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KUALA LUMPUR: Texchem Resources Bhd’s (TRB) net loss widens to RM3.59 million for the fourth quarter (Q4) ended December 31, 2023 (FY23) from RM254,000 posted in the same quarter last year, mainly due to weak market demand. Revenue for the quarter stood at RM241.28 million from RM251.76 million posted in Q4 last year. For FY23, TRB reported a revenue of RM993.5 million compared to RM1.14 billion posted in FY22. This was mainly due to lower sales due to high interest rates, inflation, and inventory adjustments in specific industries we serve. The situation was further compounded by a rise in input, operating costs and tax expenses from profitable entities within the company, which led to a net loss of RM10.8 million for FY23, which included share-based payments amounting to RM3.0 million. Executive chairman Tan Sri Fumihiko Konishi said FY23 was an arduous year for the company given the demanding business operating landscape arising from various macroeconomic headwinds. “Nevertheless, we put forth our best effort to minimise the impact. “Moving forward, while we anticipate the market to remain volatile, we are steadfast in our strategy to enhance our capacity and capabilities. “This is to prepare ourselves to seize the opportunities and ride on the recovery of the sectors we serve, especially for the polymer engineering division, which serves end-user international clients in the semiconductor, medical life sciences and memory storage solutions sectors,” he said in a statement. Fumihiko said TRB has continued to pursue strategies for its industrial division, aimed at expanding market share and strengthening long-term relationships with principals and customers while riding on improving petrochemical prices. “In our restaurant and food divisions, acknowledging the lower revenue, we continue to drive operational improvements and streamline supply chain management to reduce costs and remain competitive. “On balance, we maintain our cautious optimism for FY24 and focus on executing our key strategies as we forge ahead,” Fumihiko said. Despite the challenging environment, TRB generated a net operating cash flow for FY23, amounting to RM81.9 million. The company has consistently produced positive net operating cash flow for over 20 years.

KUALA LUMPUR: Heineken Malaysia Bhd is banking on several strategies this year to navigate challenges, namely the weak ringgit and soft consumer demand. Further, the ongoing global geopolitical tension and the Red Sea crisis have also impacted supply chains and can potentially lead to unpredictable price fluctuations for raw materials. Managing director Roland Bala said these factors combined have created an uncertain business climate for Heineken Malaysia and consumers in Malaysia. “We have faced challenges regarding ringgit depreciation, weak consumer demand and ongoing geopolitical tension. “However, we see some improvements in the fourth quarter (Q4) of 2023, and we are banking on our marketing strategy to mitigate some of our challenges,” he told reporters at a media briefing yesterday. Heineken Malaysia announced its financial results for the full year ended December 31, 2023 (FY23), reporting a decline in revenue and profit as compared to the same period in 2022 (FY22). Revenue decreased by 8 per cent to RM2.64 billion compared to RM2.85 billion posted in FY22, mainly due to weak consumer sentiment attributed to growing macroeconomic concerns in 2023. The brewer had a strong base in 2022 following the re-opening of the economy at the end of the Covid-19 pandemic. Due to the rebound in FY22, Heineken Malaysia views its FY23 performance as a form of market correction. Group profit before tax (PBT) decreased by 14 per cent principally due to lower revenue, while net profit decreased by 6 per cent due to the absence of the one-off Prosperity Tax in 2023. For the fourth quarter (Q4) FY23, Heineken Malaysia’s revenue decreased by 8 per cent to RM728.62 million from RM791.68 posted in the same quarter in FY22. This reflects the lower sales arising from weak consumer sentiment driven by the rising cost of living and macroeconomic concerns. Group PBT also declined by 14 per cent in Q4, primarily driven by lower revenue. Similarly, net profit for the quarter also decreased by 5 per cent to RM99.0 million from RM104.63 million posted in Q4 FY22 due to the absence of the one-off Prosperity Tax. “2023 has been a challenging year, with the market experiencing corrections following the strong rebound observed in 2022. “Despite the challenging environment, we continued to execute and deliver our EverGreen strategy to drive premium growth with a consumer-first mindset whilst accelerating digitalisation, developing our talents, and making progress towards our sustainability ambitions,” Roland said. Heineken Malaysia board has proposed a single-tier final dividend of 88 per share for FY23 compared to 98 sen per share in FY22. The total dividend for the year amounts to 128 sen per share, comprising a single-tier interim dividend of 40 sen per share, which was paid on November 10, 2023. Subject to shareholders’ approval at the forthcoming annual general meeting, the final dividend will be paid on July 25, 2024. “We welcome the stance taken by the government not to increase excise duties on beer in its latest Budget 2024, as any hike in excise rates will drive greater demand for illicit alcohol. “Heineken Malaysia will continue to monitor and support the authorities in addressing this issue through comprehensive efforts and promoting greater awareness in the market,” he said.

KUALA LUMPUR: The Securities Commission Malaysia (SC) and Bursa Malaysia have jointly committed to an expedited three-month approval period for initial public offerings (IPOs) on the Main Market and the ACE Market. The commitment applies to new IPO applications received as of March 1, 2024. In a joint statement, both agencies said the commitment to a prompt decision on regulatory approval within three months would be premised on the principal advisers and sponsors satisfactorily addressing the regulators’ queries and comments on IPO applications within five market days. This will augment the regulators’ current practice since 2021 of issuing queries and comments within ten market days following a complete IPO application and issuing subsequent queries and comments within five market days of each response round. The regulators will continue to maintain rigour in the assessment without compromising investors’ protection and public interests. To leverage a more vital collaboration between the regulators and the industry players to offer a more precise timeline for listing qualified IPO applicants, the regulators look forward to attracting quality companies to list, particularly those in sectors supporting national growth policies, blueprints, and roadmaps. SC chairman Datuk Seri Dr Awang Adek Hussin said the Malaysian equity capital market has remained a cornerstone of funding for companies, with IPOs raising RM3.6 billion in 2023. “We believe our approval timeframe can cater for the dynamic business needs of companies looking to raise funds in the capital market as part of our ongoing efforts to remain competitive and relevant for local and international investors. “This collaborative effort underscores our commitment to fostering a conducive environment for issuers, facilitating their access to capital markets with greater certainty and efficiency,” Dr Awang said. Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the more competitive time-to-market will enhance the exchange’s attractiveness to companies seeking to list in Malaysia. “We aim to provide a holistic and customer-friendly facilitation by regulators and principal advisers and sponsors to support better companies that intend to raise capital through IPOs and elevate their status as public listed companies. “Our equities market is ready to support the cycle of fundraising and investing to grow businesses,” he said. The Malaysian Investment Banking Association (MIBA) recognise the critical importance of seamless collaboration between regulators and advisers to ensure a smooth listing process. “By working hand in hand, we can uphold the highest standards of due diligence, corporate governance, and compliance, ultimately facilitating a faster time-to-market for IPO issuers,” MIBA chairman Lee Jim Leng said. “This will not only benefit businesses seeking to raise capital but also enhance the overall credibility and transparency of the capital market,” she added. The SC and Bursa Malaysia said advisers and professionals should uphold due diligence standards to enable the highest quality IPO applications by adhering to guidelines and requirements, ensuring quality disclosures, high standards of corporate governance, as well as timely and satisfactory responses to regulator queries and comments. Further measures, including training modules, will be developed to support market professionals in meeting the unified objective of a smoother journey to IPOs.

KUALA LUMPUR: Tiong Nam Logistics Holdings Bhd posted a net profit of RM44.7 million in the third quarter (Q3) ended December 31, 2023 (FY24) compared to RM0.2 million in the same quarter last year, mainly driven by fair value gain on investment properties. The fair value gain on investment properties, amounting to RM69.0 million after tax, resulted from revaluating a warehouse asset in Senai Airport City. Revenue maintained at RM188.9 million in Q3 FY24, increasing marginally from RM187.5 million a year ago. The logistics and warehousing segment, its key revenue contributor, registered stable revenue of RM183.7 million in Q3 FY24 versus RM185.4 million previously on resilient demand across diverse industries. Managing director Ong Yoong Nyock said the resilient performance of its logistics and warehousing segment underscores the company’s commitment to client service. “We reinforce our position as a leading total logistics solutions provider in Southeast Asia, facilitating stable and efficient supply chains for domestic and multinational enterprises. “Our ongoing construction of new warehouses and planned expansions cater to growing client demand and supporting future revenue growth. “These initiatives will enhance our capacity to meet the needs of our clients and provide greater operational control while mitigating long-term rental costs. By prioritising client satisfaction, investing in targeted expansions, and optimising operational efficiency, we are well-positioned to navigate the market challenges and capitalise on emerging opportunities,” he said in a statement. The company’s ongoing warehouse expansions encompass the construction of three new warehouses in Johor Bahru and Singapore, with a combined total capacity of 1.1 million sq ft, to be completed in the financial year ending March 31, 2025 (FY25). Tiong Nam’s total warehousing capacity will reach 8.8 million sq ft in FY25 from 7.7 million sq ft in Q3 FY24. Additionally, Tiong Nam plans to build five more warehouses with a total capacity of 1.2 million in Johor, Selangor, and Penang, to be completed in phases from FY26 until FY28. Meanwhile, the company’s property development segment contributed RM4.2 million in revenue in Q3 FY24, up 221.0 per cent from RM1.3 million previously, on the back of contribution from the company’s residential development project in Kota Masai, Johor. For the nine-month FY24, revenue rose 4.2 per cent to RM565.2 million from RM542.4 million a year ago. Net profit improved to RM46.7 million compared to RM2.2 million previously, on the back of the fair value gains from investment properties comprising a warehouse asset.