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BusinessToday
27-05-2025
- Business
- BusinessToday
HLIB Maintains Hold On FGV
Hong Leong Investment Bank Bhd (HLIB) Research has maintained a HOLD call on FGV Holdings Bhd with an unchanged target price of RM1.26, following the group's move to acquire full ownership of eight subsidiaries from Koperasi Permodalan Felda Malaysia Bhd (KPF) for RM229.8 million. The house noted that while the earnings uplift from the acquisitions is likely to be limited—especially after accounting for funding costs—the move enhances FGV's operational control, improves decision-making agility and aligns better with its long-term strategic goals. HLIB has kept its earnings forecasts unchanged for now, pending further updates from FGV's upcoming results briefing scheduled for 28 May 2025. The acquisitions involve remaining minority stakes in key units including a 16.67% stake in FGV Kernel Products for RM12.9 million, a 33.33% stake in FGV Refineries for RM17.9 million, and a 49% stake in FGV Transport Services for RM77.9 million, among others. The transaction will be funded via a mix of internal funds and bank borrowings, and is expected to be completed by the third quarter of 2025. HLIB stated that based on FY2024 earnings, the acquisitions are not expected to contribute significantly to bottom-line growth. However, the analyst added that the initiative may support long-term gains by streamlining management efficiency across the group's downstream and support businesses. On the balance sheet, the impact is anticipated to be modest, with net gearing projected to rise slightly from 0.27 times as at 31 December 2024 to 0.31 times post-acquisition. At the current share price of RM1.28, FGV is trading at a slight premium to HLIB's target price, with a projected capital downside of 1.3%. The expected total return is marginal at 0.3%, supported by a 1.6% dividend yield. Despite recent share price gains, HLIB believes the stock remains fairly valued, given muted earnings visibility and potential margin pressures in its core plantation segment. The research house will revisit its outlook following the management's briefing later this month. Related
New Straits Times
21-05-2025
- Business
- New Straits Times
DC Healthcare narrows losses, posts higher revenue in Q1
KUALA LUMPUR: DC Healthcare Holdings Bhd's net loss narrowed to RM839,000 in the first quarter ended March 31, 2025 (1QFY25) from a net loss of RM7.9 million a year earlier. This is supported by a higher gross profit of RM9 million, a significant increase from RM1.22 million last year. Its revenue jumped 89 per cent to RM17.9 during the period from RM9.45 million previously, driven by higher redemption rates for aesthetic services and improved cash sales collection due to strong consumer interest in aesthetic treatments and expanding service capacity. The aesthetic segment contributed RM14.86 million or 83 per cent of total revenue, representing a 104 per cent increase from RM7.27 million in a year ago. Featured Videos Managing director Dr Chong Tze Sheng said the improvement reflects the company's dedication to enhancing treatment offerings, improving operational execution and expanding market access. "DC Healthcare remains focused on delivering sustainable growth through several strategic pillars. "The company is strengthening its brand ecosystem by integrating Dr Chong Clinic, Dr Chong Slimming and NewB Premium Skincare, while broadening its skincare product portfolio to capture a larger share of the aesthetic and wellness market," he said in a statement. DC Healthcare is also enhancing patient engagement by introducing artificial intelligence-assisted skin analysis and personalised treatment plans, aimed at optimising treatment outcomes, improving service quality, and driving customer retention.
