Investment & Market Trends

KUALA LUMPUR: Bursa Malaysia is anticipated to trade within the 1,500 to 1,530 range this week, as investor sentiment remains fragile due to renewed geopolitical tensions and potential trade disruptions. Market volatility has been exacerbated by Washington’s proposed unilateral tariff measures and the rising hostilities in the Middle East, notably following Israel’s recent strike on Iran. The developments have cast a shadow over global markets, including Bursa Malaysia. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research, Mohd Sedek Jantan, noted that the market is expected to remain under pressure in the immediate term, barring any unexpected breakthroughs in the geopolitical standoff over the weekend. However, he suggested such a resolution is improbable in the near term. “Tactically, oil and gas counters could offer short-term trading opportunities, especially those involved in upstream activities or those expanding their upstream concessions. These companies are well positioned to capitalise on the current surge in oil prices,” he said in a statement to Bernama. In the previous week, Bursa Malaysia began on a positive note, buoyed by favourable developments in US-China trade discussions. The market was further supported by renewed interest from local institutional investors and a marked decline in foreign selling. -The Star

Online-merge-offline commercial foodservice and kitchen equipment supplier, Ping Edge Technology Berhad (“Ping Edge”) has successfully debuted on the LEAP Market of Bursa Malaysia Securities Berhad. The stock is categorised under the Consumer Products and Services sector and carries the stock name of PING, with a stock code of 03063. At the opening bell, Ping Edge’s share price opened at 24 sen, with a premium of 4.3% over the issue price of 23 sen. Founded in 2015, Ping Edge, through its wholly-owned subsidiary (collectively known as the “Group”), is principally involved in the trading of commercial foodservice and kitchen equipment through the Group’s digital platforms. Ping Edge operates two proprietary online channels – Kitchen Arena an online e-commerce platform which focuses on supplying new commercial foodservice and kitchen equipment, and Murah Kitchen an online marketplace for trading of pre-owned units. These online platforms are key revenue drivers to the Group, collectively contributing RM30.12 million, or approximately 97.5% of the total revenue for the financial year ended 31 October 2024 (“FYE 2024”). To complement the online experience, Ping Edge also operates a physical showroom and warehouse, Kitchen 360, in Seri Kembangan, Selangor. The brick-and-mortar presence provides prospective customers the opportunity to view and assess equipment in person. Ping Edge’s integrated approach has driven a steady growth in the Group’s customer base, serving 1,315 customers in FYE 2024, up from 943 in the previous financial year. Notable clients include subsidiaries of MSM International Limited, Ayam Gepuk (M) Sdn. Bhd. (i.e. Ayam Gepuk Pak Gembus), UR Restaurants Sdn. Bhd. (i.e. FUIYOH! It’s UNCLE ROGER), and Mamakim Wellness Kitchen Sdn. Bhd. To meet the diverse operational needs of its clientele, Ping Edge offers a broad portfolio of approximately 7,814 stock keeping units (“SKUs”) across approximately 430 brands, spanning categories such as cooking and display units, beverage preparation systems, refrigeration appliances, cleaning and sanitation machinery, and stainless-steel fabrication. The Group’s brand portfolios include, among others, Frezmac, Modelux, Unox, Fresh, Redor, Powerline, Snow, Fagor, Robot Coupe, and Costimo. Managing Director of Ping Edge, Mr. Dexter Soh Yeow Seng said, “The listing of Ping Edge on the LEAP Market marks an important milestone in our corporate journey – the culmination of our team’s dedication and hard work. The new status increases our visibility and strengthens our credibility among customers, business partners, and industry stakeholders. By embracing the transparency and accountability expected of a listed company, we aim to foster greater trust and confidence in our brands and platforms, as well as enhance the confidence our business partners have in us.” “The food and beverage industry continues to grow in tandem with the rising population and higher disposable income. To capitalise on this favourable environment, we plan to set up three new showrooms with storage facilities in Negeri Sembilan, Johor, and Penang. This will enhance accessibility for customers outside the central region, improve service coverage and shorten delivery lead times, while complementing our online-first strategy by providing customers the opportunity to physically experience products with on-site guidance. Operations in Negeri Sembilan and Johor outlets are targeted to commence in the third quarter of 2025.” In response to evolving market demands, Ping Edge also plans to expand its product range to cater to a wider target market. The expansion includes new categories such as bakery equipment, food processors, kitchenware, bar supplies, and cooking utensils, with potential additions such as tableware, crockery, and cutlery to complement existing offerings. “We also aim to upgrade our digital platforms by improving functionality and user experience. Planned enhancements include integrating business intelligence tools to enhance the capabilities of both our online platforms, adding a bidding function on Murah Kitchen, and refining site navigation and responsiveness. Furthermore, we are stepping up digital marketing efforts and strengthening customer service touchpoints to boost trust and encourage repeat usage.” “We intend to develop Business Doctor as a standalone business segment, extending beyond product sales. Currently, Business Doctor provides kitchen design consultancy, installation, servicing, and repair services for equipment purchased online. Given the rising demand for tailored solutions and aftersales support, we plan to offer these services to a broader customer base – including those outside our digital channels.” Mr. Dexter Soh concluded. For FYE 2024, the Group’s revenue increased 79.5% year-on-year (“YoY”) to RM30.89 million on higher sales across both online platforms as well as its physical outlet. Profit after tax (“PAT”), meanwhile, jumped 219.8% YoY to RM2.91 million from RM0.91 million a year ago. This translated into a PAT margin of 9.4% in FYE 2024. Ping Edge raised RM5.15 million from its LEAP Market listing to fund its strategic growth initiatives, allocating RM1.00 million (19.4%) for showroom expansion. Another RM0.50 million (9.7%) goes to digital enhancements, RM2.37 million (46.0%) for working capital, while the balance RM1.28 million (24.9%) will be utilised to defray listing-related expenses. TA Securities Holdings Berhad is the Approved Adviser, Placement Agent, and Continuing Adviser for the listing exercise.

KUALA LUMPUR: Gold futures on Bursa Malaysia Derivatives closed higher today, supported by increased investor interest and a softer US dollar, which made the precious metal more attractive to international buyers. The benchmark spot-month contract for June 2025 rose to US$3,347.80 per troy ounce, up from US$3,339.50 on Tuesday. The July 2025 contract also recorded gains, settling at US$3,356.30 per troy ounce compared with US$3,348.00 previously. Further along the curve, the August, September and October 2025 contracts all posted improvements, with prices climbing to US$3,375.80 per troy ounce from US$3,365.30. Despite the uptick in prices, trading volume slipped to 38 lots, compared to 54 lots recorded in the previous session. Open interest, however, inched up marginally to 84 contracts, from 83 a day earlier. Meanwhile, the London Bullion Market Association (LBMA) reported the physical gold price at US$3,337.70 per troy ounce in its afternoon fix on 10 June. -Bernama

A potential price war in Malaysia’s electric vehicle (EV) segment is on the horizon, driven by global overcapacity and local policy shifts. Industry analysts caution that upcoming changes to tax structures and pricing regulations may reshape the competitive landscape significantly. Currently, Malaysia grants generous tax incentives for locally assembled EVs – or completely knocked down (CKD) units – including exemptions from import, excise, and sales duties until the end of 2027. Meanwhile, imported completely built-up (CBU) EVs also benefit from tax exemptions, but only until 31 December 2025. Post-2025, these units will be subject to full duties unless the exemptions are extended, an increasingly debated topic among stakeholders aiming to accelerate EV adoption. To safeguard domestic players, a minimum retail price of RM100,000 was also imposed on CBU EVs, effective until end-2025. With the global EV sector facing oversupply – highlighted by Geely Holding Group chairman Li Shufu’s remarks on “serious overcapacity” – Malaysia may soon witness the arrival of budget-friendly Chinese EVs, potentially triggering a pricing conflict. According to BIMB Securities analyst Sabariah Akhair, the approaching expiry of the RM100,000 minimum price policy represents a pivotal moment for the Malaysian EV ecosystem. She contends that if the government removes this price floor and extends tax exemptions for imported EVs beyond 2025, it could ignite a “full-blown EV price war”. Such a scenario would enable low-cost Chinese models like the BYD Seagull and Wuling Mini EV – priced between RM18,000 and RM45,000 – to flood the market. While consumers may initially benefit from these low-cost alternatives, Sabariah warned this may discourage investment from existing players lacking CKD scale or cost efficiency. She cautioned that the longer-term impact could include job losses, reduced localisation efforts, and stunted industrial growth. Conversely, if tax exemptions for CBU units are allowed to lapse while the RM100,000 price floor is lifted, she expects a more structured and sustainable market to take shape. Under this scenario, prices of imported EVs would gradually normalise, avoiding a race-to-the-bottom in pricing and allowing Malaysia’s localisation goals to progress. EV adoption may still grow at a moderate pace of 3.5 to 4 per cent of total industry volume (TIV) by 2025, supported by clearer policies, robust charging infrastructure, and accessible financing. In the first quarter of 2025, EVs made up 2.9 per cent of Malaysia’s TIV, up from 1.8 per cent in 2024, according to the Malaysian Automotive Association (MAA). An industry observer involved in EV distribution echoed similar sentiments. He noted that once tax exemptions for imported EVs expire at the end of 2025, CBU models will become less viable due to rising prices, potentially causing a dip in sales. However, the concurrent removal of the RM100,000 price floor may encourage the entry of more budget models. He also remarked that internal combustion engine (ICE) vehicles will remain relevant for some time, particularly as consumers grapple with limited charging infrastructure and range anxiety. Range-extended EVs (REVs), popular in China, offer a potential solution, though they currently receive no tax incentives in Malaysia. The observer further expressed scepticism about whether Chinese ICE vehicles could surpass traditional incumbents in performance, stating that they still fall short in key driving metrics. Meanwhile, Sabariah believes established distributors such as Bermaz Auto Bhd (BAuto) and Sime Darby Bhd are well-positioned to withstand intensifying competition. Both firms have strategically expanded their EV portfolios in anticipation of changing market dynamics and evolving consumer expectations. However, she acknowledged that some market share erosion could occur in the near term, particularly in the B and C-segment passenger vehicle categories, where Chinese brands are most aggressive. Nonetheless, both Sime Darby and BAuto have laid the foundation for long-term resilience through proactive positioning and robust planning. On the national front, Sabariah highlighted that Proton and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) remain structurally strong and capable of defending their market share despite new entrants. Proton has made a notable move into the EV space with the launch of the e.MAS 7, which has emerged as the most registered EV in early 2025. Backed by its partnership with Geely and the ongoing development of the Automotive High-Tech Valley (AHTV) in Tanjung Malim, Proton is actively developing a vertically integrated EV ecosystem. This localised approach could lower production costs and offer the flexibility needed to compete with CBU imports. Perodua is expected to debut its first EV by the end of 2025, aimed at the sub-RM100,000 segment. Unlike rebadged alternatives, this model is reportedly built from scratch, enhancing consumer confidence in its brand and engineering. The planned adoption of a Battery-as-a-Service (BaaS) model – where batteries are leased rather than sold – could improve affordability and distinguish Perodua from less trusted foreign offerings. Sabariah stressed that both national brands benefit from strong brand loyalty, extensive dealership networks, and long-standing government backing. Despite the looming pricing pressure from Chinese EV imports, their strategic focus on CKD localisation and cost efficiency should enable them to remain competitive. The industry observer added that by 2026, Chinese EV manufacturers seeking to maintain tax incentives will be required to initiate CKD operations in Malaysia. However, due to volume limitations, this may not be feasible for many. He believes Perodua’s sub-RM100,000 EV may be unaffected by the influx of Chinese competitors, while Proton’s alliance with Geely positions it more favourably than CBU-only Chinese brands lacking local manufacturing operations. -The Star

KUALA LUMPUR: Sarawak-based construction services firm Hartanah Kenyalang Bhd commenced trading on Bursa Malaysia’s ACE Market today, opening at 16 sen, matching its initial public offering (IPO) price. As of 10:28 a.m., the counter remained flat at 16 sen, with 14.55 million shares changing hands. The company successfully raised RM19.34 million from the IPO. Of the total proceeds, RM10.5 million has been allocated for project working capital, RM3 million for the acquisition of new machinery and IT-related hardware and software, RM2.1 million for the repayment of borrowings, and RM3.8 million to cover listing-related expenses. For the first financial quarter ended 31 January, Hartanah Kenyalang reported a net profit of RM1.9 million, with earnings per share of 0.38 sen, on revenue of RM44.8 million. -The Star