Latest news with #RM6.08
New Straits Times
6 days ago
- Business
- New Straits Times
Westports sails strong despite global headwinds
KUALA LUMPUR: The global economic slowdown is unlikely to significantly impact Westports Holdings Bhd's operational growth in the near term, according to Hong Leong Investment Bank Bhd (HLIB). The firm said Westports is currently operating at an optimal utilisation rate of 80 per cent of its 14 million twenty-foot equivalent unit (TEU) capacity. The port operator has indicated expectations of mid-single-digit growth in container throughput through to 2027, with additional capacity projected to come online by mid-2028. "As such, we do not anticipate the expected global economic slowdown to significantly impact market expectations regarding Westports' near-term operational growth," HLIB said in a research note. It maintained a "buy" call on Westports with a higher target price of RM6.08 from RM5 previously, post-earnings revision to account for the approved tariff hikes. "We expect earnings sustainability and resilient volume movements, despite concerns over global trade slowdown. "Also, the proposed dividend reinvestment plan (DRP) is poised to enhance shareholder value while supporting medium-term capital expenditure requirements," it said. Westports has implemented a DRP, offering shares at a discount of less than 10 per cent to the five-day volume-weighted average market price prior to the price-fixing date. The DRP proceeds will help support the company's ongoing expansion plans while maintaining its strong financial standing. "Major shareholders, including Pembinaan Redzai along with its affiliate Semakin Ajaib, and South Port Invest, have committed to participate in the DRP, collectively representing 69.1 per cent of the company's total share capital," it added. On the port tariff hike, HLIB said the increase will improve Westports' earnings and cash flow and, together with its DRP, support the financial sustainability of its ongoing expansion plan. The Transport Ministry has approved port tariff hikes for Westports, effective July 15, 2025, which will be implemented in stages until January 1, 2027. Container handling charges are expected to jump by 30 per cent, while conventional and marine services will increase by 15 per cent. On capacity expansion, Westports is currently executing a major expansion plan to double its container handling capacity to 28 million TEUs, covering the development of terminals CT10 to CT17. HLIB said the initial phase, CT10 and CT11, is progressing well, with dredging and land reclamation works already underway. "Construction is scheduled to begin in the first quarter of 2027, with CT10 expected to be operational by mid-2028 and CT11 by the end of 2029. "The recently approved tariff revision and the implementation of DRP will ensure the financial sustainability of these long-term expansion efforts," it added.
The Star
6 days ago
- Business
- The Star
Westports to be buoyed by tariff hikes, expansion
HLIB Research lifted its earnings projections for Westports by 4.1% for the financial year ending 2025 (FY25), 18.4% for FY26, and 23.6% for FY27. PETALING JAYA: Westports Holdings Bhd appears well-positioned to deliver sustainable earnings and operational resilience, supported by tariff hikes and ongoing expansion works, despite headwinds in the global trade environment. Hong Leong Investment Bank (HLIB) Research maintained its 'buy' call on the port operator, while raising its discounted cash flow-derived target price to RM6.08 from RM5, following an upward revision to earnings forecasts. The revision reflected the approved port tariff adjustments granted by the Transport Ministry, aimed at supporting Westports' infrastructure investments and long-term growth. 'The tariff adjustment is essential to support Westports' ongoing infrastructure investments and ensure the sustainable growth and competitiveness of Port Klang,' said HLIB Research in its note. It added that earnings sustainability and resilient volume movements were likely, even amid concerns over a global trade slowdown. HLIB Research lifted its earnings projections for Westports by 4.1% for the financial year ending 2025 (FY25), 18.4% for FY26, and 23.6% for FY27. This followed assumptions on the phased tariff increases, which would commence on July 15, 2025. The first phase involved a 15% hike for container handling services, followed by a 10% increase for container, conventional and marine services from Jan 1, 2026. A further 5% adjustment would take effect on the same segments later that year. Westports operated at an optimal utilisation rate of 80% of its 14 million twenty-foot equivalent unit capacity. Management projected mid-single-digit growth in container throughput until 2027, with new capacity expected to come online by mid-2028. 'We do not anticipate the expected global economic slowdown to significantly impact market expectations regarding Westports' near-term operational growth,' HLIB Research stated. The research house also pointed to the company's dividend reinvestment plan (DRP) as a positive for shareholders and expansion plans. It said: 'The proposed DRP is poised to enhance shareholder value, while supporting medium-term capital expenditure requirements.' The DRP offered shares at a discount of less than 10% to the five-day volume weighted average price prior to the price fixing date, with major shareholders –including Pembinaan Redzai and its affiliate Semakin Ajaib, as well as South Port Invest – collectively committing to participate. The parties represented 69.1% of Westports' share capital.
New Straits Times
7 days ago
- Automotive
- New Straits Times
MCE earnings more than double in Q3 despite slight revenue dip
Business Times KUALA LUMPUR: MCE Holdings Bhd's net profit for the third quarter ended April 30, 2025, jumped 151 per cent year-on-year to RM6.08 million, driven by a sharp increase in other income and lower raw material and employee costs. In a filing with Bursa Malaysia, the group said it recorded other income of RM876,000 compared to RM265,000 a year earlier, while raw material costs fell to RM18.3 million from RM19.4 million. Employee benefits expenses also declined to RM7.64 million from RM8.12 million previously. Quarterly revenue, however, slipped 1.6 per cent to RM36.8 million from RM37.4 million, primarily due to weaker demand for certain automotive parts. MCE attributed the stronger bottom line to improved operational efficiency and higher interest income, in addition to cost savings. Group managing director Goh Kar Chun said the results reflected the company's resilience amid a challenging environment. "We continued to deliver a solid performance amidst an evolving yet challenging operating environment. Our results reflect the strength of our fundamentals and the discipline of our team as we head into the final quarter of the financial year," he said in a statement. Earnings per share rose to 4.43 sen from 1.96 sen. No dividend was declared for the quarter under review. For the nine-month period, MCE paid a total dividend of RM1.85 million. As at April 30, the group's cash and bank balances stood at RM19.65 million, up from RM15.83 million at end-July 2024. Short-term investments rose sharply to RM89.64 million from RM33.66 million, bringing total current assets to RM149.3 million. Total liabilities increased to RM74.3 million from RM61 million, mainly due to higher term loans, which more than doubled to RM22.4 million from RM12 million previously. Looking ahead, MCE expects future earnings to benefit from the launch of Perodua's first electric vehicle by year-end, for which it will supply key components including multimedia units and the Advanced Driver Assistance Systems (ADAS). The group noted it has been appointed to supply a wide range of parts for the model, including multimedia display units, instrument panel clusters, switches, interior lighting, and ADAS modules. Its upcoming Serendah manufacturing plant, slated to begin operations by end-2025, is also expected to boost production capacity and support next-generation automotive technologies. Goh said the new facility "will significantly increase MCE's capacity, enabling it to scale up its offerings in high-value automotive electronics." The Serendah plant would also support MCE's diversification into non-automotive contract manufacturing through a joint venture with Hong Kong-based Sounding Industries Ltd and enhance its presence in the ADAS segment via a collaboration with Nanjing Chuhang Technology Co Ltd. "Looking ahead, MCE remains focused on driving sustainable long-term growth by strengthening our technological capabilities and capturing emerging opportunities across Malaysia and key export markets," Dr Goh said.
New Straits Times
27-05-2025
- New Straits Times
Worrying rise in ganja buds smuggling with millions seized this year
PETALING JAYA: The Customs Department has observed a worrying rise in ganja buds smuggling, with over RM6.08 million worth of the highly potent organic drug seized this year. Its assistant director-general (enforcement) Raizam Setapa @ Mustapha said that to date, six seizures involving ganja buds have been made at the Kuala Lumpur International Airport Courier Centre. "Our investigations showed that all six shipments originated from a neighbouring country and were intended to be shipped to Europe. "These shipments were declared as books, toys, and clothes to avoid detection," he told reporters at the Kuala Lumpur Customs Department office here today. Raizam added that the latest attempt to ship out these drugs was detected at around 2.30 pm on April 29.
