Investment & Market Trends

Guan Huat Seng Holdings Bhd, which is set to make its debut on Bursa Malaysia’s ACE Market on January 22, has posted a net profit of RM1.51 million and revenue of RM20.14 million for its first financial quarter ending October 31, 2025. This marks the company’s first interim financial report, so no prior period comparisons were available. The Melaka-based frozen food distributor reported a gross profit of RM5.18 million, representing a gross margin of 25.7%, while its net profit margin stood at 7.51%, highlighting a healthy start ahead of its market listing. In a filing with Bursa Malaysia, the company expressed optimism about its prospects, citing Malaysia’s resilient economy, rising household incomes, expanding industrial activities, and growing tourism as factors expected to support sustainable growth in the food and beverage sector as well as the retail market throughout 2026. Founded in 1979, Guan Huat Seng specializes in distributing halal-certified frozen and shelf-stable food products locally and exporting to international markets. The company’s product portfolio is aimed at serving both retail and wholesale customers, tapping into Malaysia’s growing consumer demand and export opportunities. The retail portion of the company’s initial public offering (IPO) was oversubscribed by 4.78 times, reflecting strong investor interest. The IPO involves the issuance of 120 million new shares at 25 sen each, raising up to RM30 million, while selling shareholders will receive RM5.25 million from the offer for sale. Proceeds from the IPO will be allocated to partially fund the construction of new facilities in Melaka, including an integrated complex in Batu Berendam and a manufacturing facility in Krubong. Additional funds will be used to support working capital needs and marketing initiatives to further expand the company’s market presence. Upon listing, Guan Huat Seng is expected to have a market capitalisation of RM118.38 million, positioning it as a growing player in Malaysia’s food and beverage distribution sector, ready to leverage both domestic and international opportunities.

Gold and silver surged to fresh record highs as escalating geopolitical tensions linked to US President Donald Trump’s renewed push to take control of Greenland rattled markets and fuelled safe-haven demand. Spot gold climbed to around US$4,660 an ounce, while silver jumped as much as 4.4%, supported by a weaker US dollar and heightened investor appetite for defensive assets. Market jitters intensified after the United States announced plans to impose tariffs on eight European countries — including France, Germany and the United Kingdom — that oppose the Greenland move. Initial levies of 10% are set to take effect on Feb 1, rising to 25% by June. European leaders are expected to convene emergency talks in the coming days to discuss possible countermeasures. Options under consideration include retaliatory tariffs on up to €93 billion (US$108 billion) worth of US goods, according to sources familiar with the discussions. French President Emmanuel Macron may also push for the activation of the European Union’s anti-coercion instrument, one of the bloc’s strongest trade retaliation tools. Analysts said the current tensions represent a deeper geopolitical rift compared with previous trade disputes. “Using tariff threats within alliances creates a trust shock that leaves a lasting risk premium,” said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. Precious metals have extended their strong rally this year, building on sharp gains in 2025, amid rising geopolitical risks, renewed pressure on the US Federal Reserve, and concerns over the independence of the central bank. These factors have strengthened the so-called debasement trade, as investors move away from currencies and government bonds. Demand has also been boosted by increased buying from China and a broader rotation into metals. Gold-backed exchange-traded fund holdings rose 0.9% last week, the largest weekly increase since September, and have expanded in seven of the past eight weeks. Bullish forecasts remain intact, with Citigroup Inc recently projecting gold prices could reach US$5,000 an ounce within three months, while silver may climb to US$100. “Geopolitical risks are intensifying, trade uncertainty is undermining growth, and confidence in the US dollar is weakening,” said Kyle Rodda, an analyst at Capital.com in Melbourne. “It’s an ideal environment for gold and silver.” In Asian trading, spot gold rose 1.4% to US$4,658.31 an ounce after touching an intraday high of US$4,690.59. Silver gained 3% to US$92.84, after hitting a peak of US$94.12. Platinum edged higher, palladium slipped, and the Bloomberg Dollar Spot Index fell 0.1%. Investors are also watching closely an upcoming US Supreme Court hearing on Trump’s bid to remove Federal Reserve governor Lisa Cook, which could have significant implications for the central bank’s independence.

Mitsubishi Corp has agreed to acquire Aethon Energy Management LLC’s US natural gas and pipeline assets in a US$5.2 billion (RM21.1 billion) deal, marking the largest investment by a Japanese firm in the American shale sector. The acquisition covers Aethon III LLC, Aethon United LP, and associated entities and interests, the company said on Friday. Negotiations for the deal have been ongoing since mid-2025. Including Aethon’s US$2.33 billion debt, the total enterprise value of the transaction reaches US$7.5 billion. Under the agreement, Aethon retains the right to repurchase up to 25% of its upstream and midstream assets. The move reflects Japanese energy firms’ growing interest in the US oil and gas sector, supported by incentives from the Trump administration to boost investment in North America. Mitsubishi, which counts Berkshire Hathaway as a major shareholder, is strengthening its position in one of its most profitable sectors—natural gas. “The US gas market is the world’s largest in terms of domestic demand, production, and exports, and demand is expected to rise further due to increasing power needs from AI and data centres,” Mitsubishi said. Aethon, based in Dallas, operates extensively in the Haynesville shale basin across eastern Texas and northern Louisiana, near key LNG export terminals. Founder Albert Huddleston and his family stand to gain substantially from the deal. Mitsubishi already holds stakes in US LNG export facilities, and the acquisition aligns with Japan’s push to secure energy supply amid expected growth in electricity demand driven by AI and digital infrastructure. Other Japanese energy companies have made similar moves in recent years, including Tokyo Gas Co’s US$2.7 billion purchase of Rockcliff Energy II LLC in 2023 and Jera Co’s recent shale gas investment in western Louisiana.

YTL Cement Bhd, the largest shareholder of Malayan Cement Bhd, is set to raise up to RM755 million by selling a 7.2% stake in the company through a secondary placement of up to 100 million shares. The shares are priced at RM7.55 each, representing a discount of 3.58% to the last closing price of RM7.83. The placement includes a base tranche of 65 million shares (4.7% of Malayan Cement’s existing share capital) and an upsized option for an additional 35 million shares, if fully exercised. The bookbuilding for the placement closed on Thursday, with payment and share allocation scheduled for Jan 20. YTL Cement currently holds a 65.4% stake in Malayan Cement, with Prudential plc as the second-largest shareholder at 8.43%. Over the past year, Malayan Cement’s shares have surged over 60% to a high of RM8.10, their highest since January 2017. At the time of writing, the stock was at RM7.70, giving the company a market capitalisation of RM10.64 billion.

Pestec International Bhd has announced that its wholly owned subsidiary, Pestech Sdn Bhd (PSB), has been served with a winding-up petition over an alleged debt of US$2.39 million (approximately RM9.69 million). The petition was filed by Pestech Engineering Technology (China) Co Ltd (PETC), a separate entity that is not affiliated with Pestec, despite the similarity in names, the company clarified in a filing to Bursa Malaysia. PSB, which specialises in high-voltage electrical systems, is now facing legal proceedings as a result of the petition. Pestec said it has sought legal advice and is taking all necessary measures to address the matter. The company also stressed that it does not anticipate any significant financial or operational impact from the petition. The court has set the first case management for April 6, 2026, marking the start of the legal process. Pestec’s shares last closed at 11 sen, giving the company a market capitalisation of RM268.52 million. The stock has declined roughly 40% over the past year, reflecting market pressures and investor caution amid the legal development. The company reassured shareholders that it remains committed to monitoring the situation closely and will provide updates as the case progresses.

Hengyuan Refining Co Bhd is aiming to return to profitability in the financial year ending Dec 31, 2026 (FY2026), after recording losses for three consecutive years amid prolonged volatility in the global oil market. The Port Dickson-based refiner said it has revamped its financial and risk management strategies and secured more stable crude oil feedstock supplies to support its turnaround. Chief financial officer Yeo Bee Hwan said these initiatives have strengthened the group’s foundation for a sustainable recovery. The group’s rights issue exercise, completed in October 2025, raised RM234 million and significantly bolstered its balance sheet. The funds enabled Hengyuan to secure more reliable crude supply, providing greater flexibility to optimise refinery throughput and lower production costs, which in turn supports healthier margins. Hengyuan began posting losses in FY2022 following heightened geopolitical tensions, particularly the prolonged Russia-Ukraine conflict. This led to sharp swings in global crude oil prices, which fluctuated between US$70 and US$112 per barrel within a year, severely disrupting supply-demand dynamics and refined product pricing. The volatility also affected the group’s hedging positions, weighing on earnings and prompting the suspension of dividend payments. Since 2022, Hengyuan’s share price has fallen about 74%, hitting a record low of 73 sen in November last year. In response, the company has recalibrated its hedging approach, shifting towards shorter-term contracts to better manage rapid movements in oil prices and protect margins. Early signs of recovery have emerged. Revenue bottomed out in the January–March quarter, while Hengyuan recorded a net profit of RM21.04 million in the July–September quarter of FY2025 — its strongest quarterly performance since the second quarter of FY2022. However, revenue for the third quarter declined to RM3.62 billion from RM4.12 billion a year earlier, reflecting ongoing market challenges. For the nine months ended Sept 30, 2025, the group still posted a net loss of RM332.65 million, largely due to losses incurred in the first half of the year. Crude oil prices have since stabilised at around US$63–64 per barrel, providing a more predictable operating environment. Hengyuan refines crude oil into gasoil (diesel), mogas (RON95 petrol) and jet fuel, supplying Malaysia’s transport and logistics sectors. Its key customers include Shell, Petroliam Nasional Bhd (Petronas), Petron and Five, with Shell accounting for about 60% of its refined product output. The company has also benefited from Malaysia’s petrol subsidy programme, Budi95, which compensates refiners directly for the price difference on subsidised RON95 petrol, supporting higher fuel consumption. Since 2017, Hengyuan has invested more than RM2.2 billion in refinery upgrades, largely funded through internal resources. The refinery has a production capacity of up to 156,000 barrels per day, with current utilisation at around 110,000 to 120,000 barrels per day, leaving room for further optimisation. As at end-September 2025, Hengyuan had cash and bank balances of RM676.37 million against borrowings of RM1.47 billion, resulting in a net gearing ratio of 1.02 times. Shares in Hengyuan closed at 85 sen, valuing the group at RM507 million. The stock has gained more than 9% since the start of the year, reflecting improving investor sentiment over its recovery prospects.

BigPay has integrated its app with Bank Rakyat’s BRICK platform, enabling users to access information and apply for Shariah-compliant personal financing directly through the app. Users who tap the financing option in the BigPay app will be redirected to Bank Rakyat’s BRICK virtual banking platform, where they can review product details and submit their applications seamlessly. BigPay chief operating officer Vijayanathan Sockanathan said the collaboration supports the company’s goal of improving access to Islamic financing and empowering Malaysians to make more informed financial decisions. “This partnership strengthens BigPay’s mission to widen access to Islamic financing by offering greater transparency and convenience through the BigPay app,” he said. Through the platform, eligible customers can apply for Bank Rakyat’s Personal Financing-i InstaCash of up to RM50,000, with profit rates starting from 7.60% per annum. While the offering is aimed at active BigPay users, it is also available to other Malaysians, who can download the BigPay app to access Bank Rakyat’s BRICK platform.

Singapore-based digital finance firm Atome has successfully finalised the renewal and expansion of its syndicated debt facility to US$345 million (RM1.4 billion), a move aimed at supporting its aggressive growth plans across Southeast Asia, the company announced on Tuesday. The expanded facility marks a significant increase from the US$200 million facility Atome secured in 2024, reflecting confidence from existing and new lenders in the company’s business model and growth prospects. Atome, a part of Singapore’s Advance Intelligence Group and backed by prominent investors including SoftBank Vision Fund 2 and Warburg Pincus, plans to deploy the funds to scale its buy-now-pay-later (BNPL) services, expand its lending products, and accelerate adoption of its Pay Later Anywhere card in key markets such as Singapore, Malaysia, and the Philippines. “We are now even better positioned to support a rapidly growing, healthy, and profitable loan book, while continuing to meet the evolving needs of our customers across the region,” said Andy Tan, Atome’s Chief Commercial Officer. The debt facility renewal saw HSBC reprising its roles as structuring bank, mandated lead arranger, and book runner, while DBS Bank joined as a mandated lead arranger and book runner. Returning lenders include Sumitomo Mitsui Banking Corporation’s Singapore branch, Baiduri Bank, and Cathay United Bank, with new participants Fubon Bank and Shanghai Pudong Development Bank coming on board for the first time. The company said the enhanced facility will provide Atome with greater financial flexibility to capitalise on the growing demand for digital finance solutions in Southeast Asia, enabling the firm to expand its footprint and support a growing base of consumers seeking flexible payment and credit solutions. This strategic financing move underscores Atome’s ambition to cement its position as a leading BNPL and digital finance provider in Southeast Asia, while also providing the company with the resources to innovate, diversify its product offerings, and strengthen its regional presence.

Japan saw a surge in business bankruptcies in 2025, reaching a 12-year high as rising material costs and worsening labor shortages hit companies, according to a survey by Tokyo Shoko Research. Last year, 10,300 companies went under, up 2.9% from 2024 and marking the fourth consecutive annual increase, though growth slowed from a 15.1% jump the previous year. Labor-shortage-related bankruptcies also hit a record 397 cases. The data highlights the pressures of inflation and a tight job market on Japanese businesses, which could keep the Bank of Japan cautious on interest rates. Rising costs from a weak yen, lingering debt, trade tensions, and strained China relations were cited as additional risks. A separate Cabinet Office survey showed that consumer-facing firms, such as retailers, experienced declining sentiment for the second straight month in December, with an index reading of 48.6. Rising living costs and fewer Chinese tourists were cited as factors affecting consumption and business performance.