Latest news with #RM1.8bil
The Star
08-07-2025
- Business
- The Star
Binastra unit accepts RM405mil construction award in Bukit Jalil
KUALA LUMPUR: Binastra Corp Bhd 's wholly-owned subsidiary Binastra Builders Sdn Bhd has secured a RM405mil construction job for The Queenswoodz residential project in Bukit Jalil, Kuala Lumpur. The contract is deemed a related party transaction as the project owner, Exsim Jalil Link Sdn Bhd (EJL), is a company with shareholders in common with Binastra, including Binastra managing director Datuk Jackson Tan Kak Seng and executive director Lee Seng Yong. The contract is scheduled to be completed within 41 months from the date of commencement, said Binastra in a stock exchange filing. It is expected to provide additional income stream to the group over the next four years. According to Binastra, the job entails the construction of 43- and 44-storey apartment blocks with a combined 1,004 units. The project will also include a shop unit, two units of commercial spaces, eight levels of podium parking, one level of utility space including one main electrical substation and facilities for residents as well as a guardhouse. "This marks the continuation of our winning streak — the fourth project awarded to us as main contractor on this prime 17.9-acre land in Bukit Jalil. With this latest award, the cumulative contract value secured for all four projects now stands at approximately RM1.8bil," said Tan in a statement He said the group has secured RM1.4bil in new projects to date, bringing its total outstanding order book to RM4.6bil.
The Star
04-07-2025
- Business
- The Star
TNB dip seen as buying chance on strong long-term outlook
KUALA LUMPUR: Any short-term share price weakness in Tenaga Nasional Bhd (TNB) is seen as a buying opportunity for long-term investors, according to Hong Leong Investment Bank (HLIB) Research. The utility giant dropped 58 sen, or 3.97%, to RM14.02 at 10.26 am, though it has gained 0.43% over the past month. Despite the dip, HLIB Research views this weakness as an opportunity to capitalise on the company's prospects. The Federal Court today allowed the Inland Revenue Board's (IRB) appeal to reinstate an additional tax assessment of RM1.25bil against Tenaga Nasional Bhd (TNB) for the 2018 assessment year, following a penalty remission from the original RM1.8bil notice. 'This decision has a potential negative financial impact on the earnings and net assets of the company and group for the financial year ending Dec 31, 2025. However, the decision is not expected to have any operational impact on the company and group,' TNB said in a filing with Bursa Malaysia. Despite this, HLIB Research remains unconcerned about the potential one-off tax provision. 'We remain confident that TNB will reach a constructive resolution with all relevant stakeholders (particularly IRB) to minimise impact on its balance sheet and cash flow while asserting its entitlement to Investment Tax Allowance (ITA). 'Subsequently, TNB will proceed with the formal ITA application process to determine the final eligible amount, which will be resolved in due course, resulting neutral impact over the longer term,' it said. HLIB Research has maintained a 'buy' call on TNB with an unchanged target price of RM16.20. 'Looking ahead, we expect Tenaga to benefit from a higher Regulated Asset Base starting in 2025 under RP4-RP5 (2025-2030), as well as new tenders for gas power plants and renewable energy projects. 'We view any short-term share price weakness as a buying opportunity for long-term investors,' it said. Meanwhile, TA Securities stated that they understand no provisions have been made for the disputed amount, given TNB's success in the case at multiple levels previously. 'As such, in the worst case that TNB provides for the RM1.25bil claim by the IRB, we estimate a -27% one-off hit to FY25F earnings and a -2% impact on net assets. However, we believe any decision to provide for the amount hinges on the progress made with IRB on TNB's Schedule 7B IA claim,' it said. TA has maintained its "buy" call and target price of RM17.30. 'While this could be a one-off setback, albeit a sizeable one, it does not derail our structural thesis of an expansion in TNB's regulated asset base from an increase in grid capex to accommodate the energy transition. 'We note the sharp -2% (or -30sen) share price correction yesterday, which we believe may have more than reflected the potential RM1.25bil provision (which is equivalent to 21 sen per share),' it added.
The Star
02-07-2025
- Business
- The Star
Federal Court rules in favour of IRB in tax appeal against TNB
The Inland Revenue Board logo seen at its branch in Damansara Perdana. - AZHAR MAHFOF/The Star KUALA LUMPUR: The Federal Court today allowed the Inland Revenue Board's (IRB) appeal to reinstate an additional tax assessment of RM1.25bil against Tenaga Nasional Bhd (TNB) for the 2018 assessment year, following a penalty remission from the original RM1.8bil notice. In a filing with Bursa Malaysia, the utility giant said the Federal Court allowed the IRB's appeal against earlier decisions by the High Court and Court of Appeal, which had favoured TNB's judicial review to set aside the tax notice. TNB said it is currently assessing the full impact of the decision. The Federal Court held that as a utility company, the applicable schedule is 7B, namely Investment Allowance, instead of 7A Reinvestment Allowance. Accordingly, in light of the Federal Court's decision, TNB will be pursuing to claim for the Investment Allowance under Schedule 7B. 'This decision has a potential negative financial impact on the earnings and net assets of the company and group for the financial year ending Dec 31, 2025. However, the decision is not expected to have any operational impact on the company and group,' TNB said. The case originated when, on July 3, 2020, the IRB through a letter informed TNB that the RA that it had claimed for the year of assessment 2018 was disallowed and then issued a notice of additional assessment on July 7, 2020, to the amount of RM1.812bil. Subsequently, TNB filed a judicial review that same year over the imposition of the RM1.812bil as an additional assessment to be paid by the national utility company. However, this sum has been reduced to RM1.25bil at a discounted rate.
The Star
02-07-2025
- Business
- The Star
Federal court rules in favour of LHDN over RM1.8bil tax appeal against TNB
PUTRAJAYA: The Federal Court on Wednesday (July 2) allowed the Inland Revenue Board's (LHDN) appeal to reinstate an additional tax assessment of RM1.8bil against Tenaga Nasional Berhad (TNB) for the 2018 assessment year. A five-member panel chaired by Court of Appeal President Tan Sri Abang Iskandar Abang Hashim unanimously overturned the earlier decisions of both the High Court and the Court of Appeal, which had ruled in favour of TNB and quashed the LHDN's tax assessment. The other members of the panel were Federal Court judges Tan Sri Nallini Pathmanathan, Datuk Zabariah Mohd Yusof, Datuk Rhodzariah Bujang, and Datuk Abu Bakar Jais. No order as to costs was made, with the court noting that the matter involved issues of public interest. Delivering the court's judgment, Justice Rhodzariah held that TNB's claim for reinvestment allowance (RA) under Schedule 7A of the Income Tax Act 1967 (ITA) was misconceived and not in accordance with the provisions of the Act. She added that TNB ought to have applied for an investment allowance under Schedule 7B of the ITA, rather than seeking RA under Schedule 7A. She explained that the legislative intent behind Schedule 7A was to incentivise manufacturing companies to reinvest in their existing operations in Malaysia. In contrast, Schedule 7B provides for investment allowance incentives specifically tailored to companies in the services sector, as approved by the Minister of Finance. Justice Rhodzariah further noted that TNB is authorised to impose a service charge under the Service Tax Act 2018, which reinforces its status as a service provider. As such, the court found that TNB falls within the ambit of the services sector and is therefore subject to Schedule 7B, not Schedule 7A. The LHDN argued that TNB, as a utility provider, does not qualify as a manufacturer and is thus not entitled to the RA granted to entities engaged in manufacturing activities. On July 21, 2020, TNB filed a judicial review application seeking, among others, to quash the LHDN's decision dated July 13, 2020, which had disallowed its RA claim amounting to RM1,812,506,384.64. The company also sought a declaration that it was entitled to claim the RA under Schedule 7A of the ITA. TNB had included its RA claim for the year of assessment 2018 in its tax return. However, the LHDN informed the company that the claim had been disallowed in a letter dated July 3, 2020. Subsequently, on July 13, 2020, the LHDN issued a notice of additional assessment against TNB for RM1,812,506,384.64 in tax. TNB then initiated judicial review proceedings to challenge the assessment. In February 2022, the High Court allowed the application and set aside the LHDN's additional assessment for the year 2018. The Court of Appeal, in a decision delivered in May 2023, affirmed the High Court's ruling. Despite the dispute, TNB has already paid the assessed sum. At Wednesday's hearing, the LHDN was represented by Datuk Dr Cyrus Das and senior revenue counsel Ashrina Ramzan Ali, while counsels Datuk D. P. Naban and S. Saravana Kumar appeared for TNB. - Bernama
The Star
22-06-2025
- Business
- The Star
OCBC backs RM351mil JS-SEZ projects
PETALING JAYA: OCBC Bank (M) Bhd has extended RM351mil in financing to See Hong Chen Group and Exsim to support three strategic real estate developments in the Johor-Singapore Special Economic Zone (JS-SEZ). In a statement, OCBC Bank said the financing supports a partnership between Exsim and See Hong Chen Group for the acquisition of freehold land along Jalan Dato Abdullah Tahir in Johor Baru, earmarked for a mixed development project with a gross development value of approximately RM1.8bil. Financing has also been extended to See Hong Chen Group to support the acquisition of freehold land parcels in Johor Baru.
