Investment & Market Trends

IQ Group Holdings Bhd is closing its manufacturing operations in Penang that produce motion sensors and lighting products due to declining orders. The company said in a Bursa Malaysia filing that 37 employees will be retrenched, while a small team will remain to manage third-party supply and external manufacturers. It added that no alternative roles will be offered to affected staff. IQ Group said the closure will not impact its other manufacturing operations in China, or its offices in Taiwan, Japan and the UK. The Penang plant, operated by its wholly-owned subsidiary IQ Group Sdn Bhd, has seen a sharp drop in orders over the past three years as customers shift production to China for lower costs, while US tariffs also affected volumes. The company said production in Malaysia is no longer commercially viable, with the final production batch completed in April and no new orders received since. IQ Group added it has been coordinating with customers to manage inventory for remaining product needs, while some products have been redesigned for lower-cost manufacturing in China. It said the closure affects about 5% of group revenue. One-off costs of RM2.9 million will be recorded for write-offs and retrenchment compensation. The shutdown is expected to be completed by September and generate annual savings of about RM1.81 million. For the financial year ended March 31, 2025, IQ Group posted a net profit of RM490,000, while revenue fell nearly 14% to RM110.35 million. Revenue has declined 17% over the past three years.

GIIB Holdings Bhd said it is evaluating a potential investment in a healthcare-related business following a query from Bursa Malaysia over unusual trading activity in its shares. In a filing on Monday, the group said the proposal is still at a preliminary stage, with key terms and details yet to be finalised. The stock surged despite the group’s auditor recently flagging a material uncertainty related to its ability to continue as a going concern, citing losses, negative operating cash flow and a mismatch between short-term liabilities and assets. “The board wishes to inform that the company is currently in the midst of considering a potential investment in a healthcare-related business,” it said, adding that any material developments will be announced accordingly. GIIB, whose core businesses include rubber compounding, tyre retreading, rubber trading and property development, said it is not aware of any other corporate developments or rumours that could explain the recent share price movement. The clarification came after Bursa issued an unusual market activity (UMA) query, following a sharp spike in GIIB’s share price on Monday. The stock rose as much as 50% intraday before closing 45.45% higher at 16 sen, its highest level in over four years, with 56.8 million shares traded. It was also the fifth most actively traded stock on the exchange. The surge came despite auditors recently flagging uncertainty over GIIB’s ability to continue as a going concern, citing losses, negative cash flow and a mismatch between short-term liabilities and assets. Auditors also issued a qualified opinion on its FY2025 accounts due to issues including the deconsolidation of its glove unit and recoverability of receivables.

Sarawak Consolidated Industries Bhd said shareholders have approved its RM151.2 million divestment exercise at an extraordinary general meeting on Monday. The deal involves the sale of its entire stake in SCIB Concrete Manufacturing Sdn Bhd for RM113 million, as well as seven parcels of land worth RM38.19 million. In a statement, the group said the disposal is part of its strategic reset to unlock value from its manufacturing assets and landbank, while shifting focus towards its engineering, procurement, construction and commissioning (EPCC) business. SCIB added that the move is expected to strengthen its balance sheet by improving liquidity and generating cash inflows. Proceeds from the sale will be used to fund ongoing and future construction and EPCC projects, support property development activities, and boost working capital. Executive chairman Chong Loong Men said the exercise marks a reset for SCIB on a stronger and more focused foundation. As at end-December 2025, SCIB’s accumulated losses widened to RM103.9 million, while total liabilities rose to RM201.9 million. Cash stood at RM22.2 million against borrowings of RM38 million. SCIB shares closed up 0.5 sen or 3.7% at 14 sen on Monday, giving the group a market value of RM99.52 million.

AGX Group Berhad said it is restructuring its regional logistics business through a share swap involving its Philippines and Singapore units. In a Bursa Malaysia filing, the third-party logistics provider said it will transfer its stake in All-Link Philippines to its Singapore associate as part of a corporate restructuring exercise aimed at consolidating regional operations. Following the exercise, AGX’s effective stake in All-Link Philippines will fall to 31% from 47.99%, while its holding in All-Link Singapore will be reduced to about 23.2% from 30%. The transaction, valued at RM856,048 (S$276,689), will be settled through the issuance of 1,447 new shares in All-Link Singapore to AGX Logistics (S) Pte Ltd. AGX said the move will help unlock value in its investment, strengthen the associate’s capital base, and support its regional expansion. Group CEO Ponnudorai Periasamy said the exercise marks a key step in crystallising the value of its investment in All-Link, while improving governance, transparency, and access to capital for future growth. On Monday, AGX shares closed 0.5 sen lower at 42.5 sen, giving the group a market value of RM183.79 million.

XL Holdings Bhd has agreed to acquire 34 Giant Mini outlets in the Klang Valley for RM15 million, marking its entry into the convenience retail sector. Its wholly-owned subsidiary, XL Retail Sdn Bhd, signed the asset purchase agreement with Jutaria Gemilang Sdn Bhd. In a filing with Bursa Malaysia, the company said the acquisition is part of its strategy to diversify into retail. It said the move will provide an additional income stream, reduce reliance on its core businesses, and serve as a platform for future expansion. The deal is expected to be completed by May 31 and is anticipated to contribute positively to future earnings. The purchase will be funded internally, with payment made in stages: RM1 million upfront, RM2 million upon signing, RM8.6 million by May 20, and the remaining RM3.4 million upon completion. XL Holdings is mainly involved in breeding Asian arowana, stingrays and other ornamental fish, as well as trading aquarium products and edible bird’s nest. For the nine months ended Jan 31, 2026, the company’s net profit fell 17.63% to RM5.95 million, while revenue rose 2.73% to RM93.68 million. Its shares closed 0.5 sen lower at 67.5 sen on Monday, giving it a market value of RM325.58 million.

An independent adviser has recommended that shareholders of Concrete Engineering Products Bhd accept the RM2.60 per share takeover offer by YTL Corp Bhd’s subsidiary, YTL Cement Bhd, deeming the proposal both “fair” and “reasonable”. In an independent advice circular issued on Monday, Mercury Securities Sdn Bhd said the offer is considered reasonable given the relatively low trading liquidity of Concrete Engineering’s shares. It is also viewed as fair as the offer price represents a meaningful premium over the company’s revalued net assets (RNAV) per share. The RM2.60 offer price reflects a 46.9% premium to the group’s RNAV per share of RM1.77. It also represents a substantial 122.2% premium to its latest consolidated net asset value of RM1.17 per share. In addition, the offer comes at a premium ranging from 39% to 96.2% over the stock’s volume-weighted average market price (VWAP) across periods spanning five days to one year. Mercury Securities further highlighted that Concrete Engineering’s shares have been relatively illiquid, with a simple average monthly trading volume equivalent to just 0.53% of its free float shares. This is significantly lower than the 7.1% recorded by the Bursa Malaysia Industrial Production Index, reinforcing the attractiveness of the cash offer for shareholders seeking an exit opportunity. Based on these considerations, the adviser concluded that the offer provides a compelling opportunity for shareholders to realise their investment at a favourable price, and has therefore recommended acceptance of the takeover bid. YTL Cement’s mandatory takeover offer was triggered in April following its acquisition of a 53.49% stake in Concrete Engineering for RM103.79 million from several vendors. These included Inch Kenneth Kajang Rubber PLC, which divested a 19.3% stake, as well as Datuk Dr Che Muhamad Fasir Samsudin and his son Muhammad Firdaus Muhamad Fasir, who sold stakes of 4.1% and 4.7% respectively. The takeover offer officially opened on April 22 and will remain valid until May 13, unless revised or extended. As at the midday trading break, shares in Concrete Engineering were up three sen, or 1.16%, to RM2.62, giving the company a market capitalisation of approximately RM195.5 million.

Oversea-Chinese Banking Corp (OCBC) has agreed to acquire the retail and wealth management assets of HSBC Holdings Plc in Indonesia, strengthening its presence in one of Southeast Asia’s fastest-growing markets. In a statement, OCBC said the purchase consideration will be based on the net asset value of HSBC Indonesia’s International Wealth and Premier Banking businesses, along with a premium of up to S$0.48 billion (approximately US$376 million or RM1.5 billion). The transaction is expected to be completed by the second quarter of 2027. The assets to be transferred include a total of S$6.6 billion under management, comprising S$4.3 billion in customer investments such as mutual funds, bonds and insurance products, S$2.3 billion in deposits, and a S$0.3 billion retail loan portfolio. HSBC said the divestment is part of its broader strategy to streamline operations and focus on areas where it has a stronger competitive advantage. The bank will continue to grow its corporate and institutional banking business in Indonesia. OCBC currently operates in Indonesia through its Jakarta-listed subsidiary, PT Bank OCBC NISP Tbk, and has expanded its footprint in the country through both organic growth and acquisitions, including the purchase of PT Bank Commonwealth Indonesia in 2024. The latest deal marks the first acquisition under OCBC’s new chief executive officer, Tan Teck Long, as the group looks to further expand across Asia, with a focus on growing its affluent and private banking segments. Indonesia continues to attract regional and global banks seeking growth opportunities, as institutions reposition their portfolios and strengthen their presence in key markets across Southeast Asia.

Malaysian manufacturers expanded operations in April, increasing hiring and inventory levels despite ongoing geopolitical tensions in the Middle East that have driven up costs and pushed selling prices to record highs. According to S&P Global, the seasonally adjusted manufacturing Purchasing Managers’ Index (PMI) rose to 51.6 in April from 50.7 in March. A reading above 50 indicates expansion in the sector, suggesting a modest improvement in overall manufacturing activity. However, S&P Global noted that part of the growth was driven by “safety-stock building”, as companies moved to secure inventory amid uncertainties linked to the conflict in the Middle East. “The sector’s outlook in the coming months will depend in part on how the situation in the Middle East develops,” said S&P Global economist Maryam Baluch, adding that manufacturers are already taking steps to cushion potential disruptions. Malaysia’s economy grew 5.3% year-on-year in the first quarter of 2026, slightly below expectations, as key sectors including manufacturing and services saw slower momentum following escalating geopolitical tensions earlier in the year. Despite this, the central bank maintains its full-year growth forecast of between 4% and 5%, supported by resilient domestic demand and continued investment activity. The latest PMI data also showed manufacturers increased hiring for a second consecutive month, with job creation at its strongest pace so far this year, although still described as moderate. At the same time, companies raised selling prices sharply in response to higher input costs, particularly for energy and raw materials. Input cost inflation reached a 45-month high, prompting firms to pass on these increases to customers at the fastest rate on record. Nonetheless, business sentiment remained cautious. Confidence among manufacturers weakened for the second straight month in April, falling to its lowest level in eight months, reflecting concerns over the prolonged impact of geopolitical uncertainties.

Censuria Family Office, under the leadership of esteemed capital markets investor Datuk Marco Yap, has engaged AFFIN Group’s wealth management and financial advisory arm to formulate its family office strategy under the AFFIN DIVENTIUM Private Banking segment. The engagement aligns with its preparations to register under Malaysia’s Single Family Office Incentive Scheme with the Securities Commission Malaysia. Censuria Family Office primarily invests in listed equities, pre-IPO opportunities, and fixed income securities. It plans to further expand its portfolio through collaboration with Affin Hwang Investment Bank Berhad’s private equity arm to explore co-investment opportunities, strategic growth initiatives, and cross-border investments within the AFFIN Group’s ecosystem. Commenting on the engagement, Datuk Marco Yap said, “The Group has earned our confidence with its comprehensive investment banking, wealth management, and brokerage solutions. It is able to provide us with co-investment opportunities and connect us with both private and institutional investors across Malaysia and the region, delivering tailored and robust investment solutions to Censuria Family Office and also our private equity arm, Censuria Capital Sdn Bhd.” Dr Calvin Goon, Managing Director of Wealth Management, Affin Bank Berhad, said, “We are excited to work alongside Censuria Family Office, delivering tailored advisory, investment, and wealth management solutions. Together, we aim to drive long-term portfolio growth, co-investment initiatives, and strategic wealth management outcomes, while strengthening Malaysia’s family office ecosystem.” Family offices in Malaysia have been gaining traction in recent years, driven by rising interest among ultra-high-net-worth individuals in structured investments, succession planning, and long-term wealth preservation. The Single Family Office Incentive Scheme offers a tax framework designed to position Malaysia as a competitive wealth management hub, requiring a minimum of RM30 million in assets under management, RM500,000 in annual local operating expenditure, and the employment of local professionals.

DXN Holdings Bhd. (“DXN” or the “Company”), a leading global manufacturer of nutraceutical products, has announced its fourth quarter (“4QFY26”) and full-year financial results for the year ended 28 February 2026 (“FY26”) for the Company and its subsidiaries (“DXN Group” or the “Group”). Despite a more challenging operating environment characterised by foreign exchange volatility, DXN delivered a resilient set of results in FY26. Revenue stood at RM1.9 billion, broadly in line with the previous year, reflecting the continued strength of its global member network and underlying demand across key markets. The Group’s performance was affected by currency translation arising from the strengthening of the Malaysian Ringgit against several operating currencies. However, excluding these effects, DXN achieved a healthy underlying normalised revenue growth of 12.1% year-on-year (“YoY”). From a profitability standpoint, earnings before interest, tax, depreciation and amortisation (“EBITDA”) stood at RM521.5 million, compared to RM583.2 million in the previous financial year (“FY25”). Profit after taxation and non-controlling interests (“net profit”) came in at RM271.5 million, compared to RM328.1 million in FY25, reflecting the overall moderation in profitability. The moderation in profitability was mainly attributable to foreign exchange losses, higher marketing expenditures to support business expansion, as well as pre-operating expenses associated with the Group’s ongoing investments in upstream and midstream segments. Additionally, the previous financial year included a one-off indirect tax refund, which resulted in a higher profitability base for comparison. Executive Chairman and Founder of DXN, Datuk Lim Siow Jin shared: “Looking ahead, the global operating environment remains shaped by ongoing geopolitical tensions. While these conditions introduce demand uncertainty and elevated energy costs, our diversified geographic footprint and vertically integrated business model provide us with the resilience and flexibility to navigate these challenges effectively. We are committed to enhancing our operational self-sufficiency. Development of our coffee plantations in Brazil, Bolivia, and Malaysia is progressing as planned, alongside the expansion of our manufacturing facilities across Latin America, the Middle East, and Asia. Notably, on 8 April 2026, we entered into a 60-year lease agreement with Perbadanan Kemajuan Negeri Kedah for a 1.2 million square foot industrial site in Bukit Kayu Hitam, Kedah. This new facility will complement our existing operations in the state, creating an integrated manufacturing base in northern Peninsular Malaysia and significantly increasing our production capacity while maintaining centralised control over quality and efficiency. Supported by steady membership growth across Latin America, Europe, and Africa, particularly encouraging traction in Argentina and Brazil, and underpinned by our commitment to embedding responsible ESG practices across our value chain, the Group is well-positioned to deliver sustainable, long-term growth despite prevailing macroeconomic headwinds.” On a quarterly basis, DXN delivered revenue of RM474.9 million in 4QFY26, up 3.5% YoY from RM458.9 million in the corresponding quarter last year (“4QFY25”). Performance was driven by strong organic growth in Latin America and India, with underlying growth of 6.3% YoY after excluding the impact of the strengthening Malaysian Ringgit. EBITDA came in at RM114.4 million, while net profit stood at RM62.6 million, compared to RM147.8 million and RM83.7 million respectively in 4QFY25, mainly due to foreign exchange losses and higher promotional and marketing activities undertaken during the quarter. In line with its dividend policy, the Board of Directors has declared a fourth interim dividend of 0.70 sen per ordinary share for FY26, amounting to RM34.8 million, payable on 29 May 2026. This brings total dividends for FY26 to 3.2 sen per share, or RM159.1 million, representing a payout ratio of 58.6%, consistent with the Group’s policy of distributing at least 50% of net profit to shareholders. DXN closed FY26 with a strong financial position, supported by a healthy net cash position and low gearing. As at 28 February 2026, the Group held cash and cash equivalents of RM617.4 million, more than three times its total loans and borrowings of RM177.5 million, alongside net operating cash inflows of RM334.3 million for the year. This positions DXN well to pursue growth opportunities while continuing to deliver value to shareholders.