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KUALA LUMPUR: Mestron Holdings Bhd (MHB) achieved a 32.6 per cent year-on-year (YoY) growth in revenue for the financial year ended December 31, 2023 (FY23), reaching RM148.8 million, while net profit was by 17.6 per cent to RM11.8 million. This achievement comes amid various market hurdles, showcasing the company’s robust growth trajectory. According to a filing with Bursa Malaysia, the notable contribution of MHB’s revenue, which is approximately 78.6 per cent, was generated from its manufacturing operations. The increase in revenue was primarily fueled by heightened demand for both standard and specialty poles, particularly within the telecommunications sector. Moreover, the domestic market continues to stand as MHB’s stronghold, contributing to about 95.2 per cent of its total revenue in FY23, further solidifying its position in the domestic market. Managing director Por Teong Eng said this year has been a testament to the company’s strength and adaptability in navigating through market volatilities. “Our significant revenue growth amidst such conditions highlights the unwavering demand for our quality products and our team’s exceptional dedication to meeting our client’s needs,” he said in a statement. As for the fourth quarter (Q4) FY23, MHB’s revenue increased to RM42.51 million, up from RM29.99 million in the same quarter last year, marking a 41.75 per cent growth. This increase is primarily attributed to heightened sales demands across its product range, particularly in standard poles, specialty poles, and solar components. The higher demand in its telco segment, coupled with reduced raw material costs, has contributed to an improved profit for FY23. The manufacturing segment, notably aimed at the telecommunications sector, remained a major revenue driver, contributing approximately 61.0 per cent of the total revenue for the quarter. MHB’s FY23 revenue stood at RM148.8 million with a net profit of RM11.8 million after charging off one-time transfer listing expenses of RM800,000. Looking ahead, MHB remains cautious about the uncertainties in the global and local economy, including foreign exchange volatility and increasing competition with lower-quality products. “While the landscape remains challenging, our focus on vigilant management and exploring new business opportunities positions us well for sustainable growth. “We are committed to diversifying our revenue streams and reinforcing our market presence,” Por said.

KUALA LUMPUR: Kinergy Advancement Bhd’s (KAB) wholly-owned subsidiary, KAB Energy Holdings Sdn Bhd (KEH), has acquired a 9.6MW mini-hydropower plant in Kedah, marking another strategic move forward in our renewable energy (RE) portfolio in the ASEAN region. This acquisition by KEH involves acquiring the entire stake of Tunjang Tenaga Sdn Bhd (TTSB), which owns an 80 per cent stake in SDF Hydro Sdn Bhd (SHSB). A filing with Bursa Malaysia shows that the acquisition deal was signed by KEH and Vizione Energy Sdn Bhd (VESB), a wholly-owned subsidiary of Vizione Holdings Bhd (VHB). SHSB operates a mini-hydropower plant at Pedu Dam, Kedah, underlining KAB’s commitment to environmental sustainability in the ASEAN region. The other 20 per cent is owned by Menteri Besar Incorporated (MBI) Kedah, the state investment arm. The Pedu Dam plant boasts a total approved installed capacity of 9.6MW, with a net export capacity of 8.0MW approved by the Tenaga Nasional Bhd (TNB) substation. This project has a 21-year concession period starting from the feed-in tariff commencement date scheduled on April 30, 2027. KAB executive deputy chairman and group managing director Datuk Lai Keng Onn said  building upon the company’s recent acquisition of the maiden 11MW mini-hydropower plant in North Sumatera, Indonesia, in August 2023, this investment represents a crucial move toward realising KAB’s vision of leading sustainable energy development in the region. “By harnessing the untapped potential of Pedu Dam, we anticipate making substantial advancements in renewable energy generation, furthering Malaysia’s environmental sustainability objectives,” he said in a statement. He said hydropower plants stand out as a key contributor to renewable energy production and generation due to their capacity to deliver stable energy outputs. Establishing itself as dependable energy sources and solutions, hydropower facilities ensure consistent production and generation of renewable energy. Lai also emphasised the minimal environmental, social, and governance (ESG) concerns associated with this hydropower plant, highlighting that Pedu Dam’s completion in 1969 has since served as a cornerstone for the agricultural growth of 96,558 hectares of land in Kedah and Perlis. The strategic location in the district of Padang Terap recognises the dam’s importance in water management and its potential in renewable energy generation. “Adding this new mini-hydropower plant into our renewable energy portfolio strengthens our position as a holistic energy and engineering solutions provider, further expanding our footprint in sustainable energy across ASEAN. “Completing these renewable projects in North Sumatra and Kedah, KAB’s mini-hydropower total installed capacity will be elevated to 20.6MW. “This reflects a beneficial increase in KAB’s long-term recurring income, facilitated by established power purchase agreements in Malaysia and Indonesia,” Lai said.

KUALA LUMPUR: Renewable energy player Sunview Group Bhd (SGB) recently announced that its wholly-owned subsidiary, Fabulous Sunview Sdn Bhd (FSSB), signed a strategic business partnership agreement with the administration of Kashkadarya region. Kashkadarya, also commonly referred to as Qashqadaryo, is one of the regions of Uzbekistan. The collaboration between the two parties will focus on developing a 500 MWac solar photovoltaic plant project in the Kashkadarya region, with the implementation target to be within one year from the agreement’s signing. The project’s total cost is US$1 billion, which will be financed through foreign direct investments. In addition, SGB will send representatives to the Kashkadarya region to explore possibilities of implementing the project, negotiate with local partners, and evaluate existing operational processes. SGB executive director and chief executive officer HP Ong said the collaboration underscores the company’s commitment to advancing renewable energy initiatives and global sustainability. “This project will open new horizons for SGB to extend its geographical presence beyond the local market and accelerate the transition to renewable energy in the Kashkadarya region. “We are optimistic this partnership will yield a positive outcome for us,” he said in a statement. SGB endeavours to ascend as the leading renewable energy provider and will further diversify to various clean energy power other than solar. This complements its role in the vertical integration of the solar energy supply chain. The committed workforce at SGB is geared towards delivering comprehensive solutions in renewable energy, spanning the entire supply chain, from upstream as an aluminium solar mounting manufacturer to midstream activities like engineering, procurement, construction, and commissioning (EPCC) of solar infrastructure, and downstream responsibilities as a solar asset owner.

KUALA LUMPUR: Food producers CAB Cakaran Corporation Bhd (CAB) posted a net profit of RM38.38 million for the first quarter (Q1) ended December 31, 2023 (FY24), a 8.3 per cent decline posted in the same quarter last year. Net profit declined mainly due to a lower year-on-year (YoY) gain on fair value adjustment of the company’s biological assets, coupled with higher tax expenses. For Q1, CAB posted an RM11.27 million gain in the fair value of its biological assets. This, coupled with an increase in the average selling price (ASP) of feed, processed chicken and other processed food products, had sent the company’s net profit for Q1 FY23 to RM41.87 million, the highest on record. In Q1 FY24, CAB recorded an RM1.59 million gain on fair value adjustment of the company’s biological assets. Q1 FY24 tax expenses were RM15.71 million, an increase of 41.9 per cent from a year ago. Q1 revenue dipped 1.6 per cent YoY to RM548.48 million, dragged by a decline in the ASP for chicks and broilers. On a YoY basis, the average selling price of chicks and broilers fell 12.7 per cent and 5.7 per cent, respectively. CAB’s financial position continued to improve, with cash position rising 45.2 per cent YoY to RM202.61 million as of December 31, 2023, up from RM139.58 million a year earlier. Considering its latest results, CAB’s stock trades at a price-to-earnings (P/E) ratio of approximately 5.4x, compared to the peer average of 11.4x. Group managing director Christopher Chuah Hoon Phong said the company is pleased to start FY24 with a strong quarterly performance. “We will continue to pursue operational efficiency, economies of scale, and long-term sustainable growth opportunities. “In the near term, we expect to benefit from the recent shortages of pork and eggs, both staple foods for Malaysians. “These shortages should sustain high demand for chicken meat, which supports the outlook for broiler prices. “We will continue to seek strategic mergers and acquisitions (M&A) opportunities to develop innovative products and create sustainable food solutions. “With our strong cash position, we have the firepower to catalyze our evolution into a world-class food conglomerate,” he said in a statement. On the expansion front, Chuah said CAB continue to work towards launching Phase 1 of its venture in Indonesia with the Salim Group, its partner and shareholder. “We have proven we can win in Malaysia and have now set our eyes on replicating this model globally. “Our planned foray into Indonesia will diversify our revenue and give us a new engine of growth. “With the backing of Salim Group, one of Indonesia’s biggest conglomerates, we are confident that we have a long runway for growth in Indonesia,” he said. In the recent financial year ended September 30, 2023 (FY23), CAB reported a net profit of RM107.25 million, an increase of 85.8 per cent from a year ago. Increased demand, higher selling prices, and lower production costs drove the improved performance. FY23 revenue was RM2.25 billion, a 14.9 per cent YoY increase and the highest in the company’s operating history.

KUALA LUMPUR: Central Global Bhd (CGB) posted revenue of RM222.04 million for the financial year ended December 31, 2023 (FY23), reflecting an increase of RM10.87 million or 5 per cent posted in the same quarter last year, driven by its construction segment. As of December 31, 2023, CGB’s unbilled orderbook stood at RM227.85 million. Despite the significant revenue generation, CGB posted a loss before tax (LBT) of RM31.60 million compared to a profit before tax (PBT) of RM17.01 million recorded in FYE 31 December 2022. This was mainly due to the one-off impairment of trade, other receivables, and contract assets for the Gerbang Bukit Kecil and Sungai Pinang projects, which are under litigation and adjudication proceedings via the Construction Industry Payment and Adjudication Act 2012 (CIPAA) amounting to approximately RM41.91 million. On top of that, the expenses in connection to the shares grant scheme issued by CGB earlier in the year, amounting to RM3.54 million, also contributed to the drop. The adjusted PBT will be recorded at RM10.31 million without the one-off impairment.