Latest news with #TAResearch
The Star
3 days ago
- Business
- The Star
PMCK poised for growth with IPO plans
PETALING JAYA: PMCK Bhd, a private healthcare provider enroute to listing on the ACE Market of Bursa Malaysia, intends to pay at least 20% of its net profit as a dividend going forward. TA Research assumes a dividend payout of 20% to 44% across financial year 2025 (FY25) to FY27 and projects forward yields to be at 1.3% to 2.1%. TA Research said for its initial public offering (IPO) price of 22 sen a share, PMCK is priced at a trailing price earnings ratio (PE) of 15.9 times based on FY24 earnings per share (EPS). The research house forecast a target PE of 16 times FY26 EPS for the counter, while deriving a fair value of 23 sen a share. PMCK is operating the Putra Medical Centre in Alor Setar, Kedah and has been in the business for over 30 years, offering specialist consultant services and clinical support, with 40 consultants across 17 specialisations. PMCK will raise RM60mil through its IPO on Bursa Malaysia. It wants to strengthen its presence in northern Malaysia to attract patients and drive long-term revenue growth. Thus far, Kedah has one of the lowest private hospital bed densities in Malaysia, highlighting a significant gap in private healthcare access. As part of its expansion, PMCK is constructing a new medical centre, PMC Kulim, with operations targeted to start by the first quarter of financial year 2028 (1Q28). The 12-storey private medical centre comes with a seven-storey mixed development comprising a four-storey hotel with a two-storey food court and carparks. PMCK will consolidate the RYM DX Laboratory Sdn Bhd (medical lab) into PMC Kulim by 1Q28 to cater to increasing demand for diagnostic services. It will upgrade the equipment and facilities in PMC Kedah under clinical support services (medical lab) and facilities services (radiology unit). TA Research projects net profit to contract by 24.8% to RM11.3mil in FY25, as it expects patient numbers to drop by 20% due to the flooding in Alor Setar and surrounding areas, which hindered patient access. It expects the profit after tax margin to decline to 12.1% (versus 14.4% in FY24) due to softer patient volumes and higher administrative expenses as PMCK's facilities remained fully operational during the heavy rainfall between September and December 2024.
The Star
3 days ago
- Business
- The Star
Oil prices capped despite geopolitical conflict
TA Research has retained its 'neutral' view on the O&G sector. PETALING JAYA: Any further upside to the price premium of crude oil prices fuelled by the Iran-Israel conflict is constrained by ample spare capacity among Organisation of the Petroleum Exporting Countries and its members (Opec) members as well as non-Opec suppliers, TA Research states in its oil and gas (O&G) sector report. It said global demand for energy also remains weaker due to slower economic activity and the increased use of electric vehicles. The research house added the geopolitical premium put on crude oil prices since the conflict erupted is more likely to be transient rather than transformative. 'The global oil supply backdrop remains relatively resilient despite the geopolitical turmoil. Opec, led by Saudi Arabia, holds sufficient spare production capacity to offset most short term disruptions from Iran,' it stated. TA Research added US shale producers continue to deliver robust output levels, averaging a steady 13.4 million barrels per day while other non-Opec producers like Brazil, Canada, and Guyana are also ramping up supply, contributing to a broader narrative of a well-supplied global market. While supply-side fears can generate temporary price rallies, the demand picture remains insufficiently supportive for a sustained oil bull cycle without further macroeconomic improvement, TA Research opined. 'While the war may add volatility, the probability of a sustained supply shock remains relatively low unless additional producers or infrastructure become targets,' it summarised. Hence, TA Research has maintained its average Brent crude oil price forecast of US$73 a barrel for 2025. 'We retain our 'neutral' view on the O&G sector, as we believe the risk-reward balance remains evenly poised. 'We reiterate our preference for oil and gas players with strong export linkages and robust cash generation, such as Pantech Group Holdings Bhd and MISC Bhd ,' the research house noted. It explained that MISC ('buy', target price: RM8.40) stands to benefit from increased demand for tanker freight and floating solutions, particularly as shipping markets remain volatile. Additionally, Pantech ('buy', target price: 96 sen), meanwhile, is well placed to ride on higher project flows for pipeline and industrial fittings, driven by infrastructure upgrades and intensified maintenance cycles in response to supply chain vulnerabilities. That said, TA Research said should diplomacy prevail and the war drums go quiet, it forecasts crude oil prices to correct to US$60 to US$65 a barrel level for the Brent contract. Furthermore, should there be complications in the Straits of Hormuz which disrupt supply lines out of the region, prices could spike to US$100 to US$120 a barrel levels.
The Star
13-06-2025
- Business
- The Star
Binastra's order book continues to strengthen
PETALING JAYA: A recent contract win by construction group Binastra Corp Bhd could contribute about RM16.1mil in net profit over the building period for the project, analysts say. This is based on an assumption of a net margin of 6%, said TA Research and Phillip Capital Research. The group secured a RM268mil contract from TNJ Development Sdn Bhd, a subsidiary of CPI Land, for the main building work for the Tuan Heritag3 Residency condominium development in Segambut, Kuala Lumpur, with a gross development value (GDV) of RM670mil. However, Phillip Capital Research said this is lower than the historical average of between 9% and 10%, reflecting a greater reliance on subcontracting as Binastra preserves internal capacity for its expanding pipeline of projects in Johor. The research house remained positive about the prospects for the group's order book replenishment, supported by up toRM7bil of committed project launches from major clients in Johor, scheduled from 2026 to 2027. The research house said it was encouraged by this latest contract win, which not only strengthened the group's order book but also brings in a new client that intends to launch projects with GDVs of RM1bil in this year and exploring expansion opportunities into Johor. The research house believes this could pave the way for future project wins. The award brings year-to-date job wins to RM976.9mil, representing 28% of its RM3.5bil order book replenishment assumption for 2026. This raises Binastra's order book to RM4.3bil, implying a 4.5 times cover of its revenue for this year. TA Research said it believes the group is well-positioned to secure additional contracts from CPI Land's RM1bil GDV pipeline. RHB Research said the group's order book is worth RM4.3bil and provides earnings visibility for the next four years. The research house said it believes Binastra's likely job wins will come from the southern region. For instance, one of Binastra's clients, Exsim Development Sdn Bhd, has a few other land parcels in Johor Baru near the New York Hotel and along Jalan Lumba Kuda, and projects there could have a cumulative GDV of over RM3bil or a potential construction value that may exceed RM1.5bil. Maxim Global Bhd , another key client, has acquired a 6.5 acre plot of land in Taman Pelangi for future development. TA Research, Phillip Capital Research and RHB Research maintained their 'buy' calls on the stock with target prices of RM2.39, RM2.30 and RM2.21, respectively. Both Phillip Cpital Research and RHB Research made no changes to their earnings estimates with the latest job win.
The Star
12-06-2025
- Business
- The Star
Gas processing to bolster Coastal's revenue
PETALING JAYA: Coastal Contracts Bhd 's earnings are expected to be underpinned by the upcoming capacity expansion at its Papan gas processing plant in Mexico and strong momentum in its shipbuilding division, says TA Research. Coastal has been advancing its gas processing operations by expanding the Papan plant's capacity and also, modifying the Perdiz plant, both of which serve the Mexican oil and gas sector to incorporate liquified petroleum gas recovery capabilities. TA Research said in a report the expansion of the Papan plant, operated in partnership with Mexico-based Pemex, is expected to increase capacity by at least 150 million standard cubic feet per day (mmscfd), with commissioning targeted by the end of this year. Although the group saw temporary declines due to unplanned outages in the first quarter of this year (1Q25) , operations have since stabilised with processing volumes fully recovering to optimal level of 345mmscfd. Now, both plants are operating at full capacity, with the Papan plant running at 345mmscfd, while the Perdiz plant has reached 185mmscfd. 'The upcoming expansion is expected to further strengthen Coastal's processing capabilities and support Pemex's broader gas infrastructure strategy,' TA Research said. On the shipbuilding front, the research house said that Coastal's expanding order book will continue to support the shipbuilding division towards growth. Coastal's current pipeline includes three utility support vessels and three high-end offshore support vessels. These are scheduled for delivery between the second half of this year (2H25) and 1H27. TA Research said the group is projecting up to RM600mil in vessel sales during this period, aligning with its long-term strategy to scale operations and improve earnings visibility. Separately, Coastal's TC7 liftboat under Coastal's vessel chartering division will continue to remain as a key contributor to the group. The asset is said to enter the final extension phase of its contract structure, set to end in September. Since securing a 35% increase in charter rates in September 2022, TC7 had contributed meaningfully to the group's earnings. 'With a strong operational track record and potential for redeployment in sectors such as offshore wind, TC7 remains a strategic asset, though longer-term contract visibility beyond the current extension remains an area to monitor,' said TA Research. The research house, which made no changes to its earnings forecast has maintained a 'buy' call on Coastal with a target price of RM2.04. It added Coastal is expected to secure contract extension for the jack-up gas compression service unit and capacity expansion contract for the Papan plant, thus providing additional recurring income to the group.
The Star
12-06-2025
- Business
- The Star
Labour market likely to remain resilient in 2025
PETALING JAYA: The labour market is expected to maintain its positive trajectory throughout 2025, bolstered by strong macroeconomic policies, resilient domestic demand and stable unemployment. Malaysia's labour market remained resilient in April 2025, with employment rising by 2.8% year-on-year (y-o-y) to 16.82 million persons. Statistics also showed that the labour force participation rate increased to 70.8%, while the employment-to-population ratio sustained at 68.6%. Job gains were mainly concentrated in the services sector, which was on an increasing trend, particularly in wholesale and retail trade; accommodation and food beverage services; and transportation and storage activities. Likewise, the number of employed people also increased in the manufacturing, construction, agriculture and mining and quarrying sectors. Meanwhile, the number of unemployed persons continued to decline, falling by 5.5% y-o-y to 525,900 in April 2025, moving closer to the pre-pandemic level of 519,000 recorded in 2019. On a month-on-month basis, unemployment declined by 0.7%. Correspondingly, the unemployment rate eased by 0.1 percentage point to 3%, marking the lowest rate since April 2015, which also recorded a 3% jobless rate. TA Research said the country's labour force is expected to maintain a positive trajectory in the coming months of 2025, supported by sound economic policies and stable domestic demand. 'Despite ongoing global geopolitical tensions, the labour market remains resilient, underpinned by a steady unemployment rate, robust growth in the services and technology sectors and rising investments in digitalisation and automation,' the research house said in a report yesterday. TA Research added the labour market was also supported by the country's emergence as a prominent global hub for electrical and electronics products, particularly semiconductors. 'The government's strategic push to position Malaysia as a leading centre for energy and semiconductor manufacturing has attracted significant foreign investment. 'Notably, a Japanese company recently opened a state-of-the-art manufacturing facility in Pasir Gudang, Johor, creating 460 high-skilled jobs with competitive salary levels. 'This investment is expected to further strengthen Malaysia's position in the global manufacturing and assembly value chain, especially in semiconductor-related equipment, electronic devices and other advanced industries,' the research house said. TA Research noted that the nation's unemployment rate has reached its year-end projection ahead of schedule. In light of this, the research firm revised its full-year 2025 unemployment rate forecast to an average of 3%, improving from 3.2% in 2024. 'During the first four months of 2025, total employment averaged 16.75 million, representing a 2.6% y-o-y increase. 'Meanwhile, the number of unemployed persons averaged 530,500, resulting in an unemployment rate of 3.1%,' TA Research said. That said, the research firm also noted that it remains cautious of potential external and domestic headwinds. Escalating trade tensions – particularly between the United States and China – pose downside risks to the country's trade-reliant sectors such as electronics, machinery and intermediate goods. 'This may lead to employment volatility in key export-oriented regions like Penang and Johor,' TA Research said. To this end, Hong Leong Investment Bank (HLIB) Research, though it expects Malaysia's labour market to remain stable, also stated that downside risks remain. 'Ongoing global policy uncertainty may worsen domestic business sentiment. 'Additionally, while we anticipate minimal impact from the sales and service tax expansion taking effect on July 1, the potential pass-through of higher operational costs may prompt employers to be cautious. 'As such, we maintain our 2025 gross domestic product growth forecast at 4%,' the research house said. BIMB Securities said caution is warranted for export-oriented sectors, as elevated global tariffs may weigh on employment and wage growth. 'Targeted government support and policy measures could help cushion these sectors, enabling firms to sustain hiring despite the more challenging global outlook,' the research house said. Overall, BIMB Securities said employment is expected to grow at a steady pace, with the unemployment rate averaging around 3.2% for the year. 'Ongoing growth in the services and technology sectors – driven by rising investments in digitalisation, automation and infrastructure – is poised to enhance productivity and stimulate job creation. 'These favourable labour market dynamics are anticipated to support consumer spending and anchor economic growth, even amid uncertainties in the external trade environment,' the research house said.
