Investment & Market Trends

KUALA LUMPUR: KPJ Healthcare Bhd reported a net profit of RM57.1 million for the first quarter ended 31 March 2025 (Q1 FY2025), down from RM71.4 million in the same period last year. Despite the decline in net profit, the group’s revenue rose to RM971.8 million from RM908.0 million in Q1 FY2024, supported by increased patient volume and expanded bed capacity across its hospital network. Profit before tax grew 7% to RM97.7 million, while EBITDA climbed 4% to RM211.3 million. In a Bursa Malaysia filing, KPJ attributed the performance to improved operating margins and service efficiency. The board declared an interim dividend of 0.8 sen per share, payable on 11 July 2025. Looking ahead, the group remains cautiously optimistic, supported by asset optimisation, ongoing capacity expansion, and operational efficiency. The opening of its 30th hospital in Kuala Selangor this March further solidifies its position as the largest private healthcare provider in Malaysia.

KUALA LUMPUR: Engineering solutions provider Destini Berhad has posted a net profit of RM23.2 million for the nine-month period ended March 31, 2025, buoyed by steady growth across its rail, defence, and energy operations. The group’s revenue totalled RM250.2 million, reflecting robust demand and the continued execution of high-value contracts. The company’s latest quarterly performance also remained solid. Destini recorded revenue of RM87.67 million for the third quarter, a 4.9% increase from RM83.56 million in the preceding quarter. Profit after tax for the period came in at RM8.47 million, up 4.8% quarter-on-quarter from RM8.09 million. Executive director Ismail Mustaffa expressed confidence in the group’s prospects, stating that Destini is on track to close the financial year on a strong note. “With sustained momentum across all business segments, the ongoing execution of high-value contracts, and strategic contributions from recent acquisitions, Destini is well-positioned to deliver continued growth,” he said. A key indicator of the group’s future potential is its growing tender book, which stood at RM1.01 billion as of March 31, underscoring Destini’s strong pipeline of opportunities. Segmental Highlights Destini’s mobility division emerged as the top-performing segment, contributing RM49.6 million in revenue and RM4.32 million in profit after tax and non-controlling interest (PATNCI). The strong showing was attributed to the successful delivery of three train units to the Ministry of Transport and the first revenue contribution from its recent acquisition of Trovon Group Pty Ltd, an Australian firm. The acquisition is expected to bolster Destini’s access to international markets and positively impact future earnings. In a notable turnaround, the aviation and defence segment posted RM22.42 million in revenue and RM2.42 million in PATNCI, rebounding from a loss of RM3.97 million in the same period last year. This marks a significant recovery in the division, driven by improved operational execution and contract fulfilments. The marine division delivered RM12.27 million in revenue and RM1.07 million in PATNCI, maintaining a steady contribution to the group’s overall performance. Meanwhile, the energy segment reported a modest RM260,000 profit on RM3.38 million in revenue. The return to profitability was supported by increased rig-related activity and effective cost management. A Diversified Engineering Powerhouse Destini is an integrated engineering group with diversified operations in mobility, aviation and defence, marine, and energy. The company offers maintenance, repair, and overhaul (MRO) services for both rail and aviation assets, supplies marine safety and defence equipment, and is expanding into renewable energy solutions. The group’s strategic expansion, particularly through its acquisition of Trovon, signals its intent to strengthen its global presence and unlock new sources of revenue. As its tender book grows and operational performance improves across all sectors, Destini is positioning itself as a resilient and future-ready engineering partner in Malaysia and beyond. With one quarter left in the fiscal year, market watchers will be observing whether Destini can sustain its upward momentum and deliver on its growth ambitions amid a complex global economic environment.

Tune Protect Group Berhad (TUNEPRO, 5230) has begun its financial year on a strong note, recording a 100% year-on-year (YoY) growth in Profit After Tax (PAT) for the first quarter of 2025 (1Q25). This robust performance was underpinned by a notable turnaround in its net insurance service result and a sustained improvement in operational efficiency. According to How Kim Lian, Chief Executive Officer of Tune Protect Group, the group posted a net insurance service result of RM5.8 million in 1Q25, a stark improvement from the RM9.3 million loss in the same period last year. This recovery was driven by a 30.6% reduction in net incurred claims and attributable expenses, primarily due to more favourable claims experience in the Motor and Fire segments. The Group’s combined ratio improved to 93.4%, down from 109.8% in 1Q24, reflecting better underwriting performance. The Group’s PAT rose to RM7.4 million in 1Q25 from a loss after tax of RM3.9 million YoY. Although insurance revenue dipped slightly by 6.5% to RM88.5 million, the decline was partially offset by a stronger showing in the travel insurance portfolio. The increase in travel insurance revenue was attributed to higher take-up rates and expanded distribution channels, which mitigated the impact of higher acquisition costs. Investment income saw a 14.2% decline to RM8.1 million, largely due to market volatility and uncertainty surrounding US tariff policies. Despite this, the Group maintained a conservative investment strategy, shifting its portfolio to low-risk unit trust funds focused on Malaysian Government Securities and government-backed corporate bonds. This repositioning allowed the Group to benefit from the fixed income rally in April 2025, with further gains anticipated from potential rate cuts. Tune Protect’s travel segment continued to gain momentum with a 22% YoY increase in revenue. The Group activated six of the top ten key agents for its airline partner in Malaysia and expanded into new B2B markets including Zambia, Sri Lanka, Pakistan, and Kenya. Strategic digital partnerships, such as with AirPaz in Malaysia, Gettgo in Thailand, and TrueDtac in Thailand, supported this growth by improving accessibility to travel and personal accident insurance. In EMEIA, the Group launched Pet Health insurance through the Shory platform, demonstrating agility in addressing emerging consumer needs. Efforts to optimise pricing and portfolio management contributed to improvements in the Motor segment’s performance. The Group reported a second consecutive quarter of reduced net claims incurred (NCI) ratio, thanks to better claims management practices. A 5-percentage point YoY reduction in the Motor loss ratio and a 6% YoY rise in average premiums for Private Car policies reflected stronger underwriting and pricing discipline. The motorcycle segment’s share grew to 18.4% in 1Q25 from 17.6% in 4Q24, while Private Car Comprehensive policies valued above RM50,000 increased to 25.5% from 25.1%. Looking ahead, Tune Protect remains focused on three strategic pillars: expanding market reach, establishing a travel centre of excellence, and enhancing the travel experience through value-added services. The Group plans to introduce its insurance offerings in Pakistan and Uzbekistan, launch inbound travel products in the Philippines, and extend its partnership with AirPaz in Indonesia and Thailand. It is also set to roll out innovative products such as Baggage Shield for sports equipment and checked baggage, along with new services like Flight Watcher and Travel eSIM. The Group’s Delay Lounge Pass – already launched in Vietnam and Indonesia – will soon be available in the Philippines, reinforcing its commitment to delivering comprehensive travel solutions across ASEAN. With over 500,000 policies sold as of March 2025 and a 50% increase in airline platform take-up rates driven by enhanced UI/UX, Tune Protect’s continued digital innovation and customer-centric approach are set to sustain its positive momentum throughout the year.

Telekom Malaysia Bhd (TM) delivered approximately RM1.5 billion in value to stakeholders in the financial year 2024 through dividends and socio-economic initiatives, reaffirming its commitment to long-term value creation and national development. In a statement, the company said it is prioritising strategic investments in business growth, community development, social impact programmes, and employee development—further amplifying its contribution to the broader national economy. Chairman Datuk Zainal Abidin Putih emphasised TM’s role as a facilitator of national progress, driving inclusive digital transformation that empowers enterprises, enriches communities, and bolsters economic resilience. “We are fully aligned with this vision – staying agile, expanding our capabilities, and setting new benchmarks in service excellence to ensure that Malaysia remains at the forefront of the digital economy,” he said. Beyond profits, TM is committed to digital inclusivity, focusing on nurturing future-ready talent, empowering communities, and expanding inclusive digital access nationwide. In its data centre operations, TM noted that 50% of energy is sourced from renewable resources. The company also implements water harvesting and recycling systems as part of its sustainability efforts. “TM is also targeting global benchmarks with a planned Power Usage Effectiveness (PUE) of 1.4 for its expansion projects. The upcoming Johor facility, developed in collaboration with Singtel’s Nxera, is targeting even lower PUE,” it said. The year 2024 also marked the first full year of TM’s Pioneer, Win, and Revitalise (PWR 2030) strategy—its roadmap to becoming a digital powerhouse by 2030 and positioning Malaysia as the digital hub for ASEAN. Group Executive Director Amar Huzaimi Md Deris reiterated the company’s commitment to national progress. “As we move forward into the next phase of our journey, every initiative we undertake moves us closer to becoming a digital powerhouse by 2030—one that drives national progress, fosters innovation, and ensures Malaysia remains at the forefront of the global digital economy,” he said. –BERNAMA

KUALA LUMPUR: Alliance Bank Malaysia Berhad has reported a record-breaking financial performance for the financial year ended 31 March 2025 (FY2025), driven by strong loan growth across all segments and the successful execution of its Acceler8 transformation strategy. Revenue surged 12.3% year-on-year (YoY) to RM2.3 billion, while net profit after tax rose 8.7% to an all-time high of RM750.7 million. This marks the Bank’s highest earnings to date. The robust performance was underpinned by a 13.2% YoY increase in net interest income (NII) to RM1.95 billion, propelled by higher loan volumes. The Bank also maintained one of the industry’s leading net interest margins at 2.45%. Meanwhile, non-interest income (NOII) rose by 7.7% to RM323.4 million, supported by stronger contributions from foreign exchange and trade fees, wealth management, and treasury income. Outperforming Industry Loan Growth Total gross loans expanded 12% YoY to RM62.4 billion, more than double the industry average of 5.2%. The growth was broad-based across all segments, including: SME loans: up 10.6% Commercial loans: up 15.8% Corporate loans: up 8.4% Consumer loans: up 12.6% Deposits increased by 14.7% YoY, with the CASA (current account savings account) ratio holding strong at 41%, one of the highest in the sector. The Bank’s cost-to-income ratio stood at 48%, reflecting ongoing investments in technology and talent. Solid Capital and Liquidity Position Alliance Bank maintained robust capital buffers, with a: Common Equity Tier-1 (CET1) Ratio of 12.2% Tier-1 Capital Ratio of 13.4% Total Capital Ratio of 16.7% Liquidity Coverage Ratio of 171.6% Loan-to-Fund Ratio of 85.6% Net credit cost of 31.9 basis points (including pre-emptive provisions) To further strengthen its capital base, the Bank is proposing a RM600 million rights issue in July, pending shareholder and regulatory approval. A second interim dividend of 9.9 sen per share has been declared, bringing the total FY2025 dividend payout to 19.4 sen per share, or RM300.3 million — a 40% payout ratio. Acceler8 Strategy Powers Momentum Under its Acceler8 strategy, Alliance Bank made notable advances: SME market share rose to 5.39% from 5.19%, with fee income up 9% YoY Consumer loans grew at twice the industry rate, pushing market share to 2.27% Capital markets revenue more than doubled (+116% YoY), buoyed by corporate finance activity Islamic banking revenue rose 24% YoY, driven by the Halal in One financing programme Geographical expansion in Sarawak, Penang, and Johor yielded 14% loan and 22% deposit growth On the sustainability front, the Bank reported RM14.4 billion in new sustainable banking business, advancing towards its RM15 billion target by FY2027. Collaborations with Bursa Malaysia also resulted in the launch of the Sustainability Enhancement Programme, supporting ACE Market-listed companies in ESG reporting. The Bank also released the Sarawak SME ESG Report, officiated by Premier YAB Datuk Patinggi Tan Sri Abang Johari Tun Abang Openg. “Our record-breaking results for FY2025 reflect the successful execution of our Acceler8 strategy and reinforce our longer-term growth trajectory,” said Kellee Kam, Group Chief Executive Officer. “We remain focused on sustainable growth and creating long-term value for all our stakeholders.”

KUALA LUMPUR: IJM Corporation Bhd has received the Works Ministry’s approval for the New Pantai Expressway (NPE) Extension and toll restructuring for the existing highway, marking a significant milestone in the group’s efforts to enhance urban mobility across the Klang Valley. The 15-kilometre fully elevated extension—comprising directional ramps—will be undertaken by IJM’s Infrastructure Toll Division at an estimated construction cost of RM1.4 billion. The project will be fully funded by the concessionaire without any government financing. Construction is scheduled to begin in the third quarter of 2025, with operations expected by 2029. Datuk Lee Chun Fai, Group Chief Executive Officer and Managing Director of IJM, said the approval reflects the group’s ongoing commitment to addressing congestion and improving connectivity in key urban corridors. “To support future-ready commuting, the NPE Extension will incorporate smart infrastructure features including Malaysia’s Multi-Lane Fast Flow (MLFF) tolling system, integrated real-time CCTV monitoring, smart street lighting, and a new layby equipped with electric vehicle fast-charging stations,” said Lee. In line with government goals to modernise infrastructure, the group will also maintain current toll rates on the existing NPE until the concession period expires, under the approved toll restructuring plan. IJM emphasised its commitment to working closely with the Works Ministry and other relevant agencies, pledging transparent and continuous engagement with stakeholders throughout the project’s development. — BERNAMA

KUALA LUMPUR:  Malaysia Bhd recorded an 11.5% year-on-year increase in net profit to RM211.69 million for the first quarter ended 31 March 2025 (1Q25), compared to RM189.83 million in the same period last year. The stronger performance was driven by higher contributions from both its general and life insurance segments. Revenue rose 14.3% to RM1.53 billion from RM1.34 billion previously, on the back of increased insurance revenue across both segments, the company said in a filing with Bursa Malaysia. The general insurance division delivered a pre-tax profit of RM159.7 million, supported by stronger net insurance and investment results. Meanwhile, the life insurance segment posted a higher pre-tax profit of RM126.9 million, mainly due to improved net insurance and investment returns. This was partially offset by lower other operating income from its investment-linked protection and employee benefits business. Conversely, the investment holding segment registered a pre-tax loss of RM2.9 million, primarily due to lower expenses. Looking ahead, Allianz Malaysia said it remains focused on expanding its distribution channels through agency transformation, with a strong emphasis on high-quality recruitment, agent productivity, and retention. “We are actively steering our portfolio towards a more profitable product mix to accelerate sustainable growth and enhance return on equity,” the insurer said. “We will continue to adapt our strategy in response to market changes, strengthen claims management, and enforce disciplined expense management as the key levers of our profitability strategy.” — BERNAMA

Earthworks and civil engineering services provider Wawasan Dengkil Holdings Berhad (“Wawasan Dengkil” or the “Group”) has reported a revenue of RM134.7 million for the nine months ended 31 March 2025 (9MFY25), following its recent debut on the ACE Market of Bursa Malaysia. The Group achieved a profit after tax (PAT) of RM8.2 million during the period. After adjusting for RM1.3 million in one-off IPO listing expenses, the adjusted PAT stood at RM9.5 million, with a healthy margin of 7.1%. Revenue was predominantly driven by the construction services segment, which contributed 89.6% of total revenue. The remainder came from the trading of construction materials and the hiring of machinery and commercial vehicles. On a quarter-on-quarter basis, Wawasan Dengkil reported RM40.6 million in revenue for 3QFY25, down from RM48.0 million in the preceding quarter. The decline was primarily attributed to the completion or near-completion of several construction projects and reduced trading activity. PAT for the quarter came in at RM2.1 million, or RM2.9 million after adjusting for listing expenses—comparable to 2QFY25’s adjusted PAT of RM3.4 million. Executive Director Lim Soon Yik expressed confidence in the Group’s outlook: “Our project pipeline remains robust, with 13 ongoing construction projects and an unbilled order book of RM369.6 million as at 31 March 2025. The RM27.0 million in proceeds raised from our IPO will be used to strengthen internal capabilities and support bids for larger-scale projects.” Lim also noted that the Group’s RM1.6 billion tender book, focused on civil engineering services for property development, highways, urban rail, and solar farm infrastructure, positions it well to capitalise on national infrastructure and renewable energy initiatives. “With Malaysia targeting 40% renewable energy capacity by 2035, government-led programmes like LSS5 and the upcoming LSS6 offer significant opportunities. As a specialist in early-stage earthworks, Wawasan Dengkil is strategically placed to benefit,” he added. Wawasan Dengkil was listed on Bursa Malaysia’s ACE Market on 25 March 2025 under the stock name DENGKIL (stock code: 0347).