Latest news with #SY303
The Star
a day ago
- Business
- The Star
NexG plunges, Classita surges on RM77mil deal
PETALING JAYA: In what appears to be a protest to NexG Bhd acquiring a major stake in Classita Holdings Bhd , shareholders dumped the shares of the MyKad supplier, causing the stock to plunge nearly 30% and lose over half-a-billion ringgit in market capitalisation. In contrast, the share price of construction firm Classita jumped by 12.5%, reaching nine sen a share – a level last seen two years ago. Cautious on the RM77mil equity acquisition in Classita, BIMB Research downgraded its rating on NexG to 'sell', pointing out that the immediate risk-reward ratio had turned unfavourable. 'We believe investors should be mindful of the slow-burn nature of property earnings recognition, integration complexity, and the drag of non-core diversification. 'We keep our target price at 45 sen,' stated the research house in an early morning note to clients yesterday. This was before the stock plunged to 37.5 sen by market close yesterday, making it the second top loser on Bursa Malaysia. On Aug 8, NexG – formerly known as Datasonic Group Bhd – announced the acquisition of a 32.61% stake and 414.31 million warrants C in Classita for RM76.78mil. With this acquisition, NexG emerged as the single largest major shareholder of Classita. It also marked NexG's entry into the construction and property development sectors. NexG chairman and chief executive officer Datuk Hanifah Noordin said, in a statement earlier, that the entry into the property and construction sectors is a 'strategic and timely move' for the company. 'We intend to play a more active and visible role in Malaysia's national development by leveraging our financial strength, government networks, and proven track record in mission-critical projects to support the country's housing and infrastructure agenda. 'We view Classita as a strong fit for this ambition, given its credentials and readiness to participate in government-linked projects,' he said. NexG also highlighted Classita's collaboration with Lion Pacific Sdn Bhd to jointly participate in the mass rail transit three project. Lion Pacific, an engineering firm with an extensive track record in railway systems and civil works, will lead the overall system package. Classita, under the proposed arrangement, is expected to undertake the SY303 work package, which involves the supply, testing, and commissioning of electric trains and supporting systems. 'Should the project be awarded to the parties, this strategic partnership will mark Classita's entry into high-value transport infrastructure delivery and strengthen its credentials as a credible contender for long-term public-sector engineering contracts. This is fully aligned with the Madani development agenda. 'In parallel, Classita is advancing plans for a proposed Perumahan Penjawat Awam Malaysia housing project on its Ulu Klang land, providing affordable and quality homes for civil servants. This aligns closely with Madani's emphasis on equitable housing access and targeted community upliftment.' BIMB Research is 'neutral' on NexG's entry into Classita as the near-term earnings impact is minimal, while the long-term execution risk remains high given Classita's volatile track record.
New Straits Times
a day ago
- Business
- New Straits Times
Classita appoints former IGP as chairman, rebrands to NexG Bina in affordable housing push
KUALA LUMPUR: Classita Holdings Bhd has appointed former inspector-general of police Tan Sri Razarudin Husain as non-executive chairman, effective immediately, as the company pivots toward public-interest-aligned development and large-scale infrastructure projects. The leadership change follows NexG Bhd's emergence as Classita's substantial shareholder with a 32.61 per cent stake. The group has proposed a rebranding to NexG Bina Bhd, subject to shareholder approval, to reflect its shift into construction and development in partnership with NexG Group. Ng Keok Chai, previously executive chairman, has been redesignated as executive director and will remain actively involved in project execution and business development under the company's new direction. Leveraging his four decades in the police force, Razarudin is spearheading a proposal for a dedicated residential project for members of Koperasi Polis Diraja Malaysia (KPDRM) on Classita's Ulu Kelang landbank. The initiative, originally earmarked for a public service housing project (PPAM), will be repositioned as a mission-driven development aimed at affordable, dignified housing for police personnel and their families. "Affordable, dignified housing is not just a need - it's a foundation for stability, morale, and long-term wellbeing. This initiative is not about property; it's about purpose. By proposing this to KPDRM, we're creating a win-win solution - uplifting the lives of those who serve the nation, while aligning Classita's future with meaningful, socially driven development," he added. In addition to housing initiatives, Classita is preparing for participation in large-scale infrastructure projects, most notably the MRT3 System Project. The company is collaborating with Lion Pacific Sdn Bhd to jointly tender for the MRT3 System Project, with Lion Pacific acting as lead contractor. Under the proposed arrangement, Classita is expected to undertake the SY303 work package, which involves the supply, testing, and commissioning of electric trains and related systems. Classita said this partnership positions it to play a significant role in national infrastructure delivery and reflects the company's capacity to meet the demands of high-value, public-sector engineering contracts aligned with the Madani agenda. With strategic support from NexG, whose core businesses include secure ID solutions, eKYC platforms and government-aligned digital infrastructure, Classita is set to expand its role in affordable housing, infrastructure and public-private partnership programmes. Under the 13th Malaysia Plan, the government aims to build one million affordable homes by 2035, alongside major investments in transport, urban renewal and infrastructure. A total of RM560.45 million has been set aside to upgrade 1,776 health clinics, while over 82,000 police and army quarters are being built or refurbished. The Malaysia Construction Industry Report 2025 notes over 1,049 public projects worth RM58.8 billion in the pipeline, with RM60–70 billion in annual opportunities for housing, infrastructure and institutional works. Razarudin said with the backing of NexG and a renewed leadership mandate, Classita is transforming into a development platform that serves not just markets but Malaysians. "We are aligning ourselves with the nation's policy agenda—from affordable housing and infrastructure to projects that deliver lasting socioeconomic impact. "To realise these ambitions at scale, government support will be crucial — including strategic land allocations, regulatory facilitation, and integration into national programmes.
