Latest news with #RM47.5mil
The Star
22-05-2025
- Business
- The Star
Advancecon unit accepts RM47.5mil construction job in Port Dickson
KUALA LUMPUR: Advancecon Bhd via its wholly-owned subsidiary, Advancecon Infra Sdn Bhd, has been appointed the sub-contractor for the construction of the proposed Gerbil Data Centre in Bandar Springhill in Port Dickson, Negeri Sembilan. In a filing with Bursa Malayisa, the group said it accepted the RM47.5mil job from Mujur Minat Sdn Bhd, which will be completed on Aug 30, 2025. "Barring any unforeseen circumstances, the sub-contract is expected to contribute positively towards the future earnings of Advancecon Group for the duration of the sub-contract and will not have any effect on the share capital and substantial shareholders' shareholdings of Advancecon Group, it said.
The Star
19-05-2025
- Business
- The Star
Strong customer base a boon for EG Industries
PETALING JAYA: Amid headwinds, RHB Research remains positive on EG Industries Bhd 's earnings moving forward, citing a strong customer profile comprising leading players in network switches and 5G photonics products. The research house highlighted that the company is the first in South-East Asia to manufacture 800G optical modules – a critical component at the front end of the artificial intelligence (AI) value chain. 'Its valuation remains attractive, with the stock trading at a low-teen forward price-to-earnings ratio. 'Margins, meanwhile, are expected to improve alongside exponential earnings growth, driven by new customer wins in the expanding AI sector,' it noted. EG Industries is the exclusive strategic manufacturer of 5G optical modules for Cambridge Industries Group (CIG) and network switches for a Chinese customer. 'As the exclusive worldwide manufacturing partner for CIG's 5G optical modules and a leading Chinese network switch provider, EG Industries benefits from trade diversion and the ongoing AI boom, as its customers shift production out of China. 'Its portfolio, featuring advanced 5G optical modules and network switches –critical components for data centres – offers significantly higher margins than its legacy products, highlighting the company's strategic focus on high-value innovation,' RHB Research added. Complementing its newly established Batu Kawan plant, EG Industries' smart warehouses in Sungai Petani provides real-time inventory monitoring and enhanced cost efficiencies. This offers compelling reasons for clients to relocate their overseas storage hubs to Malaysia, the brokerage said. In the first half of 2025 (1H25), the company achieved a commendable financial performance, posting a revenue of RM681.7mil, a 35.7% year-on-year increase from RM504.4mil in 1H24. Profit before tax nearly doubled, climbing from RM23.9mil in 1H24 to RM47.5mil in 1H25. This was supported by improved margins from a favourable product sales mix, better yields in 5G wireless access and photonics-related products, alongside a net foreign-exchange (forex) gain. EG Industries declared its first-ever dividend in financial year 2024, with a payout ratio of 9.1% of profit after tax and minority interest. RHB Research noted that key risks to the company include higher-than-expected rejection rates, supply chain disruptions, forex fluctuations and a potential loss of key customers.
