Muhibbah still boasts active construction pipeline amid Petronas-Petros issue

KUALA LUMPUR: Muhibbah Engineering (M) Bhd has maintained an active construction pipeline despite short-term uncertainties linked to the ongoing Petronas-Petroleum Sarawak (Petros) dispute, CIMB Securities said.
The company's current bid book stands at RM2.6 billion, with 62 per cent of projects located overseas.
Its infrastructure jobs account for 50 per cent of the bids, followed by waste-heat energy projects at 38 per cent, and oil and gas-related works making up the remaining 12 per cent.
"Muhibbah's 65 per cent-owned subsidiary Favelle Favc is bidding for RM3 billion worth of jobs, with the Middle East region accounting for over RM100 million as massive infrastructure projects such as the New Murabba mixed-use development and the NEOM 2029 Asian Winter Games are fuelling new orders for cranes," it said.
According to CIMB Securities, Muhibbah's first quarter of 2025 (1Q25) performance was in line with expectations, with core earnings making up 26 per cent of both its and market consensus estimates.
The company posted a 14 per cent year-on-year (YoY) increase in net profit to RM16.17 million, up from RM14.19 million previously, driven by stronger contributions from its concession segment.
"As with previous financial years, Muhibbah's 21 per cent-owned Cambodia Airports continues to be the key 1Q earnings driver for the group in financial year 2025 (FY25).
"This is underpinned by a 22 per cent YoY surge in Cambodian air traffic as the kingdom continues to benefit from a resurgence in the number of tourist arrivals," it said.
CIMB Securities expects Muhibbah to declare a total dividend per share of 2.3 sen for FY25, offering a fairly attractive yield of 3.8 per cent.
The research house remains positive on Muhibbah due to its involvement in marine and oil and gas-related infrastructure projects.
It maintained a 'Buy' rating on the stock with an unchanged target price of RM1.10.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Borneo Post

13 hours ago

• Borneo Post

M'sian manufacturing body urges govt support for automation, job redesign to tackle labour shortage

Soh says while manufacturers are investing heavily in automation and digitalisation, these transitions require capital, time and skilled talents, which remain in short supply. KUCHING (June 21): The Federation of Malaysian Manufacturing (FMM) has suggested the government introduce targeted incentives for automation and support for job redesign to maintain manufacturing as a competitive and inclusive sector. According to FMM president Tan Sri Soh Thian Lai, while manufacturers are investing heavily in automation and digitalisation, these transitions require capital, time and skilled talents, which remain in short supply. He said the latest Department of Statistics Malaysia (DoSM) data had confirmed that manufacturing wages in Malaysia were rising steadily and surpassing national averages. 'Employers in the sector remain committed to offering fair and competitive compensation, but urgent support is needed to address persistent labour shortage. 'The reliance on foreign workers stems from a shortage of willing and skilled local workers, not from any strategy to suppress wages. 'A balanced, data-driven and skills-based human capital strategy is crucial for us to remain competitive and inclusive,' he said in a statement, issued in response to DoSM's Monthly Manufacturing Statistics, which indicated that the average salary in the manufacturing sector rose to RM3,460 per month in April this year, reflecting a 1.2 per cent year-on-year increase. In comparison, the average monthly salary across all formal sectors stood at RM3,441 in the fourth quarter of last year, highlighting that manufacturing wages continued to outperform the national average, Soh pointed out. Additionally, he said total wages paid in the manufacturing sector climbed to RM8.31 billion in April 2025, marking a 2.4 per cent year-on-year increase. He added that the median wage across all formal sectors was recorded at RM3,045, while manufacturing median wages ranged between RM2,764 and RM3,052, well above the national minimum wage of RM1,700. 'FMM acknowledges that the data clearly demonstrates manufacturing wages in Malaysia are not only competitive, but are continuing to rise steadily. This affirms that employers in the sector are offering fair compensation, and it also counters the claim of the workers being underpaid. 'Despite competitive wage levels, the manufacturing sector continues to grapple with acute labour shortages, especially in 3D (dirty, dangerous, and difficult) job categories.' He emphasised again that the local workers were not being displaced by cheaper foreign labour, adding that hiring foreign workers involved considerable costs and regulatory compliance. 'Furthermore, even when wages offered exceed the national minimum wage, many of these roles remain unattractive to the local job-seekers.' As such, he recommended the government to expand technical and vocational education and training (TVET) programmes and industry-led training initiatives to the manufacturing sector and strengthen them, as well as to formalise informal workers and improve the enforcement of wage-related regulations. 'The government should also establish tripartite labour planning councils for collaborative workforce strategies. 'We reiterate our support for a voluntary, productivity-linked Progressive Wage Policy (PWP) that encourages wage growth aligned with skills enhancement and measurable performance, rather than arbitrary increases. 'A business-friendly and voluntary PWP, grounded in clear performance metrics, would gain manufacturers' support and ensure that wage increases are sustainable and linked to worker capability,' added Soh.

New Straits Times

14 hours ago

• New Straits Times

Bus drivers struggle on RM700 basic pay, rely on overtime

KUALA LUMPUR: With a basic salary as low as RM700 a month, or sometimes none, bus drivers depend heavily on travel allowances and overtime, often sacrificing their days off just to cover living expenses. A 34-year-old tour bus driver, who only wished to be known as Mior, said he relied entirely on commissions and the distance travelled, based on his customers' requests. "My basic salary is only RM700 a month. I receive a 15 per cent commission for each bus rental, while the remaining 85 per cent goes to the employer or tour bus owner. "If I take on many long-distance trips, I can earn up to RM3,000 to RM4,000 a month, with only five or six days off. "But if I take on shorter trips, I earn around RM2,000. "Based on last year's records, the fewest days off I had in a month was three," he said when contacted. Mior earns about RM400 for a trip from Parit to Seri Iskandar, Johor. A journey from Seri Iskandar to Kuala Lumpur, including sightseeing with his passengers, brings in about RM1,800. With a 15 per cent commission per rental, he pockets an additional RM60 for the first trip and RM270 for the latter. However, a 29-year-old bus driver, who only wished to be known as Mamat, claimed his company did not provide any basic salary. "For a trip from Manjung to Terminal Bersepadu Selatan (TBS), I earn about RM50. I can make around RM100 a day for a return trip. "If I have four days off a month, I earn about RM2,600. If I work without any days off, I can make RM3,000," he said, adding that he still needed to apply for leave whenever necessary. He however said some express bus companies provide a basic salary of RM1,700, including travel allowances. Previously, Bumiputera Bus Operators Association (PPBBM) chairman Zainal Abidin Mehat said some companies allowed their drivers to work up to 28 days a month due to a shortage of drivers. He said the arrangement was mutually agreed upon by both the company and the drivers for their shared benefit. Zainal also said that bus drivers typically earn a basic salary of RM1,700 and have to rely on travel allowances and overtime to supplement their income.

The Sun

16 hours ago

• The Sun

UTM trio develops 24-hour self-service printing solution

JOHOR BAHRU: What began as a trivial issue - printing assignments outside regular hours - became the driving force behind an innovative venture by three Universiti Teknologi Malaysia students, who developed PrintTEX, a self-service kiosk offering round-the-clock printing access. Through their startup, Uninet Teknologi Enterprise, the trio from the Faculty of Computing and the Faculty of Electrical Engineering – Fikri Akmal Aizuddin Bahrim, 23, as Chief Executive Officer; Iqmal Aizat Mohd Zamri, 23, as Chief Technology Officer; and Low Lie Xin, 25, as Chief Operating Officer – began operating the kiosk in December 2023. Fikri Akmal Aizuddin, a final-year computer science student, said the kiosk is complemented by the PrintTEX mobile app, which offers on-demand printing services with rates as low as RM0.20 for black and white and RM0.45 for colour prints. 'The PrintTEX app comes with several handy features, such as users being able to find the nearest kiosk, upload documents and make payments online. 'Users just need to install the app, upload their documents, make a minimum payment of RM3, and then head to the kiosk to scan the QR code and print straight away,' he said when met by Bernama here.\ Fikri Akmal Aizuddin said they first developed a basic prototype or minimum viable product (MVP) in August 2023 using their own funds, which covered development costs, hardware such as printers, storage systems and other electronic components. He shared that with full support from the UTM Centre for Student Innovation and Technology Entrepreneurship, his team successfully secured RM30,000 from the Malaysian Technology Development Corporation (MTDC) to assist with system development, documentation, and company registration. 'We developed the entire system ourselves, from the mobile app and integration platform to printer configuration and payment management. It took us around six months for the research and development and another month or two to build the first unit,' he said. Currently, two PrintTEX kiosks are available at the UTM Skudai campus – one in the 24-hour Study Room at the Sultanah Zanariah Library and another at Arked Lestari – while a third unit is operating outside Johor at UNISEL Bestari Jaya in Selangor. The company has also been approached by two higher education institutions under MARA that have expressed interest in allocating space for the installation of the Internet of Things (IoT)-based kiosk at their campuses.