Earnings boost seen for Ranhill
The (water) tariff hike could increase SAJ’s revenue by 11% to RM1.3bil per annum, of which 9% of the incremental revenue, amounting to about RM11mil per annum. It will drive a 12% earnings growth for the group in 2019.
PETALING JAYA: Energy and water company Ranhill Holdings Bhd 
is set to get an earnings boost from next year, following an impending water tariff hike.
MIDF Research said in a report yesterday that subsidiary SAJ Ranhill Sdn Bhd is due for a tariff hike soon as the last one was back in 2015, which saw a 14% hike.
“This will provide a meaningful gap-up in SAJ earnings, estimated from 2019 onwards. Based on the water operating structure, SAJ takes a 9% margin from revenues collected – the bulk of cost being annual lease payments to Pengurusan Aset Air Bhd (for lease of water assets) and bulk water purchase from the state government.
...
The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.
Related Stocks
| RANHILL | 1.340 |
Comments