AME Elite Consortium Bhd - Within Expectations
Tue, 03-Jun-2025 07:30 am
by Research Team • Apex Research

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AME (5293)

Target Price (RM)

1.92

Recommendation

Buy

  • AME’s 4QFY25 CNP came in at RM18.4m (+37.7% yoy, -0.2% qoq), bringing 12MFY25 CNP to RM73.9m (+4.4% yoy). The results came within our expectations at 99.0% of our full-year forecast, but came in below consensus expectations, accounting for 80.6% of consensus estimates.

  • The Group declared an interim dividend of 3.0 sen for 4QFY25 (4QFY24: 4.0 sen), bringing FY25 DPS to 6.0 sen (FY24: 6.0 sen).

  • Backed by RM635.5m unbilled sales, this is expected to sustain earnings for the property development segment until FY27, alongside a construction order book of RM114.2m and contributions from the newly launched Northern Techvalley @ BKE in Penang.

  • Re-iterate our BUY recommendation with an unchanged TP of RM1.92, based on SOP valuations and ascribed with three-star ESG rating.

     

Results within expectations. Excluding the fair value gain on investment properties (-RM18.2m), 4QFY25 core net profit (CNP) came in at RM18.4m, bringing the 12MFY25 total to RM73.9m (+4.4% yoy). The results came within our expectations but below consensus estimates, accounting for 99.0% of our full-year forecast of RM74.6m and 80.6% of consensus forecast of RM91.7m respectively.

 

Dividend declared. The Group declared an interim dividend of 3.0 sen for 4QFY25 (4QFY24: 4.0 sen), bringing the FY25 DPS to 6.0 sen (FY24: 6.0 sen).

 

YoY. 4QFY25 CNP advanced 37.7% yoy to RM18.4m, primarily driven by a 36.3% yoy increase in revenue. The strong performance was supported by accelerated progress in ongoing construction projects, alongside increased contributions from additional leased factory units and higher rental income from workers’ dormitories.

 

QoQ. CNP declined marginally by 0.2% qoq to RM18.4m, mainly due to a 29.2% drop in revenue. The decline was further weighed down by fair value gain on investment properties amounting to RM18.2m. 

 

YTD. 12MFY25 CNP increased 4.4% yoy to RM73.9m, despite a 15.1% decline in revenue. The decrease in revenue was mainly attributable to the lower stages of work completed in the property development segment and delayed income recognition. The higher CNP was supported by a smaller deduction from fair value gain on investment properties in FY25.

 

Outlook. The Group recorded RM210.9m in new property sales in 4QFY25. Moving forward, total unbilled sales of RM635.5m, (up from RM480.0m as at end-3QFY25) will provide earnings visibility for the Property Development segment until FY27. Meanwhile, the construction segment’s outstanding orderbook stood at RM114.2m (compared to RM164.7m in 3QFY25, due to higher project completion during the quarter.

 

Johor’s industrial property market is expected to remain robust, bolstered by key infrastructure developments such as the Johor Bahru to Singapore Rapid Transit System (RTS), the potential revival of the Kuala Lumpur to Singapore High-Speed Rail (HSR), and the Johor Singapore Special Economic Zone (JS SEZ), all of which are poised to benefit AME as a Johor-based developer. Supporting its long-term growth ambitions, AME recently launched its first venture outside Johor, Northern TechValley @ BKE in Penang. The project is being developed under Suling Hill Development Sdn Bhd, a joint venture between AME and Majestic Gen. The 176-ac RM1.3bn integrated industrial park, officially launched in 3QFY25 and expected to complete by 2029, has secured RM55.9m in sales and RM38.4m in bookings as of 4QFY25.

 

Earnings Revision. Maintained.

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EUR 4.954495 4.965490
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