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New Straits Times
3 days ago
- Business
- New Straits Times
Top Glove outlook remains weak as industry challenges persist: analysts
KUALA LUMPUR: Top Glove Corp Bhd's earnings outlook is likely to remain under pressure, with industry challenges expected to persist into the second half of 2025 (2H25), analysts said. RHB Research said Top Glove Corp reported third quarter (Q3) financial year 2025 (FY25) core loss of RM2.3 million, bringing 9MFY25 core loss to RM0.9 million. The firm said that results were below its expectation due to the challenging cost pass-through despite a sequential improvement in volume sold. "We expect industry headwinds to persist into 2H25 due to a higher operating cost environment and intensified competition," it said in a note. On the same note, Public Investment Bank Bhd (PublicInvest) remains cautious on Top Glove's operating landscape, weighed down by persistent pricing pressure and a sluggish demand recovery. The firm noted that the stable-to-declining trend in raw material prices is expected to further cap any upward adjustment to average selling price (ASPs). "At this juncture, earnings visibility remains weak due to tariff uncertainty and an imbalance demand-supply dynamic," it said. Meanwhile, Hong Leong Investment Bank Bhd (HLIB) expects Top Glove to register a flattish quarter on quarter (QoQ) results in Q4 FY25. Looking ahead, HLIB said the sector remains clouded by heightened uncertainty around the supply- demand dynamics heading into 2026 and beyond, worsened with elevating operating costs. "Given upbeat results, we revise our FY25 from a loss of RM1.3 million to a profit of RM21.3 million. "However, we cut our FY26 to FY27 by 4 per cent/ 31 per cent following lower ASP assumptions to reflect the weakening outlook. HLIB has maintained its 'Sell' recommendation and lowered its target price to 60 sen.
New Straits Times
6 days ago
- Business
- New Straits Times
Poh Huat earnings under pressure amid cost surge, tariffs
KUALA LUMPUR: Furniture manufacturer Poh Huat Resources Holdings Bhd is likely to see softer near-term earnings, weighed down by persistent inflation, rising operating costs, and the appreciation of the ringgit, according to Public Investment Bank Bhd (PublicInvest). The company's key export market, the United States, has seen buyers take a cautious stance after having front-loaded orders in anticipation of higher tariffs. "This is worsened by the fact that customers are now adopting a wait-and-see strategy after they had front-loaded orders ahead of higher tariff implementation. "On a positive note, a slight rebound in office furniture orders is expected next quarter, as some customers have confirmed orders and are expediting their shipments within the 90-day tariff grace period," it said. PublicInvest has also revised Poh Huat's financial year 2025 to 2027 (FY25-FY27) earnings forecast downwards by approximately 20-50 per cent. It said this is to factor in the persistent inflationary pressures, rising operational costs and global trade uncertainties stemming from the imposition of import tariffs by the US. The firm has maintained an "Underperform" call on Poh Huat, with a lower target price of RM0.90 from RM1.16 previously. Poh Huat's headline net profit for the second quarter (2Q) of FY25 declined by 92.0 per cent year-on-year (YoY) to RM0.6 million. The sharp decline was attributed to lower orders and shipments of office furniture from its Malaysian operations, higher material and labour costs, and a decline in net other income due to a foreign exchange loss of RM1.9 million, compared to a gain of RM2.3 million in the same quarter last year. Excluding non-operating items, Poh Huat's first half (1H) of FY25 core net profit of RM10.9 million came in below PublicInvest's and consensus estimates at 28.7 per cent and 32.8 per cent of full-year forecasts, respectively. "The discrepancy in our forecast was mainly due to the lower-than-expected contribution and higher operating costs from the Malaysian operations," PublicInvest noted. The group's revenue also declined to RM98.3 million in 2Q25, mainly due to reduced office furniture shipments from Malaysia, as customers had front-loaded orders ahead of the second presidency of Donald Trump and anticipated trade barriers. Its home furniture shipments from Vietnam also remained weak, with some US customers holding back orders in April 2025 due to new import tariffs. Nevertheless, Poh Huat had declared a second interim dividend of two sen for the financial period.
The Star
7 days ago
- Business
- The Star
Gamuda posts higher 3Q net profit, declares 10c dividend
KUALA LUMPUR: Gamuda Bhd recorded a higher net profit of RM671 million for the third quarter ended April 30, 2025 (3Q), up five per cent year-on-year, driven by stronger performance in its domestic construction projects. "Property sales grew 10 per cent to RM2.6 billion compared with RM2.3 billion sold last year, primarily driven by several quick-turnaround projects in Vietnam,' the engineering and construction group said in a statement today. During the same period, Gamuda's revenue increased by 14 per cent to RM11.5 billion from RM10 billion recorded in the corresponding period last year. The group's quarterly earnings rose five per cent to RM247 million, also supported by its domestic construction division, where earnings tripled to RM104 million compared to the same quarter last year. The board of directors has declared a second interim dividend of five sen per share, bringing the year-to-date dividend to 10 sen per share, representing a 25 per cent increase from the previous year's eight sen (adjusted following 1:1 bonus share issuance). Gamuda said its domestic operations have gained momentum, with its orderbook contributing 41 per cent of the total RM35 billion construction orderbook, representing a substantial portion of the group's overall performance. It noted that construction revenue and net profit rose by four per cent and 40 per cent, respectively, during the third quarter. Gamuda also noted that its data centre investments have begun to yield positive returns, contributing meaningfully to the engineering division's pre-tax earnings. "This development marks a significant milestone for the group's expansion strategy, positioning it well to meet growing demand for digital infrastructure,' it added. - Bernama
Barnama
7 days ago
- Business
- Barnama
Gamuda Posts Higher 3Q Net Profit, Declares 10 Sen Dividend
BUSINESS Gamuda Group rewards shareholders with an increased dividend of 10 sen, up from previous year's 8 sen KUALA LUMPUR, June 26 (Bernama) -- Gamuda Bhd recorded a higher net profit of RM671 million for the third quarter ended April 30, 2025 (3Q), up five per cent year-on-year, driven by stronger performance in its domestic construction projects. 'Property sales grew 10 per cent to RM2.6 billion compared with RM2.3 billion sold last year, primarily driven by several quick-turnaround projects in Vietnam,' the engineering and construction group said in a statement today. During the same period, Gamuda's revenue increased by 14 per cent to RM11.5 billion from RM10 billion recorded in the corresponding period last year. The group's quarterly earnings rose five per cent to RM247 million, also supported by its domestic construction division, where earnings tripled to RM104 million compared to the same quarter last year. The board of directors has declared a second interim dividend of five sen per share, bringing the year-to-date dividend to 10 sen per share, representing a 25 per cent increase from the previous year's eight sen (adjusted following 1:1 bonus share issuance). Gamuda said its domestic operations have gained momentum, with its orderbook contributing 41 per cent of the total RM35 billion construction orderbook, representing a substantial portion of the group's overall performance. It noted that construction revenue and net profit rose by four per cent and 40 per cent, respectively, during the third quarter. Gamuda also noted that its data centre investments have begun to yield positive returns, contributing meaningfully to the engineering division's pre-tax earnings. 'This development marks a significant milestone for the group's expansion strategy, positioning it well to meet growing demand for digital infrastructure,' it added.
The Sun
12-06-2025
- Business
- The Sun
Chin Hin to procure AAC machinery from Shanghai-listed Jiangsu Teeyer for its third manufacturing plant
KUALA LUMPUR: Leading integrated builder conglomerate Chin Hin Group Bhd's wholly-owned subsidiary, Starken AAC Sdn Bhd (SAAC), has signed a memorandum of understanding (MoU) with Jiangsu Teeyer Intelligent Equipment Co Ltd, a leading global provider of autoclaved aerated concrete (AAC) production systems listed on the Shanghai Stock Exchange. The MoU marks Chin Hin's strategic expansion into its third AAC manufacturing facility, which is set to be situated adjacent to the group's existing factory in Serendah, Selangor. Scheduled for full production by May 31, 2026, the new facility will significantly elevate the group's production capabilities by adding a capacity of over 1,000,000 cubic meters per year. Chin Hin group CEO for building materials division Ng Wai Luen said this strategic partnership with Jiangsu Teeyer is a significant milestone for Chin Hin, as it substantially enhances production capabilities and strengthens its competitive edge in the market. 'Jiangsu Teeyer's extensive global experience and technological expertise align perfectly with our growth strategy to meet rising demand for sustainable, high-quality building materials in Malaysia and beyond,' he said in a statement. Jiangsu Teeyer, listed on the Shanghai Stock Exchange, has a market capitalisation of approximately RM2.3 billion. The company is globally acclaimed for its expertise in AAC production systems. With over 35 years in the industry and having exported nearly 150 production lines to more than 20 countries, Jiangsu Teeyer is recognised for pioneering technological advancements, such as the MES system for precise production management and being the first Chinese company to localise AAC cutting machinery. Currently, Chin Hin's two existing AAC plants have a combined production capacity of approximately 1,200,000 cubic meters. With the addition of this third facility, the group's total AAC production capacity will rise to over 2,200,000 cubic meters annually, further consolidating its leadership in the building materials industry. Chin Hin continues its commitment to innovation and sustainable growth, reinforcing its leadership position in Malaysia's integrated building materials industry. This collaboration aligns with Chin Hin's ongoing efforts to invest in advanced manufacturing capabilities, driving operational efficiency, and responding to the increasing market demand for environmentally friendly construction materials.
