Investment & Market Trends

KUALA LUMPUR, PGF Capital Berhad (“PGF Capital” or “the Group”) (stock code: 8117), a leading insulation manufacturer listed on the Main Market, kicked off its new financial year on a strong note, recording a net profit of RM7.5 million for the first quarter ended 31 May 2025 (1QFY26), up 11.9% from RM6.7 million in the same period last year. Revenue held steady at RM40.6 million compared to RM40.5 million in 1QFY25. The improved profit was mainly due to solid demand for insulation products from the Oceania region and tighter cost controls, though it was partly offset by a RM0.6 million unrealised loss on currency swaps. PGF Capital Berhad – Group CEO Fong Wern Sheng The Insulation segment remained the Group’s main revenue driver, contributing 99.7% of total revenue. PGF Capital noted strong sales momentum in Australia, supported by government policies such as updated building codes and housing targets, along with incentives like the Victorian Energy Upgrades programme. However, a gas pipeline incident in Putra Heights temporarily affected production and exports during the quarter. The Group also shared positive updates on its new mineral wool sandwich panels, which have been certified by SIRIM and are awaiting final approval from Malaysia’s Fire Department. These products are expected to support energy-efficient construction under the Energy Efficiency and Conservation Act 2024. PGF Capital’s new 40,000 metric-tonne plant in Kulim, Kedah, remains on track to begin commercial operations in the first half of 2026. The project has secured a tax incentive package under the Northern Corridor Economic Region (NCER), which includes a 5+5 year corporate tax holiday. The Group reassured stakeholders that ongoing US reciprocal tariffs are unlikely to impact its business, as the majority of its exports go to Oceania and Malaysia, with no direct exports to the US. On the property development front, PGF Capital received conditional planning approval for Phase 1 of its Tanjong Malim project. In partnership with Malvest Properties, the development will deliver 1,808 residential and commercial units, supporting the government’s vision of making Proton City an Automotive High-Tech Valley. Financially, the Group maintained a healthy net gearing ratio of 0.15 times and net assets per share of RM1.39. It also generated RM3.4 million in operating cash flow during the quarter, reflecting solid underlying performance.

KUALA LUMPUR,  Accenture (NYSE: ACN) has acquired Malaysia-based consulting firm Aristal, marking its first banking-focused acquisition in the country. The move strengthens Accenture’s ability to help Malaysian banks modernize their core systems, streamline operations, and manage major changes such as mergers and system upgrades. Founded in 2006, Aristal is known for its strong expertise in core banking transformation and has successfully delivered large-scale IT and business change projects across Malaysia, Indonesia, Singapore, and Thailand. “Aristal has a proven track record in helping banks improve outdated systems and enhance customer experience,” said Paul Ng, Financial Services Lead for Southeast Asia at Accenture. “Their skills in platform implementation and post-merger integration will strengthen our services across the region.” The firm’s team of 30 experienced professionals will join Accenture’s Financial Services division in Malaysia, combining local banking knowledge with Accenture’s global technology and operations expertise to deliver end-to-end transformation for clients. With banks across Southeast Asia facing growing pressures from regulatory demands, M&As, and digital competition, the region is expected to invest heavily in core system upgrades. The global core banking market is forecast to reach USD 28.8 billion by 2027. “This acquisition grows our local talent pool and boosts our ability to help clients embrace modern core systems, AI, and data,” said Azwan Baharuddin, Accenture’s Country Managing Director for Malaysia. “It reflects our ongoing investment in the country’s financial services sector.” Lin Kok Liong, Managing Director at Aristal, added: “Joining Accenture allows us to scale our impact and tap into its global resources. We’re excited to bring more value to clients and grow with the team.” This acquisition follows Accenture’s continued focus on Southeast Asia, including the acquisition of Percipient’s digital twin technology in Singapore and the launch of its AI Refinery Engineering Hub in the region. Financial details of the Aristal deal were not disclosed.

KUALA LUMPUR, MMAG Holdings Bhd’s Labuan-based indirect subsidiary, MMAG SkyAssets, has entered into an agreement to purchase a Boeing 737-800 converted freighter for US$25.9 million (approximately RM109.18 million) from GASL Ireland Leasing A-1, a special-purpose vehicle managed by Genesis Aircraft Services Ltd. MMAG Holdings Bhd’s Labuan-based indirect unit MMAG SkyAssets has signed an agreement to buy a Boeing 737-800 converted freighter for US$25.9 million (about RM109.18 million). The aircraft is currently leased and operating under MMAG Aviation Consortium Sdn Bhd’s MJets Air. Upon completion of the deal, it will become MMAG’s third owned freighter, bringing the group’s total fleet to seven, including four leased aircraft. This marks the group’s third aircraft acquisition, following two previous purchases from JPA No.161 Co Ltd in December 2024 and January 2025. The move aligns with MMAG’s long-term strategy to increase asset ownership and reduce reliance on leased equipment. MMAG Aviation chairman Woo Kam Weng said the acquisition reflects the company’s goal of becoming a fully empowered aviation operator. “With stronger asset control, we can better adapt to market demands, optimise fleet usage, and unlock new revenue opportunities. It’s a strategic step towards long-term sustainability in a competitive logistics environment,” he said. The acquisition, subject to shareholder approval, will be financed through a structured payment plan over 14 months, ending with a final settlement upon transfer of ownership. MMAG said this phased approach ensures sound cash flow management while securing long-term operational value. Built in 2005, the newly acquired freighter is significantly newer than the group’s previous aircraft purchases, which were over 30 years old. The younger aircraft is expected to enhance fleet reliability, improve efficiency, and offer greater residual value. The growing number of owned freighters underlines MMAG’s broader plan to internalise its fleet infrastructure, reduce dependence on third-party lessors, and reinforce financial resilience through asset ownership.

HONG KONG, CK Hutchison announced on Monday it is in discussions to include a major Chinese strategic investor in the consortium bidding for its global ports business, valued at US$22.8 billion. The move comes after Beijing raised regulatory concerns over the transaction amid ongoing geopolitical tensions between China and the United States. CK Hutchison said on Monday it wants a major Chinese strategic investor to join the BlackRock-led consortium bidding for its US$22.8 billion ports business. The Hong Kong-based conglomerate made the statement following the expiry of its exclusive negotiation period with the bidding consortium, which is led by U.S. asset manager BlackRock and MSC, the family-run shipping giant owned by Italian billionaire Gianluigi Aponte. The proposed deal covers 43 port assets across 23 countries, including two strategically sensitive ports located along the Panama Canal. China COSCO Shipping Corp is reportedly looking to join the consortium, according to a source familiar with the matter. CK Hutchison indicated that revisions to the consortium’s structure and transaction terms may be necessary to meet regulatory requirements and said it would allow additional time to ensure full compliance. “The company has consistently maintained that it will not proceed with any transaction without approval from all relevant authorities,” CK Hutchison said in a filing to the Hong Kong Stock Exchange. The end of the exclusivity period now opens the door for potential bids from other interested parties, according to a source with direct knowledge of the situation. Shares of CK Hutchison rose 1.6% on Monday, outperforming the broader Hang Seng Index, which gained 0.9%. The deal has stirred geopolitical tensions, particularly after former U.S. President Donald Trump publicly called for a return of U.S. influence over the Panama Canal and labeled the proposed acquisition as a means of “reclaiming” control. His administration previously criticized Chinese ownership of strategic ports in the region. China’s market regulator, the State Administration for Market Regulation, said it will evaluate the deal in accordance with domestic laws to ensure fair competition and protect public interest. State-backed Chinese media, echoing Beijing’s position, criticized the original deal structure and suggested Chinese involvement was essential due to national interests. CK Hutchison emphasized that any new investor must hold a “significant” stake within the consortium. Analysts remain cautious. “A Chinese investor with majority control is likely to raise concerns, but a stake below 50% might satisfy both sides,” said David Blennerhassett of Ballingal Investment Advisors. JPMorgan, in a client note, said that including COSCO could help ease Beijing’s concerns and improve chances of regulatory clearance. However, it also warned that not all 43 ports—especially the Panama assets—may be included in the final deal, and the composition of the buyer group could shift, potentially impacting the final valuation.

KUALA LUMPUR, Brigade Hotel Ventures’ ₹7.6 billion (US$88 million) initial public offering (IPO) was fully subscribed by Friday afternoon, the second day of bidding, reflecting growing investor confidence in India’s rapidly expanding hospitality sector. As of 1:28pm local time, exchange data showed total bids equaled the number of shares available in the fresh issue. The hotel operator, targeting a market valuation of approximately US$397 million, is scheduled to list on Thursday, July 31. India’s hospitality sector is seeing a surge in demand, driven by a strong rebound in both business and leisure travel. This momentum is further supported by affluent consumers splurging on luxury goods and services—from high-end accommodations to premium cars, apartments, and designer items. In response, hospitality groups like ITC Hotels and Schloss Bangalore (owner of Leela Hotels) have turned to public markets over the past two years, banking on continued appetite for premium experiences. Brigade Hotel Ventures initially filed for a ₹9 billion IPO in October, but the offer size was reduced following partial debt repayments and pre-IPO fundraising efforts. The company operates nine hotels across five Indian cities, partnering with international brands such as Marriott, Accor, and IHG in the mid- to upscale segments.

KUALA LUMPUR, Ekovest Bhd and its major shareholder Tan Sri Lim Kang Hoo have mutually agreed to extend the deadline to finalise the proposed acquisition of Credence Resources Sdn Bhd (CRSB) to August 29, from the original date of July 28. In a filing with Bursa Malaysia, Ekovest said the extension allows additional time for the parties to evaluate the proposed deal and to continue discussions and negotiations on the terms of the definitive agreement. The company also announced the appointment of MBSB Investment Bank Bhd as the principal adviser and Astramina Advisory Sdn Bhd as the financial adviser for the acquisition. The proposed deal, announced on October 28, 2023, involves Ekovest acquiring a 70% stake in CRSB for RM1.15 billion. The acquisition forms part of a broader consolidation plan aimed at streamlining Lim’s shareholdings across various companies.

KUALA LUMPUR, Tenaga Nasional Bhd has received an additional tax bill of RM840.13 million from the Inland Revenue Board (IRB) for the Year of Assessment (YA) 2022. The new assessment comes shortly after the utility giant lost a RM1.25 billion tax dispute for YA 2018 in the Federal Court earlier this month. The court ruled that Tenaga had incorrectly claimed tax incentives intended for manufacturers rather than utilities, which carry lower relief. In a filing with Bursa Malaysia on Friday (July 25), Tenaga said it received the latest notice from the IRB on July 24 and is currently reviewing its legal options in light of the Federal Court’s decision regarding the 2018 assessment. “The evaluation includes the fact that TNB has submitted an application for Investment Allowance under Schedule 7B of the Income Tax Act 1967 — covering YA 2022 — to the Minister of Finance,” the group said. TNB was first issued a RM1.81 billion tax bill in July 2020, which was later reduced to RM1.25 billion through a consent order in December that year, waiving penalties. The group has been in a prolonged dispute with the IRB since 2015 over various tax assessments, with a total of RM5.05 billion in disputed taxes still unresolved, according to its annual report. On Friday, TNB was the second-biggest decliner by value on Bursa Malaysia, falling 34 sen or 2.44% to RM13.60, bringing its market capitalisation to RM79.28 billion. The stock has fallen 9% year-to-date.

KUALA LUMPUR, Nestlé (Malaysia) Bhd recorded a 20% year-on-year increase in net profit to RM112.1 million for the second quarter ended June 30, 2025, up from RM93.6 million in the same quarter last year. The improved performance was driven by stronger sales and effective cost control. Quarterly revenue rose 9.5% to RM1.67 billion, compared to RM1.52 billion previously, supported by sustained domestic demand and robust export performance. In a filing with Bursa Malaysia, the company attributed the growth to its strong global standing, particularly as the Nestlé Group’s largest Halal manufacturing hub. It also cited continued focus on quality, taste, and nutrition as key factors behind its strong brand loyalty in a dynamic market environment. Nestlé Malaysia declared an interim dividend of 70 sen per share—unchanged from last year—with payment scheduled for October 2. Chief Executive Officer Juan Aranols expressed confidence in maintaining growth momentum and achieving further profit recovery in the second half of 2025 (2H25). “We remain alert to geopolitical uncertainties that may affect the business environment in Malaysia,” he said. “Nonetheless, we are fully committed to delivering high-quality, nutritious Halal products under the nation’s most trusted and beloved brands.” Aranols added that the company will continue to accelerate its digital transformation and enhance operational efficiency to support investments in branding and innovation. These efforts will be guided by a deep understanding of Malaysian consumer values and a strong commitment to community and environmental impact.

SINGAPORE, Temasek Financial (I) Ltd, a wholly owned subsidiary of Singapore’s state-owned investment firm Temasek Holdings, has successfully raised 5.5 billion Chinese renminbi (US$768 million or RM3.24 billion) through an offshore bond offering on Wednesday. In a statement, the company said the issuance includes a five-year bond worth 1.5 billion renminbi priced at par with a 1.85% annual yield, a 10-year bond of 2.0 billion renminbi at 2.05%, and a 30-year bond of 2.0 billion renminbi at 2.55%. The final yields came in below the initial price guidance of around 2.3%, 2.55%, and 3.05%, indicating strong investor demand for the issue. The bonds are issued under Temasek Financial (I)’s US$25 billion (RM105.55 billion) global medium-term note programme and are fully, unconditionally, and irrevocably guaranteed by Temasek Holdings. Rated “Aaa” by Moody’s and “AAA” by S&P—consistent with Temasek’s credit ratings—the proceeds from the bond sale will be used to support the operational and investment activities of Temasek and its portfolio companies. This marks Temasek’s first offshore renminbi bond offering since August 2024. Earlier in July, Temasek reported a record net portfolio value of S$434 billion (US$340 billion or RM1.44 trillion), reflecting an 11.6% year-on-year increase. The group noted that risks related to U.S. immigration, tariffs, and fiscal tightening have likely peaked and highlighted growing investment opportunities in Europe, where trade tensions have created more attractive valuations. Credit Agricole, DBS Bank, HSBC, and Standard Chartered acted as joint lead managers and joint bookrunners for the bond issuance.

KUALA LUMPUR, AYS Ventures Bhd announced that the voluntary takeover offer by its associate, 3HA Capital Pte Ltd, for all shares in Singapore-listed CosmoSteel Holdings Ltd has turned unconditional after 3HA surpassed the 50% ownership mark. As of Wednesday (July 23), 3HA Capital had secured valid acceptances for nearly 229 million shares, representing 87.88% of CosmoSteel’s issued share capital. The offer was first made on May 15 at S$0.20 per share. On June 23, 3HA raised the offer by 25% to S$0.25 per share. Shareholders who accepted the earlier bid will automatically be entitled to the revised price. AYS said in a filing with Bursa Malaysia on Thursday that the offer deadline has been extended to 5.30pm on July 28, from the original closing date of July 14. Should acceptances reach 90% or more, 3HA may proceed with a compulsory acquisition of the remaining shares. AYS’ wholly owned unit, Ann Yak Siong (Singapore) Pte Ltd, holds a 14.9% stake in 3HA Capital. Other stakeholders include HHH Group Pte Ltd (40.2%), Hanwa Singapore (Pte) Ltd (30%), and Thor Capital Pte Ltd (14.9%). AYS Singapore invested S$298,000 (around RM1 million) in 3HA Capital. 3HA has stated it does not plan to revise the offer further. Previously, AYS said its involvement aligns with its strategic goal of becoming a leading, sustainable steel distributor in the region. The acquisition is expected to broaden its market presence, create synergies, and strengthen service capabilities across engineering, energy, and construction sectors. At the noon break on Thursday, AYS shares were untraded. The counter last closed at 25.5 sen on Wednesday, with a market capitalisation of RM106.7 million. Year to date, the stock has declined by 15%.