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Investment & Market Trends

Econframe net profit rose marginally by 6.6% to RM3.4 Mil in Q2

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KUALA LUMPUR: Total door system solution provider Econframe Bhd’s net profit marginally increased by 6.6& to RM3.4 million for the second quarter (Q2) ended 29 February 2024 (FY24) from RM3.2 million posted in the same quarter last year. Revenue for the quarter stood at RM27 million, a rise of 46.4 % year-on-year (YoY) from RM19.6 million in Q2 FY23. However, pressure on the company’s gross profit margin and higher professional fees incurred led to a smaller-than-proportionate increase at the bottom-line. For the first half (1H) FY24, Econframe’s revenue was up 53.5% YoY to RM54.2 million compared to RM35.3 million a year ago. This was also the first time Econframe’s first-half turnover surpassed the RM50 million mark. The double-digit improvement was mainly attributed to stronger sales and a contribution from its aluminium glazing and façade works business, Lee and Yong Aluminium Sdn Bhd (LYASB). In tandem with the solid top-line performance, Econframe also recorded the highest-ever first-half net profit jumped 41.4% YoY to RM7.8 million versus RM5.5 million in 1H FY23. Group managing director Lim Chin Horng said having started the financial year on a firm footing, the company have kept the ball rolling by delivering its first half performance. “The demand for our existing business remains healthy and we have been replenishing our order flow by seizing opportunities in Klang Valley as well as Johor. “Meanwhile, we continue to reap the synergies with LYASB. With an enlarged order book following new projects secured and plans for capacity expansion, we are excited by what is ahead,” he said in a statement. Econframe entered into a conditional share sale agreement (SSA) with ETA Industries Sdn Bhd in January 2024 to acquire a 70% equity interest in ETA World Sdn Bhd for RM56 million. Of this, RM28.1 million is to be satisfied in cash, and the remaining RM27.9 million will be obtained via the issuance and allotment of 30 million new ordinary shares in Econframe. The acquisition comes with a profit guarantee by the vendor that ETA World shall achieve an audited net profit of not less than RM10 million each year for 3 years and a cumulative audited net profit of not less than RM30 million. “On the corporate front, the acquisition is expected to be completed in the first half of 2024, barring unforeseen circumstances. “Upon completion, this will allow us to leverage ETA World’s position as a leading industrial property builder to tap into the vast opportunities in the industrial property space. “This would enhance and diversify our earnings, especially given the profit guarantee. Overall, we continue to be upbeat on Econframe’s bright prospects ahead,” Lim said.

Investment & Market Trends

Ann Joo Steel, Solarvest Holdings Successfully Install 3.3 MWp Rooftop Solar PV System in Penang Manufacturing Plant

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KUALA LUMPUR: Ann Joo Steel Bhd (AJS), a wholly-owned subsidiary of Ann Joo Resources Bhd (AJR), together with Solarvest Holdings Bhd (SHB), has completed a 3.3 megawatt-peak (MWp) rooftop solar photovoltaic (PV) system installation at AJS’ manufacturing plant in Seberang Perai, Penang. AJS appointed SHB to provide engineering, procurement, construction, and commissioning (EPCC) services to upgrade their 0.6 MWp rooftop solar PV system to 3.3 MWp. The system is expected to generate approximately 4,040 MWh of clean energy annually, allowing AJS to offset approximately 3,060 tonnes of carbon dioxide annually. AJR group managing director Datuk Lim Hong Thye said the company recognise the importance of sustainability within the Malaysian iron and steel industry. “Our continued adoption of green energy solutions demonstrates our commitment to leading the industry towards a more sustainable future. “As stakeholders’ focus on environmental practices intensifies, we actively integrate green initiatives into our core business operations. This aligns with our long-term commitment to championing clean energy and environmental responsibility,” he said in a statement. SHB executive director and group chief executive officer Davis Chong Chun Shiong said the iron and steel industry is facing increasing pressure to ramp up its decarbonisation efforts to meet the national net-zero goals by 2050, as nearly 28 per cent of manufacturing emissions and 4 per cent of national emissions come from steel production. “As advocates for clean energy, we celebrate AJR’s progress in energy transitioning, which shows a dedicated commitment to achieving a more environmentally friendly future together. “Looking ahead, we are keen to foster new partnerships between the iron and steel industry and clean energy. We are confident in our expertise to support the industry’s decarbonisation,” he said. Building on their successful 2020 collaboration on a 0.6 MWp solar PV system in Seberang Perai, SHB and AJS are partnering again to upgrade the existing system.

News, Property

IC Design Park Aims to Bring Economic Returns of RM500 Mil to RM1 Bil

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KUALA LUMPUR: The Malaysia Semiconductor Accelerator and IC Design Park: Selangor Hub, an initiative of the Selangor government through its digital economy arm, is expected to bring in economic returns of RM500 million to RM1 billion. Selangor Information Technology and Digital Economy Corporation (SIDEC) Chief Executive Officer Yong Kai Ping said the integrated circuit (IC) hub in Puchong, Selangor is expected to begin operations and contribute to the state’s economic growth in July. He added that the state-of-the-art facility – developed in collaboration with the Federal Government – will open up professional career opportunities especially in the engineering field with attractive wage offers. Yong was speaking to reporters after signing a letter of intent with four strategic partners, namely Softbank subsidiary ARM Ltd, Phison Malaysia (MaiStorage), SkyeChin Sdn Bhd and the Shenzen Semiconductor Industry Association. The collaboration with these influential entities is aimed at leveraging global expertise and resources to boost local capabilities in semiconductor design. “Within the first year of operations, we expect more than 300 IC design engineers will be employed and the number will increase in the following year,” he said. The IC Design Park, located in a 45,000 sq ft building initially, will be expanded up to 60,000 sq ft later to accommodate industry needs, Yong said. “From 3-storey, we will expand the building to 6 storeys. We have already received strong demand from international investors,” he added. Meanwhile, the Selangor Investment, trade and Mobility Committee Chairman Ng Sze Han expressed his hope for the hub to be the largest IC design park in Southeast Asia. “It is an excellent initiative as it will create job opportunities, even in support sectors like logistics as well as the food and beverage sector,” he added. The primary goal of the park is to promote original design manufacturing, encouraging local involvement in product design, prototyping and production – shifting from “Made in Malaysia” to “Made by Malaysia”. — BERNAMA

Investment & Market Trends, News

EPIC Group Targets a 10% Revenue Increase by End of 2024

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KUALA TERENGGANU: Integrated oil and gas (O&G) solutions provider, Eastern Pacific Industrial Corporation Bhd (EPIC Group) is eyeing to increase its revenue by 10% this year, reaching RM375.5 million compared to RM344 million previously. Its Group Chief Executive Officer Muhtar Suhaili said the target is due to improvements in the group’s operational efficiency and positive growth in several business segments. Backing the target is the group’s promising first quarter (1Q24) revenue of RM93 million against its projected RM81 million in the company’s 2024 budget. “Based on this financial performance, we believe the group can increase its revenue to RM375.5 million and profit after tax by RM14.5 million by year-end,” Muhtar said. He also outlined plans to further boost the group’s revenue to RM400 million by 2025, including strategies such as infrastructure expansion and gradual enlargement of the Kemaman Port. “We will add 2 more cranes at the Kemaman Port by 2025 and 2026 to increase the port’s capacity at East Wharf from 7 metric tonnes (MT) to 12 million MT. “The ongoing port expansion project is expected to be fully completed by 2029, increasing the overall capacity to 30 million MT per year,” he explained. The group is also engaging in discussions to attract approximately RM850 million worth of investment from a Japanese consortium in 3Q24. The collaboration will involve constructing lithium-ion battery plant and manufacturing of main component of electric vehicles (EVs) in the Teluk Kalong Industrial Area, Kemaman. “We are also planning to maximise the use of EPIC Group’s 600-acre land in Teluk Kalong to generate more profits for the company,” he added. As a government-linked company (GLC) under Terengganu Inc, EPIC Group operates as a service provider to the O&G sector, integrating upstream and downstream industries. Its core businesses include offshore O&G industry services, port management, engineering, marine services and engineering maintenance. — BERNAMA

Investment & Market Trends, News

Powerwell Holdings secures RM22Mil Sub-Contract for Sg Rasau Water Supply Scheme

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KUALA LUMPUR: Powerwell Holdings Bhd’s (PHB) wholly-owned subsidiary, Kejuruteraan Powerwell Sdn Bhd (KPSB), has secured RM22.0 million in subcontract work with One Ocean Environment Sdn Bhd (OOE) to supply low-voltage (LV) switchboards. The subcontract is part of the Sg Rasau Water Supply Scheme’s first stage in Selangor. The scope of the subcontract includes the supply of LV switches, materials, labour, plants, or machinery and supervision for the execution and completion of the works. PHB executive director Catherine Wong said this contract marks a significant milestone for the company as it continues to strengthen its market presence and deliver on its promise of quality and reliability. “We are fully committed to ensuring that the LV switchboard supply for OOE meets the highest standards of excellence,” she said in a statement. The sub-contract award reflects the PHB’s ongoing commitment to delivering electrical solutions and its capability to undertake large-scale projects. It is comprehensive and ensures that PHB is responsible for the project from inception to completion. “Our team’s expertise and dedication have secured this substantial contract. “We look forward to working closely with OOE and contributing to the project’s efficient and sustainable development,” Wong said. With a project completion date set by the end of June 2025, PHB is committed to adhering to strict timelines while maintaining the highest standards of quality and safety. The contract’s scope also ensures the provision of all necessary protection and insurance for the workforce and compliance with all local regulations and statutory contributions. This contract further strengthens PHB’s position as a leading provider of electrical components and engineering services. “We are proud to be part of this strategic development and look forward to delivering a successful project that meets OOE’s high standards,” Wong added.

Investment & Market Trends, News

BNM International Reserves Stands at US$113.4 Bil On 15 April 2024

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KUALA LUMPUR: Bank Negara Malaysia’s (BNM) international reserves amounted to US$113.4 billion (RM542.39 billion) as of 15 April 2024 compared with US$113.8 billion (RM544.3 billion) as of 29 March 2024. The central bank said the reserves are sufficient to finance 5.6 months worth of imported goods and services and is 1 times the total short-term external debt. The main components of the reserves were foreign currency which stood at US$100.1 billion (RM478.77 billion), International Monetary Fund Reserves at US$1.4 billion (RM6.69 billion), special drawing rights (SDRs) of US$5.7 billion (RM27.26 billion), gold at US$2.8 billion (RM13.39 billion) and other reserve assets at US$2.4 billion (RM11.47 billion). Meanwhile, total assets stood at RM630.93 billion comprising gold, foreign exchange and other reserves including SDRs (RM536.93 billion), Malaysian government papers (RM12.99 billion), deposits with financial institutions (RM1.66 billion), loans and advances (RM24.53 billion), land and buildings (RM4.12 billion and other assets (RM50.67 billion). According to BNM, capital and liabilities comprised paid-up capital (RM100 million), reserves (RM192 billion), currency in circulation (RM172.25 billion), deposits by financial institutions (RM142.29 billion), federal government deposits (RM6.09 billion) and other deposits (RM63.64 billion), BNM papers (RM20.70 billion), SDRs allocation (RM30.21 billion), and other liabilities (RM3.62 billion). — BERNAMA

ESG, News

1 Utama Becomes Mall With Biggest On-Site Solar PV Panels in Malaysia

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KUALA LUMPUR: Bandar Utama City Centre Sdn Bhd, operator of 1 Utama Shopping Centre has appointed Solarvest Energy Sdn Bhd to install 273,300 sq ft of solar photovoltaic (PV) panels and building-integrated PV (BIPV) panels on the mall. The panels will cover the rooftop of the building and the carpark to generate over 5,700 kWp of renewable energy, making it the largest on-site solar PV and BIPV project in Malaysia to date. Solarvest will undertake the engineering, procurement, construction and commission works for installing the solar power system and the installation is nearing completion. “Being the first green mall in Malaysia since 1995, we recognise the important role we play in promoting sustainable practices, managing environmental impact and investing in impactful long-term solutions for a circular economy and climate mitigation,” said 1 Utama Shopping Centre Public Relations and Sustainability Senior Manager, Lee Li Lian. He also mentioned that the mall had always set new standards in integrating green features and eco-campaigns, with its award-winning rainforest enclave that features 100 species of forest trees and the mall’s rooftop Secret Garden, which is the largest in Southeast Asia. “We are proud to be adopting solar energy and innovative green technology to further reduce our carbon footprint. This is a step forward for 1 Utama to achieve our ESG and Zero Energy building goals,” he added. With shopping malls being energy-intensive in terms of lighting and air conditioning, Lee said that the solar power system would help the mall conserve electricity usage and reduce reliance on fossil fuels. As part of its environmental, social and governance (ESG) goals, 1 Utama plans to earn the GreenRE Super Low Energy Building Certification by next year and achieve full ESG compliance while implementing International Labour Organisation (ILO) 2019 standards throughout its supply chain. Meanwhile, Solarvest Executive Director and Group Chief Executive Officer of Solarvest, Davis Chong Chun Shiong revealed that Solarvest’s tender book in Malaysia grew from 1.6 gigawatts (GW) last year to 2.8GW this year.

News

Penang’s Mutiara LRT Line to Improve Mobility, Bolster State’s Economy

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KUALA LUMPUR: The Penang Light Rail Transit (LRT) Mutiara Line project is poised to significantly improve mobility, reduce traffic congestion and bolster economic and tourism sectors while aligning with the Silicon Island initiative to establish Penang as a top destination for high-tech investors. State Executive Councillor for Infrastructure, Transport and Digital, Zairil Khir Johari said this transformative infrastructure project has the potential to be a catalyst for Penang’s rise as it bridges geographical gaps as well as propels Penang into the spotlight, showcasing its potential as a prime investment destination. He also highlighted recent reports of investors shying away from Singapore due to the escalating cost of operating businesses there and in this context, Penang has ready infrastructure to offer itself as an alternative to Singapore. “In the shifting landscape of global investment, Singapore’s soaring operational costs have cast a shadow over its once-prominent allure. “As investors retreat from the Lion City, Penang emerges as a compelling and attractive alternative with its well-established infrastructure. The LRT project will further boost Penang’s image to attract investors,” Zairil said. Additionally, the LRT is said to provide efficient transportation and environmental sustainability by reducing carbon emissions and supports the goals of the National Energy Transition Roadmap and Penang 2030 vision. Zairil said the LRT project has been on the drawing board of the Penang state government for 9 years and has gone through all the necessary processes and critical approvals, such as the Railway Scheme and Environmental Impact Assessment. Meanwhile, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the project will have a positive spillover effect on the state’s economy. “The construction job will provide jobs for the local contractors, resulting in higher demand for building materials such as steel, concrete and machinery, among others. “Upon completion, the LRT infrastructure would help to ease traffic congestion, reduce travelling time during work commutes and perhaps also reduce carbon emissions along the way,” he added. — BERNAMA

Investment & Market Trends, News

Meta Bright Partners with Doople Tech for RE Venture

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KUALA LUMPUR: Meta Bright Group Bhd (MBG), via its wholly-owned subsidiary, FBO Land (Serendah) Sdn Bhd (FBO Land), signed a subscription and joint venture agreement with Doople Tech Sdn Bhd (DTSB).   In a filing with Bursa Malaysia, MBG said the agreement entails FBO Land to subscribe 1,000,000 redeemable non-convertible preference shares (RNCPS) at an issue price of RM1.00 per RNCPS in a new joint venture company to be incorporated. The new joint venture company will identify, invest in, and develop renewable energy (RE) projects, particularly those requiring Bumiputera’s participation. This initiative perfectly aligns with MGB’s commitment to supporting Malaysia’s national energy roadmap and contributing to a greener planet. MBG executive director of corporate and strategic planning Derek Phang Kiew Lim said the company looks forward to its partnership with DTSB, which has expertise in the solar sector and is experienced in the commercial and industrial (C&I) front. “This partnership allows MBG to leverage its position as a listed company to fund promising renewable energy projects, while DTSB’s technical proficiency ensures exceptional execution,” he said in a statement. Besides expansion into sustainable energy, the joint venture also promises substantial financial benefits. FBO Land is set to receive a yearly cumulative preferential dividend of 8 per cent per annum, creating a stable, recurring income stream over the five-year tenure of the RNCPS. This collaboration highlights the synergistic potential between MBG’s financial capabilities and DTSB’s operational expertise. The focus will particularly be on niche markets within the solar C&I sector, which are currently underserved by larger players. This targeted approach is expected to unlock new opportunities and drive growth within Malaysia’s renewable energy sector. MBG reported that the total value of projects that have completed installation is approximately RM3.55 million. Additionally, the company has projects currently in progress valued at around RM11.89 million.

News

Intel Announces New Business Leadership for APJ, India

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KUALA LUMPUR: Intel Corporation has appointed new sales, marketing, and communications group (SMG) leaders for the Asia Pacific and Japan (APJ) region and the India region as part of its ongoing transformation efforts. Effective immediately, Hans Chuang was appointed general manager of SMG APJ. Based out of Taiwan, Hans will be responsible for Intel’s overall business in the APJ region, including driving revenue growth, engaging with the local ecosystem to create new opportunities, and strengthening existing customer and partner relationships. Hans holds a B.S. in Electrical Engineering from the University of British Columbia and an MBA from McGill University. “Intel is transforming, and I am excited to lead the company’s growth and innovation in APJ, one of Intel’s most diverse and fastest-growing regions. “Leveraging the strength of our partners and continuing our commitment to building an open ecosystem that serves our customers in a transparent and secure manner is going to be key to our long-term success here in the APJ region,” said Hans. In March this year, Intel announced India as a separate region within its SMG organisation, to capitalise on the country’s rapid growth and business opportunities. Santhosh Viswanathan, VP and MD-India region will lead the newly formed region, leveraging his expertise to drive value and customer centricity. “We see massive business opportunities and growing momentum in India. Creating a separate region enables our teams, including our strong engineering base in India, to work closely with our customers. It is a very exciting time for Intel in India, and I am thrilled to lead our business in the country,” said Santhosh. Santhosh holds an engineering degree in Industrial Engineering and Management and a master’s degree in business administration. Both Hans and Santhosh have extensive leadership experience within Intel and are known for their dedication to delivering outcomes for Intel customers. Intel’s appointment of Hans Chuang and Santhosh Viswanathan as leaders of the company’s SMG organisations in APJ and India reflects its strategic focus on aligning organisational structures with evolving market dynamics. By leveraging its internal leadership talent, Intel aims to enhance its responsiveness and effectiveness in addressing each region’s unique opportunities and challenges, positioning itself for sustained success in these growth markets.

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