Latest news with #RM2bil
The Star
16 hours ago
- Business
- The Star
Hygiene woes swamp Gelang Patah
Pandak at the state assembly sitting raising his constituents' concerns about safety and cleanliness. LACK of cleanliness and the presence of foreign workers in shoplots in Gelang Patah can tarnish the area's image, says a Johor assemblyman. Speaking at the state assembly sitting, Datuk Pandak Ahmad (BN-Kota Iskandar) said quick action was needed to ensure the area remained clean, safe and comfortable for residents. 'Many of the three-storey shophouses near an industrial park in Tanjung Pelepas, Gelang Patah, have been turned into foreign workers' accommodation. 'The area could be labelled as a 'little Bangladesh town' due to the presence of these foreigners. 'Some of these foreigners are even operating sundry shops without valid licences,' Pandak said in his speech during the debate session of the state assembly meeting at Bangunan Sultan Ismail in Kota Iskandar. He expressed hope that the Labour Department, Iskandar Puteri City Council and related agencies would address these issues because rubbish strewn in the back alleys of the shoplots had become a common sight. Separately, Tan Eng Meng (BN-Pekan Nanas) in his speech thanked the state government for not sidelining Pontian in development plans. He was glad that serious attention had been given to districts such as Pontian, where his state constituency is located, rather than just focusing on economic developments only in areas such as Iskandar Malaysia and Pengerang. 'One of the significant developments in Pontian is the Tropicana Industrial Park in Pekan Nanas, involving a major investment of RM2bil by Alton Industry Ltd Group. 'This development will create new job opportunities for locals and strengthen the industrial sector that forms the backbone of the district's economic development. 'In fact, the presence of this new facility, which functions as a research and development hub, marks a major leap for Pekan Nanas,' said Tan. Alton is a US-based global supplier of consumer and commercial tools, appliances and floor care. Tan pointed out that the project had opened up vast opportunities for local talents to develop their potential in the high-tech field, which was becoming increasingly vital.
The Star
2 days ago
- Business
- The Star
Scientex's property arm offsets packaging woes
UOBKH Research said the group's outlook appears mixed. PETALING JAYA: Scientex Bhd 's financial performance is likely to be propped up by its property development arm, driven by demand for affordable housing. This comes as its plastic packaging division continues to struggle with external challenges, particularly stiff competition from Chinese manufacturers and foreign-exchange (forex) losses. The company's third-quarter results for the period ended April 30, 2025 (3Q5), released on Wednesday, showed continued weakness in its packaging arm. UOB Kay Hian (UOBKH) Research noted that fierce competition from China and unfavourable forex movements resulted in margin compression. The research house, which maintained its 'buy' call on the stock with a higher target price of RM4.10 (up from RM4.05), said the group's outlook appears mixed. While property earnings remain robust, amid recent landbank acquisitions signalling upcoming launches, the plastic packaging business faces structural headwinds from Chinese supply. 'As a result, we believe the property segment will remain the main growth driver for Scientex in the near term, pending potential consolidation in the packaging industry,' it said. The research house added that forecasts for the financial year ending July 31, 2025 (FY25), to FY27 have been revised downward to account for lower margins in the packaging arm. RHB Research shared that Scientex's management believes the plastic packaging market will remain challenging in the near term, especially in the industrial sub-segment. However, a rebound is anticipated in 2026, supported by returning demand for the consumer sub-segment, which makes up 45% to 50% of total packaging revenue. 'On the property business, we are optimistic that Scientex is on track to achieve its property launch target of more than RM2bil for FY25. 'Hence, we continue to expect the property segment to be the main earnings contributor in the coming quarters,' the research house said. RHB Research remains 'neutral' on Scientex, lowering its target price to RM3.50 from RM3.70 and cutting earnings assumptions for FY25 to FY27. Meanwhile, TA Research noted that Scientex's management expects sustainable packaging demand to remain strong despite the subdued outlook. 'On a positive note, we expect average selling prices and volumes for consumer packaging to remain stable, supported by a wider range of product offerings and designs for customers,' it said. The research house maintained its 'buy' call but trimmed its target price to RM4.85 from RM5.54 and cut earnings forecasts for FY25 to FY27, It said Scientex plans to launch 8,000 affordable housing units in FY25, up from 6,336 in FY24. Kenanga Research kept its 'market outperform' call and target price at RM3.60, noting downside risks have largely been priced in. However, it flagged the need to monitor resin prices, a key plastic packaging raw material, due to recent surge in crude oil prices.
The Star
05-06-2025
- Business
- The Star
Works Ministry allocates RM88mil to upgrade 121 overcrowded schools
SHAH ALAM: The Works Ministry will upgrade 121 overcrowded schools in six states to address the issue of overcrowded schools, involving an allocation of RM88mil. Deputy Works Minister Datuk Seri Ahmad Maslan said a total of 127 letters of acceptance were handed over to the successful contractors to implement the project in Selangor, Langkawi, Perak, Pahang, Negri Sembilan, Terengganu and Penang. ALSO READ: Over RM2bil for repairing and maintaining schools "Selangor has the highest number with 111, followed by Perak (seven), Pahang (four), Negri Sembilan (three), and one each in Terengganu and Penang. "The project involves 117 premier classrooms and 10 classrooms for the Integrated Special Education Program (PPKI) using the industrialised building system (IBS) concept," he told reporters at the Selangor Public Works Department (JKR) Headquarters here on Thursday (June 5). Ahmad said the IBS concept speeds up the construction process and also ensures better and sustainable construction quality, with all projects targeted for completion by October. "These projects are a step towards achieving the Education Ministry's goal of a single-session school system by 2030," he said. Earlier, Ahmad handed over the appointment letters to 127 contractors for the project. They were selected through an open tender process from April 24 to May 16. A total of 14 district engineers from the Public Works Department were also appointed to monitor the construction work of the projects concerned. – Bernama
The Star
03-06-2025
- Business
- The Star
Rising number of tourists to lift Genting's earnings
PETALING JAYA: As Genting Bhd began its new financial year with a disappointment amid lacklustre performances from all its gaming units, analysts have downgraded their earnings projections for the stock. Nevertheless, the market remains bullish on the conglomerate, with the majority of analysts keeping a 'buy' call. In fact, UOB Kay Hian Research (UOBKH Research) upgraded its rating to 'buy' after Genting's results announcement on May 29. Genting, which dropped off the FBM KLCI list last December, saw lower than-expected contributions from gaming operations in Singapore, Malaysia, Britain and the United States in the first quarter of the year (1Q25). Despite higher contributions from the plantations and power businesses, Genting's adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) slumped 22.7% year-on-year (y-o-y) to RM2bil with revenue dropping 12.4% y-o-y to RM6.5bil. Following this, TA Research cut its earnings for this year (FY25) by 47% and 68% for FY26. This was done after revising lower the earnings forecasts for Genting Singapore Ltd and Resorts World Las Vegas, as well as incorporating Genting Malaysia Bhd 's (GenM) revised earnings projections. UOBKH Research, on the other hand, believes GenM's profitability remains intact. However, it said it thinks that unfavourable capital management, a potential capital expenditure upcycle that may pressure gearing, and finance costs may result in longer period of valuations de-rating. 'Key re-rating catalysts include winning another New York casino tender. With the share price correcting 19% year-to-date, valuations appear depressed below the mean with a palatable 5.5% to 7% dividend yield,' the research house said. Hong Leong Investment Bank Research (HLIB Research) said it has cut its earnings forecast for Genting by 26% for FY25 and 27.6% for FY26. HLIB Research, which is one of the research houses that has cut its target price for the Genting, continues to like Genting for its well-established operational presence across diverse regions, mitigating regulatory and geographical risks. Going forward, it expects Genting to benefit from the stronger tourist arrivals in both Singapore and Malaysia. 'Besides, Genting has the potential value-add with its stake in TauRx Pharmaceutical Ltd in Scotland if its drug, hydromethylthionine mesylate (HMTM) receives US Food and Drug Administration approval.' Genting has a 20.3% stake in the pharmaceutical company. On GenM, Kenanga Research expects the company to see 'better days beyond FY25'. It said Resorts World Genting is seeing more local visitors, along with Singaporeans and Indonesians. Mainland Chinese and Indian tourists are also expected to increase as Malaysia builds up momentum towards welcoming 36 million visitors in Visit Malaysia 2026. 'The Ebitda margin is expected to improve marginally and gradually from current 26% towards 27% to 25% over FY25 to FY26 on improving visitor numbers. 'GenM's US operations should see softer but still firm earnings from Resorts World New York City on rising risk of slower local economic growth coupled with full consolidation of still loss-making Empire Resorts Inc. 'The group's British and Egypt operations are also expected to report firm earnings with rising risk of some softening,' added Kenanga Research.
The Star
03-06-2025
- Business
- The Star
E&O's earnings outlook brightens on RM2bil project pipeline
PETALING JAYA: Eastern & Oriental Bhd (E&O) has about RM2bil worth of projects slated for rollout over the next 12 months which is expected to generate about RM850mil sales in its financial year 2026 (FY26), analysts say. RHB Research has raised its FY26 and FY27 earnings outlook for the company by 8% and 7%, respectively. E&O's unbilled sales rose to RM1.5bil from RM1.46bil in the third quarter of FY25 (3Q25). The research house maintained its 'buy' call on the stock but lowered its target price to RM1.17 from RM1.38 per share, citing persistent market volatility arising from regulatory changes that are expected to affect global trade and sentiment. The new target price is now based on a 50% discount to the property developer's revalued net asset value, compared with 40% previously. Upcoming property launches include its Senna and Fera homes in Penang with gross development value of RM306mil in July or August, maiden shop offices and three-storey terrace homes in Elmina development in Selangor, as well as a new block of mid-range waterfront service apartments on Andaman Island, Penang. E&O's results for its fourth quarter of financial year ended March 31 once again beat the research house's expectations. Earnings continued to be underpinned by ongoing projects and were boosted by the disposal of Esca House in London. Revenue remained stable on a quarter-on-quarter basis, supported by billings from ongoing projects such as The Meg, Arica, and Senna and Fera landed homes at Andaman Island, as well as the RM75mil sale of Esca House. However, headline pre-tax profit for FY25 was skewed by an unrealised foreign-exchange loss of RM29mil. Excluding this, FY25 core earnings would have been RM210mil versus RM100mil in gearing rose to 0.62 times from 0.59 times in the previous quarter. No final dividend was declared, with the FY25 dividend per share amounting to only one sen.
