Latest news with #RM1.03
The Star
27-05-2025
- Business
- The Star
Felda's offer to take FGV private seen as fair
TA Researc said Felda's offer price of RM1.30 per share was 26% above its target price of RM1.03 per share for FGV. PETALING JAYA: The Federal Land Development Authority's (Felda) renewed takeover offer of FGV Holdings Bhd 's (FGV) remaining shares that it does not already own at RM1.30 per share has been deemed fair in terms of valuation and the prospects for FGV, analysts say. Research houses such as BIMB Research, Hong Leong Investment Bank Research (HLIB Research), TA Research and MIDF Research have advised FGV shareholders to accept the offer price. The latest takeover offer marks the second attempt by Felda to privatise FGV, following a similar offer made in 2020 that also proposed RM1.30 per share. Felda, together with persons acting in concert (PAC), including the state government of Pahang, now collectively control 86.93% of FGV's issued share capital. BIMB Research said in a report it believes the likelihood of the shareholding crossing the 90% threshold is high. 'While the offer premium is relatively modest, we believe it is sufficient to attract acceptance given FGV's subdued earnings outlook, prevailing plantation sector volatility and lack of foreseeable near-term re-rating catalysts,' said the research house. TA Research, meanwhile, said Felda's offer price of RM1.30 per share was 26% above its target price of RM1.03 per share for FGV. Based on FGV's forecast earnings for this year (FY25), the offer implies an acquisition at 15 times FY25's price-earnings ratio (PER). Notably, the offer is priced at a steep 71.4% discount to FGV's initial public offering price of RM4.55 per share in 2012. Since Felda's initial privatisation attempt in December 2020, FGV's share price has been volatile. It rose to RM1.46 in May 2021 after the first bid failed but steadily declined thereafter to RM1.13 by March 14, 2025, and RM1.01 by April 9, 2025, a 22% drop from the offer price. 'The current attempt would also be the second time investors are presented with an opportunity to realise the value of their investment through a cash offer,' TA Research said. Given the potential price risk post-general offer, TA Research has advised FGV minority shareholders to accept the offer. 'We also advise investors to switch to other undervalued plantation stocks with more compelling stories and potentially higher earnings growth,' said the research house. Similarly, HLIB Research also advised existing shareholders of FGV to accept the latest offer, as 'the offer price is higher than our sum-of-part derived target price of RM1.26'. The research house maintained its 'hold' rating on FGV with a revised target price of RM1.30 from RM1.26 earlier, based on Felda's latest offer. MIDF Research said in a note to clients that Felda's RM1.30 offer price represents a 12% premium over its fair value of RM1.16. Currently, the stock is valued at 16.7 times PER based on forecast for FY25 earnings per share of 7.60 sen, 8.6% below the integrated plantation sector average PER of 18.3 times. According to MIDF Research, the latest development reaffirms Felda's objective to fully privatise FGV and consolidate its ownership and strategic control over the group. Felda has clearly stated that it does not intend to maintain FGV's listing status upon completion of the offer. 'Should Felda and its PAC reach the 90% ownership threshold, Bursa Malaysia will suspend the trading of FGV shares within five market days, after which the delisting process will be initiated in accordance with Bursa's listing requirements,' it said. If successful, the privatisation is also expected to streamline Felda's operational oversight, align FGV's strategic direction with broader national interests and potentially unlock long-term value through improved efficiency and coordination across the group.
New Straits Times
26-05-2025
- Business
- New Straits Times
RM6 billion allocated for Kuching Urban Transportation System
KUCHING: The state government has allocated RM6 billion for the Kuching Urban Transportation System (KUTS), said state Transport Minister Datuk Lee Kim Shin today. He said of the amount, the capital expenditure has reached RM1.03 billion, underscoring the Sarawak government's strong financial commitment to this transformative project. "As of April 2025, the overall actual progress for KUTS Phase 1 stands at 29.89 per cent, against 33.86 per cent, which includes design and engineering works, system works, procurement, land acquisition and construction activities," Lee said in his winding up speech at the Sarawak Legislative Assembly. "As of today, a total of six infrastructure package contracts have been awarded under the project," he said, adding that out of these, two packages have been successfully completed — the advanced ground foundation works for the Rembus Depot and the construction of a three-kilometre stretch essential for the proof of concept (POC) trial run in Samarahan. He added that the remaining four packages were currently in progress, including the Blue Line Package 1, Blue Line Package 2, and the Red Line Package. He said the infrastructure package for Green Line is presently in the preparatory stage for tender. Lee said the state government was emphasising on green agenda in the transformation of the public transport system through initiatives such as development of KUTS, which will be powered by clean hydrogen energy. He said the initiatives reflect Sarawak's commitment to the National Green Investment Strategies and the National Energy Transition Roadmap (NETR). On the proposed development of the new Kuching International Airport (KIA) at Tanjung Embang in Kuching district, Lee said his ministry has recently appointed an international consultant in joint venture with a local consultant to undertake the site verification and feasibility study, marking a significant milestone in the early planning phase. He added the next phase, under the 13th Malaysia Plan (13MP), will involve the formulation of a comprehensive aerotropolis master plan and detailed design of the new airport, covering all critical components such as terminal capacity, runway systems, airside and landside facilities, multimodal connectivity and scalability to meet future passenger and cargo demands. "This will prepare us for the subsequent construction phase of the new airport," he said. Lee said he was unable to provide the total cost of the new airport at this moment as the site verification and feasibility studies have yet to be completed before; thus any realistic cost estimation cannot be made. He said the construction of the new Kuching International Airport is a commitment to build critical infrastructure that supports economic transformation and positions Sarawak as a leading regional hub in the Borneo region.
The Star
16-05-2025
- Business
- The Star
Bursa Malaysia ends morning session marginally lower
KUALA LUMPUR: Bursa Malaysia ended the morning trading session slightly lower today, weighed down by a lack of fresh catalysts and mirroring the trend of key regional indices. At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.42 points, or 0.09 per cent, to 1,571.60 from Thursday's close of 1,573.02. The benchmark index opened 2.58 points higher at 1,575.60 and thereafter fluctuated between 1,570.20 and 1,580.06 throughout the session. The broader market was negative with 589 decliners outpacing 286 gainers, while 423 counters were unchanged, 1,098 untraded and eight suspended. Turnover stood at 1.85 billion shares worth RM1.03 billion. ActivTrades trader Anderson Alves said Asian equities underperformed today, as mixed economic data from the United States influenced market movements ahead of monthly options expiry. "Traders are also closely monitoring developments on the tariff front, which could impact Asian markets," he said. On the home front, Bank Negara Malaysia (BNM) announced that the Malaysian economy expanded by 4.4 per cent in the first quarter of 2025 (1Q 2025), driven by sustained household spending supported by favourable labour market conditions and government policies. The country's GDP stood at 4.2 per cent in 1Q 2024. Among heavyweights, Maybank rose two sen to RM10.12, Tenaga Nasional was flat at RM14.20, IHH Healthcare fell two sen to RM7.01, while both Public Bank and CIMB eased one sen to RM4.50 and RM7.15 respectively. For active stocks, West River added one sen to 36.5 sen, Sumisaujana, NexG and Pertama Digital all gained half a sen to 19.5 sen, 36.5 sen and 13 sen, respectively, while Ekovest lost 1.5 sen to 37.5 sen and Nationgate slipped four sen to RM1.68. On the index board, the FBM Emas Index dropped 37.47 points to 11,736.54, the FBMT 100 Index declined 32.29 points to 11,487.19, and the FBM Emas Shariah Index dipped 42.96 points to 11,675.66. The FBM 70 Index slid 134.45 points to 16,676.73 and the FBM ACE Index fell by 27.47 points to 4,747.67. Across sectors, the Financial Services Index declined 16.68 points to 18,453.81, the Industrial Products and Services Index edged down by 0.12 of-a-point to 159.67, the Energy Index shed 9.78 points to 727.56, and the Plantation Index slipped 12.29 points to 7,375.81. - Bernama
New Straits Times
16-05-2025
- Business
- New Straits Times
Bursa Malaysia ends morning session marginally lower
KUALA LUMPUR: Bursa Malaysia ended the morning trading session slightly lower today, weighed down by a lack of fresh catalysts and mirroring the trend of key regional indices. At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.42 points, or 0.09 per cent, to 1,571.60 from Thursday's close of 1,573.02. The benchmark index opened 2.58 points higher at 1,575.60 and thereafter fluctuated between 1,570.20 and 1,580.06 throughout the session. The broader market was negative with 589 decliners outpacing 286 gainers, while 423 counters were unchanged, 1,098 untraded and eight suspended. Turnover stood at 1.85 billion shares worth RM1.03 billion. ActivTrades trader Anderson Alves said Asian equities underperformed today, as mixed economic data from the United States influenced market movements ahead of monthly options expiry. "Traders are also closely monitoring developments on the tariff front, which could impact Asian markets," he said. On the home front, Bank Negara Malaysia (BNM) announced that the Malaysian economy expanded by 4.4 per cent in the first quarter of 2025 (1Q 2025), driven by sustained household spending supported by favourable labour market conditions and government policies. The country's GDP stood at 4.2 per cent in 1Q 2024. Among heavyweights, Maybank rose two sen to RM10.12, Tenaga Nasional was flat at RM14.20, IHH Healthcare fell two sen to RM7.01, while both Public Bank and CIMB eased one sen to RM4.50 and RM7.15 respectively. For active stocks, West River added one sen to 36.5 sen, Sumisaujana, NexG and Pertama Digital all gained half a sen to 19.5 sen, 36.5 sen and 13 sen, respectively, while Ekovest lost 1.5 sen to 37.5 sen and Nationgate slipped four sen to RM1.68. On the index board, the FBM Emas Index dropped 37.47 points to 11,736.54, the FBMT 100 Index declined 32.29 points to 11,487.19, and the FBM Emas Shariah Index dipped 42.96 points to 11,675.66. The FBM 70 Index slid 134.45 points to 16,676.73 and the FBM ACE Index fell by 27.47 points to 4,747.67. Across sectors, the Financial Services Index declined 16.68 points to 18,453.81, the Industrial Products and Services Index edged down by 0.12 of-a-point to 159.67, the Energy Index shed 9.78 points to 727.56, and the Plantation Index slipped 12.29 points to 7,375.81.
The Star
05-05-2025
- Business
- The Star
ACE Market debutant West River emerges as most actively traded stock
KUALA LUMPUR: ACE Market debutant West River Bhd, which has emerged as the most actively traded stock this morning, is well-positioned for sustained growth, said Rakuten Trade Sdn Bhd. This is evidenced by the company's sizable unbilled order book of RM247.3 million across 26 active contracts, it said. In a note, the online stock broking company said West River is also actively tendering for 101 projects totalling RM1.03 billion. Equipped with the prestigious G7 Construction Industry Development Board (CIDB)and Class A ST licenses, the company is eligible to bid for projects of unlimited value, significantly widening its market reach. "As Malaysia's mechanical and electrical (M&E) engineering sector benefits from continuing urbanisation, infrastructure investment, and demand for energy-efficient systems, especially in data centres, healthcare, and commercial buildings, West River stands to gain from regulatory tailwinds that favour certified and sustainable solutions,' said Rakuten Trade. Overall, it is optimistic about West River's prospects, premised on its robust contract pipeline, digital capabilities, and healthy net cash balance sheet, which collectively equip the group to sustain long-term growth post-listing. It recommended a "buy' call with a fair value of 47 sen for the company. As at 10 am, West River's share price was 1.0 sen lower at 38 sen, with 40.17 million shares traded. - Bernama
