Investment & Market Trends

HONG KONG: As the U.S. presidential race heads into its final stages, VT Markets analysts have released a comprehensive study detailing the expected impacts on equity markets in the fourth quarter. The report examines shifts in various sectors, market reactions to political events, and strategies that traders and investors might consider. Shifts in Market Sentiments and Sectors According to VT Markets, the equity market experienced considerable volatility in the third quarter, influenced by uncertainty around the Federal Reserve’s policies and the broader economic outlook. Tech stocks, which had surged on AI-driven growth, began to show signs of correction as traders realized profits. Despite strong earnings from tech leaders like Apple and Tesla, market sentiments remained cautious overall. However, September saw a resurgence in tech stocks due to renewed confidence in AI’s long-term impact on productivity. Simultaneously, traditionally lagging sectors such as utilities, real estate, industrials, and materials experienced rapid gains, indicating a significant market rotation. The Presidential Election as a Market Catalyst The VT Markets report identifies the upcoming U.S. presidential election as a critical factor influencing market dynamics in the fourth quarter. The analysts note an unexpected twist in the Democratic campaign, with Kamala Harris stepping in as the nominee, which has intensified the competition against Donald Trump. Polls suggest a tight race, with Harris slightly leading Trump as of September. The analysts emphasize that key battleground states like Michigan, Pennsylvania, and Nevada are likely to decide the outcome, with Pennsylvania poised as a particularly unpredictable battleground. Candidates’ Economic Policies and Market Implications The study outlines the economic policies proposed by both candidates, which could significantly impact various market sectors. Kamala Harris proposes raising corporate taxes to fund public initiatives and maintaining tax cuts for individuals earning under $400,000. [1] Donald Trump, conversely, aims to lower corporate taxes further and increase tariffs, especially on Chinese imports. [2] Immigration and energy policies also diverge sharply between the candidates, with Trump advocating for stringent measures against illegal immigration and favoring traditional energy subsidies.[2] Harris supports a legal pathway for undocumented immigrants and intends to invest heavily in renewable energy. [1] Strategic Implications for Investors VT Markets analysts suggest that the election results will play a crucial role in shaping investment strategies in Q4. A re-election for Trump could spur growth in fossil fuels, financials, defense, and cryptocurrency sectors. A victory for Harris, on the other hand, is likely to boost renewable energy, electric vehicles, and semiconductor industries. Despite the election’s uncertain outcome, the analysts believe that AI-driven tech stocks will continue to offer robust investment opportunities, potentially propelling a broader market rally post-election. The VT Markets Analysis Report The VT Markets report provides a detailed analysis of how political developments, and the presidential election are expected to influence market trends and investor strategies in the upcoming quarter. With these insights, VT Markets aims to equip investors with the knowledge to navigate the anticipated market volatilities effectively. This analysis is based on current market conditions and political scenarios, which are subject to change. The projections and opinions expressed are intended to provide insight at a specific time and are given in good faith. No financial market prediction can offer a guarantee, and investors are encouraged to conduct their own research or consult with a financial advisor before making any investment decisions based on this report. [1] https://kamalaharris.com/ [2] https://www.donaldjtrump.com/

SINGAPORE: GlobalTix, a ticketing software provider and marketplace distribution platform for the tourism industry, today announced the successful closure of its S$6.5M Series B funding round. The round was led by VC firm Tin Men Capital, with participation from SEEDS Capital, ORZON Ventures—a Thailand-based venture capital fund managed by 500 Thailand—and a US-based family office. Founded in 2013, GlobalTix has grown into Southeast Asia’s largest ticket aggregator, hosting over 150,000 experiences and working with 12,000 travel agents, issuing more than 12 million tickets annually. With 10 offices across key markets in Asia, including China, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Thailand, and Vietnam, GlobalTix has established a strong regional footprint. The company is a preferred ticketing and channel management partner for renowned attractions across the Asia-Pacific (APAC) region and beyond. Their portfolio includes partnerships with Jewel Changi Airport, Mount Faber Leisure Group, Taman Safari Indonesia, and Merlin Entertainments. GlobalTix’s innovative ticketing and distribution solutions streamline operations for these attractions while enhancing visitor experiences. The newly secured funding will support the company’s ambitious expansion plans, with a focus on implementing AI-driven technologies to enhance GlobalTix’s product offerings. This strategic investment will also help the company maintain its leadership position in the evolving landscape of travel technology. CEO Chan Chee Chong shared his thoughts on the funding: “We extend our heartfelt appreciation to our long-standing investors, especially Tin Men Capital, who have been instrumental in our growth as we tripled in size. We are also excited to welcome new investors like ORZON Ventures. This investment will strengthen our foothold in APAC, expand market access, and allow us to deploy AI and predictive analytics to identify trends, optimize pricing, and enhance traveler experiences.” Tin Men Capital, a Singapore-based VC firm specializing in B2B software startups in Southeast Asia, first invested in GlobalTix in 2018. Returning as lead investors in this round, the firm continues to support the company’s growth trajectory. Jeremy Tan, Co-Founder and Managing Partner of Tin Men Capital, said: “Since our initial investment in 2018, GlobalTix has grown to become the largest tour aggregator in Southeast Asia while achieving cash flow positivity. Their performance, capital efficiency, and resilience have inspired continued investor confidence. We are excited to help the company build on its momentum and lead future innovations in the travel tech industry.”

HONG KONG: Yuexiu Transport Infrastructure Limited (“Yuexiu Transport” or the “Company”; stock code: 01052.HK) announced today that a wholly-owned subsidiary of the Company has entered into an agreement to acquire 55% equity interests in the target company which holds the toll collection rights of Henan Yuexiu Pinglin Expressway Company Limited (the “Target Company”) from Guangzhou Yue Xiu Holdings Limited (“Yue Xiu Group”), the controlling shareholder of the Company, for a total cash consideration of approximately RMB758.45 million. The acquisition is subject to approval by independent shareholders. The Henan Pinglin Expressway, located in the core development area of the Zhongyuan city cluster, has a toll mileage of 106.45 km. It is an important component of the G36 Nanjing-Luoyang Expressway, one of the 18 east-west trunk lines of the national “71118” expressway network, and also one of the main logistics roads connecting the northwestern China and coastal region in southeastern China. The expressway has been in operation for over 18 years since it commenced operation in 2006, with a mature and stable surrounding expressway network. Given its geographical advantage, Yuexiu Transport believes that the Henan Pinglin Expressway will continue to benefit from the national “Rise of Central China” regional development plan. The Company is optimistic about the long-term economic development in Central China, and the acquisition of the Henan Pinglin Expressway aligns with the Company’s strategy to expand its business footprint in the region and will help the Company further seize opportunities from the “Rise of Central China” plan. Additionally, as the Henan Pinglin Expressway is near the Weixu Expressway and the Lanwei Expressway, which are operated by the Company, a unified operation and management and a district management model would enable to achieve economies of scale and enhance management efficiency. The Target Company is in good financial position and recorded a profit of RMB119.12 million in the first year after obtaining the toll collection rights of the Henan Pinglin Expressway in February 2023. For the seven months ended 31 July 2024, the Target Company’s revenue was RMB303.52 million and after-tax profit was RMB80.40 million. Upon completion of the acquisition, the Henan Pinglin Expressway is expected to bring enhanced cash flow and profits to the Yuexiu Transport, add momentum to the growth of the Company’s toll revenue and profit, and increase the Company’s earnings per share. Yuexiu Transport believes that the acquisition of the Henan Pinglin Expressway aligns with the Company’s investment and development strategy of “focusing on the Guangdong-Hong Kong-Macao Greater Bay Area and Central China”. Meanwhile, the Henan Pinglin Expressway will create economies of scale with the Weixu Expressway and the Lanwei Expressway in Central China, directly contributing to the Company’s toll revenue and profit, expanding the Company’s operating scale and enhancing its sustainable development capabilities. Looking ahead, Yuexiu Transport will continue to refine its integrated business strategy of “investment, financing, operation, and divestment”. By establishing an incubation platform to secure quality assets and leveraging the domestic infrastructure REITs platform, the Company aims to dynamically adjust and continuously optimize its asset portfolio through the synergistic interaction between the incubation platform, infrastructure REITs platform and listed company platform, and strives to create greater value for shareholders.

KUALA LUMPUR: A consortium led by property developer LBS Bina Group Berhad (“LBS Bina”) has awarded a RM104 million Engineering, Procurement, Construction, and Commissioning (EPCC) contract to regional clean energy expert, Solarvest Holdings Berhad (“Solarvest” or the “Group”) for the construction of a 43-MWp solar farm project. The signing ceremony was witnessed by Deputy Prime Minister, YAB Dato’ Sri Haji Fadillah Bin Haji Yusof, who also serves as the Energy Transition and Water Transformation Minister, during the International Greentech & Eco Products Exhibition and Conference Malaysia (IGEM). This project marks LBS Bina’s strategic entry into the renewable energy sector under the Corporate Green Power Programme (CGPP). The solar farm, located in Senawang, Negeri Sembilan, is expected to be completed by the end of 2025. Upon commissioning, it is projected to generate approximately 53,000 MWh of clean energy annually, offsetting around 35,000 tonnes of carbon dioxide emissions. The solar farm will also contribute about 53,000 Renewable Energy Certificates (RECs) to the market, supporting corporate consumers in achieving their sustainability goals. LBS Bina’s strategic venture into the renewable energy sector underscores its commitment to sustainability and a forward-thinking approach to business development. This initiative not only aligns with LBS Bina’s environmental objectives but also enhances its core property development business by integrating renewable energy solutions. Through projects like these under the CGPP, LBS Bina aims to create new, recurring revenue streams and improve its long-term earnings visibility. The solar farm is owned by Suria Hijauan Sdn Bhd, a consortium comprising Setara Armada Sdn Bhd, MWG Solar Energy Sdn Bhd, and Ocean Solar Energy Sdn Bhd. Setara Armada is a wholly-owned subsidiary of LBS. Group Executive Chairman of LBS Bina, Tan Sri Dato’ Sri Ir. (Dr.) Lim Hock San, said, “As a company deeply committed to ESG, we have consistently demonstrated our dedication to sustainability. Today marks a significant milestone as we celebrate awarding the EPCC contract to Solarvest, a reputable company known for delivering high-quality projects on time and within budget. Their expertise instills confidence in our construction efforts, enhancing our solar project’s credibility and fostering an environment for innovative solutions. We are optimistic that this partnership will help us achieve our project goals and advance our sustainability objectives.” Executive Director and Group Chief Executive Officer of Solarvest, Mr. Davis Chong Chun Shiong, added, “As a clean energy player, we are encouraged by the growing ESG awareness among corporations and their ambitious sustainability goals. The CGPP offers a valuable platform for independent power producers like LBS Bina and us to contribute to renewable energy infrastructure. Solarvest is honoured to provide EPCC services for this solar farm development, which highlights our ability to deliver complex solar projects, even in challenging terrains like the hilly landscape of the site. With our innovative approach and detailed project planning, we are confident in the groundwork for a successful construction phase.” As of September 2024, Solarvest’s EPCC order book stands at RM582 million. The Group is actively pursuing additional EPCC opportunities under the CGPP, with a targeted capacity of approximately 380 MWp, representing an estimated project value of RM800 million.

TOKYO: estie Inc., a leading Japanese prop-tech startup, announced the successful close of a JPY 2.8B (USD 20M) Series B round to accelerate growth and expand its presence in Southeast Asia. The round was led by Vertex Growth, a venture capital fund backed by Temasek’s Vertex Holdings, and the Development Bank of Japan (DBJ). Existing investors, including Globis Capital Partners (GCP), University of Tokyo Edge Capital Partners (UTEC), and Global Brain (GB), also participated. The new funding will support Estie’s multi-product strategy, focusing on providing comprehensive digital solutions for commercial real estate clients. The capital will be used to facilitate strategic mergers and acquisitions (M&A), expand product development, and recruit top talent to maintain a competitive edge. By integrating artificial intelligence (AI) with its proprietary data, Estie aims to further drive digital transformation in Japan’s real estate industry, particularly in leasing and transactions. Founded in 2018, Estie is capitalizing on Japan’s digital shift in commercial real estate. Despite Japan’s ranking as the third-largest commercial real estate market globally, data transparency remains a challenge. Estie addresses this gap through its expansive data infrastructure, including one of Japan’s largest office data platforms, Estie Market Research. As part of its long-term strategy, Estie plans to expand into Southeast Asia, starting with Singapore. The company aims to provide Southeast Asian investors with comprehensive insights into Japan’s real estate market and establish itself as a regional player offering a one-stop data platform for global real estate investors. Ei Hirai, Founder and CEO of Estie, expressed excitement about the new investment, highlighting the support from Vertex Growth and DBJ. He noted that the collaboration validates their shared vision of building digital infrastructure for the real estate industry, a vital sector for Japan’s economy. Tam Hock Chuan, General Partner at Vertex Growth, praised Estie’s growth potential, likening its impact on real estate to Bloomberg’s role in the financial sector. He expressed confidence in Estie’s business model and looks forward to supporting its expansion across Southeast Asia.

TAIPEI: Taiwan-based ASE Technology Holding Co., the world’s largest IC packaging and testing services provider, said Monday that it aims to raise renewable energy use to 42 percent of its total energy consumption by 2023, paving the way to realize the goal of net zero emissions by 2025. In its latest sustainability report, ASE Technology said that to achieve its science-based carbon reduction target, it has proactively expanded the coverage of its product life cycle inventory with five major areas in focus: investments in carbon credits, renewable energy use, low carbon transportation, low-carbon products, and supply chain engagement. The company also aims to work with suppliers to promote transport modes through technology sharing, cross-industry cooperation, and subsides for sustainability projects, ASE Technology said. Moreover, to manage internal consumption and boost energy efficiency, the company is progressively implementing the ISO 50001 Energy Management System to meet its planned target of achieving 100 percent certification by 2025, it said. Since 2021, ASE Technology has set up a “Renewable Energy Platform” to consolidate energy procurement by its three subsidiaries: Advanced Semiconductor Engineering Inc., Siliconware Precision Industries Co., and Universal Scientific Industrial (Shanghai) Co. In line with its net zero emissions goal by 2050, the IC packaging and testing giant said it has increased the use of renewable energy through solar power, through equipment installed at its facilities, external procurement of renewable energy, and purchases of renewable energy certificates (RECs). ASE Technology said its facility in Kaohsiung led the initiatives by expanding its adoption of intelligent energy management systems. In addition, artificial intelligence applications have been adopted to forecast air conditioning consumption for each upcoming 12-hour period with the data currently used to calculate and control the operation of chillers and fan filter units (FFU) in each area to maximize energy savings, the company said. According to ASE Technology, 84 percent of its facilities worldwide consumed green energy or purchased RECs, which make up 20 percent of its total energy use in 2023, with 12 of these facilities meeting RE100 requirements, a global corporate renewable energy initiative calling for businesses to commit to 100 percent renewable electricity. ASE Technology said the company’s commitment to green energy consumption helped to cut greenhouse gas intensity per unit of revenue by 45 percent from 2021 to 2023.–FOCUS TAIWAN CNA ENGLISH NEWS

VESTERA and FUELTRAX are pleased to announce a strategic partnership to provide a leasing solution for advanced fuel monitoring systems designed for offshore vessels. This innovative offering allows vessel owners to install state-of-the-art technology without incurring high capital expenditure (CAPEX). The official Memorandum of Understanding (MOU) exchange ceremony took place at the Kuala Lumpur Convention Centre during The 7th Malaysia Oil & Gas Services Exhibition and Conference (MOGSEC). The event was graced by Puan Rashidah Alias, Vice President of Group Procurement at PETRONAS, further emphasizing the significance of this collaboration. VESTERA’s and FUELTRAX’s partnership aims to enhance operational efficiency and fuel management for offshore vessel operators, providing them with real-time data and analytics to optimize fuel usage and reduce costs. “We are excited to partner with FUELTRAX to deliver a solution that not only improves operational efficiency but also supports the industry’s transition toward smarter, more sustainable practices,” said Capt Ahmad Imran, Managing Director of VESTERA. “By offering a leasing model, we eliminate the barriers of high upfront costs, enabling more vessel owners to benefit from our cutting-edge fuel monitoring technology,” stated Faiz Azani, Director of Operations (Southeast Asia) of FUELTRAX.

HONG KONG: On September 27, 2024, China Wantian Holdings Limited (1854.HK) (“Wantian”) announced that it has signed a strategic cooperation agreement with Hin Sang Group (6893. HK) (“Hin Sang”). The partnership aims to jointly venture into the rapidly growing functional food and health market, leveraging resource integration and technological innovation to provide high-quality health products and services to consumers worldwide, while jointly exploring new market opportunities. Strong Alliance to Create a New Landscape in Health With the rising global awareness of health, the health industry is experiencing unprecedented development opportunities. According to market forecasts from the China Consumers Association’s “Health Industry Consumption Trend Development Report”, by 2025, the market size of China’s health industry is expected to reach 17.4 trillion RMB, and it is projected to climb to 29.1 trillion RMB by 2030. The functional food industry, as a vital component of the health market, is attracting increasing capital and policy support. As a listed company on the main board of the Hong Kong Stock Exchange, Wantian’s collaboration with Hin Sang will further strengthen its presence in the health sector, paving the way for its vision to become a global leader in the full industry chain of green food services. Focusing on Three Strategic Cooperation Areas The cooperation will focus on three major strategic areas to expand and innovate within the functional food market: Jointly Establishing Health Soup Chain Stores: Both parties plan to open 100 “Wantian Pengzu Hin Sang Centers” within three years, focusing on premium health soups to provide consumers with a natural and healthy wellness experience, meeting the market demand for high-quality health products. Co-developing Premium Health Gift Series: Both parties will launch the “Wantian Gift x Hin Sang” premium health gift series, combining Hin Sang’s herbal health products with Wantian’s green ingredient resources to create high-end health gifts that cater to modern consumers’ pursuit of quality living and health products. Establishing the Functional Food and Herbal Life Science Research Institute: Both parties will jointly establish the “Wantian x Hin Sang Functional Food and Herbal Life Science Research Institute,” focusing on the cultivation, research, and application of functional food and herbal medicine. The institute aims to transform scientific research achievements into commercial products, driving the innovative development of the functional food and herbal medicine industry. Synergies to Create Long-Term Value This strategic partnership represents more than just a merging of resources and technology; it brings forth substantial synergies. Wantian’s extensive experience in the green food supply chain will open up broader sales channels for Hin Sang’s products, while Hin Sang’s strong brand influence in the health sector will support Wantian’s swift entry into the functional food market. Together, their collaboration is poised to drive product innovation, optimize operational efficiency, and accelerate market expansion, leading to strong long-term returns. As China’s “Healthy China 2030” blueprint, the health industry holds tremendous growth potential. This partnership between Wantian and Hin Sang is perfectly aligned with market trends and leverages policy incentives, setting the stage for a prosperous future in the health sector. Both companies foresee significant business outcomes from this collaboration, positioning it as a model for industry partnerships. Wantian’s foray into the health industry underscores its keen market insights and strategic foresight. This initiative not only supports its efforts to diversify its business but also establishes a robust foundation for sustained growth. As Wantian continues to expand and innovate, it is well-positioned to become a leading player in the health market, generating lasting value and returns.

KUALA LUMPUR: OB Holdings Berhad (“OB Holdings”) , a fortified food and beverages (“F&B”) and dietary supplements manufacturing services provider, has successfully launched its prospectus today in conjunction with its upcoming initial public offering (“IPO”) and listing on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). OB Holdings and its subsidiaries (collectively known as the “OB Holdings Group” or “Group”) provides fully customisable, end-to-end manufacturing services of fortified F&B and dietary supplements to third party brand owners. Supported by in-house capabilities in development of product formulations, the Group manufactures products in a variety of forms comprising vegetable softgel capsules, hard capsules, tablets (including effervescent tablets), teabags, liquid beverages, powder mixes and jelly. In addition, the Group manufactures, sells, and markets products under its own house brands Bonlife, GoHerb, Zen Night, Sleepin’ Beaute, EZ:Nitez, Beyoute, Zen Youte, and Zenliv.   Managing Director of OB Holdings, Mr. Teoh Eng Sia said, “The successful launch of our prospectus marks a significant milestone in our journey towards listing on the ACE Market of Bursa Securities. The upcoming listing will provide us with an enhanced platform to raise capital and accelerate our growth plans, enabling us to expand our operations and strengthen our market presence.”   “Our upcoming IPO comes at an opportune time, coinciding with a growing demand for fortified F&B and dietary supplements. This heightened interest is fuelled by growing health awareness stemming from rising rates of chronic diseases, coupled with the increase in disposable income of the Malaysian, urbanisation, and the expanding ageing population. Moreover, the prevalence of social media marketing and the growing popularity of e-commerce platforms position us to reach a broader customer base and enhance our market presence.”   “To capitalise on the growing demand fortified F&B and dietary supplements, we plan to improve our manufacturing efficiency by constructing a new Serendah Factory. This move will enable us to optimise our manufacturing workflow and position us to cater to the increasing demand for our products and services. In addition to the new factory, we will purchase new machines and establish a new laboratory to expand production, introduce new products, and enhance our research capabilities. We will also conduct a clinical trial for Bonlife SachaQ10 Plus Softgel to enhance consumers’ confidence by providing third party verification of our product’s efficacy and strengthen our brand reputation as a provider of scientifically-driven nutrition.”   From the RM28.8 million to be raised through the IPO, a majority will be allocated to fund the Group’s expansion plans. Specifically, RM14.90 million (51.74%) will be used to repay bank borrowings incurred from the construction of the new Serendah Factory. RM5.00 million (17.36%) is earmarked for the purchase of new machines, while RM0.90 million (3.12%) will be used to set up a new laboratory in the new Serendah Factory and undertake the clinical trial for the Bonlife SachaQ10 Plus Softgel.   The remaining funds will be utilised for general operational purposes, including RM1.00 million (3.47%) for marketing and advertisement activities, RM3.00 million (10.42%) for working capital, and RM4.00 (13.89%) million to cover IPO-related expenses.   For the financial year ended 31 May 2024, the Group reported a profit after tax (“net profit”) of RM5.50 million against a revenue of RM50.89 million. After adjusting for listing expenses and an under accrual of real property gains tax related to a property disposed in the prior year, the Group’s adjusted net profit amounted to RM6.25 million.    The Group’s IPO exercise comprises of a public issuance of 120.00 million new ordinary shares in OB Holdings (“Shares”), representing 30.64% of its enlarged issued share capital. Of which, 19.58 million will be made available for application by the Malaysian Public via balloting, 7.83 million Shares to its eligible Directors, employees and persons who have contributed to the success of the Group (“Pink Form Allocation”), 43.63 million Shares to selected investors via private placement, and the remaining 48.95 million Shares will be allocated by way of private placement to identified Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia.   With an enlarged issued share capital of 391.62 million Shares and an IPO price of 24 sen per Share, OB Holdings will have a market capitalisation of RM93.99 million upon listing.   Following the prospectus launch, applications for the public issue are open from today and will be closed on 15 October 2024 at 5.00pm. OB Holdings is scheduled to be listed on the ACE Market of Bursa Securities on 29 October 2024.   Alliance Islamic Bank is the Principal Adviser, Sponsor, Sole Underwriter and Placement Agent for the IPO exercise.