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New Straits Times
02-06-2025
- Business
- New Straits Times
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.
New Straits Times
29-05-2025
- Business
- New Straits Times
Muhibbah Q1 earnings rise 14pct to RM16mil on stronger concession gains
KUALA LUMPUR: Muhibbah Engineering (M) Bhd's net profit for the first quarter ended March 31, 2025, rose 14 per cent to RM16.17 million from RM14.19 million a year earlier, lifted by higher contributions from its concession business. In a filing with Bursa Malaysia, the group said this was driven by its airport and road concession operations, which contributed RM22.1 million in pre-tax profit, up 116.7 per cent from RM10.2 million previously. Quarterly revenue, however, declined 2.2 per cent to RM319.96 million from RM327.01 million a year ago. Muhibbah said the dip was due to slightly lower construction activity during the quarter. On a proforma basis, which includes its share of revenue from associates, total revenue rose 4.2 per cent to RM431.3 million from RM413.9 million. Earnings per share rose to 2.22 sen from 1.95 sen a year ago. As at end-March, the group had RM516.7 million in cash and bank balances, down from RM571.2 million at the end of December 2024. Total borrowings stood at RM468.2 million, comprising RM306.6 million in short-term and RM161.6 million in long-term loans. The group's outstanding order book stood at RM1.14 billion as at May 22, spanning construction and cranes projects. Despite global headwinds, including inflation, supply chain disruptions and geopolitical uncertainties, Muhibbah said it will continue to monitor developments and pursue new contracts.
