Investment & Market Trends

Investment & Market Trends, News

Global Air Cargo Demand Records Stronger Growth in April

KUALA LUMPUR: The global air cargo market recorded a total of 21.7 billion cargo tonne-kilometres (CTKs) in April, representing an 11.1% year-on-year expansion, marking the fifth consecutive month of double-digit annual growth, according to the International Air Transport Association (IATA). Based on a statement yesterday, IATA said the global international traffic also rose by 11.6% in the month compared to April 2023, supported by all regions and major trade lanes. It said the largest contributors to this strong traffic performance were carriers from Asia Pacific and Europe, which together contributed two-thirds to the annual increase. “This contrasts with the preceding seven months, where the bulk of the annual rise had stemmed from airlines registered in Asia Pacific and the Middle East, even though the latter is one of the smaller regions by traffic volume (ranked fourth out of six regions),” it said. The association said that the solid upward trend in industry CTKs was driven by traffic on international routes, likely supported by booming e-commerce and capacity constraints in global maritime shipping. IATA Director-General Willie Walsh said that while many economic uncertainties remained, it appeared that the roots of air cargo’s strong performance were deepening. “In recent months, air cargo demand grew even when the purchasing managers index (PMI) was indicating the potential for contraction. “With the PMI now indicating growth, the prospects for continued strong demand are even more robust,” he added. — BERNAMA

Investment & Market Trends

KAB Secures RM29.5 Million Engineering Contract from Mah Sing Group

KUALA LUMPUR: Sustainable energy and engineering solutions provider Kinergy Advancement Bhd (KAB) has bagged another engineering contract worth RM29.5 million from Mah Sing Group Bhd (Mah Sing). This marks the 14th contract won by KAB, following the M Nova project announced on December 5, 2023. In March, Pembinaan Bintang Baru Sdn Bhd (PBB) also firmly appointed KAB as their sub-contractor for electrical works for a contract worth RM9.8 million. These contracts highlight KAB’s 27-year reputation as an electrical specialist in the engineering sector, even as the company has transformed into a leading player in the energy industry, specifically in the realm of sustainable energy solutions (SES). Both contracts, valued at RM39.3 million, have been awarded to KAB in recognition of its valued engineering work and comprehensive range of electrical services for residential development over the years. KAB executive deputy chairman and group managing director Datuk Lai Keng Onn said the latest contract win marks the company’s 14th project for property giant Mah Sing and 13th for Bintang Baru. “Our expertise and reputation in the engineering field remain strong with returning and regular reputable clients. “Their trust in our competence and capabilities to drive the success and excellence of their esteemed projects keeps us optimistic. “We believe that the engineering sector will continue to sustain itself and play a pivotal role as one of the enablers to the company’s growth,” he said in a statement. Over the past 27 years, KAB has successfully executed 119 projects spanning residential, industrial, and commercial developments. The company’s engineering segment boasts an order book balance of approximately RM166.0 million and pending tenders worth RM153.8 million. This strong foundation also positions KAB favourably to benefit from Malaysia’s revitalised infrastructure development, increased demand for residential, commercial, and industrial projects, and heightened investment in infrastructure projects. With these new contracts, KAB is poised to continue its trajectory of success in the engineering sector.  

Investment & Market Trends

FSBM partners with Unitrade Industries to secure exclusive distributorship deal from Taiwan-based T-Parus

KUALA LUMPUR: FSBM Holdings Bhd (FHB) via its wholly-owned subsidiary FSBM MES Elite Sdn Bhd (FME), signed a collaboration agreement (CA) with Syarikat Logam Unitrade Sdn Bhd (SLU), a subsidiary of ACE market-listed Unitrade Industries Bhd (UIB). With the agreement, FHB secured exclusive distribution rights for voltage SAG protectors (VSP) from Taiwan-based T-Parus Trading Co Ltd. These developments were announced during the signing ceremonies held with the launch of SEMICON Southeast Asia 2024, Malaysia’s largest semiconductor exhibition. FHB’s collaboration with UIB aims to enhance market access and product integration for energy-efficient solutions. The collaboration seeks to expand the market reach of VSP and energy-saving compressors to commercial and industrial customers across Southeast Asia. FHB executive director Pang Kiew Kun said Industry 4.0, also known as the Fourth Industrial Revolution, is characterised by real-time data connectivity, artificial intelligence (AI), the Internet of Things (IoT), and smart factory solutions. “These disruptive trends are transforming manufacturing, enabling companies to stay ahead of the curve and achieve their strategic objectives. “FHB’s offerings are integral to this revolution, creating highly efficient, interconnected, and adaptive manufacturing environments. “By combining our strengths and resources with UIB, we aim to deliver enhanced value to our customers and capitalise on the growing demand for innovative solutions and products in Southeast Asia. “We expect this collaboration to enhance our recurring revenue streams and contribute positively to FHB’s future earnings,” he said in a statement. In addition to the collaboration with UIB, FHB has secured exclusive distribution rights for VSP across Southeast Asia. The VSP stands out as a reliable power backup solution renowned for its multifunctional capabilities. Acting as a shield against voltage sags or sudden power outages that could potentially disrupt factory operations, VSP ensures an uninterrupted power supply, safeguarding sensitive electronic equipment from damage. What sets VSP apart is its innovative design, which eliminates the need for traditional battery backups, offering a scalable solution that is both energy-efficient and environmentally friendly. “FHB looks to the future, and it remains committed to leading the technological revolution in the semiconductor industry. Our partnership with T-Parus ensures that we can provide top-tier VSP solutions that are designed with top-tier solutions that mitigate voltage sags, save energy, and support environmental, social and governance (ESG) initiatives by protecting equipment and reducing operational downtime. “Furthermore, our company remains committed to seeking new opportunities and expanding our collaboration with new and strategic technology partners, including companies from China and Singapore. “We hope to bring in suitable supporting equipment for both semiconductor front-end and back-end manufacturing processes in line with the government’s ambition to position Malaysia’s semiconductor industry to move up the value chain,” Pang added. Notably, many major global semiconductor companies have recently made significant investments in Malaysia, including Micron, ASE Electronics (M) Sdn Bhd, Siliconware Precision Industries (SPIL), and many more. ASE Electronics is expanding more than double the size of its existing plant in Bayan Lepas, which is set to be completed in 2025, while SPIL just celebrated a significant milestone last week with the groundbreaking ceremony of its Malaysia P1 plant at Bandar Cassia Technology Park in Penang. “Therefore, now is the best time to ride on these significant milestones from ASE and SPIL’s expansion in Malaysia. We aim to continue providing the same services that our partner has offered in Taiwan and more to Malaysia. “Consequently, we are here with our partner to also expand market reach into new areas, such as data centres, which we are currently discussing with new strategic partners. “This expansion will include suitable supporting equipment for both semiconductor front-end and back-end manufacturing processes, aligning with the Madani government’s ambition to position Malaysia’s semiconductor industry to move up the value chain,” Pang said.

Investment & Market Trends, News

Govt Plans to Implement Six International Trade Missions This Year

KUALA LUMPUR: The government – in collaboration with the Malaysian Franchise Association (MFA), plans to organise 6 international trade missions this year to foster and encourage more franchise exports abroad. Minister of Entrepreneur Development and Cooperatives Datuk Ewon Benedick said the trade missions that were already carried out were in Abu Dhabi and Taiwan and will continue to Thailand, the UK, Indonesia and the Philippines until the end of this year. “In 2023, a total of 8 international programmes and trade missions were held which generated RM864 million in potential investments compared with RM689 million in 2022. We hope that the recorded potential investments can be realised successfully,” he said. To date, Ewon said the number of franchise businesses registered with the Registrar of Franchises in the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) amounted to 1,274 companies. “Such achievements are important for enhancing the scale and competitiveness of franchise businesses comprising micro, small and medium enterprises (MSMEs),” he added. Malaysian Trade Industry on the Rise In April, the Department of Statistics (DOSM) revealed that the country’s total trade experienced a 5% increase from March 2023, which amounted to RM244.5 billion with exports and imports recorded RM128.6 billion and RM115.8 billion, respectively. Pulau Pinang remained as the top exporting state with a 32% share, followed by Johor (20%), Selangor (16.9%), Sarawak (8.1%) and WP Kuala Lumpur (4.5%). Meanwhile, imports also had an increase of 12.5%, amounting to RM12.9 billion, with some of the highest performing states being Johor (+RM8.2 billion), Melaka (+RM1.6 billion), Negeri Sembilan (+RM1.2 billion), WP Kuala Lumpur (+RM1 billion), Selangor (+RM996.7 million), Kedah (+RM419.7 million), Pahang (+RM152.6 million), Terengganu (+RM92.1 million), Kelantan (+RM71 million), Sabah (+RM55.5 million) and WP Labuan (+RM30.3 million). However, imports decreased in Pulau Pinang by RM521.9 million, Perak (-RM393.8 million), Sarawak (-RM115.9 million) and Perlis (-RM6.8 million). Johor dominates Malaysia’s imports with a share of 27.9%, followed by Selangor (23.6%), Pulau Pinang (19.2%), WP Kuala Lumpur (7.5%) and Kedah (5%). — BERNAMA

ESG, Investment & Market Trends, News

Atour Unveils Sustainability Records in 2023 With Milestone ESG Report

SHANGHAI: Atour Lifestyle Holdings Ltd, a leading hospitality and lifestyle company in China, has released its inaugural Environmental, Social, and Governance (ESG) report for 2023, underscoring the company’s sustainability efforts over the past year and reflects the steady integration of ESG principles into its day-to-day operations. In essence, Atour is committed to reducing waste and making its operations more ecologically friendly. This is reflected in the company’s approach toward refurbishment and resource conservation. During the reporting period, Atour launched two new products, Atour Light 3.0 and Atour 4.0 ‘With Nature’, a midscale hotel offering and an upper midscale variation. They underwent refurbishment using modular designs, with modular elements accounting for over 90% and 80% of the overall designs, respectively. This initiative significantly reduces maintenance costs and non-essential construction waste. Sustainability practices extend beyond decoration. Atour hotels now are equipped with less carbon-intensive amenities, such as 100% biodegradable paper cups, as well as natural cotton beddings and natural bamboo paper products manufactured without bleach or fluorescents, easing the burden on the environment. Additionally, Atour promotes water conservation across some of its 1,210 hotels (as of the end of last year) using the dedicated-loop system for circulating hot water, resulting in a reduction of 12.67 tons of water consumption per room annually. Atour prioritizes customer experience, introducing innovations from Atour APLUS services to Late Night Congee to ensure customers feel at home during their stays. Customers can expect a carefree experience and peace of mind, thanks to Atour’s commitment to purified indoor air, fire safety, cleanliness, hygiene, and strict user privacy protection. Moreover, Atour has reinforced its support for franchisees through its ‘6 Commitments to Franchisees’ and ‘8 Supply Chain Procurement Commitments,’ empowering them with a responsible supply network, rights guarantees, as well as training on sustainability. Originating from Yaduo, a remote village in southwestern China, Atour has consistently given back to its place of inspiration by encouraging local villagers to grow tea, fueling economic development and rural revitalisation. As the report indicates, Atour purchased a cumulative 150 tons of processed tea leaves worth CN¥37 million from the villagers, benefiting some 1,400 households. As part of its charitable engagements, it also donated a batch of clothes with a value of around CN¥2 million to the needy and supported targeted poverty alleviation efforts. In urban areas, Atour contributes to societal well-being by offering resting places in its Shanghai headquarters for frontline workers such as couriers, delivery rider, and sanitation workers during their downtime. 10 years after its birth, Atour prides itself on creating a diverse, equitable, and inclusive workplace for its employees. Currently, over 58% of its 4,248 employees are female, and the company employs 17 people with physical disabilities and 162 members of ethnic minorities. On the corporate governance front, Atour has established an ESG working group tasked to report directly to its Executive Committee. The ultimate goal is to implement a coherent sustainability strategy throughout its corporate hierarchy, thereby embedding ESG concepts into Atour’s mission and core values. Recognising board diversity as a pillar for sustained growth, Atour aims to include factors like one’s gender, age, culture and professional background when nominating future board members. Currently, there are three independent directors and two female directors on the eight-member board. In aligning with its strategic vision to boast a network of 2,000 premier hotels by 2025 and deliver the optimum ‘Chinese experience’, Atour is set to invest more resources and energies in the realm of ESG. ‘Looking ahead, we aim to enhance our sustainable development initiatives and capacities consistently, turning our original aspirations of warmth and generosity into increased resilience through concrete measures,’ said Atour Founder and CEO Haijun Wang. “We remain committed to creating an intimate ambience where people can warmly connect and contribute to a greener ecology and a kinder, more compassionate society,” he added.

Investment & Market Trends, News, Property

Gamuda Secures RM1.74 Bil Contracts for SDP’s Hyperscale Data Centre

KUALA LUMPUR: Gamuda Bhd’s wholly-owned unit Gamuda Engineering Sdn Bhd bagged 2 contracts worth a combined value of RM1.74 billion for the development of a hyperscale data centre at Sime Darby Property Bhd’s (SDP) Elmina Business Park. Gamuda said the project consists of 2 key phases, namely the construction phase, which has a contract value of RM815 million and the mechanical phase that is worth RM928.6 million. For the construction phase, it said Gamuda Engineering will be responsible for the construction, completion, testing and commissioning of the hyperscale data centre and associated ancillary facilities. “It is scheduled to begin on 27 May 2024, with a target completion date of 27 February 2026,” Gamuda said in a statement. For the mechanical phase, Gamuda said the contract covers the fit-out testing and commissioning of the data centre’s mechanical, electrical and plumbing systems in Elmina Business Park 1A. “This phase is expected to commence on 1 July 2025 and be completed by 9 September 2026,” it said. To meet the rising demand for data centre construction, Gamuda plans to ramp up its next-gen digital industrial building system (IBS) production capacity for data centre materials. “This strategic move positions Gamuda to capitalise on the significant opportunities,” it added. Sime Darby Property Shares Rise Sime Darby Property Bhd’s shares jumped by 7 sen to RM1.15 with 25.53 million shares traded at noon of 23 May 2024, following its announcement of doubled net profit for the first quarter ended 31 March 2024 (1Q24). The property company reported a net profit of RM123.58 million in 1Q24, up from RM60.67 million in the same quarter a year ago. Revenue also increased by 42.8% to RM978.69 million from RM685.33 million previously, with all segments contributing to the growth. RHB Investment Bank Bhd said the company is likely to exceed its RM3 billion sales target by year-end, as current bookings have already reached RM2.4 billion. “We like its strategic exposure to the industrial segment and strong earnings should continue to drive the re-rating of the stock,” it said in a note. The research firm has upheld its ‘buy’ recommendation, raising its 2024 and 2025 forecasts by 13-15% and setting a new target price of RM1.42 (up from RM1.05). — BERNAMA

Energy & Technology, Investment & Market Trends

SEMIFIVE Signs MOU with Atron Technologies to Collaborate on Semiconductor Design

SEOUL: Leading design solution provider and pioneer of platform-based custom silicon solutions, SEMIFIVE signed a Memorandum of Understanding (MoU) with China-based Atron Technologies. Through the agreement, SEMIFIVE and Atron Technologies will collaborate on comprehensive semiconductor design and turnkey manufacturing, seeking potential customers in China and onsite technical support. Atron Technologies, a company specializing in high-end ASIC design solutions and turnkey services, has extensive expertise in semiconductor designs for AI/HPC, automotive, networking, and AIoT. It also has experience in 2.5D/3D IC and Chiplet designs up to 5nm for HPC applications and serves a diverse customer base in China. Specialising in SoC platform and ASIC design solutions, SEMIFIVE has been continuously expanding its global business with the establishment of a San Jose, USA office in March 2021 and a Shanghai, China office in August 2023. SEMIFIVE also aims to serve the Chinese market as the premier Design Solution Partner (DSP) for Samsung Foundry SAFETM Ecosystem. Most recently, SEMIFIVE announced the second mass production milestone of AI inference custom chip designed using its own 14nm AI SoC platform. The company also announced that the commercialization of NPU chip targeting HPC applications, using its 5nm HPC SoC platform, has started in the first half of 2024. “We look forward to working with SEMIFIVE on joint assignments in China and collaborating on joint semiconductor designs to expand our business. We believe that, together with SEMIFIVE, we can provide a complete and reliable fast-time-to-market SoC solution to customers worldwide,” said Atron Technologies CEO, Norman Zhang. Meanwhile, SEMIFIVE CEO and co-founder, Brandon Cho said, “The partnership between Atron Technologies and SEMIFIVE marks a critical juncture in the global expansion of innovations enabled by custom silicon. “Leveraging Atron Technologies’ deep experience at the very heart of digital innovation and SEMIFIVE’s proven SoC design platform, we will unlock significant value through the power of custom silicon.”

Investment & Market Trends, News

MSC Reports Net Profit of RM18.2 Million for 1QFY24

KUALA LUMPUR AND SINGAPORE: Malaysia Smelting Corporation Berhad (MSC), a leading tin miner and metal producer, has announced its financial results for the first quarter ended 31 March 2024 (1QFY24). During this quarter, MSC’s net profit attributable to owners surged by 93.6% quarter-on-quarter (QoQ) to RM18.2 million, up from RM9.4 million in the previous quarter (4QFY23). This significant increase was primarily driven by a rise in average tin prices (RM124,900/tonne in 1QFY24 compared to RM116,000/tonne in 4QFY23). The Group’s tin smelting division recorded a net profit of RM9.9 million in 1QFY24, a turnaround from a net loss of RM2.2 million in 4QFY23. This recovery was attributed to favorable tin price movements and foreign exchange gains during the quarter. Similarly, MSC’s tin mining operations saw a net profit increase of 19.3% QoQ to RM14.2 million in 1QFY24, up from RM11.9 million in 4QFY23, benefiting from the stronger tin prices. Meanwhile, MSC’s revenue for 1QFY24 stood at RM362.5 million, down from RM404.6 million in 4QFY23. Despite the higher tin prices, the Group’s performance was impacted by a shortage of tin ore, leading to lower refined tin sales and smelting revenue. However, the Group believes the situation in tin ore-producing countries like Myanmar and Indonesia, which has affected MSC’s toll smelting business, will improve. MSC Group Chief Executive Officer, Dato’ Patrick Yong commented, “Our 1QFY24 performance demonstrated resilience amidst a challenging global landscape characterized by ongoing inflation, tightening monetary policies, and supply chain disruptions. We remain committed to securing a reliable supply chain and executing our long-term growth plans.” Yong added, “The relocation of our smelting operations from Butterworth to the newer Pulau Indah smelter is nearly complete, with the Butterworth smelter set to be decommissioned by 2025. On the mining side, we are working to enhance productivity by expanding mining activities and exploring new tin resources.” “Looking ahead, our commitment to sustainable growth ensures a brighter future for MSC. We are confident in our ability to unlock new opportunities and solidify our position as a leader in the tin industry.” As of 31 March 2024, total borrowings decreased by 17.4% to RM297.3 million, down from RM359.8 million as of 31 December 2023, due to repayment of borrowings. This resulted in an improved gearing ratio of 0.35x as of 31 March 2024. Year-on-year (YoY), MSC’s revenue grew by 6.6% to RM362.5 million from RM340.1 million, driven by favorable tin price movements. Tin prices averaged 7.6% higher at RM124,900/tonne in 1QFY24 compared to RM116,100/tonne in 1QFY23. The Group’s smelting division posted a net profit of RM9.9 million in 1QFY24, compared to RM24.6 million in 1QFY23. The slower performance was mainly due to the absence of sales of refined tin derived from processed tin intermediates and by-products, as well as lower smelting revenue. The tin mining segment reported a net profit of RM14.2 million in 1QFY24, down from RM17.5 million in 1QFY23, due to lower tin production quantities.

Investment & Market Trends, News

Bursa Malaysia Launches API Gateway to Enhance Investor Onboarding Experience

KUALA LUMPUR: Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) has recently introduced an Application Programming Interface (“API”) Gateway to enhance the efficiency of Central Depository System (“CDS”) account management processes by Participating Organisations (“POs”) or brokers. This initiative leverages technology to improve the CDS account holder experience and boost investor participation in the equities market. The API Gateway streamlines the investor onboarding process, reducing turnaround times for account opening, updating, and reactivation. These enhancements enable investors to trade quickly, seizing opportunities as they arise. Additionally, the Gateway allows POs to further digitalize their processes, improving customer experience and promoting sustainability by reducing the carbon footprint. Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, commented, “The Exchange actively listens to the evolving needs of our customers. This initiative is key in delivering on our commitment to greater customer-centricity. We will continue to work closely with our POs and introduce service innovations to attract more investors, bolstering the competitiveness of our market.” The API Gateway for CDS e-services is now operational. To date, five POs have signed up for the service: AmInvestment Bank Berhad, FSMOne – Online Retail Division of iFAST Capital Sdn Bhd, Hong Leong Investment Bank, Malacca Securities, and Moomoo Securities Malaysia. Other POs interested in offering these enhancements to their customers can visit API Services or email [email protected]. This API Gateway launch complements the recent introduction of the BURSA Remisier Acquisition Hub (“BURSA REACH”), Malaysia’s first profiling platform connecting investors with dealer’s representatives. Together, these initiatives demonstrate the Exchange’s commitment to using technology to provide easy access to investment opportunities and foster a vibrant capital market.

Investment & Market Trends, News

Kelington 1Q24 Net Profit Rose 53.3% to RM24.8 Mil, Declares Dividend of 2 sen

KUALA LUMPUR: Kelington Group Berhad, an integrated engineering solutions provider, announced outstanding financial results for the first quarter ending 31 March 2024 (1Q24). The Group’s net profit surged by 53.3%, reaching RM24.8 million, up from RM16.2 million in the previous year (1Q23). Additionally, revenue increased by 10% to RM339.3 million, compared to RM308.9 million in 1Q23. This growth was primarily driven by substantial revenue increases in key markets, particularly Malaysia (+6%) and China (+129%), which contributed 45% and 31% of the total revenue in 1Q24, respectively. The Ultra High Purity (UHP) division remained the largest revenue contributor, accounting for 61% of the Group’s total revenue in 1Q24. The UHP division’s revenue grew by 12% to RM205.5 million, fueled by several major UHP projects awarded in the second half of 2023. The Process Engineering division generated RM21.4 million, representing 6% of the Group’s total revenue for 1Q24. The General Contracting division saw a 21% year-on-year (YoY) increase in revenue, totaling RM78.4 million, driven by increased project recognitions and a significant project in Kuching. The Industrial Gases division also performed strongly, with revenue rising by 47% YoY to RM35.9 million, largely due to heightened demand for liquid carbon dioxide (LCO2) from Oceania countries. Commenting on the financial performance, Ir. Raymond Gan, Chief Executive Officer of Kelington Group Bhd, stated, “We are pleased with the commendable results across our business divisions, which lay a solid foundation for the year. Our order book continues to replenish at a steady pace.” “Since the beginning of the year, we have secured contracts worth RM235 million as of 31 March 2024. Including carried forward projects, our total order book stands at RM1.54 billion, with RM1.25 billion still outstanding as of 31 March 2024.” “The start of operations at our second LCO2 plant in March 2024 has doubled our annual production capacity to 120,000 tonnes. This expanded capacity strategically positions us to meet the growing demand both locally and internationally, especially given the global LCO2 shortage driven by the shutdown of petrochemical plants due to environmental concerns,” he added. As of 31 March 2024, the Group’s gearing ratio improved to 0.44. Total borrowings decreased to RM166.6 million from RM188.2 million as of 31 December 2023, primarily due to debt repayments in Malaysia and Singapore. Kelington maintains a robust balance sheet with a net cash position of RM135.5 million as of 31 March 2024, significantly up from RM81 million as of 31 December 2023, largely due to debt repayments and proceeds from nearing the completion of several large projects. The Board of Directors of Kelington has proposed a first interim tax-exempt dividend of 2 sen per ordinary share for the financial year ending 31 December 2024, amounting to RM13.3 million.

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