Tuju Setia poised for stronger earnings growth in FY25
KUALA LUMPUR: Tuju Setia Bhd's earnings could improve in the financial year 2025 (FY25) following the significant drop in raw material prices and operating costs, according to Rakuten Trade Sdn Bhd.
The firm said the construction firm successfully achieved a turnaround in FY24 and expected to grow stronger going forward.
It noted that Tuju Setia's outstanding order book stood at RM2.08 billion as of early April 2025, offering strong earnings visibility through to 2028.
"In FY24, it secured project wins totalling RM1.6 billion in FY24 from repeat and reputable clients, such as Sunway Group, Avaland, SimeProp, Pelaburan Hartanah, BRDB and Beverly Group.
"This solid pipeline enables the Group to leverage operational scale, maintain high work quality and build resilience," it added.
Rakuten Trade projects Tuju Setia to record net earnings of RM8.6 million in FY25 and RM15.9 million in FY26, supported by increased project recognition and improving profit margins.
The firm said Tuju Setia Bhd is expected to reward shareholders with dividend payouts of 0.6 sen and 1.1 sen for FY25 and FY26, respectively, translating into estimated dividend yields of 2.7 per cent and 5.0 per cent.
While concerns remain over the company's relatively high net gearing ratio of 1.07 times as of FY24, it said stronger projected earnings for FY25 are expected to ease the balance sheet.
Net gearing is anticipated to improve to below 0.9 times by end-FY25F and further decline to around 0.6 times by end-FY26.
Rakuten Trade has issued a "buy" recommendation on Tuju Setia, with a target price of 37 sen per share.
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