Latest news with #SRR
The Star
23-07-2025
- Business
- The Star
Alliance Bank rights issue to bolster customer acquisition efforts
PETALING JAYA: Analysts have maintained their outperform call with a lower target price of RM4.85 for Alliance Bank Malaysia Bhd (ABMB), following its recently completed rights issue exercise. Kenanga told clients in a report it believes that the proceeds from the exercise would enable the group to ramp up its customer acquisition efforts. It has cut its financial year financial year ending March 31, 2026 (FY26) earnings by 8%, reflecting lower net interest margins (NIMs) from the recent 25 basis overnight policy rate cut and aligned its credit cost assumptions to 35 basis points from 31, being the upper range of guidance. Citing a recent meeting with the lender, Kenanga noted that the group presented a FY26 loans growth guidance of 8%-10% which is below the 12% achieved in FY25. The research firm said its model assumptions are conservatively kept at around 8% in line with the lower band of guidance. The group's recently completed rights issue generated cash proceeds of RM600mil in capital to fuel its growth strategies. "We gather that ABMB is likely deploying across all markets as opposed to accelerating its position in a specific market. "Amid macro-economic challenges, we opine the bank may benefit from a larger collateralised portfolio (mortgage) as delinquency risks may emerge from its commercial segment, namely from small medium enterprises (SME) which are 34% of its loan book." Kenanga noted that ABMB's FY25's reported NIMs of 2.45% could see further deterioration where asset yields could come off should the group's business loans be outpaced by its household loans. Meanwhile, the recent 25 basis points cut would reflect a 2 basis points impact to ABMB's NIMs, per its sensitivity analysis. However, thanks to some relief by the reduction in Statutory Reserve Requirement or SRR in addition to the abovementioned rights issue's capital injection, the group may likely ease on its deposits growth strategies, thereby lowering its funding cost, the research firm said. Aside from the adjustments in overnight policy rate, which led to a 2% trimming to earnings, Kenanga has raised credit cost expectations to 35 basis points out of prudency amid higher asset quality concerns from the group's heavier SME comprised loans book. It has also introduced its FY27 earnings which reflects a 13% earnings growth from credit cost normalisation and better cost management per the group's long-term strategies. At last look, shares of ABMB were at RM4.50 a piece.
Business Wire
22-07-2025
- Business
- Business Wire
FINAL DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Red Cat Holdings
NEW YORK--(BUSINESS WIRE)-- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Red Cat Holdings, Inc. ('Red Cat' or the 'Company') (NASDAQ: RCAT) and reminds investors of the July 21, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. The complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements Share Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Salt Lake City Facility's production capacity, and Defendants' progress in developing the same, was overstated; (2) the overall value of the SRR Contract was overstated; and (3) as a result, Defendants' public statements were materially false and misleading at all relevant times. In March 2022, Red Cat announced that Teal had been selected by the U.S. Department of Defense's Defense Innovation Unit and the U.S. Army to compete in Tranche 2 of the U.S. Army's Short Range Reconnaissance Program of Record (the "SRR Program"). The SRR Program is a U.S. Army initiative to provide a small, rucksack-portable sUAS to U.S. Army platoons. At all relevant times, Defendants suggested or otherwise asserted that the SRR Program's Tranche 2 contract (the "SRR Contract") was worth potentially hundreds of millions to over a billion dollars in contract revenues. In March 2023, Company management confirmed that "[t]he Salt Lake City factory is complete and ready to go" and "[w]e now have the capacity to produce thousands of drones per month." The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Salt Lake City Facility's production capacity, and Defendants' progress in developing the same, was overstated; (ii) the overall value of the SRR Contract was overstated; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times. On July 27, 2023, Red Cat hosted a conference call with investors and analysts to discuss its financial and operating results for its fiscal year 2023. During the call, Defendants revealed that the Salt Lake City Facility could only currently produce 100 drones per month, and that the facility was still being built, refined, and expanded. Red Cat filed an annual report on Form 10-K with the U.S. Securities and Exchange Commission the same day, which likewise reported that construction of the facility was only "substantially completed" and potentially could reach a production capacity of one thousand drones per month over the next 2 to 3 years, but only with additional capital investments and manufacturing efficiencies realized. Following these disclosures, Red Cat's stock price fell $0.10 per share, or 8.93%, to close at $1.02 per share on July 28, 2023. On September 23, 2024, Red Cat issued a press release announcing its financial and operating results for the first quarter of its fiscal year 2025. Among other results, the Company reported losses per share of $0.17, missing consensus estimates by $0.09, and revenue of $2.8 million, missing consensus estimates by $1.07 million. On a subsequent conference call that Red Cat hosted with investors and analysts the same day to discuss these results, Company management disclosed that Red Cat had spent "the past four months . . . retooling [the Salt Lake City Facility] and preparing for high volume production[,]" while admitting that a "pause in manufacturing of Teal 2 and building our Army prototypes impacted Teal 2 sales" because, inter alia, Red Cat "couldn't produce and sell Teal 2 units[] while retooling [its] factory." On this news, Red Cat's stock price fell $0.80 per share, or 25.32%, over the following two trading sessions, to close at $2.36 per share on September 25, 2024. On November 19, 2024, Red Cat issued a press release announcing that it had won the SRR Contract. On a subsequent conference call that Red Cat hosted with investors and analysts the same day to discuss the contract win, Defendants continued to assert that the SRR Contract was worth potentially hundreds of millions of dollars, while expressing their confidence that Red Cat could realize up to $50 million to $79.5 million in revenue from the SRR Contract during it fiscal year 2025 alone. Then, on January 16, 2025, Kerrisdale Capital ("Kerrisdale") published a report (the "Kerrisdale Report") alleging, inter alia, that Defendants had overstated the value of the SRR Contract, which Kerrisdale found was only worth approximately $20 million to $25 million based on U.S. Army budget documents. The Kerrisdale Report also alleged that Defendants had been misleading investors about the Salt Lake City Facility's production capacity for years, while also raising concerns about the timing of executive departures and insider transactions that took place shortly after Red Cat announced it had won the SRR Contract. On this news, Red Cat's stock price fell $2.35 per share, or 21.54%, over the following two trading sessions, to close at $8.56 per share on January 17, 2025. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding Red Cat's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the Red Cat class action, go to or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
Business Wire
21-07-2025
- Business
- Business Wire
Deadline Soon: Red Cat Holdings, Inc. (RCAT) Investors Who Lost Money Urged to Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit
LOS ANGELES--(BUSINESS WIRE)-- The Law Offices of Frank R. Cruz reminds investors of the upcoming July 22, 2025 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired Red Cat Holdings, Inc. ('Red Cat' or the 'Company') (NASDAQ: RCAT) securities between , inclusive (the 'Class Period'). IF YOU ARE AN INVESTOR WHO LOST MONEY ON RED CAT HOLDINGS, INC. (RCAT), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT. What Happened? In March 2022, Red Cat announced that its subsidiary Teal Drones, Inc. ('Teal') had been selected to compete in Tranche 2 of the U.S. Army's Short Range Reconnaissance Program of Record (the 'SRR Program'). On July 27, 2023, Red Cat released its fiscal year 2023 financial results and revealed that its Salt Lake City Facility could only produce 100 drones per month and that construction of the facility was only 'substantially completed' and, while it could potentially reach a production capacity of one thousand drones per month over the next two to three years, it would require additional capital investments. On this news, Red Cat's stock price fell $0.10, or 8.9%, to close at $1.02 per share on July 28, 2023, thereby injuring investors. Then, on September 23, 2024, Red Cat released its first quarter fiscal 2025 financial results, missing consensus estimates and disclosing that it had spent 'the past four months . . . retooling [the Salt Lake City Facility] and preparing for high volume production[,]' while admitting that a 'pause in manufacturing of Teal 2 and building our Army prototypes impacted Teal 2 sales' because it 'couldn't produce and sell Teal 2 units while retooling [its] factory.' On this news, Red Cat's stock price fell $0.80, or 25.3%, over two consecutive trading days to close at $2.36 per share on September 25, 2024. Then, on November 19, 2024, Red Cat announced that it had won the SRR contract, stating that it was worth potentially hundreds of millions of dollars. However, on January 16, 2025, Kerrisdale Capital published a report alleging, among other things, that Red Cat had overstated that value of the SRR Contract and that it was worth approximately $20-25 million, based on U.S. Army budget documents. On this news, Red Cat's stock price fell $2.35, or 21.5%, over two consecutive trading days to close at $8.56 per share on January 17, 2025, thereby injuring investors further. What Is the Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Salt Lake City Facility's production capacity, and Defendants' progress in developing the same, was overstated; (2) the overall value of the SRR Contract was overstated; and (3) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. If you purchased or otherwise acquired Red Cat securities between March 18, 2022 and January 15, 2025, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is July 22, 2025. Contact Us to Participate or Learn More: If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us: Frank R. Cruz The Law Offices of Frank R. Cruz 2121 Avenue of the Stars, Suite 800 Century City, California 90067 Email us at: info@ Call us at: 310-914-5007 Visit our website at Follow us for updates on Twitter: If you inquire by email, please include your mailing address, telephone number, and number of shares purchased. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Business Wire
18-07-2025
- Business
- Business Wire
RED CAT 96 HOUR DEADLINE ALERT: Former Louisiana Attorney General and Kahn Swick & Foti, LLC Remind Investors With Losses in Excess of $100,000 of Deadline in Class Action Lawsuit Against Red Cat Holdings, Inc.
NEW YORK CITY & NEW ORLEANS--(BUSINESS WIRE)-- Kahn Swick & Foti, LLC ('KSF') and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until to file lead plaintiff applications in a securities class action lawsuit against Red Cat Holdings, Inc. (NasdaqCM: RCAT), if they purchased the Company's securities between March 18, 2022 and January 15, 2025, inclusive (the 'Class Period'). This action is pending in the United States District Court for the District of New Jersey. What You May Do If you purchased securities of Red Cat and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email ( or visit to learn more. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by June 22, 2025. About the Lawsuit Red Cat and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws. On January 16, 2025, Kerrisdale Capital reported that the Company had overstated the value of its SRR Contract, which was only worth approximately $20 million to $25 million based on U.S. Army budget documents, and that the Company had been misleading investors about the production capacity of its Salt Lake City Facility for years, while also raising concerns about the timing of executive departures and insider transactions that took place shortly after Red Cat announced it had won the SRR Contract. On this news, the price of Red Cat's shares fell $2.35 per share, or 21.54%, over the following two trading sessions, to close at $8.56 per share on January 17, 2025. The case is Olsen v. Red Cat Holdings, Inc., No. 25-cv-05427. About Kahn Swick & Foti, LLC KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, New Jersey, and a representative office in Luxembourg. TOP 10 Plaintiff Law Firms - According to ISS Securities Class Action Services To learn more about KSF, you may visit
Borneo Post
10-07-2025
- Business
- Borneo Post
Banking sector negatively impacted by OPR cut
Generally, every 25bp cut in our OPR would result in a 2 to 3 bps NIM compression on average, which would lead to a 1 to 2 ppt reduction in banking player's earnings. KUCHING (July 10): Bank Negara Malaysia's (BNM) 25bps cut to our Overnight Policy Rate (OPR) is expected to negatively impact our banking sector through net interest margin (NIM) compression says industry analysts. On July 9, BNM announced that they have decided to reduce our OPR rate from 3.00 per cent to 2.75 per cent, the first cut since July 2020. Majority of industry analysts viewed the cut as a pre-emptive measure by BNM to preserve Malaysia's steady growth path amid current macroeconomic uncertainties. In a sector report on July 10, the research arm of Maybank Investment Bank Bhd (Maybank Research) guided that generally, every 25bp cut in our OPR would result in a 2 to 3 bps NIM compression on average, which would lead to a 1 to 2 percentage point (ppt) reduction in banking player's earnings. 'Based on our estimates, there is a slightly larger 3 to 4bps impact to the NIMs of Alliance Bank Malaysia Bhd (ABMB), Public Bank Bhd (PBK) and RHB Bank Bhd (RHB),' they added. Public Investment Bank Bhd (PublicInvest Research) explains that this is because banks with lower levels of fixed-rate loans and current account and or savings account (CASA) deposits will be more susceptible to rate cuts. 'ABMB should see the highest compression in NIM due to its relatively higher proportion of variable rate loans of circa 84 per cent. However, ABMB's CASA ratio of 41 per cent could help to cushion some negative impact,' they shared. Meanwhile, banks like Malayan Banking Bhd (Maybank) are expected to be largely insulated from the OPR cut due to their lower proportion of variable rate loans which currently sits at circa 70 per cent. Despite this NIM compression, analyst Maybank Research and Midf Amanah Investment Bank Bhd (Midf Research) make no changes to their pre-existing forecasts as they have already factored in the 25bps cut in their estimates. On the other hand, PublicInvest Research has opted to adjust their bank earnings forecasts under their coverage downward by an average of 3 to 4 per cent. And while in theory credit demand would benefit from this rate cut, PublicInvest Research cautions that loans growth will instead likely taper due to slower economic growth dragged by rising global trade uncertainty. Looking ahead, Maybank Research and Midf Research opine that there will be no more further rate cuts in 2025. However, Midf Research guides that should another 25bps OPR cut happen, from an earnings standpoint they reckon that smaller banks will be more impacted by it due to their nearly 100 per cent exposure to local loans. Moreover, Maybank Research believes that there are also several factors that serve to buffer the compression in NIM such as the recent 1ppt Statutory Reserve Requirement (SRR) cut which released about RM19 billion of liquidity into the banking system, a declining Kuala Lumpur Interbank Offered Rate (KLIBOR) which is indicative of reduced funding pressure, and lower bond yields, which could contribute to potential marked-to-market gains on Fair Value To P&L (FVTPL) investments. banking economy overnight policy rate
