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New Straits Times
19 hours ago
- Business
- New Straits Times
Econpile set for earnings surge after clearing project backlog
KUALA LUMPUR: With legacy projects now behind it and RM580 million worth of jobs in hand, Econpile Holdings Bhd is setting the stage for a sharper earnings recovery, according to CGS International. The research house said this marks a turnaround that could drive a surge of more than 600 per cent in core earnings per share (EPS) in the current financial year. CGS maintained its "Add" rating on the construction and piling specialist with a target price of 46 sen, representing a 21 per cent upside from its current price of 38 sen. "Econpile's orderbook is now free of lingering legacy issues, which should lead to better earnings and margin recovery as new projects kick in," it said in a research note. The company had previously encountered setbacks in several projects, including the Face 3 development, a Mont Kiara job and road upgrading works in Pahang. CGS noted that these issues have since been resolved. With legacy projects cleared, Econpile is expected to rebound from a net loss of RM25.2 million in FY25 to a net profit of RM21.6 million in FY26 and further to RM45.6 million in FY27, supported by stronger revenue recognition and more consistent project execution. This translates into core EPS growth of 652 per cent in FY26, followed by a further 111 per cent in FY27. Just two weeks into the new financial year that began on July 1, Econpile has already secured RM125 million worth of new jobs, or 31 per cent of its FY26 target of RM400 million. This includes a RM98.2 million contract for bored piling and basement works for Malaysia Milk's plant extension in Kapar, Klang, awarded by Eastmont Sdn Bhd and a RM27 million job for two serviced apartment blocks in Selangor. CGS expects more job wins ahead, supported by the rollout of government infrastructure, data centre and industrial building projects. It sees Econpile as a prime beneficiary, given its ownership of the largest fleet of bored pile rigs in Malaysia. "Key re-rating catalysts include the crystallisation of Econpile's memorandum of understanding for the Sungai Klang Link project, which could pave the way for RM1.4 billion worth of piling contracts," it said. Downside risks include potential delays in the rollout of large-scale infrastructure jobs and higher raw material costs, which could affect margins and order flows. With legacy issues resolved and strong job momentum early in the year, CGS said Econpile is well-positioned to deliver stronger results moving forward.
Malaysian Reserve
25-06-2025
- Business
- Malaysian Reserve
Sports Toto unit to acquire 3 retail units in Berjaya Times Square for RM24.9m
SPORTS Toto Bhd's wholly owned subsidiary STM Lottery Sdn Bhd has entered into sale and purchase agreements (SPAs) to acquire three freehold commercial units at Berjaya Times Square, Kuala Lumpur, for RM24.9 million in cash. The units, located on the ground floor of the integrated commercial complex along Jalan Imbi, are being acquired from Sapphire Transform Sdn Bhd, a wholly owned unit of Berjaya Assets Bhd. The total floor area is about 1,637 sq ft, translating to a price of around RM15,211 per sq ft. The acquisition was based on a market valuation of RM25.2 million by Hartanah Consultants. The properties are currently tenanted and income-generating. Sapphire had acquired them in April 2012 and carried the units at RM29.47 million in its books as of May 31, 2025. Under the terms of the SPAs, STM Lottery has paid RM5 million upfront, with another RM5 million due within a month and the remaining RM14.9 million payable within three months of the agreement date, with a one-month extension subject to 8% annual interest. The acquisition will be funded via a mix of borrowings and internal funds. The company said the proposed acquisition represents an investment in income-generating assets and offers potential for capital appreciation. 'The board of Sports Toto (except for the interested directors) believes the acquisition is in the best interest of the group,' it said in the filing. The deal is deemed a related party transaction. Berjaya Corp Bhd is a major shareholder of both Sports Toto and Berjaya Assets. The acquisition is not expected to have any material impact on Sports Toto's net assets, earnings, or gearing, and is expected to be completed in the second half of 2025. — TMR
The Sun
11-06-2025
- Business
- The Sun
HEB Group to speed up diversification to drive sustainable growth
KUALA LUMPUR: Engineering and project management consultant HSS Engineers Bhd (HEB Group) is looking to accelerate diversification and drive sustainable growth in the financial year ending Dec 31, 2025 (FY25) and beyond. HEB Group has strategically deepened its involvement in emerging high-growth sectors to broaden its sectoral coverage, while maintaining an entrenched presence in its core infrastructure domains of highways, roads, rail, ports and water infrastructure. With the rapid expansion of the data centre industry, the group anticipates sustained growth in this sector, supported by favourable government policies and robust foreign investment. HEB Group's substantial RM2.1 billion order book will provide earnings visibility over the next eight years, building upon the momentum created by the record-high net profit of RM25.2 million achieved in FY24. The order book includes key projects such as the Pan Borneo Highway Sabah Phase 1A, Westports Expansion Development, Klang Valley Double Tracking Phase 2, East Coast Rail Link, Jajaran Rel Selangor Kita, multiple water infrastructure and data centre projects in Malaysia, in addition to several overseas projects. The group also has a healthy tender book of RM475 million as it proactively pursues new opportunities in Malaysia and abroad. 'HEB Group has demonstrated agility by adapting its business model to meet the rapidly evolving engineering needs of various industries,' executive vice-chairman Tan Sri Kuna Sittampalam said after HEB Group's annual general meeting today. 'We are rapidly expanding our capabilities to take a leading role in emerging industries that are set to reshape the region.' Kuna said the group's timely diversification strategy will pave the way for sustainable growth and long-term value creation. Concurrently, HEB Group remains steadfast in its role of supporting governments, both at home and abroad, in implementing strategic infrastructure projects to stimulate economic growth and elevate living standards. As for its international operations, HEB Group is well on its way to achieving its target of deriving 25% of revenue from overseas projects by 2027. Overseas projects contributed 18.8% of revenue as at March 31, supported by numerous contracts wins in developing countries across Asia. Kuna said the group is associated with nine countries for projects and that a project in Iraq is providing value-accretive yields with RM1.5 billion in fees. 'However, I expect our Southeast Asian partners like Indonesia and the Philippines will start to contribute more to the company over the next two to three years.' At the AGM, shareholders approved all the resolutions tabled by the group, including the payment of a final single-tier dividend of 1.46 sen per share for FY24. The dividend payout of RM7.4 million represents about 30% of the HEB Group's net profit last year, and is in line with its dividend policy, which targets 30% distribution of annual net profit to shareholders.
New Straits Times
11-06-2025
- Business
- New Straits Times
HSS Engineers bullish about FY2025, beyond due to projects diversification
KUALA LUMPUR: HSS Engineers Bhd remains optimistic about its growth outlook for the financial year ending Dec 31, 2025 (FY25) and beyond, as it ramps up efforts to expand and diversify its project portfolio across various sectors and international markets. HSS Engineers said it had increased its involvement in emerging, high-growth industries to widen its sectoral reach, while continuing to maintain a strong foothold in its core infrastructure areas including highways, roads, rail, ports and water systems. It also highlighted the rapid growth of the data centre industry, projecting continued momentum in this space, driven by supportive government policies and strong foreign investment. "Concurrently, the group's tech-based subsidiary HSS Propick Technologies Sdn Bhd (HSS Propick), a provider of artificial intelligence (AI) powered drone solutions, is undertaking an expansive telco tower digitalisation project for one of Southeast Asia's largest telco tower companies. "HSS Propick encapsulates the group's focus on innovation, harnessing its deep-rooted engineering expertise to deliver AI-powered infrastructure solutions," it added. HSS Enegineers said it is poised to play a key role in Sarawak's fast-paced industrialisation, with its local associate company HSS Alliance (Sarawak) Sdn Bhd, nearing substantial growth as it positions itself as a trusted one-stop engineering partner for the state's large-scale infrastructure transformation. HSS Engineers executive vice chairman Tan Sri Ir. Kuna Sittampalam said it had demonstrated agility by adapting its business model to meet the rapidly evolving engineering needs of various industries. "Building on our success in AI-powered drone solutions to data centres and solar power generation, we are rapidly expanding our capabilities to take a leading role in emerging industries that are set to reshape the region. "Our timely diversification strategy will pave the way for sustainable growth and long-term value creation," he said. During the annual general meeting, Kuna reaffirmed that the company's robust RM2.1 billion order book will ensure earnings visibility for the next eight years, reinforcing the momentum gained from its record-high net profit of RM25.2 million in the financial year ended 31 December 2024 (FY2024). The order book comprises major projects such as the Pan Borneo Highway Sabah Phase 1A, Westport 2 Expansion Development, Klang Valley Double Tracking (KVDT) Phase 2, East Coast Rail Link (ECRL), Jajaran Rel Selangor Kita, as well as numerous water infrastructure and data centre developments across Malaysia, along with several international projects. It continues to maintain a solid tender book worth RM475 million as it actively seeks new opportunities both locally and overseas.
The Sun
22-05-2025
- Business
- The Sun
Sorento Capital delivers strong Q3 FY25 performance with RM8.1m PBT
KUALA LUMPUR: Bathroom and kitchen sanitary ware solution provider Sorento Capital Bhd posted a revenue of RM41.1 million for the third quarter (Q3) ended March 31, 2025 (FY25) with a profit before tax (PBT) of RM8.1 million and a net profit of RM6.3 million. This translates to a PBT margin of 19.7% and a net profit margin of 15.3%. There are no figures to compare with the same quarter last year because this is only the third interim financial report prepared to meet Bursa Malaysia's ACE Market listing requirements. For 9M FY25, the company reported a PBT of RM25.2 million and net profit of RM18.3 million, against revenue of RM135.9 million. On an adjusted basis, after excluding one-off IPO listing expenses of RM3.1 million incurred during the nine-month period, Sorento Capital's adjusted PBT and net profit would have been RM28.3 million and RM21.5 million respectively. This represents a PBT margin of 20.8% and a net profit margin of 15.7%. Managing director Loo Chai Lai said the company's growth strategy remains centred on expanding its dealer network. 'We plan to recruit approximately 200 new dealers over the next three years, building on our existing base of 664 dealers in FY24. 'As of the first nine months of FY25, we have already added 96 new dealers. This expansion will further enhance our market reach and ensure nationwide accessibility to our products,' he added. Industry prospects remain positive, supported by rising disposable incomes and growing lifestyle expectations, which are expected to drive increased bathroom and kitchen renovation spending. The rise in residential and commercial construction activities further supports the positive industry outlook. Government-led infrastructure initiatives, covering tourism infrastructure and public housing, are expected to drive demand for bathroom and kitchen sanitary ware solutions. In line with this trend, Sorento Capital is expanding its footprint across key building segments, including residential projects, hotels, office buildings, and both new build and renovation developments. By actively participating in a broader range of project types, the company aims to diversify its revenue base and tap into emerging market opportunities. Sorento Capital maintained a healthy net cash position, with cash and cash equivalents of RM56.7 million as at March 31, 2025, exceeding total loans and borrowings of RM4.1 million. This was further supported by a robust net operating cash inflow of RM16.8 million for 9MFY25. With a minimal debt profile, Sorento Capital can capitalise on future growth opportunities while delivering consistent value to its shareholders. To recap, Sorento Capital was listed on the ACE Market of Bursa Malaysia on October 28, 2024, and successfully raised RM57.4 million. Sorento Capital is expanding its footprint across key building segments, including residential projects, hotels, office buildings, and both new build and renovation developments.
