Investment & Market Trends

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.

KUALA LUMPUR: Main market-listed leading innovator and manufacturer of high-performance test contacting solutions for global integrated circuit (IC) makers, JF Technology Bhd (JFT) posted revenue of RM10.9 million for the second quarter (Q2) ended December 31, 2023 (FY24) from RM11.0 million posted in the same quarter last year. Contribution from China rose 73.2 per cent year-on-year (YoY) to RM5.6 million for Q2 FY24 from RM3.2 million a year ago. Following the aforementioned change in the product mix contribution of the company, net profit came in lower at RM1.3 million compared to RM2.9 million posted in Q2 FY23. Managing director Datuk Foong Wei Kuong said looking ahead, the global semiconductor industry is anticipated to expand by 13.1 per cent to US$588.4 billion based on the latest estimates by the Semiconductor Industry Association (SIA) and World Semiconductor Trade Statistics (WSTS). “This double-digit rebound is certainly good news for the sector including the JFT, especially after a challenging year for all semiconductors players in 2023. “The exciting industry outlook bodes well for the company as we are ready to ride on this recovery. “Our new test contacting centre of excellence in Kota Damansara provides us with ample space and capacity to seize these opportunities. “On the other hand, JFT’s facility in China continues to chart good progress with healthy utilisation and rising demand. More excitingly, our footage in China has brought more possibilities for the company,” Foong said in a statement. For the first half of FY24, JFT reported a revenue of RM21.6 million, slightly lower than the RM22.5 million achieved a year ago. The contributions from the test interface products division and manufacturing facility in Kunshan, China, have allowed the company to offset the persisting slowdown in the semiconductor industry, impacting the demand for its test contacting sockets. Meanwhile, 1H FY24 net profit net profit stood at RM4.3 million compared to RM7.3 million in the previous year’s corresponding period. This was due to the company’s change in product mix contribution as these businesses are still advancing towards their optimal level. JFT had established a joint venture (JV) company in Malaysia with Shenzhen HFC Co Ltd to design and manufacture electromagnetic interference (EMI) shielding materials, thermal interface materials, and absorbing materials. Shenzhen HFC specialises in integrated research and development (R&D), manufacturing and sale of EMI shielding materials, thermal interface materials, wave-absorbing materials and ferrite. It presently serves a diverse range of industries and applications, including artificial intelligence (AI), semiconductors, smartphones, electric vehicles (EV), telecommunications as well as electronics manufacturing services (EMS). “We are delighted to share that the JV has progressed well, with machine installation commencing soon, followed by production. “JFT is excited by the synergies and potential from this arrangement, which is also part of our JF 4.0 transformation. “This latest phase aims to move JFT and Malaysia further up the semiconductor value chain. “We will be harnessing our resilient and sustainable business model with recurring and compounding sales of test consumables across diverse industries, while at the same time seeking more collaborations with high-value and niche high-tech companies,” he said. “On balance, the long-term outlook of JFT is bright, and the board expects the FY24 financial performance to be satisfactory, barring any unforeseen circumstances,” Foong said.

KUALA LUMPUR: Health-oriented and wellness consumer product direct-selling company, DXN Holdings Bhd (DHB) has made its entry into the Brazilian market as the company is optimistic about the growth prospects in the country. Non-independent executive chairman and founder Datuk Lim Siow Jin said his optimism on the growth prospects in Brazil stemmed from the country’s significant population of over 210 million and increasing urbanisation, which presents opportunities for consumer businesses like DXN. “Our strategic entry into Brazil is aimed at leveraging the strong brand presence and success DHB has achieved in other Latin American countries including Mexico, Peru, Bolivia, Columbia, and more. “DHB’s marketing strategy allows any of our global members to conduct and grow their business in any country where the company operates without geographical constraints. We are confident about the potential our members have in expanding into Brazil,” he said in a recent statement. DHB has set a plan to open its office in Sao Paulo in March 2024. “So far, DHB has successfully registered 10 products which are already approved for the Brazilian market. “Our flagship instant coffee product aligns well with Brazil’s rich coffee culture, enhancing our confidence in capturing market share there,” he said. Lim said the interest in health supplements that improve wellbeing is on the rise globally and DHB’s offerings, which include products formulated with herbs and medicinal plants such as spirulina, and lion’s mane mushroom, are well-positioned within this expanding market. “As the health supplement sector continues to grow, there is a significant opportunity for DHB to accelerate global expansion efforts to capitalise on this rising market,” Lim said. The company is expanding its product portfolio in alignment with dynamic consumer demands. In addition, DHB is actively in the process of establishing another branch office in Brazil as part of its strategic efforts to expand its market presence in the country. To support DHB’s growth in the Latin America region, the company’s second production facility in Mexico is now operational, with a size 2.8 times that of the first, and is involved in manufacturing coffee products, food supplements and beverages. Since DHB entered into the Latin America region in 2004, the company has strengthened its network there to 3.6 million members. Sales from the region have been instrumental in DHB’s revenue growth, accounting for 60 per cent of total revenue in the 9-month financial period ended November 30, 2023. DHB’s entry into the Brazilian market is expected to further enhance this growth trajectory.

KUALA LUMPUR: Danone Specialized Nutrition (Malaysia) Sdn Bhd and Danone Specialized Nutrition (Singapore) Pte Ltd have become certified B Corporation in Malaysia, further recognising and deepening their commitment to social and environmental responsibility. Danone Malaysia and Singapore country manager Koh Kok Meng said becoming a certified B Corporation is putting the flag in the sand to say that Danone Malaysia is committed to the impacts the company has on the environment and communities it serves. “When we started our B Corporation certification, the team was at the forefront of what we could do collectively as an organisation. “Being a B Corporation is the ultimate badge of honour for our organisation to have, and today, we are proud to be part of the sustainable global community movement toward a more equitable future,” he said in a recent statement.Danone underwent a rigorous and extensive review of its environmental, social practices and policies. With this certification, Danone Malaysia and Singapore will be held to high standards of accountability, undergoing a recertification process every three years to update its impact assessment and recertify as a B Corporation. Danone Malaysia and Singapore join among the ranks of 50 purpose-led businesses in Malaysia and Singapore that meet highly verified standards of social and environmental performance, transparency, and accountability. As a specialised nutrition company, it has positioned itself as an advocate of iron deficiency anaemia (IDA) among Malaysian children. The Iron Strong Study was conducted in a collaborative effort with the University Malaya Medical Centre (UMMC) to understand the prevalence of anaemia risk amongst Malaysian young children using a non–invasive screening device. This multi-site clinical study was conducted for six months across selected government clinics in Kelantan, Johor, Selangor, and Sabah. The findings from the clinical study will further help to raise awareness of this critical issue provide a solution to improve the nutrition status in Malaysia and emphasise the importance of early intervention through proactive screening for anaemia by including it as part of primary care health screening programs.

KUALA LUMPUR: The Securities Commission Malaysia (SC) has widened its sophisticated investor categories in a move to increase capital market accessibility. The new Guidelines on Categories of Sophisticated Investors, which took effect recently, reinforce the SC’s commitment to maintaining capital market competitiveness and vibrancy while promoting greater investor participation. SC chairman Datuk Seri Dr Awang Adek Hussin said the growing sophistication of the Malaysian capital market has resulted in varied financing needs and investment risk appetites. “The criteria for sophisticated investors have been broadened to include a wider range of individuals who can contribute to the market’s growth and stability. “In 2023, the domestic capital market grew to RM3.8 trillion from RM3.6 trillion in the previous year. “This presents significant opportunities for the market to attract a more diverse investor base regionally and encourage greater capital flow into sophisticated product and market segments,” he said in a recent statement SC also noted that the key features of the expansion include a new category that takes into account the knowledge and experience of sophisticated investors. In addition, enhancements to current categories are made, allowing flexibilities of existing financial thresholds for high-net-worth individuals. The new Knowledge and Experience category will benefit individuals who do not meet financial tests but can demonstrate financial knowledge sophistication to participate in relevant market offerings. This category assesses potential investors based on their education, recognised financial association membership, and practical experience in relevant sectors such as banking, capital markets or insurance. Another key change is the inclusion of an investor’s primary residence value, up to a cap of RM1 million, in assessing their qualification as a sophisticated investor. The definition of a joint account is also expanded to incorporate accounts with a spouse or child, including total net joint annual income and investment portfolios. This expansion will better depict a family’s collective financial status and investment potential. The Guidelines on Categories of Sophisticated Investors are available on the SC website. Consequently, all relevant guidelines have also been updated regarding sophisticated investors.