Tenants to move into Bidor Sentral from early 2024

PETALING JAYA: Perak Transit Bhd’s new terminal Bidor Sentral is expected to generate revenue and earnings before interest and taxes of RM16mil and RM11.3mil, respectively, in the financial year 2024 (FY24), based on a conservative 50% occupancy rate assumption, according to TA Research.

It noted the management of the Ipoh-based transport terminal and bus operator had guided that Bidor Sentral is expected to receive the certificate of completion and compliance. Tenants could start moving in early 2024.

“The company has secured an anchor tenant namely TF Value Mart to lease 52,000 sq ft (or 20% of net leasable area) for its supermarket operations.

“Importantly, we do not see difficulties in getting new tenants after the economic reopening,” TA Research said in a report yesterday.

Commenting on Perak Transit’s first-half FY23 core profit of RM31.2mil, the research firm said it was in line with expectations.

According to TA Research, the performance was underpinned by a robust earnings growth at the integrated public transportation terminal segment that had helped mitigate cost pressures.

Finance cost increased by a whopping 46.1% year-on-year to RM6.7mil in 1H23, mainly due to drawdown of RM250mil in sukuk financing in the first quarter of 2023.

On a quarter-on-quarter basis, the company’s 2Q23 adjusted profit before tax contracted by 6.6% to RM20.1mil on the back of a 12.3% drop in revenue.

However, core profit rose 5.5% to RM16mil due to normalisation of the effective tax rate to 20.2% in 2Q23 from 29.4% in the preceding quarter, it added.

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