Latest news with #RM12.5mil
The Star
07-07-2025
- Business
- The Star
Solid growth on the cards for iCents post-listing on robust order book
From left: iCents Group Holdings Bhd executive director Tan Wei Ying, executive director Foo Siang Leng, substantial shareholder Faye Khor Fei Yi, managing director Vincent Ong Mum Fei, chairperson Lim Bee Vian, Alliance Islamic Bank Bhd chief executive officer Rizal IL-Ehzan Fadil Azim, Alliance Bank Malaysia Bhd group chief corporate and institutional banking officer Teoh Chu Lin and Alliance Islamic Bank Islamic capital markets coverage and origination head and senior vice president Lim Shueh Li at the prospectus launch of iCents Group PETALING JAYA: Cleanroom and facility services group iCents Group Holdings Bhd is projected to register year-on-year (y-o-y) earnings growth of 23.7%, 43.6% and 6.9% to RM8.7mil, RM12.5mil and RM13.3mil from this year to 2027, respectively, according to TA Research. The group is en route to a listing on the ACE Market of Bursa Malaysia on July 17. The research house said this growth would be mainly driven by the assumptions of an unbilled order book of RM93.2mil as of June 2025, a new job replenishment assumption of RM140mil a year, and an annual growth of 20% in other divisions. The initial public offering (IPO) is expected to raise RM27mil. iCents specialises in cleanroom construction, including engineering, procurement, construction, testing, and commissioning of cleanrooms, among others. According to an independent research report by Vital Factor Consulting, the performance of the cleanroom industry is dependent on the performance of end-user industries, particularly high growth, high-value industries such as electrical and electronics, pharmaceuticals, and others. Between 2022 and 2030, the manufacturing sector's value-added contribution is projected to grow at a compounded annual growth rate of 6.5%, mainly supported by the high-growth sectors. The research house said, on a pro forma basis, the group's financial position is expected to improve from net debt of RM5.7mil as of last December to a net cash position of RM16.1mil after listing. Trading ideas: Edelteq, WCT, Green Packet, MAG, Capital A, Mudajaya, Mesiniage, MN, Kretam, Kim Hin, TeamStar, ISF
The Star
28-06-2025
- Business
- The Star
Flat dwellers risk losing properties due to arrears
GEORGE TOWN: More than 70,000 property owners here have defaulted on their parcel rent payments, with arrears totalling some RM12.5mil since 2019. The Penang Land and Mines Office (PTG) recently revealed that these homeowners risk losing their strata parcels due to unpaid arrears as of June 1. PTG director Dr Faizal Kamarudin said the highest number of defaulters is in the northeast district with 32,000 affected accounts. Under the Strata Titles Act 1985, properties may be forfeited if arrears are not settled within three months of receiving a legal notice. The parcel rent, billed annually, was introduced in 2019 to replace the uniform quit rent system for stratified titles such as condominiums, apartments and flats. It is separate from assessment tax and maintenance fees paid to the Joint Management Body or Management Corporation. Property agent Joyce Lee said many property owners, particularly first-time homebuyers, are unaware of parcel rent. She explained that unlike utility bills and maintenance fees, parcel rent does not carry immediate consequences such as service disconnection, making it easier for homeowners to overlook. 'The amounts are relatively small, and because they aren't bundled with the monthly management fees, they often go unnoticed. 'The fragmented nature of the payment system, where each tax or utility requires logging in through different portals with no auto-debit function or centralised reminders, makes it even more inconvenient,' she added. Besides a lack of awareness, Lee believes other contributing factors include rising living costs and inflation, which have led some owners to prioritise more urgent payments. 'There's a common belief that they can simply pay it later, especially when selling the property. 'Some sub-sale owners may not even realise that parcel rent is still under the previous owner's name, adding to the confusion and non-compliance,' she said. Lee added that more public education is needed, especially targeting new homeowners, along with possible incentives, early payment discounts or stricter penalties to encourage better compliance. Property valuer Mohd Fitri Hashim, 42, said parcel rent arrears could accumulate significantly if left unpaid. 'Parcel rent is calculated based on the size of the individual strata unit. 'For example, the parcel rent for a typical low-cost flat would be below RM30, while a standard condominium unit of about 1,000sq ft would need to pay around RM50,' he said. Mohd Fitri added that for luxury condominium owners who pay about RM400 annually in assessment tax, their parcel rent would be less than RM100. 'For example, at Rifle Range Flats in Air Itam with over 3,000 units in the nine blocks, each unit of about 400sq ft size has to pay about RM25 in parcel rent yearly,' he said. At the nearby All Seasons Place, the 850sq ft condominium's yearly parcel rent comes to about RM24. In comparison, the quit rent for a 1,523sq ft landed property in Teluk Kumbar on the southern tip of the island is RM42 annually.
The Star
13-05-2025
- Business
- The Star
Stiff competition to affect Hartalega's prospects
RHB Research noted signs of order book recovery, with May orders rising to 2.3 billion piece. PETALING JAYA: Despite a strong earnings rebound for its financial year ended March 31, 2025 (FY25), Hartalega Holdings Bhd 's prospects remain clouded by intense competition and a prolonged industry recovery, say analysts. While the glove maker's fundamentals have improved, research houses warned that structural oversupply, volatile foreign exchange trends and geopolitical factors could temper further upside in the near term. TA Research noted that Hartalega's FY25 results – which saw net profit surge to RM74.54mil from RM12.5mil in FY24 – were encouraging, but earnings momentum may flatten in the coming quarters. 'We reduce our FY26-FY27 earnings projections to RM68.5mil and RM107.4mil (previously: RM140.2mil and RM191.3mil), respectively, after lowering the sales volumes by 8% and 10.9% and incorporating FY25 numbers into our model,' the brokerage said. It added that sales volumes were expected to remain flat in the first quarter of FY26 (1Q26), with utilisation rates hovering between 60% and 70%, while average selling prices (ASP) could fall by around 5% quarter-on-quarter (q-o-q) due to lower raw material costs. RHB Research highlighted Hartalega's current valuation as attractive, trading below historical means. 'Hartalega is currently trading at 1.65 times 2025 price-to-book-value (P/BV), which is below its three-year historical mean of 1.8 times,' it said. RHB Research noted signs of order book recovery, with May orders rising to 2.3 billion pieces, and guided volume for 1Q26 expected to reach up to 6.5 billion pieces – indicating a 6% q-o-q growth. Still, RHB Research trimmed its target price to RM2.83 from RM3.30, factoring in foreign exchange adjustments and concerns over 'the higher risk associated with easing trade tensions between China and the United States'. The research house maintained its 'buy' call on Hartalega. Hong Leong Investment Bank (HLIB) Research said: 'Hartalega shared a cautious outlook, indicating that the industry's supply-demand equilibrium could be delayed from the previously projected 2026 timeline.' However, HLIB Research acknowledged that the United States' 145% tariff on Chinese vinyl gloves could eventually benefit Malaysian nitrile glove makers by shifting demand as nitrile gloves become more price-competitive.
The Star
06-05-2025
- Business
- The Star
Hartalega's net profit surges to RM74.54mil in FY25
KUALA LUMPUR: Hartalega Holdings Bhd 's performance in the financial year ended March 31, 2025 (FY25) - which registered a five-fold jump in bottomline - affirms encouraging signs of recovery for the glove sector. During the year, the glove maker posted a net profit of RM74.54mil, as compared to RM12.5mil in the previous year. It reported revenue of RM2.59bil, up from RM1.84bil in FY25. Earnings per share rose to 2.18 sen from 0.37 sen previously. In the fourth quarter of the year alone, Hartalega recorded a net profit of RM14.48mil, slightly lower than RM14.9mil in the year-ago quarter, on revenue of RM611.55mil, up from RM530.34mil in 4QFY24. The improved revenue was owing to higher sales volume and stronger average selling prices. However, the group said net profit was pulled lower by higher non-operating expenses recognised during the quarter under review. On outlook, CEO Kuan Mun Leong said the operating landscape remains volatile and competition in the global rubber glove market continues to be high with continued oversupply and pricing pressure. He also expects US demand to remain moderated over the near term due to earlier front-loading activities as well as the ongoing trade uncertainties. However, the escalating US-China tensions, while impacting the global trade landscape, could also serve as a catalayst for Malaysian manufacturers to regain export market share in the US, he added. 'Taking a long-term view, the rubber glove industry's prospects remain positive. "Global demand has already recovered beyond pre-pandemic levels and is set to grow further on the back of rising healthcare needs, heightened hygiene awareness and increasing usage across both medical and non-medical sectors," said Kuan in a statement.
