Latest news with #RM369
Daily Express
4 days ago
- Business
- Daily Express
Sabah Credit Corporation manages RM3.864 billion assets
Published on: Tuesday, June 17, 2025 Published on: Tue, Jun 17, 2025 By: Wu Vui Tek Text Size: Masidi, Yee, George (sixth to eighth from right) and guests with CSR project recipients in front. Kota Kinabalu: The Sabah Credit Corporation (SCC) is now managing assets of RM3.864 billion, growing from its initial RM1 million seven decades ago, thanks to unwavering support from all key stakeholders. Chief Executive Officer Datuk George Taitim Tulas said SCC's audited profit before tax last year stood at RM117.29 million. Advertisement 'With our continued success, we have contributed dividends totalling about RM369 million to the state government. 'We have also paid RM141.6 million in loan interest and RM1.3 million in zakat,' he said during SCC's 70th anniversary celebration at the Sabah International Convention Centre. He said SCC's corporate social responsibility programme has benefited communities with more than RM70 million worth of support, including infrastructure, medical equipment, donations and sponsorships. SCC has embraced digital transformation, including launching the YONO app and nearing completion of its risk management IT framework. George said its subsidiary, Manggaris IT, developed a digital parking system for local authorities that meets SAGA requirements and incorporates YONO. The system is currently in use in Putatan and will soon be extended to Keningau and Tawau. He added that SCC has partnered in state government programmes such as the Sabah People's Housing Scheme, the Sentuhan Kasih Rakyat Programme (SHUKUR), and the Dayang Programme to support affordable housing and financial assistance for the people. Finance Minister Datuk Seri Masidi Manjun, who attended the event, said SCC's role in facilitating credit has led to tangible improvements in agriculture, light industries, rural development, urban housing and public utility projects. 'SCC has consistently improved asset quality, strengthened internal governance and upheld leadership accountability, which is commendable in any financial institution,' he said. At the event, SCC contributed RM1,277,793.45 to five recipients under its CSR projects. The recipients were SK Tempasak Togudon Penampang (RM349,980.65) to build a rural hostel, KK Lions Ambulance Service Society (RM243,800) to buy a vehicle, St John Ambulance Malaysia (RM235,012.80) also to buy a vehicle, Sabah Kidney Society (RM50,000) for pharmacy items for its haemodialysis machine, and SMK Limbanak Penampang (RM399,000) to build a rural hostel. SCC was founded on June 15, 1955, as the North Borneo Credit Corporation with a grant of one million dollars from the Japanese Compensation Fund. It was rebranded as Sabah Credit Corporation in 1972 to focus on financial inclusion and socio-economic development in Sabah. Also present were SCC Chairman Datuk Seri Dr Yee Moh Chai and Deputy Chairman Datuk Surinam Sadikum. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
01-05-2025
- Business
- New Straits Times
Bursa maintains FY25 targets, despite market headwinds
KUALA LUMPUR: Bursa Malaysia Bhd has reaffirmed its financial year 2025 (FY25) key performance indicators (KPIs), maintaining its pre-tax profit target of RM369 million to RM408 million and aiming for 60 new listings with a combined market capitalisation of RM40.2 billion, despite facing ongoing market headwinds. CIMB Securities reported that Bursa's management shared these updates during a recent analyst briefing. However, the research house noted that a review of these KPIs could take place, with any revisions likely to be announced in the second quarter of 2025 (2Q25). Adopting a more cautious approach, Bursa has also confirmed plans to reduce its annual capital expenditure (capex) from the earlier range of RM50 million–RM60 million, as it prioritises key investments and considers deferring non-critical initiatives amid an increasingly challenging external environment. CIMB said the regulator is actively managing operating expenses to offset softer revenue performance, with particular focus on marketing, professional fees, development spending, and variable staff costs. In the first quarter of 2025 (1Q25), Bursa's operating expenses rose 6.7 per cent year-on-year (YoY) but fell 7.2 per cent quarter-on-quarter (QoQ), resulting in a cost-to-income (CTI) ratio of 50.4 per cent—higher than 46.5 per cent in 1Q24 but lower than 53.8 per cent in 4Q24. Bursa aims to bring its CTI ratio back below 50 per cent through continued cost containment efforts. Following adjustments to its forecasts, CIMB now expects Bursa's FY25 earnings per share (EPS) to decline by 14.5 per cent YoY, with modest growth of 0.5 per cent and 0.8 per cent YoY anticipated in FY26 and FY27, respectively. CIMB reiterated a 'Hold' call on Bursa Malaysia, lowering its discounted cash flow (DCF)-based target price to RM7.40 (from RM8.15), reflecting a forecast FY25 price-to-earnings (P/E) multiple of 22.6 times. Bursa is currently trading at an FY25F P/E of 23.2 times, which is one standard deviation above its 10-year historical average of 18.1 times. "We view Bursa as fairly valued at its current price level, supported by a dividend yield of 4.1 per cent," CIMB said. For 1Q25, Bursa reported a 10 per cent YoY decline in net profit to RM67.5 million, down 2 per cent QoQ, missing analysts' expectations. The weaker earnings were mainly due to a 12.2 per cent YoY (5.5 per cent QoQ) decline in securities trading revenue, as the securities average daily value (ADV) dropped 11.9 per cent YoY and 5.3 per cent QoQ to RM2.8 billion. However, revenue from derivatives trading rose 13.7 per cent YoY (down 12.2 per cent QoQ) on the back of a 21.3 per cent YoY increase in average daily contracts (ADC) to 102,184. Other trading revenues, including contributions from Bursa Suq Al-Sila', Bursa Gold Dinar, and BR Capital, rose 24.5 per cent YoY (up 12.1 per cent QoQ). While the results slightly exceeded CIMB's earlier projections—helped by stronger-than-expected conference, exhibition, and other income—they still fell below expectations, as a weaker 2Q25 net profit is anticipated due to cautious market sentiment following US tariff announcements on April 2. No dividend was declared for 1Q25, in line with expectations, CIMB said. CIMB has also revised its ADV forecasts downward to RM2.7 billion for FY25 (from RM3.2 billion previously) and to RM2.8 billion and RM2.9 billion for FY26–FY27 (previously RM3.2 billion and RM3.3 billion). The revisions reflect expectations of continued weak trading activity amid global trade tensions and evolving US tariff policies, which are expected to weigh on global growth, prolong inflationary pressures, and increase market volatility. While Malaysia's domestic economy remains resilient, CIMB cautioned that global uncertainties could dampen investor and consumer confidence, capping Bursa's earnings upside potential. "As such, we project ADV to ease to RM2.4 billion in Q225. A rebound is anticipated in 2H25 as market uncertainty fades and greater clarity emerges post-negotiations during the 90-day pause," CIMB said. Hong Leong Bank Bhd (HLIB) maintains a HOLD call on Bursa but lowers its target price to RM7.70 (from RM8.83) following the earnings revision. "Although the share price has fallen recently, we still find Bursa's risk-reward profile to be balanced. Considering ADV moderation over the next two quarters, along with the absence of immediate positive catalysts, we envision limited price upside in the near term. Nevertheless, the stock offers a fairly decent dividend yield of 4 per cent," it said in a note. Looking ahead, HLIB expects ADV to remain subdued in the coming months (at lower RM2.2 billion till October 2025) as investors continue to embrace a cautious 'wait-and-see' posture amid prevailing market uncertainties.
