Investment & Market Trends

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).

KUALA LUMPUR: Tenaga Nasional Berhad (TNB) has declared a dividend of 51 sen per share—the highest in four years—returning more than RM2.96 billion to shareholders and reinforcing its role in fostering responsible growth and national development. The payout aligns with TNB’s 60% dividend policy and benefits millions of Malaysians, with over 60% of its shares held by Government-Linked Investment Companies (GLICs), including Permodalan Nasional Berhad (PNB), Employees Provident Fund (EPF), Khazanah Nasional, Kumpulan Wang Persaraan (KWAP), and Lembaga Tabung Haji (LTH). At its 35th Annual General Meeting, Chairman Tan Sri Abdul Razak Abdul Majid said, “These distributions ultimately reach millions of Malaysians, reinforcing national savings, retirement security, and broad-based financial wellbeing.” Beyond financial returns, TNB reaffirmed its commitment to nation-building through long-term investments in education, community development, and sustainability initiatives. In 2024, the utility giant contributed RM874.7 million in taxes and zakat, alongside RM140.9 million for programmes in education, sports, environment, and community outreach. Key initiatives include Phase 11 of its Village Street Lighting Programme, which will see the installation of over 14,000 energy-efficient LED streetlights across rural areas, enhancing safety, connectivity, and economic inclusion. President and CEO Datuk Ir Megat Jalaluddin Megat Hassan emphasised the company’s forward-looking approach: “Our strategy is clear. We aim to maintain robust performance while generating long-term value for the rakyat through responsible returns and meaningful impact.” TNB’s achievements in 2024 were underpinned by favourable macroeconomic conditions, including a strengthening ringgit and Malaysia’s 5.1% GDP growth. Strong industrial and commercial demand, spurred by RM378.5 billion in approved investments (MITI), also contributed to the company’s performance. With RM11.2 billion invested in capital expenditure last year, TNB accelerated grid modernisation to support Malaysia’s energy transition under the Ekonomi MADANI framework. Key upgrades enabled greater renewable energy integration and improved network resilience across Peninsular Malaysia. TNB also reported a Customer Satisfaction Index score of 87% and secured an MSCI ESG rating upgrade to ‘A’, reflecting its leadership in sustainability through emissions reductions, water efficiency, and renewable energy adoption. “These achievements are not just numbers—they reflect our long-standing commitment to delivering reliable infrastructure, promoting inclusive growth, and supporting national aspirations,” TNB stated.

KUALA LUMPUR: Shares of Eco-Shop Marketing Bhd (KL:ECOSHOP) opened at RM1.25 on its Main Market debut on Bursa Malaysia, marking a gain of over 10% from its initial public offering (IPO) price of RM1.13. The counter later settled at RM1.21 in early trade, with nearly 50 million shares changing hands. The upbeat debut follows a revised IPO pricing strategy, where the company trimmed its final offer price by 7% amid tepid retail demand. While the public portion was only marginally subscribed, the institutional tranche was fully taken up — supported by 10 cornerstone investors including AHAM Asset Management, Areca Capital, and Eastspring Investments. These institutions collectively absorbed over 90% of the institutional allocation. Eco-Shop’s IPO raised RM974 million in total, comprising RM392 million for the company and RM582 million for selling shareholders, including founder and managing director Datuk Seri Lee Kar Whatt and private equity firm Creador — which previously backed Mr DIY Group (M) Bhd. Founded as a fixed-price retail chain, Eco-Shop operates over 350 stores nationwide, offering more than 10,000 items — primarily priced at RM2.60 — ranging from household goods to daily necessities. Proceeds from the IPO will be used to expand the company’s distribution and retail footprint, repay borrowings, and enhance IT infrastructure. Maybank Investment Bank led the deal as principal adviser and sole underwriter, supported by UBS and RHB as joint global coordinators and bookrunners. The positive listing comes as a relief for Bursa Malaysia following several underwhelming IPO debuts in recent months. Analysts from Nomura and UOB Kay Hian had earlier issued “buy” ratings on Eco-Shop, with target prices ranging from RM1.35 to RM1.45.

KUALA LUMPUR: Bursa Malaysia Berhad has launched Shares2U, an innovative securities transfer scheme aimed at increasing retail investor engagement and participation in the capital market. The initiative allows Participating Organisations (POs), including banks and brokerages, to reward retail investors with listed shares through marketing campaigns. This marks a strategic move to modernise investor outreach and incentivise both new and existing participants in the stock market. Shares2U is tailored to suit a wide range of investor profiles—motivating new investors to enter the market, encouraging dormant account reactivation, and rewarding active investors. It supports brokers in running dynamic and value-driven campaigns by offering listed shares as incentives for completing specific actions, such as: Opening a Central Depository System (CDS) account Depositing funds Executing trades Dato’ Fad’l Mohamed, Chief Executive Officer of Bursa Malaysia, stated that Shares2U reflects the Exchange’s commitment to fostering a more inclusive and vibrant capital market. “Today’s investors, especially younger, digitally-savvy ones, want more than just access—they expect personalisation and value. Shares2U gives our brokers the tools to meet those expectations while growing Malaysia’s retail investor base,” he said. The scheme has undergone thorough development in collaboration with the Securities Commission Malaysia (SC) to ensure strong investor protection and operational viability. Industry feedback from POs was also integral in shaping the initiative. Initially, seven POs will implement Shares2U in their campaigns: AmInvestment Bank CGS International Securities Malaysia Hong Leong Investment Bank Kenanga Investment Bank Malacca Securities Maybank Investment Bank Moomoo Securities Malaysia Bursa Malaysia is encouraging more POs to adopt Shares2U to tap into its potential for investor acquisition and retention.

KLANG: Recently listed bathroom and kitchen sanitary ware provider Sorento Capital Berhad has recorded a net profit of RM18.3 million for the nine-month period ended 31 March 2025 (9MFY25), on the back of RM135.9 million in revenue. Excluding one-off IPO listing expenses of RM3.1 million, adjusted net profit stood at RM21.5 million. For the third quarter alone (3QFY25), the company reported RM41.1 million in revenue with a profit before tax (PBT) of RM8.1 million and net profit of RM6.3 million — translating to a PBT margin of 19.7% and net profit margin of 15.3%. “We are pleased to report sustained positive performance despite the seasonal slowdown during the Chinese New Year holiday period,” said Managing Director Loo Chai Lai. “Encouragingly, market activity has since picked up, and our growing pipeline of projects continues to reinforce our confidence.” Sorento Capital’s growth strategy remains anchored in its expanding dealer network. The company added 96 new dealers in the first nine months of FY25, progressing towards its target of 200 new dealers over three years. This builds on its existing base of 664 dealers in FY2024. The industry outlook remains promising, underpinned by rising lifestyle expectations, residential and commercial construction activities, and government infrastructure initiatives. In response, Sorento Capital is diversifying its portfolio across residential projects, hotels, office buildings, and both new build and renovation segments. As of March 31, 2025, Sorento Capital maintained a strong financial position with RM56.7 million in cash and cash equivalents, and RM4.1 million in total borrowings. The company also reported a net operating cash inflow of RM16.8 million for 9MFY25. Sorento Capital was listed on the ACE Market of Bursa Malaysia on October 28, 2024, raising RM57.4 million through its IPO.