Investment & Market Trends

KUCHING: As Malaysia continues to stand as a prime location for business events in the Asia-Pacific region, the Malaysia Convention & Exhibition Bureau (MyCEB) and Business Events Sarawak (BE Sarawak) forged a partnership to bolster the country’s leading position as the destination for business events. On Monday, the Sheraton Hotel here became the focal point where MyCEB, BE Sarawak, and BE Sarawak Industry Partners and 100 stakeholders from various sectors engaged in a summit dialogue. The stakeholders included professional conference organisers, professional exhibition organisers, event management companies, destination management companies, and relevant government agencies. Central to the agenda of this event was the spotlight on MyCEB’s innovative incentive campaign – MyTripleE, unveiled in August 2023. This initiative showcased Malaysia’s offerings in the targeted market segments namely conventions, exhibitions, as well as corporate meetings and incentives, with a special focus on Sarawak and the state’s potential. The collaboration aims to engage with partners, such as travel agents, hotels, and product owners, in promoting and leveraging the MyTripleE campaign. MyCEB chief executive officer Azman Tambi Chik expressed his desire for the collaborative endeavour and said MyCEB is steadfast in its commitment to bolster the state of Sarawak’s business events and cultivate collaboration with the state bureau. “Our dedication extends to invigorate engagements and foster enduring partnerships. Therefore, we are here to champion the MyTripleE Campaign, highlighting Malaysia’s strengths and opportunities. It brings us great excitement to collaborate with BE Sarawak for this event, marking a significant milestone in propelling Malaysia’s business events sector forward.” Echoing this sentiment, BE Sarawak chief executive officer Amelia Roziman, emphasised the significance of strategic alliances in driving progress within the business events industry. “BE Sarawak will continue supporting MyCEB in propelling business events industry development. Our partnership and collaboration with MyCEB through the initiative of the MyTripleE campaign demonstrate an unwavering commitment to support and attract more business events to Sarawak while elevating Sarawak as a premier destination for business events in Asia.” MyCEB recorded a modest closing at 20 supported international events that brought together 19,173 total delegates with an estimated total economic impact of RM 155.9 million in 2023, for the state alone demonstrating its ability to bring the world together. With representation from around the globe, these large events showcased the state’s sophisticated event infrastructure, excellent connectivity, and engagement with the issues confronting businesses and society. As it becomes an increasingly important platform on the world stage, these strengths are being harnessed for business events of all sizes. MyCEB – BE Sarawak Engagement with BE Sarawak Industry Partners 2024 promises ample opportunities for networking, engagement, and collaboration with the state bureau and industry partners, reinforcing the shared dedication of MyCEB and BE Sarawak to fostering growth and innovation in the business events sector.

KUALA LUMPUR: Fertility care specialist Alpha IVF Group Bhd aim to raise RM466.5 million from its initial public offering (IPO) on the ACE market of Bursa Malaysia. The IPO exercise entails 1.45 billion shares in Alpha IVF priced at RM0.32 per share, comprising 364.5 million new shares and 1.09 billion offer-for-sale shares from eight offerors. Alpha IVF group executive director and group managing director Datuk Dr Colin Lee Soon Soo said the IPO marked the initiation of a new phase in the company’s growth strategy. He said of the targeted RM466.5 million IPO proceeds, RM116.6 million will be accrued to Alpha IVF, while the balance of RM349.9 million will be accrued entirely to the offerors. Out of the total proceeds of RM116.6 million received by Alpha IVF, RM72.8 million will be allocated to establish new IVF centres, satellite clinics, and sales representative offices as part of their expansion plan domestically and internationally. A further RM15.7 million will be allocated to expand and upgrade existing specialist centres, facilities, and corporate office, RM2.2 million for research and development (R&D). The remaining RM25.9 million is for general working capital, general corporate purposes, and defraying of listing expenses. “Since our inception, we have experienced remarkable growth, evolving from 11 staff to our current team of more than 140 staff. “From a single centre, we have expanded to operate three specialist centres, each dedicated to providing unparalleled care and expertise. “Most importantly, our hard work has resulted in the birth of over 7,000 precious babies in Malaysia and worldwide. “Through this IPO, we are looking to raise approximately RM116.6 million in total proceeds for Alpha IVF, which will help to support our capital expenditure and working capital requirements for future growth,” he said at the IPO prospectus launch yesterday. Lee said the first pillar of the growth strategy is domestic expansion, as the company aim to establish three full-fledged fertility centres in Malaysia by the financial year ending May 31, 2026 (FY26) Secondly, leveraging its success and experience, Alpha IVF intends to expand internationally by setting up additional IVF specialist centres and four satellite clinics in Indonesia. The four satellite clinics will be set-up in various cities in Indonesia as an extension of Alpha IVF specialist centre. “We plan to expand our reach by setting up another specialist centre elsewhere in Southeast Asia and two sales representative offices in China. “Finally, we plan to expand our R&D initiatives, including expanding our R&D team and purchasing laboratory equipment to aid in R&D. “Our R&D initiatives will mainly focus on technology and procedures to improve our pregnancy success rates,” Lee said. Lee said the increased R&D resources will allow Alpha IVF to stay current with the latest developments in vitro fertilisation (IVF) and help grow the business. AmInvestment Bank Bhd chief executive officer Tracy Chen Wee Keng said Alpha IVF’s entrance into Bursa Malaysia enriches the dynamics of the Malaysian healthcare landscape, presenting investors with a rare opportunity to invest in a leading player within a thriving industry. “The global demand for IVF treatment accentuates Alpha IVF’s strategic market positioning and its expansive growth potential, making its listing a pivotal asset to the vibrancy of the healthcare industry. “The strong endorsement from 8 top-tier insurance funds and renowned asset management firms in Malaysia, Singapore and Hong Kong, as cornerstone investors in Alpha IVF’s IPO, underscores the exceptional investment opportunity Alpha IVF presents. “The commitment from such esteemed financial institutions speak volumes about Alpha IVF’s promising prospects in the coming years,” she said. The IPO structure comprises an institutional offering of 1.23 billion shares to institutional and selected investors, including 607.5 million shares allocated to Bumiputera investors approved by the Ministry of Investment, Trade, and Industry (Malaysia). Among the total institutional offerings, 145.8 million are newly issued shares. The remaining 218.7 million new shares constitute the retail offering, with 194.4 million available to the Malaysian public through balloting. Additionally, 24.3 million shares are allocated to eligible directors, employees, and individuals who have contributed to the success of Alpha IVF. “Looking ahead, we see a surge in demand for IVF, driven by the increasing trend of starting a family late and government IVF incentives. “Our expansion aligns perfectly with the current landscape, allowing us to capitalise on these opportunities,” Lee said. The confidence of Alpha IVF’s management in its prospects sets the backdrop for its dividend policy. The company aims to distribute at least 60 per cent of the annual audited profit after tax attributable to shareholders to reward the shareholders. With the prospectus launched, applications for Alpha IVF’s IPO will be accepted starting Monday. Alpha IVF is scheduled to list on the ACE market of Bursa Malaysia on March 22, 2024. AmInvestment Bank is the principal adviser, sponsor, lead bookrunner, and sole underwriter for Alpha IVF’s IPO exercise.

KUALA LUMPUR: MARC Ratings Bhd has forecasted a firmer gross domestic product (GDP) growth for Malaysia at 4.2 per cent in 2024, reiterating its view of an anticipated recovery in the tourism and external sectors. The rating agency said these sectors will provide a much-needed boost for the services and manufacturing sectors. “Furthermore, the investment outlook for Malaysia is also expected to remain positive in 2024,” MARC said in a statement. Malaysia registered a slower GDP growth of 3.0 per cent in the fourth quarter (Q4) of 2023 as growth in the services sector moderated to 4.2 per cent, and the manufacturing sector remained tepid at 0.3 per cent. Consequently, the full-year 2023 GDP growth stood at 3.7 per cent from 8.7 per cent recorded in 2022. On the local currency, MARC said the ringgit continued to weaken against the greenback in February, partly attributable to the broad dollar strength amid the prospects of a higher-for-longer interest rate environment. Nevertheless, it said the ringgit has generally underperformed its regional counterparts against the dollar. Thus, the ringgit’s weakness highlights the need for robust structural reforms to enhance Malaysia’s capabilities in foreign currency accumulation, MARC noted. On bonds, MARC said the Malaysian Government Securities (MGS) market moved in tandem with the rise in US Treasury yields following the market’s pushback against the earlier expectations of more aggressive Fed rate cuts amid positive US economic data. “Going forward, the shifting interest rate trajectory in advanced economies and the ringgit’s weakness may lead to extended periods of volatility in the local bond market,” MARC noted. February saw a notable upswing in the domestic corporate bond market, witnessing a drop in yields for top-rated bonds across various categories. The buoyancy in the corporate bond market, coupled with the inflow of funds into the equity market, hints at an overall optimistic outlook among investors. Notably, the month witnessed a simultaneous decrease in corporate bond yields and an uptick in MGS yields, leading to a contraction in the spread between these well-rated corporate bonds and MGS, MARC said. Moving on, MARC said Malaysia’s headline inflation remained steady at 1.5 per cent in January. “We expect inflation to rise to 3.0 per cent in 2024, given the gradual rollout of subsidy rationalisation and other new tax measures, anticipated volatilities in commodity prices, and pressures from firmer domestic demand. “Given the upside risks to inflation, uncertain Fed interest rate trajectory, volatilities in the ringgit and ongoing geopolitical tensions, Bank Negara Malaysia will likely adopt a data-dependent approach and hold the Overnight Policy Rate (OPR) unchanged in its next Monetary Policy Committee meeting on March 7,” MARC said.

KUALA LUMPUR: Main Market-listed EP Manufacturing Bhd’s (EPMB) net profit surged more than 50-fold for the financial year ended December 31, 2023 (FY23), the highest since 2014. Revenue crossed the RM600 million mark for the first time, helped by strong demand for the company’s products. EPMB’s net profit for FY23 was RM20.22 million, compared to RM0.40 million in FY22. The company’s revenue was RM648.00 million, 25.5 per cent higher year-on-year (YoY). Group chief executive officer Ahmad Razlan Mohamed said the company’s improved results reflect the positive outcome of the transformational work started in early 2023, focusing on operation and cost optimisation. “Moving forward, we will continue to strengthen our core businesses and pursue new market opportunities with substantial growth potential,” he said in a statement. Ahmad Razlan said 2024 is set to be an exciting year for EPMB as the company will start the construction of its new vehicle assembly plant in Melaka. “We will manufacture and assemble vehicle models for BAIC International Development Co Ltd (BAIC) and Great Wall Motor Sales Malaysia (GWM). “Working with prominent automakers will help us build awareness, branding, credibility, and confidence across the industry. “I believe this will unlock even greater growth opportunities for EPMB, even as we continue moving up the value chain in line with Malaysia’s New Industrial Master Plan (NIMP) 2030,” Ahmad Razlan said. For the fourth quarter (Q4) FY23, EPMB reported revenue of RM199.64 million, its highest in history and a 26.0 per cent increase from RM158.38 million posted in Q3 FY23. Revenue growth was mainly attributed to an increase in sales of automotive parts. In line with the increased revenue, net profit was RM2.94 million, 617.1 per cent higher than RM0.41 million in Q3 FY23.

KUALA LUMPUR: Human capital management (HCM) solutions and technology provider Ramssol Group Bhd (RGB) signed a strategic distributorship agreement with Disprz, a software-as-a-service platform provider transforming employee development and readiness. This strategic alliance with Disprz further solidifies RGB’s commitment to enhancing employee development and readiness. With an estimated contract value of US$3 million or RM13.5 million, this strategic alliance underscores RGB’s commitment to delivering innovative solutions that empower organisations to thrive in today’s dynamic business landscape. RGB acting group chief operating officer Liew Yu Hoe said the company is excited to announce its distributorship agreement with Disprz, a renowned SaaS platform provider. “Through this strategic partnership, RGB will appoint resellers to distribute Disprz’s solutions across Indonesia, Malaysia, Singapore, and Thailand. “This collaboration allows RGB to expand our portfolio by offering Disprz’s people development and readiness platform, designed to optimise organisational performance and efficiency,” he said in a statement. Disprz offers a comprehensive ecosystem for skills and learning, catering to organisations of all sizes and industries. Their people development and readiness platform facilitates seamless onboarding, upskilling, engagement, and daily training activities, ultimately elevating employee proficiency across diverse domains. RGB’s enduring commitment to empowering organisations with modern solutions is exemplified by its flagship product, PeopleTech, which remains at the forefront of the industry. Disprz’s ecosystem for skills and learning provides solutions for every stage of an organisation’s learning journey, from onboarding to upskilling and ongoing training. By leveraging Disprz’s platform, organisations can enhance employee productivity, engagement, and performance across various functional areas, including sales, marketing, operations, customer support, technology, and research and development.

KUALA LUMPUR: TWL Holdings Bhd (THB) posted a revenue of RM6.82 million for the second quarter (Q2) ended December 31, 2023 (FY23), a growth of 10 per cent from RM0.65 million posted in the same quarter last year. Net profit surged 1,450 per cent to RM2.82 million from a net loss of RM4.82 million in Q2 FY22. The revenue growth is mainly attributed to the increased sale of its residential properties while the growth in net profit is attributed to lower administration expenses incurred and higher profit margin from the sale of its residential properties. For the six months of FY23, THB posted RM16.17 million in revenue, a growth of RM6.89 million or 74 per cent from RM9.27 million posted in the same period last year. The company also recorded a jump in net profit of RM6.45 million or 221 per cent, compared to a net loss of RM4.64 million posted last year. This marks the second consecutive profit-making quarter THB has recorded. THB’s property construction and development segment continues to be its mainstay, generating RM12.06 million in revenue and approximately 75 per cent of its total revenue. The plantation and timber segment, which consists of manufacturing and log trading activities, contributed approximately RM3.58 million to the total revenue. The medical healthcare segment, which consists of the distribution of medical gloves and healthcare products, meanwhile recorded approximately RM0.26 million in revenue, while the batching plant segment, which involves the production and supply of technical and customised concrete mix and other concrete-related products, recorded approximately RM0.13 million. The Others segment, comprising investment holding and dormant companies, contributed RM0.15 million to THB’s total revenue. Executive chairman Datuk Tan Wei Lian said the company expect to remain resilient and continue delivering robust financial performance throughout the year. “Our total assets and net cash, recorded at RM504.41 million and RM110.81 million, respectively, indicate our strong financial position that will serve us well as we continue executing our organic and inorganic growth plans such as mergers and acquisitions. “Moving forward, we will launch our affordable and mid-market properties, namely the Taman Pinggiran USJ (EN11), Subang Jaya, TWL Alam Impian, Shah Alam, and The Aster Residence, Cheras, with an estimated gross development value (GDV) of approximately RM675.8 million by the third quarter of 2024,” he said in a statement. Tan said the take-up rates have been encouraging so far, and with the various government initiatives and incentives under the Housing and Local Government Ministry’s New Home Ownership Programme (HOPE), the take-up rates for THB properties will gain more momentum. “In the meantime, we aim to press forward, leveraging our strong expertise in the affordable and mid-market housing sub-sector to cater to the continuously rising demand from Malaysian home buyers,” Tan said.

KUALA LUMPUR: Sustainable energy and engineering solutions specialist Kinergy Advancement Bhd (KAB) posted a revenue of RM199.41 million for the financial year ended December 31, 2023 (FY23), marking a 6.6 per cent increase from the previous year. The revenue growth was mainly due to the KAB’s strategic shift towards the sustainable energy segment (SES), which experienced a more than fivefold increase from the previous year. KAB’s net profit stood at RM28.88 million, showcasing a growth of more than tenfold from the RM2.78 million reported in FY22. The surge in the net earnings was mainly driven by an impressive 862.6 per cent growth in its SES segment results to RM36.10 million and further boosted by the substantiated gain from the completion of PT Inpola Mitra Elektrindo, a mini-hydropower plant in Indonesia in the third quarter (Q3) of FY23. Executive deputy chairman and group managing director Datuk Lai Keng Onn said the positive financial performance in FY23 is a testament to KAB’s resilience and strategic pivot towards sustainable energy solutions. “The remarkable performance in our SES segment, coupled with our continuous growth potential, underlines the significance of sustainable energy in meeting the escalating demand for cleaner energy today. “It also reaffirms our expertise in delivering solutions that can shape and contribute to a greener planet and greater positive environmental impact,” he said in a statement. For the fourth quarter (Q4) FY23, KAB’s revenue rose by 35.1 per cent to RM62.95 million, up from RM46.61 million in the same quarter last year. A significant highlight from this quarter’s earnings was the SES segment, surpassing the engineering segment to become KAB’s leading revenue generator, contributing 56.97 per cent to the total revenue. This was mainly due to contributions from new projects and new entities acquired for the SES segment. In line with the strong growth, KAB’s net profit surged by 399.1 per cent to RM2.65 million in Q4 FY23 as compared to RM0.53 million recorded in Q4 FY22. The significant improvement was mainly due to more lucrative tariffs and contributions from new projects. “KAB’s strategy in shifting our focus from engineering works in construction and property projects to higher-margin sustainable energy solutions has yielded a bountiful harvest throughout 2023. “Along with our record earnings, we are also on track to meeting our operational objectives and ESG, sustainability targets,” Lai said. He said KAB is also cautiously optimistic about its outlook going forward, led by the SES segment. The surge of earnings in KAB’s SES segment during FY23 reflects a robust demand for green, clean and renewable energy and the company’s successful integration of profitable projects and new entities in the SES segment. “Our outstanding performance in FY23 solidifies our role as a holistic energy and engineering solutions provider. “It’s gratifying to witness the success of our transformational journey, transitioning from an engineering to an Energy-focused entity. “The shift has proven rewarding, particularly with our expansion into the SES segment,” said Lai. He said FY23 had demonstrated the success of KAB’s strategic diversification into the SES segment, showcasing the significant potential for meeting future energy needs and facilitating energy transition. “Again, I strongly believe that the exceptional performance in FY23 reaffirms our position as a leading energy and engineering solutions provider,” he said.

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.