Latest news with #RM1.6bil
The Star
12-06-2025
- Business
- The Star
Sabah poised for major industrial expansion
KTC executive director Lau said the strategic location in KKIP will strengthen logistics infrastructure and streamline supply chain operations. KOTA KINABALU: A new integrated industrial hub will soon rise in the Kota Kinabalu Industrial Park (KKIP), aimed at enhancing logistics, warehousing and distribution capacity in Sabah and the wider East Malaysian region. The development, set on a newly acquired 15-acre site worth RM100mil, is expected to increase operational capacity by 40% and create at least 500 new jobs, with priority given to local hires from underprivileged backgrounds. 'This is part of our commitment to support government efforts in tackling poverty and promoting inclusive economic growth,' said Kim Teck Cheong Consolidated Bhd (KTC) executive director, Datuk Dexter Lau. The upcoming facility, to be known as the KTC Industrial Park, will function as the largest fast-moving consumer goods distribution centre in the region, designed to serve markets in Sabah, Sarawak, Brunei and Indonesia. Lau said the strategic location in KKIP will strengthen logistics infrastructure and streamline supply chain operations, allowing the group to better meet growing market demand. 'Our focus is on long-term growth and operational excellence, and this development marks an important milestone in our five-year expansion plan,' he added. As of June, the company had already recorded over RM1bil in revenue. With the expansion, annual earnings are projected to grow by 50%, reaching up to RM1.6bil. An additional RM10mil investment has also been approved for operations in Sarawak, which Lau said is expected to contribute 10% to overall regional revenue growth, with Sabah expected to add 40% over the next two to three years. Lau added that the company's total workforce is expected to reach 2,000 across Malaysia and Brunei within a year.
The Star
12-06-2025
- Business
- The Star
Sabah set for major industrial expansion
KOTA KINABALU: A new integrated industrial hub will soon rise in the Kota Kinabalu Industrial Park (KKIP), aimed at enhancing logistics, warehousing and distribution capacity in Sabah and the wider East Malaysian region. The development, located on a newly acquired 15-acre site worth RM100mil, is expected to increase operational capacity by 40% and create at least 500 new jobs, with priority given to local hires from underprivileged backgrounds. 'This is part of our commitment to support government efforts in tackling poverty and promoting inclusive economic growth,' said Kim Teck Cheong Consolidated Bhd (KTC) executive director, Datuk Dexter Lau. The upcoming facility, to be known as the KTC Industrial Park, will function as the largest fast-moving consumer goods (FMCG) distribution centre in the region, designed to serve markets in Sabah, Sarawak, Brunei and Indonesia. Lau said the strategic location in KKIP will strengthen logistics infrastructure and streamline the group's supply chain operations, enabling it to better meet growing market demand. 'Our focus is on long-term growth and operational excellence, and this development marks an important milestone in our five-year expansion plan,' he added. As of June, the company had already recorded over RM1bil in revenue. With the expansion, annual earnings are projected to grow by 50%, reaching up to RM1.6bil. An additional RM10mil investment has also been approved for operations in Sarawak, which Lau said is expected to contribute 10% to overall regional revenue growth, with Sabah expected to add 40% over the next two to three years. Lau added that the company's total workforce is expected to reach 2,000 across Malaysia and Brunei within a year.
The Star
30-05-2025
- Business
- The Star
Strong project pipeline boosts Kerjaya Prospek's outlook for FY25
PETALING JAYA: The market outlook for construction and property player Kerjaya Prospek Group Bhd remains solid after the company reported a 37% jump in net profit on the back of a 40% surge in revenue for the first quarter ended March 31, (1Q25) compared with the same quarter a year ago. The company also declared a first interim dividend of three sen per share payable on June 30. Several analysts have raised their target price on the stock following a meeting with Kerjaya's management, which was upbeat on achieving the company's target of RM1.6bil in new projects for this year, supported by year-to-date contract wins of RM870.3mil and an order book of RM4bil. Kenanga Research, which maintained an 'outperform' call on the stock and revised the target price to RM2.30 from RM2.10, said the company, in partnership with Samsung C&T Corp, expects decisions on three data centre projects worth RM3bil in 3Q25, in addition to listed subsidiary Eastern & Oriental Bhd 's planned launch of property projects worth RM2bil this year. The research house said the company's property arm can expect its 55%-owned Rivanis redevelopment project located in Butterworth, Penang, to anchor future earnings. BIMB Research said the higher interim dividend compared with an expected 2.5 sen reflected the management's confidence in its earnings outlook and strong cash position.
The Star
29-05-2025
- Business
- The Star
Project pipeline boosts Kerjaya Prospek's outlook
PETALING JAYA: The market outlook for construction and property player Kerjaya Prospek Group Bhd remains solid after the company reported a 37% jump in net profit on a 40% surge in revenue for the first quarter ended March 31, 2025 (1Q25) compared to the same quarter a year ago that were largely in line with expectations. The company also declared a first interim dividend of three sen per share payable on June 30. Several analysts have raised their target price on the stock following a meeting with the Kerjaya's management, who were upbeat on achieving the company's target of RM1.6bil of new projects for the financial year ending December 31, 2025 (FY25) supported by year-to-date contract wins of RM870.3mil and an outstanding orderbook of RM4bil. Kenanga Research, which maintained an 'outperform' call on the stock and revised the target price to RM2.30 from RM2.10, said the company in partnership with Samsung C&T Corp expects decisions on three data centre projects worth RM3bil in 3Q25, in addition to listed subsidiary Eastern & Oriental Bhd 's planned RM2bil launch of property projects this year. It said the company's property arm can expect its 55%-owned Rivanis redevelopment project located in Butterworth, Penang to anchor future earnings. The research house has a neutral view of the company's 49% stake acquisition in Aspen Vision Land Sdn Bhd for RM98mil announced recently given the potential future capital commitments that could offset construction opportunities and property earnings. BIMB Securities said the higher first interim dividend declared compared to an expected 2.5 sen reflected the management's confidence in its earnings outlook and strong cash position. The research house expects a dividend payout of 12 sen for FY25, which translates to a dividend yield of 5.6% from the stock's last closing price. It has maintained a 'buy' call on the stock with an unchanged target price of RM2.59. TA Securities, which maintained a 'buy' call but revised its target price to RM2.97 from RM2.72, said the company have plans to expand its property development business through a capital expenditure allocation of RM550mil, with active scouting for landbank opportunities in Penang, the Klang Valley, and Johor backed by robust net cash position of RM336.7mil as at end-March 2025. RHB Research said earlier-than-expected wins of industrial jobs such as data centres before mid-FY25 and quicker-than-expected launches of the new phases of Aspen Vision City, which has an estimated gross development value of RM5bil on 14.16-ha of land could be re-rating catalysts for the stock, in which the brokerage has maintained a 'buy' call but revised upwards the target price to RM2.80 from RM2.67.
The Star
27-05-2025
- Business
- The Star
Defensive earnings profile to support PetGas
Kenanga Research expects PetGas' 2Q25 numbers to be on the weak side. PETALING JAYA: Analysts generally have a constructive view of Petronas Gas Bhd (PetGas) despite it having to absorb at least a RM170mil charge to rehabilitate the Putra Heights area following the pipeline fire incident in April. CGS International (CGSI) Research stated PetGas' defensive earnings profile, underpinned by its ownership of gas infrastructure assets in Malaysia, remained a key strength that is backed by a healthy balance sheet. 'Visible free cash flow and dividend yields of over 4% support the sustainability of its payouts (dividends),' the research house stated in its latest report on PetGas. It added the RM170mil estimated charge represented 1.2% of PetGas' current book value and 9% of 2025 forecast net profit. CGSI Research has maintained a 'hold' call on PetGas with an unchanged discounted cash flow based target price (TP) of RM17.50 a share. Kenanga Research noted that while PetGas' first quarter (1Q25) financial results were slightly below expectations, the company's regulated asset base continues to provide resilient earnings visibility. The research house, however, expected PetGas' 2Q25 numbers to be on the weak side. This is due to the operational disruptions following the Putra Heights fire incident. 'We fine-tune our financial year 2025 (FY25) and FY26 earnings forecast lower by 5% and 3%, respectively, to reflect the guided RM60mil profit impact in FY25, to incorporate adjustments to gas transportation and regasification terminal tariffs and some housekeeping,' Kenanga Research added. It has a 'market perform' call on PetGas with a lower TP of RM16.80 a share. PetGas posted a 1Q25 core profit of RM466.2mil on the back of RM1.6bil in revenue. It announced a first interim dividend of 16 sen a share for the quarter. MIDF Research, however, downgraded the counter to 'neutral' with a TP of RM18.67 a share on the ground that all factors that could impact the company's share price had been priced in. It expected PetGas' FY25 performance to remain stable and resilient despite the operational setback caused by the pipeline incident. 'With higher demand for natural gas and liquefied natural gas, in tandem with the higher prices projected in 2025, all of PetGas' businesses will continue to perform on the positive. 'In line with the incident, we expect PetGas will strengthen its risk management, operational efficiency, and mitigation strategies,' MIDF Research said. Its TP on PetGas is pegged to a price earnings multiple of 19 times to the revised earnings per share for FY25 of 98 sen.
