Estate Investment Trust (Sentral REIT), following their latest corporate announcements. SD Guthrie posted a net profit of RM505mil for the second quarter ended June 30, 2025 (2Q25), up from RM415mil in the same quarter last year. The group reported revenue of RM5.17bil compared to RM4.97bil in 2Q24. ITMax's 70%-owned subsidiary, Selmax Sdn Bhd, has been appointed as the operator of the Selangor Intelligent Parking (SIP) system by the Shah Alam City Council (MBSA). Mah Sing has acquired 1.485-acres of freehold land in the heart of the KLCC precinct from the MUI Group for RM260mil. The property developer said the land will be redeveloped into a premium freehold serviced apartment project with an estimated gross development value of RM1.28bil. Units are indicatively priced from RM898,000. Annum, a plywood products manufacturer, will be delisted from Bursa Malaysia on August 12, 2025, following the dismissal of its appeal for an extension of time to submit a regularisation plan. Golden Pharos's unit GP Plywood has appointed GK Vest as the operator for a biochar production facility on 1.19 acres in Dungun, Terengganu, under an 80:20 revenue-sharing agreement. Sentral REIT posted a lower realised net income of RM20.14mil in 2QFY25 versus RM20.53mil a year earlier, as revenue slipped to RM47.7mil from RM49.03mil. For 1HFY25, net income was slightly lower at RM39.74mil, while revenue declined to RM95.15mil. It declared a 3.16 sen interim distribution, ex-date Aug 21, payable Sept 18.
The Star
2 days ago
- Business
- The Star
US tariffs unlikely to impact SD Guthrie exports
SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha. KUALA LUMPUR: SD Guthrie Bhd does not expect any near-term impact from the US tariffs, says group managing director Datuk Mohamed Helmy Othman Basha. According to him, while it does export to the United States, it only consists of very small volumes – about 2% only. 'The fact is, products can only come from Malaysia or Indonesia, and as Indonesia has the same tariff rates, we don't see any impact at all, at least not in the immediate term,' he told reporters after the group's second-quarter results announcement here yesterday. The palm oil producer posted a higher net profit of RM505mil for the second quarter ended June 30, 2025 as well as a higher revenue of RM5.17bil, compared to RM4.97bil in the same quarter last year. Mohamed Helmy said the increase in earnings was on the back of strong results from its upstream segment. 'We have a bit of a double tailwind in the sense that we expect production to remain strong for our operations. We also expect crude palm oil (CPO) prices to stabilise at around RM4,000 and RM4,100 for the rest of the year,' he noted. The group's downstream segment, however, faced a number of headwinds. This segment was the only negative in its results, registering RM126mil in profit before interest and taxes, a decrease from the RM225mil posted in the same quarter last year. The drop was due to weaker profits generated by the refineries and operations across Asia Pacific and Europe, impacted by both lower margins and reduced volume demand, further compounded by the lower share of profits from joint ventures. For the six-month period ended June 30, 2025, SD Guthrie's net profit rose to RM1.07bil against RM626mil in the same period last year, while revenue grew to RM9.99bil from RM9.31bil in the first half of 2024. Similar to its quarterly earnings, the increase was mainly due to strong upstream operations, which resulted from higher year-on-year (y-o-y) average realised CPO and palm kernel prices which rose by 3% and 50% y-o-y to RM4,146 and RM3,247 per tonne, respectively. On top of that, its fresh fruit bunch (FFB) production increased by 4%, as all segments registered higher FFB production. Moving forward, Mohamed Helmy said he expects the upstream segment to carry more of the growth for this year. He opined that the rest of the year will continue to have a positive trajectory. Among the key drivers include the two business pillars the group has been focusing on lately – industrial parks and renewable energy. 'These two pillars have gained traction, but there is still a lot of work in the pipeline. 'Some have translated into joint ventures and we expect profit recognition by the third quarter,' he said. He added that by 2030, the plan is that the two business pillars will contribute nothing less than RM700mil to RM800mil to the group's bottom line. 'That should be close to about 30% to the overall contribution' he noted. Meanwhile, Mohamed Helmy said while the group has been aware of the impact in terms of costs related to the 5% charge from the sales and service tax, it is hoping for an exemption. 'There is a request in relation for an exemption for this. We are hoping to hear about the exemption and chances are, it will come in.'
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
New homes for Elphil estate workers still on hold over cost issues
Sime Darby Plantation Bhd, now known as SD Guthrie Bhd, had agreed to hand over 4ha of land to Putrajaya for the construction of the homes. PETALING JAYA : The construction of new homes for workers at Elphil estate in Sungai Siput, Perak, under a special scheme is still on hold because of cost issues. Human resources minister Steven Sim said Sime Darby Plantation Bhd, now known as SD Guthrie Bhd, had agreed to hand over 4ha of land to Putrajaya for the construction of the homes. The company had agreed to this in February 2020, based on past reports. Sim said his ministry then held a series of discussions with the housing and local government ministry and Syarikat Perumahan Negara Bhd (SPNB) regarding the homes. 'The housing ministry and SPNB said there were costs that needed to be borne, and that there were constraints in terms of funding to carry out the development. 'Therefore, the proposed development through the housing ministry and SPNB could not proceed,' he said in a written parliamentary reply. Sim said the human resources ministry also held talks with SD Guthrie and the Perak Housing and Property Board (LPHP) on the proposal to build the homes for the estate workers. 'LPHP agreed in principle with the proposal. However, costs involving the transfer of land ownership, division of boundaries, and change in land use terms are still being studied by the ministry,' he said. He was responding to S Kesavan (PH-Sungai Siput), who asked for an update on the proposed home financing scheme for the Elphil estate workers. In May 2022, former human resources minister M Kulasegaran questioned if the government had abandoned plans to build these houses. He pointed out that SD Guthrie had agreed to allocate the land for the construction of about 100 units of medium-cost homes for the estate workers to purchase and own. Under the special scheme, he said, Bank Simpanan Nasional would offer the estate workers a 35-year loan with a 2% interest. The houses were supposed to cost less than RM150,000.
New Straits Times
2 days ago
- Business
- New Straits Times
SD Guthrie responds to Indonesian forest permit concerns
KUALA LUMPUR: SD Guthrie Bhd says less than three per cent of its 180,000 hectares of planted oil palm area in Indonesia is currently under review by the Indonesian government. Addressing concerns over reports suggesting that some of its Indonesian subsidiaries may be operating in forest-designated areas without permits, group managing director Datuk Mohamad Helmy Othman Basha said the matter is not unique to SD Guthrie. Similar overlaps have affected both Malaysian and Indonesian plantation companies operating in the country, he added. CIMB Securities recently highlighted growing regulatory risks for Malaysian plantation companies operating in Indonesia. This followed the Indonesian government's move to seize land lacking proper forestry permits or in violation of land-use laws. SD Guthrie's Indonesian subsidiaries were listed in an official decree, with 3,045 hectares under scrutiny, 1,874 hectares currently under the legalisation process and 1,171 hectares reportedly rejected. "For context, our total planted area in Indonesia is about 180,000 hectares. Less than three per cent of this has been flagged by the authorities as overlapping with forest zones," Helmy said at a press briefing here today. "However, we have our own data that disputes this, and discussions with the Indonesian government are ongoing," he added. Helmy said SD Guthrie continues to manage operations in the affected areas and is in active discussions with the Indonesian government to resolve the land classification concerns Group chief operating officer Mohd Haris Mohd Arsyad said the issue is not about illegal clearing or expansion, but rather differing interpretations of land use boundaries. "There's the Perhutanan (forestry) map, and then there's the map from the ministry that gives us our licenses. Much of this happened before we acquired the land," he said. The land in question was acquired from the Indonesian government in 2001 during a post-financial crisis asset restructuring. Helmy likened the acquisition to Malaysia's Danaharta model, saying that it was conducted with representations and warranties from the government. Chief financial officer Renaka Ramachandran clarified that SD Guthrie should not be associated with deforestation, as the plantations were already established prior to the acquisition. "We never planted the land ourselves. We bought ready-made plantations, and the agreement came with assurances from the government. Accusations of deforestation should not arise," she said. The executives reiterated that SD Guthrie holds valid land titles and has complied with relevant processes. They acknowledged that resolving the matter will require time and continued engagement with authorities. "We're confident this will be resolved, but it's a complex issue that requires ongoing dialogue with the government," said Haris.
