Investment & Market Trends

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.

Kimlun Corp Bhd has issued Islamic commercial papers (ICP) with a nominal value of RM26.4 million under its existing ICP programme. In a filing on April 28, the group said the issuance has a tenure of six months and forms part of its ICP programme, which, together with its Islamic medium-term notes programme, carries a combined limit of up to RM800 million. The programme is structured under the Shariah principle of murabahah via a tawarruq arrangement, in line with terms lodged with the Securities Commission in October 2021. Kimlun said proceeds from the issuance will be used for Shariah-compliant general corporate purposes, including working capital, capital expenditure and refinancing of existing borrowings across the group. OCBC Al-Amin Bank Bhd is acting as the lead manager for the issuance.

Bank Negara Malaysia (BNM) has introduced the SME Stabilisation Relief Facility (SME SRF), a RM5 billion financing scheme to support small and medium enterprises (SMEs), including microenterprises, affected by the ongoing West Asia conflict. In a statement, the central bank said some SMEs are facing operational disruptions, cash flow pressure and difficulty meeting short-term financial obligations. The facility was announced following the prime minister’s roundtable discussion with financial institution CEOs on April 21, 2026. It is aimed at providing working capital support to help viable businesses continue operations during the period of uncertainty. Eligible SMEs can obtain financing of up to RM750,000 with a repayment period of up to five years. The maximum financing rate is 3.75% per annum, inclusive of guarantee fees. BNM said the loans will be supported by guarantees of up to 80% from Credit Guarantee Corporation Malaysia or Syarikat Jaminan Pembiayaan Perniagaan, especially for SMEs without sufficient collateral. Applications will be open from May 15, 2026 to December 31, 2026, or until the funds are fully utilised. SMEs can apply directly through participating financial institutions, including commercial banks, Islamic banks and development financial institutions regulated by BNM. The central bank urged businesses facing or expecting financial difficulties to engage early with their banks, noting that early communication allows lenders to explore solutions such as repayment flexibility, restructuring or other support measures. BNM added that financial institutions are ready to assist affected SMEs during this period. Businesses may also seek support from Agensi Kaunseling dan Pengurusan Kredit (AKPK), including debt management programmes for individuals and sole proprietors, as well as the Small Debt Resolution Scheme for SMEs.

CIMB named sole principal adviser, arranger and facility agent for Malaysia’s first tokenised sukuk by Khazanah and SC CIMB Group Holdings Bhd has announced its role as the sole principal adviser, sole lead arranger and sole facility agent for Malaysia’s inaugural tokenised sukuk issued by Khazanah Nasional and the Securities Commission Malaysia. Chu Kok Wei, CEO of group wholesale banking for CIMB. In a statement, the bank said the issuance reflects collaboration between regulators and market participants to explore the use of distributed ledger technology to improve efficiency, transparency and execution, while maintaining strong governance and market integrity. The initiative also strengthens Malaysia’s position as a key hub for Islamic finance innovation, particularly in developing next-generation capital market instruments. “Khazanah’s inaugural tokenised sukuk represents an important step forward in advancing the practical application within a controlled and credible framework. It demonstrates how digital capabilities can be explored within existing capital market structures in a disciplined manner, while remaining aligned with established market practices. We are focused on supporting this milestone by working closely with regulators and partners to ensure that emerging structures are operationally sound, scalable and aligned with market expectations,” said Chu Kok Wei, CEO of Group Wholesale Banking at CIMB. CIMB said it will continue working with regulators and industry stakeholders to support the development of tokenised financial solutions and the wider digitalisation of financial markets.

Khazanah Nasional Berhad and the Securities Commission Malaysia (SC) have priced Malaysia’s first tokenised sukuk, a RM100 million issuance built on distributed ledger technology (DLT). The tokenised sukuk creates a secure digital version of the Islamic bond, allowing it to be issued and transferred as a token on a shared digital ledger. The issuance is the first tranche under Khazanah’s Sukuk Danum Programme, an Islamic Medium-Term Notes (IMTN) programme of up to RM20 billion. It carries a one-year tenure and is structured under the Shariah principle of Wakalah bi al-Istithmar, where an investment agent manages funds on behalf of investors. CIMB Group and Maybank acted as advisers and arrangers, while Credit Guarantee Corporation Malaysia (CGC), Kumpulan Wang Persaraan (Diperbadankan) (KWAP), OCBC Bank (Malaysia) and other institutional investors took part in the issuance. CIMB had previously committed to supporting the tokenised sukuk pilot across structuring, execution, custody and servicing. Khazanah and the SC said the issuance is a controlled pilot to test how blockchain technology can improve efficiency in sukuk issuance, settlement and post-issuance processes. The SC is running the pilot under its innovation framework to support future adoption by corporate issuers. “This is not about introducing a new product for its own sake, but about building the foundations for a more efficient and transparent market over time,” said Khazanah managing director Dato’ Amirul Feisal Wan Zahir. SC executive chairman Dato’ Mohammad Faiz Azmi said the pilot supports the Capital Market Masterplan 2026–2030, which targets growth of Malaysia’s capital market to RM5.8 trillion–RM6.3 trillion by 2030, with bond and sukuk market modernisation as a key focus. “Tokenisation offers potential to improve transparency, broaden participation and support a more vibrant market,” he said. Malaysia’s broader push into asset tokenisation is also advancing through Bank Negara Malaysia’s Digital Asset Innovation Hub, which is exploring tokenised deposits and stablecoin use cases with major financial institutions. The initiative is part of efforts to modernise Malaysia’s RM2.4 trillion Islamic capital market, including improving transparency, automation and accessibility through digital assets.

Pimpinan Ehsan Bhd (KL:PEB) has proposed to return RM62.9 million in cash to shareholders and voluntarily delist from Bursa Malaysia after its long-running PN16 regularisation plan with reNIKOLA Holdings Sdn Bhd fell through. In a Bursa filing on Tuesday, the company said it plans a capital reduction exercise to distribute 91 sen per share to eligible shareholders, with the date to be announced later. The proposed payout will be funded from cash reserves held in a custodian account, which stood at about RM65.17 million as at April 22, including interest earned. Major shareholder Pitahaya (M) Sdn Bhd, which holds a 37.4% stake, is expected to receive about RM23.53 million. Substantial shareholder and director Lim Beng Guan, who owns 9.36%, is set to receive around RM5.89 million. The proposal is subject to shareholder approval, court confirmation for the capital reduction, and Bursa Malaysia’s approval for the delisting. The group aims to complete the process by the third quarter of 2026. The move follows reNIKOLA’s decision to withdraw from the proposed regularisation plan, which led Pimpinan Ehsan to conclude it would not meet Bursa’s June 30 deadline to submit a new plan. The company said returning cash to shareholders is the best option in light of the situation. After the cash distribution and delisting, it also plans to proceed with a voluntary winding-up, with any remaining funds to be distributed to shareholders. Pimpinan Ehsan has been classified as a PN16 cash company since 2018 after disposing of its TRIplc Bhd subsidiary. It had since attempted to regularise its status through renewable energy asset injections involving reNIKOLA, but the plan was ultimately abandoned. Shares of Pimpinan Ehsan were untraded on Tuesday. The counter last closed at 81.5 sen, valuing the company at RM56.3 million.