Investment & Market Trends

CYBERJAYA: DXN Holdings Bhd. (“DXN”) has reported its highest-ever net profit of RM329.0 million for the financial year ended 28 February 2025 (FY25), a 5.8% year-on-year (YoY) increase, fuelled by strong performance across its key international markets. Revenue rose 5.8% YoY to a record RM1.9 billion, surpassing the RM1.8 billion achieved in FY24. The growth was primarily driven by robust sales in Latin America and the Middle East, supported by sustained marketing activities that helped maintain high engagement among DXN’s member base. “We are pleased to have delivered another set of record-breaking results, reaffirming the resilience of our business model,” said Executive Chairman and Founder Datuk Lim Siow Jin. “Our recent expansion into Brazil and Argentina has gained positive traction, enhancing our foothold in Latin America and complementing our strong presence in neighbouring countries such as Peru and Bolivia.” Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 8.6% YoY to RM583.2 million, while profit before tax rose 9.1% to RM522.7 million. Adjusting for a foreign exchange loss of RM25.9 million, net profit would have reached RM354.9 million — reflecting a 14.1% growth. Higher Dividends and Solid Balance Sheet Riding on its strong financial performance, DXN declared a fourth interim dividend of 1.0 sen per share, payable on 30 May 2025. This brings the total dividend for FY25 to 3.7 sen per share, up from 3.6 sen in FY24, translating to a payout of 55.9% of net profit and a dividend yield of approximately 7%. As of 28 February 2025, DXN held cash and cash equivalents of RM672.2 million, more than four times its total loans and borrowings of RM154.9 million. Net operating cash inflow for the year stood at RM445.0 million, reinforcing its financial resilience and low gearing position. Looking Ahead DXN plans to sustain its growth trajectory through continued product innovation and R&D, alongside improvements in production efficiency. “We remain focused on meeting evolving consumer needs and reinforcing our position as a global leader in the health and wellness sector,” said Lim. Despite a marginal 2.5% decline in 4QFY25 revenue to RM458.9 million due to currency fluctuations, the company reported an 11.5% YoY increase in EBITDA to RM147.8 million and a 7.2% rise in net profit to RM84.7 million, supported by operational efficiencies and the reversal of accrued marketing expenses.

PULAU PINANG: PGF Capital Berhad (“PGF Capital” or the “Group”) (BURSA: 8117), Southeast Asia’s leading insulation producer, has announced a record-breaking revenue of RM155.0 million for the financial year ended 28 February 2025 (FY25), marking a 20.5% increase from RM128.6 million in FY24. The growth was predominantly driven by the Insulation and Related Products segment, which contributed 99.2% of the Group’s total revenue, underscoring its central role in PGF Capital’s performance. The Oceania market, particularly Australia, remained a key growth driver amid continued demand and supportive regulatory developments. This includes Australia’s revised building codes and the Victorian State Government’s upcoming insulation upgrade incentives under the Victorian Energy Upgrades (VEU) programme, scheduled to take effect in 2026. Profit before tax (PBT) surged to RM47.0 million in FY25—more than triple the RM15.4 million recorded in FY24—bolstered by robust insulation sales and a one-off RM19.6 million reversal of impairment loss on land held for development. Profit after tax (PAT) also saw significant improvement, rising to RM33.9 million from RM10.5 million in the previous year. Positive Outlook Anchored on Insulation and Regulatory Tailwinds   “Looking ahead, we anticipate our Insulation segment to continue its strong performance and be a key driver of earnings in the new financial year,” said Mr Fong Wern Sheng (邝汶城), Group Chief Executive Officer of PGF Capital. “The Australian market continues to present exciting prospects, especially with the upcoming VEU programme expected to boost demand further in Victoria.” Domestically, the Group expects rising momentum following the implementation of Malaysia’s Energy Efficiency and Conservation Act 2024. PGF Capital also plans to tap into new markets with its soon-to-be-certified mineral wool sandwich panels for industrial and commercial buildings. These panels, known for superior thermal performance, are currently undergoing SIRIM and BOMBA certification. Expansion and Tax Incentives to Drive Future Growth   PGF Capital’s upcoming 40,000-metric-tonne manufacturing facility in Kulim East Industrial Park, Kedah, is on track to begin commercial operations in the first half of 2026. The plant has secured a tax incentive package from the Northern Corridor Economic Region (NCER), entitling the Group to a five-plus-five-year corporate tax holiday upon achieving profitability. Despite recent U.S. tariff announcements, PGF Capital stated that its business remains unaffected as it has no direct exports to the United States. Over 70% of its exports are focused on the Oceania region, with another 20% derived from domestic sales. Diversification Through Property Development   PGF Capital is also pursuing strategic expansion in its property development segment. In December 2024, the Group’s joint venture, Nexel Development KHTP Sdn. Bhd., acquired 9.6 acres in Kulim Hi-Tech Park for a proposed mixed-use development targeted to launch in early 2026, pending regulatory approvals. Additionally, the Group’s Phase 1 project in Tanjong Malim, Perak, developed in partnership with Malvest Properties Sdn. Bhd., is in progress, aligned with the Malaysian government’s vision to transform Proton City into an Automotive High-Tech Valley. Quarterly Turnaround and Solid Financial Position   For the fourth quarter of FY25, PGF Capital posted RM33.7 million in revenue, up slightly from RM33.3 million in 4QFY24. However, PAT for the quarter rebounded sharply to RM13.9 million, compared to a RM1.8 million loss a year earlier. This was largely due to the aforementioned impairment reversal and the absence of a one-off grant reversal recorded last year. The gain was partially offset by expenses related to new banking facilities and a RM2.3 million unrealised mark-to-market loss on a cross currency swap. The Group maintained a strong balance sheet with net gearing of 0.12 times and net assets per share of RM1.41. Net operating cash flow stood at RM11.4 million for the year. Dividend and Shareholder Return   The Board of Directors has proposed a final dividend of 1.0 sen per ordinary share, subject to shareholder approval at the upcoming Annual General Meeting. Together with the 2.0 sen interim dividend already paid, the total dividend payout for FY25 amounts to 3.0 sen per share, representing a total distribution of RM5.8 million.

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&NHB) reported a resilient financial performance for the half-year ended 31 March 2025 (1H FY2025), navigating macroeconomic headwinds and softer trade sentiment with steady revenue and profit growth. Group Financial PerformanceFor 1H FY2025, Group revenue rose 1.4% year-on-year to RM2,723.9 million, supported by broad-based sales growth across business units and stronger export contributions in the first quarter. Group operating profit climbed 4.3% to RM434.8 million, driven by improved margins from higher revenues and lower input costs, particularly in F&B Malaysia and F&B Indochina, helping offset losses related to its dairy farm start-up. In the second quarter (Q2 FY2025), the Group recorded revenue of RM1,334.1 million, a 1.4% decline compared to the same period last year, largely due to softer festive season sales in Malaysia and inventory adjustments in Indochina. Operating profit for the quarter similarly decreased by 7.6%. Profit before tax for 1H FY2025 increased by 4.9% to RM430.1 million, while profit after tax declined 7.6% to RM310.4 million, reflecting the full utilisation of tax incentives under Thailand’s Board of Investment (BOI) scheme last year. Basic earnings per share stood at 84.5 sen compared to 91.8 sen in 1H FY2024. Reflecting its continued confidence, the Board declared an interim single-tier dividend of 30.0 sen per share, amounting to RM110.0 million, payable on 30 May 2025. Financial Highlights 1H FY2025 1H FY2024 Change Revenue (RM million) 2,723.9 2,685.3 +1.4% Operating Profit (RM million) 434.8 416.8 +4.3% Profit Before Tax (RM million) 430.1 409.9 +4.9% Profit After Tax (RM million) 310.4 335.9 -7.6% Basic Earnings Per Share (sen) 84.5 91.8 -7.3 sen Business Unit HighlightsF&B Malaysia maintained first-half revenue levels supported by volume growth in beverages, water products, and exports. However, Q2 festive season sales were softer than expected due to subdued consumer sentiment and flooding in East Malaysia. Meanwhile, F&B Indochina, which encompasses Thailand, Cambodia, and Laos, achieved a 3.4% revenue increase year-on-year in 1H FY2025, driven by intensified marketing campaigns and stronger export sales to Cambodia. However, efforts to manage inventory levels in Thailand impacted Q2 revenue. F&B Indochina continued to be a major profit contributor, registering a 4.5% rise in 1H FY2025 operating profit, while F&B Malaysia improved margins and operational efficiencies, excluding dairy farm start-up costs. Strategic Developments and InvestmentsChief Executive Officer Lim Yew Hoe highlighted significant milestones achieved at F&N AgriValley, a cornerstone of the Group’s strategy to strengthen local dairy supply. Following the arrival of over 2,500 Chilean cattle and the birth of more than 70 calves, milking operations are set to commence in June 2025 under the Magnolia brand. Additionally, the Group’s new dairy manufacturing plant in Cambodia remains on track to begin commercial operations in early 2026. The Penang beverages plant, scheduled for commissioning by August 2025, will enhance service to northern Peninsular Malaysia markets while lowering the Group’s carbon footprint. “Our performance underlines the resilience of our core businesses and validates our investments in future growth,” said Lim. “We are committed to supporting Malaysia’s food security agenda by reducing reliance on imported milk and ensuring supply of quality local fresh milk.” Corporate Social Responsibility InitiativesDuring the Ramadan and Aidilfitri periods, F&NHB deepened its community engagement efforts, partnering with organisations such as Bursa Malaysia, Mydin, Lotus’s, and the National Sports Council (MSN) to provide food aid and festive support to over 100,000 individuals. Chairman YAM Tengku Syed Badarudin Jamalullail reaffirmed F&NHB’s social commitment, noting: “At a time of economic uncertainty, it is more important than ever for businesses to lead with empathy and purpose, standing with the communities we serve.” OutlookLooking ahead, F&NHB remains cautious amid a challenging external environment characterised by global economic uncertainty, evolving regulatory dynamics, and softer consumer demand. The Group will continue to strengthen route-to-market strategies, optimise operational efficiencies, and invest strategically in long-term value creation. While investments such as the integrated dairy farm in Gemas may weigh on margins in the short term, they are expected to underpin sustainable growth over the long term. “Despite ongoing challenges, we are confident in our ability to navigate market volatility and build a stronger, future-ready F&NHB,” Lim concluded.

KUALA LUMPUR: Bursa Malaysia Berhad (Bursa Malaysia) has announced a Profit After Tax, Zakat and Minority Interest (PATAMI) of RM68.4 million for the first quarter of 2025 (1Q2025), representing an 8.8% decline from RM75.0 million in the same period last year. The decrease in PATAMI is primarily attributed to a 1.7% drop in operating revenue, which fell to RM177.7 million from RM180.7 million in 1Q2024. Bursa Malaysia’s operating expenses also increased by 6.7%, rising to RM92.9 million in 1Q2025 from RM87.1 million in 1Q2024, driven by higher technology expenses and subscription costs related to the launch of the Centralised Sustainability Intelligence (CSI) platform in June 2024. Despite these challenges, Dato’ Fad’l Mohamed, Chief Executive Officer of Bursa Malaysia, highlighted the resilience of Malaysia’s capital market. He noted that external factors—such as global market uncertainty—had weighed down performance, but the country’s strong economic fundamentals and government policies remain supportive. Notably, the exchange has seen a strong IPO pipeline, with 16 listings recorded to date, on track to meet its annual target of 60 IPOs. Market Performance Overview The Securities Market saw a decline in trading revenue, with the average daily trading value for On-Market Trades (OMT) and Direct Business Trades (DBT) dropping by 11.9% to RM2.8 billion in 1Q2025, compared to RM3.2 billion in 1Q2024. This decline was exacerbated by a reduction in the number of trading days, which were down by two days compared to the previous year. As a result, trading velocity also fell by 6 percentage points, from 39% to 33%. On a brighter note, the Derivatives Market posted a 13.7% increase in trading revenue, reaching RM28.9 million in 1Q2025, driven by a surge in Average Daily Contracts (ADC) traded for Crude Palm Oil Futures (FCPO). Additionally, the Islamic Market recorded a 23.0% increase in operating revenue, primarily due to higher trading revenue from Bursa Suq Al-Sila’ (BSAS). Looking ahead, Dato’ Fad’l Mohamed stressed that Bursa Malaysia remains committed to strengthening its market resilience through enhanced product offerings and outreach initiatives to attract broader investor participation. These efforts are designed to mitigate the impact of global uncertainties, including geopolitical tensions, monetary policy decisions, and commodity price volatility. The CEO also highlighted the exchange’s focus on sustainability, with ongoing efforts to empower listed companies to improve their sustainability disclosures via the CSI Platform, now enhanced with Artificial Intelligence (AI) capabilities. Additionally, Bursa Malaysia aims to support the country’s transition to a low-carbon economy through the expansion of initiatives like the Bursa Carbon Exchange (BCX) and Bursa Malaysia RAM Capital Sdn. Bhd. (BR Capital). Dato’ Fad’l Mohamed expressed appreciation for the outgoing Chairman, Tan Sri Abdul Wahid Omar, acknowledging his invaluable contributions over the past five years.