22/06/2026

BIZ & FINANCE MONDAY | JUNE 22, 2026

/thesuntelegram FOLLOW / Malaysian Paper

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Joint venture to build private hospital at Andaman Island o E&O partners Cengild Medical and Skyspring

Binastra to see temporary margin compression, recovery ahead: Berjaya Research KUALA LUMPUR: Binastra Corporation Bhd’s sizable outstanding order book of RM6.80 billion as at the end of April 2026 is expected to sustain earnings visibility over the next 3 to 4 years, with a 75:25 mix between residential and non-residential projects. Berjaya Research Sdn Bhd expects earnings momentum to strengthen in the coming quarters, as management reaffirmed that construction of its Johor-based residential projects remains on track and progressing at full pace. In addition, the research firm said that easing building material costs should help sustain margins going forward. Meanwhile, LF Lansen Sdn Bhd’s outstanding order book of RM149.6 million is expected to provide an additional earnings contribution over the year. To note, Binastra acquired a 51% stake in mechanical and electrical solutions provider LF Lansen for RM44.8 million in April. On earnings, Binastra’s revenue surged 135.8% to RM605.6 million in Q1 FY27 from RM256.8 million in Q1 FY26, driven by higher progress billings from both conventional construction and data centre projects. The strong top-line growth was further supported by the group’s expansion into new construction services, particularly solar installation projects. Consequently, core PATAMI rose 40.3% to RM35.3 million, from RM25.1 million in Q1 FY26. Berjaya Research said Binastra’s Q1 FY27 revenue meets expectations, accounting for 26.9% of the firm’s full year forecasts, while core PATAMI is deemed within expectations, despite only accounting for 19.7% of the firm’s full-year forecast. The lower earnings contribution was mainly dragged by a higher revenue mix from lower-margin projects. On a quarter-on-quarter basis, Berjaya Research said that despite revenue increasing by 26.9%, the PAT margin narrowed to 5.8% in Q1 FY27, dragging core PATAMI lower by 16.8%. The margin compression was primarily due to a higher revenue mix from lower-margin projects, such as data centre and solar installation works, which eroded overall profitability during the quarter, the research firm noted. “Looking ahead, we expect profitability to improve in the coming quarters as construction progress on its residential projects gains traction, given their relatively higher margin profile. “We maintain our Buy recommendation on Binastra with an unchanged target price of RM2.80, derived from a target price-to-earnings ratio (PER) of 17x pegged to our FY27 core earnings per share (EPS). “We continue to like Binastra for its proactive pursuit of potential data centre and green projects and its robust, outstanding orderbook of RM6.80 billion to provide earnings visibility over the next 3 to 4 years and accretive earnings contribution from the strategic 51% stake acquisition in LF Lansen,“ Berjaya Research said.

medical tourism sector,” he said. Leveraging its established expertise in the healthcare sector, specialising in the digestive system and abdominal health, Cengild Medical will provide clinical, operational and strategic management expertise to support the hospital’s development and future operations. The estimated total development cost for the proposed hospital is RM350 million. The hospital will be developed in two phases and is expected to have an estimated capacity of 240 beds. The hospital is targeted for completion by the fourth quarter of 2029, subject to the fulfilment of conditions precedent under the JV agreement and the timely receipt of all necessary regulatory approvals, permits and licences.

also strengthens its long-term appeal as a place where families, professionals and retirees can enjoy a high quality of life. “We believe the availability of quality healthcare within close proximity will further enhance the township’s value proposition and support future residential demand. “We are pleased to partner with Cengild Medical and Skyspring to develop this healthcare facility on Andaman Island. By combining E&O’s placemaking expertise with Cengild Medical’s established clinical and operational capabilities, we look forward to delivering a modern healthcare destination that will serve the Andaman residents, the wider Penang community and visitors seeking quality healthcare, while supporting the state’s growing

KUALA LUMPUR: Premier lifestyle property developer Eastern & Oriental Bhd’s (E&O) wholly-owned subsidiary, KCB Holdings Sdn Bhd, signed a conditional joint venture agreement with Cengild Medical Bhd and Skyspring Sdn Bhd to develop a multidisciplinary tertiary private hospital within the Gurney Green district at Andaman Island, Penang. Under the JV agreement, KCB will hold a 30% equity stake in the joint venture company, while Cengild Medical and Skyspring will hold 25% and 45%, respectively. The joint venture will incorporate a wholly owned operating company

to undertake the development, establishment, and operation of the hospital. E&O managing director Kok Tuck Cheong said this partnership marks another important milestone in the evolution of Andaman Island. “As we bring our masterplan to life, we remain focused on creating a well-balanced waterfront township that integrates quality homes with the essential amenities and services needed to support a thriving community. “Healthcare is a key component of any sustainable township. The hospital not only elevates the overall ecosystem of Andaman Island but

From left: Cengild Medical executive chairman Datuk Dr. Tan Huck Joo, Skyspring director

Dr. Lim Cheok Peng, Cengild Medical group

CEO Stephanie Lee Wai Fern, Kok and E&O executive chairman Datuk Seri Tee Eng Ho.

Standard Chartered stays bullish on equities despite risks KUALA LUMPUR: Standard

investment officer Steve Brice said markets have shown resilience in the first half of the year, supported by strong earnings and ongoing optimism about technology. “However, the second half of 2026 is likely to require more active navigation, with several shifting factors influencing investor sentiment and market direction. “In this environment, staying invested, maintaining diversification, and being prepared to capitalise on periods of volatility will be key to capturing opportunities. “Our latest Global Market Outlook is designed to help clients remain focused on these priorities and navigate the shifting landscape ahead,” he said. The latest Global Market Outlook report outlines investment strategy and key themes as investors navigate a more complex and evolving market environment.

pullbacks, though these may offer opportunities to add exposure. Lastly, touching on central bank policy, the bank’s CIO said easing energy prices could reduce pressure to tighten, but resilient labour markets may limit the scope for rate cuts, particularly in the US, with the Fed expected to stay on hold through year-end 2026. Overall, the bank’s CIO continues to expect a soft landing, with a small chance of a strong re-acceleration in growth. While recession and stagflation risks remain, softer energy prices reduce the likelihood of these outcomes. The CIO team sees current yield levels as attractive for locking in income, with a preference for EM USD bonds, while gold remains the preferred diversifier alongside core holdings in alternative strategies. Standard Chartered global chief

equities rose more than 12% year-to date, supported by strong earnings and AI-driven optimism, despite geopolitical tensions, higher oil prices and elevated bond yields. It said that while this momentum is expected to extend into H2, investors will need to be more nimble as markets adjust to four key pivot points. Firstly, energy prices, whereby the interim US-Iran peace deal may ease supply constraints and soften oil prices, though risks remain given the deal’s temporary nature and potential delays in restoring full production. Secondly, equity supply, whereby a strong US IPO pipeline raises the risk of near-term oversupply, although recent successful listings point to resilient investor demand. On investor positioning, the bank noted that optimistic positioning increases the risk of short-term

Chartered Wealth Solutions Chief Investment Office (CIO) expects risky assets to remain supported by a soft landing macro backdrop, even as investors face increased volatility across energy prices, equity supply, investor positioning and central bank policy. In its Global Market Outlook for the second half of 2026, the CIO remains overweight global equities, with a preference for the US and Asia ex Japan against this backdrop, alongside selective opportunities in fixed income and alternatives. Reflecting this stance, the CIO team sees further upside in key asset classes, with a target of 7,950 for the US S&P 500 index and US$5,100 for gold by mid-2027, underscoring the role of equities as a core growth driver and gold as a strategic portfolio diversifier. Further, the bank said that global