KUALA LUMPUR: Perak Transit Bhd's RM1.5 billion sukuk wakalah programme, along with its proposed third-party terminal project, is expected to bolster the company's growth, TA Securities said.

The firm said it remains neutral on the new sukuk programme but views the exercise as a positive signal of the company's resilient fundamentals, despite recent weakness in its share price.

The proceeds from the sukuk will primarily be used to refinance existing borrowings or Syariah-compliant financing.

They will also fund capital expenditure and working capital, maintain the required balance in the Syariah-compliant finance service reserve account, and cover issuance-related fees and costs.

This marks Ptrans' third sukuk issuance, following a RM500 million sukuk murabahah in 2019 and a RM1.5 billion sukuk wakalah in 2024.

As of Sept 30, the company's outstanding sukuk stood at RM685 million, with only RM84.5 million repayable within the next 12 months.

The outstanding sukuk carries an average profit rate of 5.14 per cent, benchmarked against the one-month Kuala Lumpur Interbank Offered Rate.

On the third-party terminal project, TA Securities said it is mildly positive as this potential new terminal is expected to provide additional revenue to the group, albeit small.

"We believe this collaboration will involve Perak Transit to incur some capital expenditure to refurbish or expand the terminal; operating expenditure for the day-to-day operations; collection of fees from express bus operators and income from rental of shops and kiosks," it said.

Perak Transit has received preliminary approval from Majlis Daerah Tanjong Malim to manage the Bas Tanjong Malim terminal under a 30-year collaboration.

While negotiations are ongoing, the project is expected to involve some capital and operational expenditure, as well as revenue from fees charged to express bus operators and rental of shops and kiosks.

TA Securities maintained its earnings forecasts for financial year 2025 (FY25) and FY27, and reaffirmed a "Buy" call on Perak Transit with a target price of 46 sen.