Investment & Market Trends

Gadang Holdings Bhd has announced that it has secured its second contract to widen a section of the Kuala Lumpur-Karak Highway, with the latest project valued at RM95.14 million. The award was granted to Gadang’s wholly owned subsidiary, Gadang Engineering (M) Sdn Bhd, by AFA Construction and Engineering Sdn Bhd (AFACE), according to a Bursa Malaysia filing on Monday. This latest contract forms part of a larger highway widening programme covering the stretch from KM19.2 to KM64.5, specifically under Package 1A. The project is scheduled to span 18 months and is expected to be completed by the second half of 2027. Gadang said the new contract is anticipated to contribute positively to the group’s earnings over the duration of the project. This follows a similar widening project awarded to Gadang in June last year, valued at RM92.5 million and set for completion in the final quarter of 2026. Together, the two projects reflect Gadang’s growing presence and expertise in infrastructure development, particularly in major highway construction and expansion works. AFACE, the awarding entity, is a subsidiary of AFA Prime Bhd (formerly Anih Bhd), the concessionaire of the Kuala Lumpur–Karak Highway. AFA Prime is wholly owned by Tan Sri Dr Azmil Khalili Khalid. Gadang shares closed unchanged at 22.5 sen on Monday, giving the group a market valuation of RM180.2 million. The stock has experienced a 25% decline over the past year, despite the steady flow of infrastructure contracts. The company said that the KL-Karak Highway projects demonstrate its capability to handle large-scale civil engineering works and strengthen its position as a key contractor in Malaysia’s infrastructure sector. With multiple ongoing projects in its order book, Gadang is positioning itself to benefit from the continued expansion of highway and transportation networks across the country.

TSR Capital Bhd, together with an undisclosed joint venture partner, has secured a RM99 million contract to widen a section of the Kuala Lumpur-Karak Highway. The contract was awarded to TSR Capital’s wholly owned subsidiary, TSR Bina Sdn Bhd, by AFA Construction and Engineering Sdn Bhd (AFACE), a unit of AFA Prime Bhd, the highway’s concessionaire wholly owned by Tan Sri Dr Azmil Khalili Khalid. The project covers Package 1B of the broader highway widening programme, spanning KM19.2 to KM64.5, and involves earthworks and related construction activities. Work is scheduled to begin in the second quarter of 2026. TSR Capital said the project will contribute positively to its order book and overall financial performance. Executive Director Lim Dian Ping described the award as a key step in the group’s expansion in Malaysia’s infrastructure construction sector. “With our expertise in earthworks and civil engineering, TSR Capital is well-positioned to take advantage of growing highway and transportation projects nationwide,” he said. Lim added that the group is committed to completing the project safely, efficiently, and professionally, reinforcing its reputation as a reliable infrastructure contractor. Shares in TSR Capital closed at 23 sen on Monday, valuing the company at RM40.12 million. The stock has remained largely flat over the past year.

Carlsberg A/S has started preparations for a potential initial public offering (IPO) of its India business, which could raise up to US$700 million (RM2.73 billion), according to sources familiar with the matter. The brewer has appointed Kotak Mahindra Capital Co and the Indian units of JPMorgan Chase & Co and Citigroup Inc as advisers for the proposed listing. A draft prospectus could be filed as early as May, the sources said, though details of the transaction, including timing, size, and structure, are still being finalised. The offering is expected to be a secondary share sale by Carlsberg’s parent company and could take place later this year. If completed, the IPO would place Carlsberg alongside several multinational companies that have recently listed Indian operations to tap into the country’s growing investor market. Hyundai Motor Co, LG Electronics Inc, and Carraro India Ltd have all listed in the last two years, and Pernod Ricard SA is reportedly considering a similar move. Carlsberg India is the country’s second-largest brewer, holding roughly a 22% share of the beer market. The unit generated around 90 billion rupees (RM3.87 billion) in revenue for the fiscal year ending March 2025. “Carlsberg is exploring options to increase shareholder value, which may include an IPO of our Indian business, but no final decision has been made,” said Kenni Leth, head of external communications at Carlsberg.

Citigroup announced on Monday that it has signed agreements to sell a 24% stake in Banamex to a group of institutional investors and family offices for approximately US$2.5 billion (RM9.74 billion). The investor group includes General Atlantic, Afore Sura (a unit of Colombia’s Sura), Brazil’s BTG Pactual, Chubb, and funds managed by Blackstone, Liberty Strategic Capital and the Qatar Investment Authority. Once the transaction is completed — expected later this year — Citi’s ownership in Banamex will be reduced to 49%. Each investor will be allowed to acquire up to a 4.9% stake. The sale follows an earlier transaction in December, when Citi sold a 25% stake in Banamex to Mexican businessman Fernando Chico Pardo, who currently chairs the bank’s board. Pardo is involved in the latest agreement with the new minority investors. Citi said it does not expect to carry out further share sales in 2026, giving the current investor group time to enhance the bank’s value. The bank also confirmed that it still plans to proceed with Banamex’s proposed initial public offering (IPO). According to Citi’s head of International, Ernesto Cantu, the timing and structure of the IPO will depend on market conditions, financial factors and regulatory approvals.

Panama has officially cancelled key port concessions held by a subsidiary of Hong Kong-based CK Hutchison, paving the way for Maersk and Mediterranean Shipping Company (MSC) to temporarily take over operations. The decision was published in the government’s official gazette on Monday, finalising a Supreme Court ruling that annulled the contracts for the Balboa and Cristobal terminals near the Panama Canal. The ports had been operated by Panama Ports Company, a CK Hutchison unit, for nearly 30 years. Following the ruling, the Panama Maritime Authority (AMP) took control of the two ports to ensure operations continue without disruption. The government has approved temporary concessions of up to 18 months. Under the arrangement, APM Terminals Panama, a Maersk subsidiary, will operate the Balboa terminal, while TIL Panama, part of MSC, will manage Cristobal. CK Hutchison did not immediately comment. Previously, the company said it had notified Panama of a dispute under an investment-protection treaty and warned of possible legal action if any takeover proceeds without its agreement. It has also indicated it may seek international arbitration to challenge the court’s decision. The move could complicate CK Hutchison’s proposed US$23 billion global port sale to a consortium led by BlackRock and MSC, which includes the Panamanian terminals. The ruling comes amid heightened US-China tensions over strategic trade routes. US President Donald Trump has called for reducing Chinese influence around the Panama Canal, a key waterway that handles about 5% of global maritime trade. Panamanian President Jose Raul Mulino said the temporary contracts are a legal mechanism to maintain port operations while the government works on a new competitive concession framework. He stressed that the move does not amount to expropriation and assured that port operations and jobs will not be affected during the transition. Maersk has not yet issued a statement.

Maxis Bhd is understood to have held high-level discussions with shareholders of U Mobile Sdn Bhd about a potential acquisition, but negotiations have reportedly stalled due to disagreements over valuation. Sources familiar with the matter said U Mobile’s shareholders are seeking RM14 billion, which Maxis considers too high. It is unclear whether the proposed offer involved cash, shares, or a combination of both. Neither Maxis nor U Mobile responded to queries. A source close to Usaha Tegas Sdn Bhd — the investment vehicle of the late billionaire Ananda Krishnan, which controls 62.24% of Maxis — confirmed that talks had taken place but have been stalled for about four months. “The issue is pricing. The asking price is too high,” the source said, adding that the valuation appears unjustified given current industry conditions. The source pointed to Digital Nasional Bhd’s (DNB) financial struggles as an example. For the financial year ended December 2024, DNB posted an after-tax loss of RM1.21 billion on revenue of RM341.17 million. As at end-2024, it had total assets of RM4.67 billion and liabilities of RM6.42 billion, with accumulated losses of RM3.16 billion. Market speculation about a Maxis-U Mobile deal has been circulating since mid-2024. Reports previously indicated that U Mobile had rejected earlier offers and was considering an initial public offering (IPO). U Mobile was appointed in November 2024 to deploy Malaysia’s second 5G network, with the official award issued in March 2025. This strategic role is seen as strengthening its bargaining position. According to one source, Maxis had reportedly increased its offer to RM12 billion from an earlier RM10 billion, but shareholders, including Tan Sri Vincent Tan, declined the proposal. Tan’s valuation expectations are said to be supported by IPO plans that could value U Mobile between RM11 billion and RM12 billion. Some bankers said they were aware of market talk about a potential merger but had not received formal instructions from Maxis. The telco has denied issuing any request for proposal to banks regarding the matter. As at end-2024, U Mobile had total assets of RM5.98 billion and liabilities of RM8.02 billion. It recorded a net loss of RM722 million for FY2024 on revenue of RM3.73 billion, bringing accumulated losses to RM4.67 billion. Maxis, in comparison, reported a net profit of RM1.56 billion on revenue of RM10.63 billion for its financial year ended December 2025. It had RM458 million in cash and deposits, total borrowings of RM8.98 billion, and reserves of RM3.54 billion. Maxis shares closed at RM3.83 last Thursday, giving the company a market capitalisation of RM30 billion. Whether discussions between the two parties will resume remains uncertain.

The Malaysian Anti-Corruption Commission (MACC) is set to summon the economy ministry’s secretary-general as part of its ongoing investigation into a RM1.1 billion agreement between the government and a foreign company. Several other witnesses are also expected to be called in connection with the probe, which has attracted significant attention from both the public and political observers. According to a source familiar with the investigation, the deal was allegedly fast-tracked without obtaining approval from key government agencies, including the finance ministry and the investment, trade and industry ministry. The source added that the agreement was pushed through in a manner that raised questions about its transparency and adherence to proper procedures. Reports indicate that several individuals who previously worked in the government have since taken up senior positions in the foreign company involved. This development has sparked further scrutiny, with critics suggesting potential conflicts of interest and highlighting concerns over governance and accountability. The investigation reportedly began after complaints were lodged by non-governmental organisations (NGOs), which claimed that the agreement was concluded hastily and in a way that did not serve the government’s best interests. Observers note that the MACC’s move to summon high-ranking officials reflects the seriousness of the allegations and the need to ensure a thorough review of the deal. The foreign company at the center of the controversy is Arm Holdings, a globally recognised semiconductor firm. Former economy minister Rafizi Ramli has previously commented on the issue, claiming that the controversy was being amplified to portray him in a negative light. He suggested that the media and political narratives surrounding the deal may have been used to create a perception of wrongdoing. MACC’s investigation is expected to explore multiple aspects of the agreement, including the approval process, the timing of the deal, the role of government officials, and any potential personal benefits gained by former civil servants. The commission’s inquiry is also likely to examine whether the deal adhered to established procurement guidelines and whether proper oversight mechanisms were followed. As the investigation unfolds, the summoning of the economy ministry’s secretary-general and other key witnesses underscores the MACC’s commitment to holding government officials accountable and ensuring transparency in large-scale agreements. The findings of the probe could have significant implications for public trust in government processes, particularly in high-value deals involving foreign firms and strategic sectors such as technology and semiconductors.

Maya is reportedly exploring an initial public offering (IPO) in the United States that could raise between US$500 million and US$1 billion. The company has not confirmed the reports, describing them as market speculation, and says its current focus remains on expanding its ecosystem for consumers and businesses in the Philippines. The fintech firm, the digital banking arm of PLDT Inc., operates as a licensed digital bank under the Bangko Sentral ng Pilipinas. Since evolving from an e-wallet, Maya has grown into a full financial platform offering savings, loans, merchant services, and cryptocurrency trading. Maya has shown consistent financial growth. In Q3 2025, it reported its third consecutive profitable quarter, posting a net income of PHP 532 million. Deposit balances reached PHP 57 billion, up 59% year-on-year, while total loan disbursements since launch have hit PHP 187 billion. The platform currently serves nine million bank users and 2.4 million borrowers. A US listing would give Maya access to larger capital pools and a broader base of institutional investors than the local market. Meanwhile, the company stresses its stable financial position, noting it remains well-capitalised and supported by shareholders to continue executing its growth plans.

Dentsu has posted a record net loss of ¥327.6 billion (US$2.18 billion) for FY2025, leading to major leadership changes, a suspension of dividends and further job reductions across its international operations. The loss was mainly due to an additional ¥310.1 billion goodwill impairment recorded in the fourth quarter, largely linked to its overseas business. Management described the move as a conservative reassessment of the group’s medium-term growth outlook. Following the write-down, Dentsu’s goodwill stood at ¥320.1 billion at year-end, down from ¥697.1 billion the previous year. Despite the headline loss, the company’s core operations remained stable. Dentsu achieved an operating margin of 14.4%, exceeding its earlier guidance of around 13%, supported by cost controls and efficiency improvements. Leadership Change President and Global CEO Hiroshi Igarashi will step down, with Takeshi Sano, currently head of dentsu Japan, taking over from March 27. Sano plans to introduce a flatter and faster decision-making structure, with regional leaders reporting directly to him. The aim is to improve responsiveness, simplify operations and strengthen oversight across markets. More Job Cuts Planned As part of a ¥52 billion restructuring programme, Dentsu has already cut 2,100 jobs in FY2025 and plans to eliminate a further 1,300 roles in 2026, mainly in its international business. The company is also consolidating subsidiaries, simplifying headquarters functions and increasing automation. Since 2021, Dentsu has reduced its international entities from over 1,000 to about half that number in a broader effort to streamline operations. Dividend Suspended For the first time in its history, Dentsu will suspend its year-end dividend and has indicated that no dividend will be paid for FY2026. Management said the decision, while regrettable, is necessary to strengthen the balance sheet and maintain financial flexibility. Revenue growth remains modest. The group recorded 0.5% growth in 2025 and expects organic growth of between 0% and 1% in 2026. Its international business is projected to remain flat, while Japan continues to perform strongly. Japan Outperforms, Overseas Markets Lag Dentsu’s Japan business delivered 6.2% organic growth in 2025, achieving record net revenue and operating profit for the fifth consecutive year. In contrast, several overseas markets reported flat or negative growth. However, cost-cutting measures helped some previously underperforming markets, such as Australia, return to operating profitability. Industry-Wide Pressures Dentsu’s restructuring reflects broader challenges facing global advertising holding companies. Clients are increasingly demanding leaner, technology-driven solutions, while artificial intelligence is reshaping creative, media and data services. As brands shift more spending in-house or to specialised digital firms, large agency networks are under pressure to simplify structures and sharpen their value propositions. Incoming CEO Sano said the next phase of transformation will focus on speed, transparency and closer alignment with client needs, as Dentsu works to rebuild competitiveness and restore investor confidence.

HSBC has reduced its US-based debt capital markets (DCM) team by 10%, continuing its cost-cutting efforts following a major business overhaul announced last October, according to sources familiar with the matter. At least six employees in New York were let go on Thursday, including one managing director, two directors, two associates, and one analyst, the sources said. HSBC cuts 10% of US debt capital markets team amid overhaul The cuts are part of a wider cost-reduction programme implemented by CEO Georges Elhedery, who aims to streamline management layers and reduce employee costs by 8%, targeting total savings of US$1.8 billion (RM7.03 billion). Since taking over in 2024, Elhedery has merged HSBC’s commercial and investment banking units and reorganised operations in the UK and Hong Kong into standalone businesses. The bank has also scaled back on M&A and equity capital markets activities in the UK, Europe, and the US, shifting its focus to Asia and the Middle East. An HSBC spokesperson declined to comment on individual departures but emphasised the bank’s commitment to retaining talent and expressed pride in its DCM business. HSBC is scheduled to report earnings on Wednesday, following strong fourth-quarter results from its US rivals. The bank has consistently ranked among the top 10 underwriters for US corporate debt over the past three years.