RAM Ratings affirms Samalaju's AAA(s)/Stable sukuk rating, anchored by Bintulu Port Holdings guarantee

RAM Ratings has affirmed the AAA(s)/Stable rating on Samalaju Industrial Port Sdn Bhd's (Samalaju or the Company) RM950 mil Sukuk Murabahah Programme (2015/2036). The (s) modifier reflects the credit enhancement provided by a corporate guarantee from its parent company, Bintulu Port Holdings Berhad (BPHB or the Group, rated AAA/Stable/P1).

Samalaju Port serves as a dedicated port and logistical hub for tenants of Samalaju Industrial Park (the Park), a key component of the Sarawak Corridor of Renewable Energy (SCORE). The port's role in supporting heavy industrial users housed in the Park and the Sarawak state government's direct involvement in the Group's strategic direction and ownership structure underpins its significance in supporting SCORE's industrial expansion. These factors provide strong incentives for continued financial assistance, if required.

Despite marginal revenue growth, the Port continues to face low utilisation, profitability constraints, and significant customer concentration risk, with Press Metal Bintulu Sdn Bhd remaining its largest client. Throughput for 9M FY Dec 2025 was flat year-on-year at 5.01 mil tonnes, following growth in the previous year due to restocking activities. Leverage and debt coverage ratios remain elevated and is projected to remain so. While Samalaju's recent expansion of leased land positions the port for future growth - with plans to develop a free trade zone to stimulate industrial activity - these will come with associated capex. Over the next five years, we expect adjusted funds from operations debt coverage to stay weak, averaging 0.09 times, with adjusted gearing peaking at 1.33 times.

As yearly pre-financing cash flow remains insufficient to cover sukuk obligations, SIPSB will continue to rely on its cash reserves (RM269.6 mil as at end-September 2025) to meet its near-term repayments, with principalx