Latest news with #RM90mil
The Star
15-07-2025
- Business
- The Star
Econpile likely to surpass FY26 job-win target
PETALING JAYA: Piling specialist Econpile Holdings Bhd is expected to beat its new job wins target of RM400mil for its financial year ending June 30, 2026 (FY26) with the rollout of more government infrastructure, data centre, and industrial building projects, analysts say. Barely two weeks into its new financial year, analysts said the group is off to a good start with its second job win, a RM98.2mil contract from Eastmont Sdn Bhd to undertake bored piling works, basement construction and pile cap works within a proposed industrial development in Kapar, Klang. CGS International Research (CGSI Research) said in a report that with the new job, Econpile's FY26 new wins already total RM125mil, which is 31% of its target of RM400mil, bringing its order book to RM580mil as of last month. 'This is assuming revenue recognition of RM90mil in the fourth quarter of its FY25 (4Q25).' The gross profit margin for the latest project, which is estimated at 10%, is similar to Econpile's existing piling residential projects, the research house noted. On July 9, Econpile also announced a RM27mil piling and pile cap works contract from Bayu Melati Sdn Bhd for a proposed serviced apartment project with two 37-storey blocks in Selangor. CGSI Research said, 'More importantly, we believe the group's projects have no more lingering legacy issues.' Earlier this year, Econpile had faced some issues with a project in Mont Kiara, Kuala Lumpur, and road upgrading work in Pahang, which have since been gradually resolved. 'As such, we expect earnings to show some recovery in 4Q25, and then become more apparent in FY26 when recognition of most of its projects picks up steam,' the research house noted. CGSI Research reiterated an 'add' call on the stock with a target price of 46 sen per share. 'We like Econpile as a key beneficiary of a revival in government infrastructure spending as, according to the company, it has the largest number of bored pile machines in Malaysia currently.' Meanwhile, RHB Research said in a note to clients, 'Given that the majority of Econpile's contracts pertain to property development, the latest win indicates the group's comeback in the industrial space.' The research house estimated the group's current order book at RM570mil, while FY26 year-to-date job wins stand at RM125mil versus its full-year job win target of RM600mil. The group's tender book stands at about RM1bil, comprising jobs in both the private and public sectors. 'Profitability-wise, we expect the gross profit margin for this latest job to be between 5% and 8%,' it noted. RHB Research, which maintained a 'buy' call on Econpile, set a new target price of 48 sen per share. The research house added that the icing on the cake would come from the group's securing newer packages from infrastructure jobs with higher margins such as the Penang Light Rail Transit or the upcoming Johor Baru Elevated Autonomous Rapid Transit projects. The research house is also upbeat about the group's track record in infrastructure jobs compared with other piling contractors.
The Star
04-07-2025
- Business
- The Star
AEON Credit valuations to hinge on banking arm
AEON Bank is projected to see losses peak in FY26 and gradually ease from FY27 with breakeven targeted in FY28 and profitability by FY29. PETALING JAYA: Aeon Credit Service (M) Bhd 's valuations will likely be driven by the performance of its loss making subsidiary, AEON Bank (M) Bhd, which is Malaysia's first Islamic digital bank. AEON Credit's management expects the bank to only post a profit in financial year 2029 (FY29) and to run losses till then due to expansion and product development related costs. At its AGM on June 25, AEON Credit had guided to RM80mil to RM90mil in associate losses from its 50%-owned digital banking venture in FY26. 'This represents a 17.1% to 31.8% year-on-year (y-o-y) increase from the RM68.3mil loss recorded in FY25 and exceeds our RM75mil loss forecast by 7% to 20%. The updated guidance also surpasses consensus estimates of RM60mil by 33.3% to 50%. 'Further checks with AEON Credit revealed that the higher projected losses are driven by the rollout of expanded product offerings under AEON Bank, including a personal financing facility of up to RM10,000, business banking services and term deposit offerings,' CIMB Securities said in its report. The research house noted that the expansion entailed higher upfront costs, particularly in digital infrastructure and core banking systems, including cloud deployment, cybersecurity and regulatory compliance. AEON Bank is projected to see losses peak in FY26 and gradually ease from FY27 with breakeven targeted in FY28 and profitability by FY29. The financing company also guided to minimal impact on its business from the expanded sales and service tax (SST) apart from RM1.8mil in SST related costs for FY26 (year ending February). To improve its collections, AEON Credit expects to finalise discussions with two agencies to explore the potential implementation of a salary deduction scheme for civil servant borrowers by this month. This market segment accounts for 19% of its customer base. It might not fully mitigate the risk of rising impairments, particularly in light of elevated household debt levels and living costs. The recent increase in civil servant bankruptcies – triggered by the Malaysian Anti-Corruption Commission's 'Op Sky' investigation and the implementation of Malaysia's 'second chance policy' – may continue to weigh on the creditworthiness of this segment, potentially limiting the effectiveness of the salary deduction mechanism over the longer term. AEON Credit's impairment losses surged 32.9% y-o-y in FY25, driven by an 18.4% y-o-y increase in delinquent accounts. This resulted in a higher net credit cost of 3.87% in FY25 (FY24: 3.35%) and an increase in the non-performing loans ratio to 2.64% (FY24: 2.57%).
The Star
18-06-2025
- Business
- The Star
Bank ordered to pay RM90mil to NFCorp for breach of confidentiality
PUTRAJAYA: The Federal Court has ordered Public Bank Bhd to pay RM90mil in damages to National Feedlot Corporation (NFCorp), its chairman Datuk Mohamad Salleh Ismail, and three subsidiary companies for breaching confidentiality by leaking bank account information. A three-judge panel, chaired by Chief Judge of Malaya Justice Hasnah Mohammed, made the decision on the quantum of damages here on Wednesday (June 18). On May 26, the same panel dismissed an appeal by Public Bank in its final appeal in a RM560mil lawsuit brought by NFCorp over the confidentiality breach. More to come
The Star
14-06-2025
- Business
- The Star
New RM79mil Mara Professional College campus to serve Kapit students
KAPIT: A new Mara Professional College campus, costing RM79mil, will be constructed in Kapit to serve students in the division. The campus would have the capacity to accommodate up to 300 students and would emphasise soft skills instead of technical or TVET (Technical and Vocational Education and Training) courses. Works Minister Datuk Seri Alexander Nanta Linggi stated that the project was approved in 2019 but could not commence earlier due to various necessary processes that had to be completed. 'This project has been eagerly anticipated and is much needed, as it will be the only higher education institution available to students after secondary school in this remote area,' he said following a handover ceremony at the Kapit Civic Centre meeting room on Saturday (June 14). Nanta mentioned that the original allocation for the project was RM90mil, but after an open tender process, the contract was awarded for RM79mil. He said there would be only a one-time registration fee upon enrollment, with no tuition fees. 'Additionally, students will receive a monthly allowance of RM300,' he said. The project, located on Jalan Song-Kapit, is scheduled for completion on Dec 5, 2029. After the ceremony, Nanta attended the Gawai Dayak open house at Dewan Sarawak.
The Star
05-05-2025
- Business
- The Star
FUELLING TALENT GROWTH
FOR over three decades, Petroliam Nasional Bhd (PETRONAS) has been a catalyst for nurturing highly skilled talent within the oil and gas industry, evolving in tandem with the sector's growing complexity and innovation. As the company celebrates over 50 years of operations, it continues to champion workforce development, notably through its Vocational Institution Sponsorship and Training Assistance (VISTA) programme. Steady pipeline of talent Delivered in collaboration with key industry players, VISTA ensures technical training remains aligned to real-world needs, helping build a robust pipeline of talent equipped for the dynamic energy landscape. Launched in 1992, VISTA is now enhanced as VISTA i-Plus—a more integrated and industry-led model designed to ensure a steady flow of skilled professionals, not only for PETRONAS, but for the oil and gas ecosystem at large. 'This is not just a PETRONAS initiative, it is a collective commitment by the industry, for the industry,' said PETRONAS senior vice president and group chief human resource officer Ruslan Islahudin. 'Through VISTA i-Plus, we're creating a structured, collaborative ecosystem where industry players, government agencies and institutions work hand-in-hand to build future-ready talent.' To date, the programme has supported 35 institutions nationwide and channelled over RM90mil to train nearly 12,000 graduates in critical oil and gas skillsets. The company's long-standing partnership approach strengthens the oil and gas services and equipment (OGSE) sector by expanding access to competent talent, particularly in high-demand areas such as 6G welding, scaffolding and rigging, pipefitting and welding inspection. PETRONAS has benchmarked the enhanced model against best practices from 10 leading technical and vocational education and training (TVET) nations, including Germany, South Korea and Australia, where strong industry-education-government collaboration is the common denominator of success. 'Malaysia has more than 1,300 TVET institutions, with around 500 linked to oil and gas trades. Strengthening this ecosystem together is vital to meeting industry demands and unlocking broader economic impact,' said Ruslan. Ruslan Islahudin VISTA i-Plus Central to VISTA i-Plus is the newly established VISTA Advisory Council, comprising leaders from key industry bodies including Malaysia Petroleum Resources Corporation, Malaysian Oil, Gas and Energy Services Council, Human Resources Development Corporation, Petroleum Arrangement Contractors and PETRONAS. The council plays a pivotal role in co-shaping a unified workforce development strategy for the oil and gas industry, ensuring VISTA i-Plus is governed not by one company but by the collective voice of the sector. The programme also features two other governance platforms—the VISTA Working Committee, which oversees execution, and the VISTA Engagement Network, which provides training institutions with centralised resources and knowledge sharing. Together, these bodies form a responsive and resilient framework that keeps the model attuned to evolving industry needs. The success of the VISTA i-Plus model can be measured through several metrics, including the take-up rate of the programmes, courses and initiatives, active overall participation in supporting the model, and an increase in the employability rate to meet the talent demand in the oil and gas industry. Its effectiveness can also be gauged through in-kind support from industry players, mechanisms to leverage existing levies, the establishment of VISTA i-Plus as the preferred choice among industry stakeholders, and the capacity of learning institutions to produce a talent pool that aligns with market demands. Collaborative ecosystem Ruslan added that the 'by industry, for industry' philosophy is central to the VISTA i-Plus approach and is underpinned by the strong commitment of key stakeholders, who actively participate as council members. This commitment, he said, will ensure the model's long-term sustainability, with clear roles, responsibilities and aligned expectations for all involved. 'Other industries beyond oil and gas could benefit from adopting similar collaborative models, creating cross-industry synergy. 'For example, welders trained through specialised courses can apply their skills in both the oil and gas industry and the automotive industry, fostering a versatile workforce,' Ruslan added. Looking ahead, PETRONAS has identified three strategic priorities for VISTA i-Plus—aligning training to current industry demands, embedding practical hands-on learning and fostering strong industry participation through mentoring, career pathways and continuous development opportunities. 'Developing talent cannot be done in silos. Through VISTA i-Plus, we are reinforcing our belief that talent development is a shared responsibility, and when we do it together, we build a stronger, more sustainable industry for all,' said Ruslan.
