Investment & Market Trends

KUALA LUMPUR: Shares of Gamuda Bhd (KL:GAMUDA) have the potential to rise as much as 62% from their last traded price if the company’s market value aligns with the size of its order book, CGS International said on Friday. The research house estimates that Gamuda should  be valued at RM8.10, compared to its last price of RM4.99. It noted that Gamuda’s market capitalisation is currently 0.7 times its order book, below the historical average of 1.1 times since 2010. “We view its order book target as conservative given the pipeline of potential data centre projects with its bundled strategy,” CGS International said. “Given its strong project win momentum, we think the stock can trade up to RM8.10.” For now, the firm has raised its target price to RM6.45, based on the sum of its individual businesses’ valuations, while maintaining an ‘add’ call on the stock. Despite hitting a new record high earlier, Gamuda’s shares have retreated for three consecutive days. The stock has more than doubled in 2024, benefiting from a strong rally in the construction sector as investors seek exposure to companies involved in data centre developments and other industrial projects. At its last price, Gamuda’s market capitalisation stood at RM28 billion. Analysts remain largely bullish on the stock, with 19 ‘buy’ calls, two ‘hold’ calls, and no ‘sell’ ratings. Bloomberg data shows a consensus average target price of RM5.47, implying a 10% upside over the next 12 months. CGS International also highlighted that Gamuda’s own order book target of RM40 billion to RM45 billion for 2025 appears conservative, as its current order book stands at RM31.8 billion. “We think the incremental order book upside, which investors are also not fully pricing in, will come from high-margin data centre projects on land recently acquired in Negeri Sembilan,” the research house said. The 389-acre land in Negeri Sembilan alone could generate contracts worth RM19 billion over the next several years for a campus of eight to nine data centres, CGS International added.

PETALING JAYA: Gateway Development Alliance Sdn Bhd (GDA) has announced that its takeover offer for Malaysia Airports Holdings Bhd (MAHB) has reached an effective 84.12% stake as of 5pm Wednesday. The consortium—including associates Pantai Panorama Sdn Bhd, Kwasa Aktif Sdn Bhd, and GIP Aurea Pte Ltd—initially set a target to achieve 90% acceptance within the original deadline, a key condition of the voluntary offer. Earlier this week, GDA and MAHB extended the deadline to Jan 17 to allow the Khazanah Nasional Bhd-led group, which also includes the Employees Provident Fund (EPF), to meet this condition. In a Bursa Malaysia filing yesterday, GDA reported that its total shareholding, including associates, stands at 83.04%, with an additional 1.09% of shares transferred but pending receipt of acceptance documents. GDA is offering RM11 per share, sparking debates among shareholders. While sector analysts, independent valuers, and investors have largely recommended accepting the offer, non-independent directors have argued that it is unfair and unreasonable, given MAHB’s strong post-pandemic recovery as a public entity. Meanwhile, MAHB’s share price has inched closer to the offer price, closing 14 sen higher at RM10.78 yesterday. Should MAHB be delisted, there remains a possibility of it returning to public trading in the future, but the timeline for re-listing is uncertain. Experts caution that minority shareholders who hold out may see their influence diluted, as GDA’s dominant stake could sway major decisions.

TCS Group Holdings Berhad (“TCS” or “the Group”), a provider of building and infrastructure construction services, announced that Mr. James Liew Vun Tak (“James Liew”) has become a substantial shareholder after acquiring an 11.9% stake from the Group’s Managing Director, Dato’ Ir Tee Chai Seng. Commenting on the development, Dato’ Ir Tee Chai Seng (“拿督郑再盛”) said, “We are pleased to welcome James Liew as TCS’ new strategic long-term shareholder and partner. James brings extensive experience in infrastructure construction, with a strong track record in major projects across East Malaysia, including highways and bridges. This partnership creates strong synergies for TCS as we expand our presence in East Malaysia.” He added, “Together, we will leverage our technical expertise and proven track record to secure more projects, particularly in the infrastructure segment. This aligns with our growth plans and will create significant value for all stakeholders while improving our shareholding mix.” James Liew holds a Bachelor of Arts (BA) and Master of Engineering (MEng) from the University of Cambridge, United Kingdom.

KUALA LUMPUR: Food and beverage (“F&B”) services cafe chain operator, Oriental Kopi Holdings Berhad (“Oriental Kopi” or the “Company”) (“华阳餐飲集团”), has successfully debuted on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). The stock is categorized under the Consumer Products & Services sector and trades under the stock name KOPI with the stock code 0338. Expanding Cafe Operations and Packaged Food Business Oriental Kopi, through its subsidiaries (collectively referred to as the “Group”), primarily operates cafe chains and distributes and retails its brands of packaged foods. The Group’s cafes, branded as Oriental Kopi, offer food & beverage (“F&B”) services and sell its packaged food products in-store. Since opening its first cafe in December 2020, Oriental Kopi has grown rapidly, currently operating 19 owned-and-operated cafes across Malaysia. The Group has also expanded internationally with its first overseas cafe in Singapore’s vibrant Bugis Junction, established through a joint venture with Paradise Group Holdings Pte Ltd. In addition, Oriental Kopi manages a specialty retail store located in St. Giles Southkey Hotel, Johor. Its cafes are strategically located in high-traffic areas such as shopping malls, shop lots, and the retail mall at Kuala Lumpur International Airport 2. Strong Market Debut At the opening bell, Oriental Kopi’s share price opened at 75 sen, marking a 70.5% premium over its IPO issue price of 44 sen, with an opening trading volume of 65,584,700 shares. This impressive debut follows an oversubscription of approximately 60 times during its IPO, reflecting strong investor confidence in the Company’s business model and growth potential. Strategic Growth Plans Dato’ Chan Jian Chern (拿督陈建丞), Managing Director of Oriental Kopi, remarked: “Today marks a defining moment for Oriental Kopi as we embark on an exciting new chapter as a publicly listed company. Over the past four years, our team’s dedication, hard work, and passion have propelled us to achieve this remarkable milestone. With the proceeds from our IPO, we are strategically positioned to accelerate our growth and seize new opportunities in the F&B industry.” A significant portion of the IPO proceeds, amounting to RM53.7 million (29.2%), will be allocated to establish a new head office, central kitchen, and warehouse (“New Operational Facility”) in Selangor. The facility, spanning approximately 108,448 square feet, will centralize management functions, streamline F&B operations, and enhance storage and distribution efficiency. Allocation of IPO Proceeds The remaining IPO proceeds are allocated as follows: RM75.8 million (41.2%) for working capital requirements RM36.4 million (19.8%) for cafe chain expansion across Malaysia RM5.0 million (2.7%) for growing the packaged foods segment RM5.5 million (3.0%) for marketing activities in international markets RM7.6 million (4.1%) to cover listing expenses Impressive Financial Growth Oriental Kopi has demonstrated remarkable financial growth: Revenue increased from RM5.0 million in FY2021 to RM277.3 million in FY2024, achieving a 3-year compound annual growth rate (CAGR) of 280.9%. Profit after tax improved significantly, transitioning from a loss of RM0.5 million to a net profit of RM43.1 million during the same period. Future Outlook Dato’ Chan added: “Looking ahead, we are well-positioned to capture the growth potential driven by economic expansion, rising household spending, and increasing tourism. Our dedication to serving authentic, high-quality Malaysian cuisine, coupled with targeted strategic initiatives, will drive sustainable long-term value for our shareholders while reinforcing Oriental Kopi’s position in Malaysia’s F&B industry.” IPO Advisors Alliance Islamic Bank Berhad acted as the Principal Adviser, Sponsor, Sole Underwriter, and Placement Agent for the IPO exercise.

KUALA LUMPUR: Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”), in collaboration with CIMB Group (CIMB) and HSBC Malaysia (HSBC), concluded the first edition of its Invest Malaysia 2025 series (“Invest Malaysia” or “IM London 2025”) on 17th January 2025. Themed “Malaysia’s Economic Resurgence, Driving ASEAN’s Growth,” this flagship capital market conference continues to promote Malaysia as a compelling investment destination. It offers institutional investors and fund managers valuable insights into Malaysia’s macroeconomic outlook, market prospects, and listed companies on the Exchange. Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia, highlighted in his opening remarks Malaysia’s economic resilience, showcasing the results of progressive national policies and reforms, while striving for stronger growth and innovation. YAB Dato’ Seri Anwar bin Ibrahim, Prime Minister of Malaysia, delivered the keynote address, emphasizing the strategic significance of the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This milestone marks the first-ever Free Trade Agreement between the UK and Malaysia, positioning the UK closer to key Southeast Asian markets and reinforcing Malaysia’s role as a gateway to ASEAN. The Prime Minister elaborated on Malaysia’s appeal as a preferred investment destination in Asia Pacific, underpinned by strong GDP growth, low inflation, a robust capital market, and transformative policies under the MADANI economic framework. He also emphasized Malaysia’s leadership in the global semiconductor value chain, data center advancements, green energy, and artificial intelligence (AI) as key investment magnets. As ASEAN Chair this year, Malaysia is championing the region’s role as an economic and diplomatic counterbalance in a fragmented global landscape. ASEAN’s openness, inclusivity, and infrastructure investment needs present significant opportunities for international collaboration. The Prime Minister highlighted Malaysia’s leadership in fostering harmonized approaches within ASEAN through initiatives like the ASEAN-Interconnected Sustainability Ecosystem (ASEAN-ISE) and reaffirmed Malaysia’s commitment to global trade and partnerships, such as its collaboration with BRICS and the Johor-Singapore Special Economic Zone (JSSEZ). A fireside session with YB Datuk Seri Utama Tengku Zafrul Aziz, Minister of Investment, Trade & Industry of Malaysia (MITI), moderated by Dato’ Omar Siddiq, CEO of HSBC Malaysia, underscored Malaysia’s investment resilience amid geopolitical shifts. The Minister discussed industrial reforms to ensure economic security and sustainability, Malaysia’s non-aligned stance, and the strategic advantages of BRICS and CPTPP, including significant trade opportunities with the UK. A second fireside chat featured Datuk Johan Merican Mahmood, Secretary General of Treasury, and Dato’ Seri Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia, moderated by Michelle Chia, Head of Group Wholesale Banking Treasury & Market Research at CIMB. They discussed Malaysia’s macroeconomic strategies, investment opportunities, and resilience amidst global trade tensions. The conversation also focused on fiscal policies, the management of the ringgit, and Malaysia’s attractive investment landscape supported by its stable credit rating. Datuk Muhamad Umar Swift, CEO of Bursa Malaysia, stated, “Bursa Malaysia’s Invest Malaysia series continues to enhance Malaysia’s profile among global fund managers and institutional investors. Invest Malaysia London 2025 highlights Malaysia’s remarkable economic growth, driven by political stability and clear economic policies, to UK investors, demonstrating our commitment to becoming a more innovative, competitive, prosperous, and sustainable nation.” Since 2005, 59 Invest Malaysia Away editions have been held globally, with IM London 2025 marking the 60th edition. Approximately 200 delegates attended the session, including foreign fixed income, equity, and private equity investors, with a combined AUM exceeding RM228 trillion (approximately USD50.7 trillion). Bursa Malaysia extends its appreciation to its partners – CIMB Group and HSBC Malaysia – for their invaluable support in making Invest Malaysia London 2025 a success.

KUALA LUMPUR : AHAM Asset Management Berhad (“AHAM Capital” or “the Company”) has declared a total income distribution of RM1.11 billion for the financial year 2024, spanning across 89 wholesale and retail funds managed by the Company. These funds encompass a diverse set of strategies and asset classes, including equities, bonds, and mixed assets. Anton Tan, Chief Officer of Product Solutions of AHAM Capital, said: “We are delighted to reaffirm our commitment to delivering consistent income to investors, with average distribution yields ranging between 4.0% – 8.0% across our funds. In 2024, our strategic positioning in Malaysian equities paid off, supported by strong market performance driven by policy reforms and a surge in foreign direct investments. Additionally, easing inflationary trends and interest rate cuts by the US Federal Reserve created a supportive backdrop for fixed income markets, contributing to the overall stability of our income strategies.” Looking ahead to 2025, Anton added: “As the global stage shifts under Trump’s new administration, alongside heightened geopolitical tensions and persistent currency volatility, the need for diversification is more critical than ever. Income strategies help provide a cornerstone for portfolio resilience by offering stability and capital preservation in an uncertain environment. “While the pace of rate cuts may slow, and interest rates could remain higher-for-longer, the current environment still offers a rare window for income-seeking investors to lock in higher yields today. We remain steadfast in our commitment to providing globally diversified solutions spanning different strategies, assets, and currency classes to help our clients recalibrate and position for the year ahead.” The Company’s Select and World Series funds delivered strong income distribution yields ranging from 4.0% to 8.0% across various asset classes and strategies. Notable highlights include: AHAM World Series – Income Fund: Achieved an impressive yield of 8.3% by capitalizing on global income opportunities. AHAM Select SGD Income Fund and AHAM Select AUD Income Fund: Each recorded yields of 4.50%, offering investors the advantages of currency diversification. In the Shariah-compliant segment: AHAM Aiiman Income Plus Fund: Delivered a competitive yield of 4.50%. AHAM Aiiman Quantum Fund: Achieved a yield of 4.60%. As of 31 December 2024, AHAM Capital’s total Assets Under Administration (AUA) stood at approximately RM89.0 billion, encompassing assets under management, investment advisory, and those under distribution.