Investment & Market Trends

CYBERJAYA: DXN Holdings Bhd. (“DXN” or the “Company”), a leading global manufacturer of nutraceutical products, has announced its second quarter (“2QFY25”) and first half financial results for the financial year ending 28 February 2025 (“1HFY25”) for the Company and its subsidiaries (“DXN Group” or the “Group”). In 1HFY25, DXN recorded a solid 9.2% year-on-year (“YoY”) revenue growth to RM963.5 million, up from RM882.3 million in the corresponding period last year (“1HFY24”). This growth was primarily driven by sustained sales momentum in key markets, particularly in Latin America, India, and Turkiye, alongside ongoing member engagement, successful product promotions, and an expanded product portfolio in Latin America. The Group also posted higher earnings before interest, tax, depreciation & amortisation (“EBITDA”) and profit before taxation (“PBT”) of RM277.3 million and RM247.8 million, representing YoY increases of 2.7% and 2.3%, respectively, from RM270.0 million and RM242.2 million in 1HFY24. However, profit after taxation and non-controlling interests (“net profit”) marginally declined to RM151.5 million from RM153.6 million recorded in the same period last year. In 1HFY25, DXN’s EBITDA, PBT, and net profit margins saw modest decreases to 28.8%, 25.7%, and 15.7%, respectively, compared to 30.6%, 27.5%, and 17.4% in 1HFY24. These contractions are primarily attributed to the appreciation of the Malaysian Ringgit and rising operating costs. In line with its dividend policy, DXN’s Board of Directors has declared a second interim dividend of 0.8 sen per ordinary share for 2QFY25. This brings the total dividend declared for 1HFY25 to 1.7 sen per share. In total, DXN has declared dividends worth RM84.5 million during this period, representing a payout ratio of 55.8%. Executive Chairman and Founder of DXN, Datuk Lim Siow Jin shared, “We are pleased to report continued revenue growth in 1HFY25, demonstrating the strength of our business model and the ongoing demand for our products. While profitability margins were impacted by external factors such as foreign exchange fluctuations and increased operating costs, we remain focused on enhancing operational efficiency and exploring new avenues for growth. We are confident in our ability to navigate these challenges and deliver long-term value for our shareholders.”   “To further enhance our production capacity and market reach, we are pleased to announce that our new manufacturing plants in Nepal and Bangladesh are on track to commence operations by the end of FY25. These facilities will complement our existing 13 manufacturing facilities, allowing us to better serve our member base and meet the growing global demand for our products. We are also in the final stages of confirming details for another new plant. Looking ahead, we are focused on expanding into new markets, launching innovative products, optimising production efficiency, and strengthening business resilience to drive sustainable growth and long-term success,” he concluded.               In 2QFY25, revenue rose by 6.6% to RM488.4 million, up from RM458.3 million in the corresponding quarter of the previous year (“2QFY24”). EBITDA experienced a marginal decrease of 5.8%, reaching RM125.4 million compared to RM133.2 million in 2QFY24. Similarly, net profit declined by 13.2% to RM66.0 million, from RM76.0 million in 2QFY24. The lower EBITDA margin was primarily attributable to increased foreign exchange losses resulting from the strengthening of the Malaysian Ringgit, along with higher operating costs. DXN maintains a strong financial position, with cash and cash equivalents of RM654.6 million as of 31 Aug 2024, exceeding the Company’s total borrowings of RM136.4 million. DXN also generated a healthy net operating cash flow of RM133.3 million in 2QFY25.

KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) (“KWAP”) has successfully completed an investment of RM219 million for a minority stake in Cyan Renewables (“Cyan”), Asia’s largest offshore support vessel owner and operator. KWAP partnered with Seraya Partners, a mid-market, Asia-focused infrastructure investor, to co-invest in this deal. This strategic investment aligns with KWAP’s commitment to the Ekonomi MADANI framework, which emphasizes sustainability, prosperity, and innovation. Strategic Goals and Vision Hazman Hilmi Sallahuddin, Chief Investment Officer of KWAP, stated: “The investment into Cyan epitomizes our commitment to realizing our RM20 billion pledge towards transition assets by 2030, supporting Ekonomi MADANI and sustainability goals. Cyan plays a key role in transitioning legacy energy to clean energy by offering high-value services that ‘Raise the Ceiling’ while fostering local talent and professional development to ‘Raise the Floor.’” He further noted that the initiative is part of KWAP’s GEAR-uP program, led by the Ministry of Finance, which aims to boost key economic sectors such as infrastructure, transport, and renewable energy through coordinated efforts among Government-Linked Investment Companies (GLICs). Partner Insights James Chern, Managing Partner and Chief Investment Officer of Seraya Partners, said: “Cyan is a key energy transition platform for Seraya, having grown into the world’s largest offshore wind and environmental protection vessel operator. We look forward to partnering with KWAP to further its strategic objectives and contribute to the upliftment of the Malaysian economy.” Cyan’s Operational Strength and Future Plans Cyan operates 32 offshore support vessels, offering maritime services across all project stages—from early development to operations and maintenance. The company has accumulated over 1,000 wind days in Asia, solidifying its reputation as the region’s leading vessel operator by fleet size and expertise. Cyan has already generated significant revenue from Malaysia and plans to further expand by: Investing up to RM1 billion with KWAP across various initiatives. Establishing Southeast Asia headquarters in Kuala Lumpur, with fleet management and chartering teams based in Kuala Lumpur and Miri. Hiring and training local seafaring professionals, including sponsoring cadets in collaboration with Malaysian organizations, providing employment opportunities post-graduation. Leveraging local shipyards for vessel repairs and new builds, indirectly fostering the growth of Malaysia’s shipbuilding industry. A Shared Commitment to a Greener Future KWAP emphasized its intention to increase investments in energy transition to support resilient, green economies for future generations. This aligns with Cyan’s focus on expanding services for ESG-driven sectors within the maritime industry. This partnership not only strengthens Malaysia’s offshore support vessel industry but also catalyzes progress towards sustainable development, ensuring long-term economic and environmental benefits.

KUALA LUMPUR: RHB Asset Management Sdn. Bhd. (“RHBAM”), a wholly-owned subsidiary of RHB Investment Bank Berhad, has introduced its enhanced Asian Income Strategy, comprising the RHB Asian Income Fund, RHB Asian Income Fund-SGD, and RHB Asian Income Fund – Multi Currencies (collectively, “RHB Asian Income Funds”). This enhancement reflects a key evolution of RHBAM’s flagship product, which has delivered consistent performance for over 12 years. The RHB Asian Income Funds invest in the Schroder Asian Income Fund (“Target Fund”), managed by Schroders Singapore (“Schroders”). The Target Fund offers a more dynamic asset allocation strategy, expanding its investment focus to include global and alternative assets beyond Asian multi-asset investments. This broader diversification empowers Malaysian investors to explore global growth opportunities while benefiting from stable income and capital appreciation over the medium to long term. Key Enhancements: Flexible Income Distribution: Now with monthly payouts, targeting a higher distribution of 6% to 6.5% per annum, up from the previous 4% to 4.5% per annum. Broadened Investment Scope: Access to global and alternative assets enhances potential returns. Balanced Approach: Focused on income generation and capital growth, offering stability in volatile markets. These changes align with the current economic climate, characterized by easing monetary policies and low interest rates, which have brought dividends back into focus. Additionally, ongoing corporate reforms in Asian markets are expected to bolster investor confidence and deliver favorable dividend outcomes in the medium term. The enhanced strategy also taps into emerging global growth themes such as artificial intelligence, offering investors exposure to high-quality companies poised to benefit from these trends. Accessible and Diversified Investment Opportunities The RHB Asian Income Fund is available to retail investors with a minimum investment of just RM100, ensuring broader accessibility to this diversified income and growth strategy. RHBAM offers a wide range of investment products, including unit trust funds, wholesale funds, private retirement schemes, and private mandates for both retail and sophisticated investors. Its offerings include conventional and Shariah-compliant products, along with sustainability-focused and thematic strategies. With assets under management (AUM) exceeding RM50 billion, RHBAM distributes its products via Institutional Unit Trust Agents (IUTAs), Corporate Unit Trust Agents (CUTAs), its agency force, and the RHBAM MyInvest online portal. Investors can explore the RHB Asian Income Funds at www.rhbgroup.com/myinvest. Leadership Perspectives Chze How Ng, Managing Director and CEO of RHB Asset Management, commented: “At RHB Asset Management, we remain committed to offering innovative solutions that meet the evolving needs of our clients. The enhanced Asian Income strategy provides both income and capital growth, especially during volatile market cycles. We are confident it will be an essential component in every investor’s portfolio. Our 12-year partnership with Schroders strengthens our ability to navigate today’s dynamic investment landscape.” Lily Choh, Head of South Asia and CEO of Schroders Singapore, added: “As we navigate an era of transformative change, we are excited to collaborate with RHB Asset Management on this enhanced strategy. Asia’s growing influence and pivotal trends present unique opportunities. Combining regional expertise with a global outlook, we aim to deliver income stability while unlocking future growth potential, making this fund an ideal solution for investors looking to invest with confidence.”

KUALA LUMPUR: Sabah-based major road infrastructure construction player, Azam Jaya Berhad (“Azam Jaya”), has successfully launched its prospectus today as part of its initial public offering (“IPO”) exercise on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”). Azam Jaya, through its subsidiaries (collectively, the “Group”), specialises in the construction of large-scale road infrastructure in Sabah, including roads, highways, bridges, flyovers, and tunnels. With over 30 years of experience in the industry, the Group has a proven track record, having successfully completed over 50 construction projects in the region. Datuk Lo Vun Che @ Jessica, Executive Director of Azam Jaya, stated, “We are proud to have contributed to notable road infrastructure developments in Sabah, such as the longest pre-stressed vehicular bridge across Sungai Sitompok and Sabah’s first vehicular tunnel at Sepanggar, Kota Kinabalu. Currently, we are engaged in nine (9) ongoing projects, including 4 work packages of the Pan Borneo Highway, bringing our total unbilled contract value to RM1.45 billion, providing earnings visibility up to 2028.” “With the launch of our prospectus, Azam Jaya is now one step closer to becoming a public listed company on the Main Market of Bursa Securities. This IPO is a pivotal step in our long-term growth strategy, enabling us to enhance our construction capabilities and capacity to undertake more large-scale projects. We aim to further elevating the construction standards in Sabah, introducing innovative techniques and high-quality engineering to meet the growing demands of the region.” According to the Independent Market Research report by Infobusiness Research & Consulting Sdn Bhd, Sabah’s construction industry is set for growth in line with the Mid-Term Review of the Twelfth Malaysia Plan 2021-2025. This growth is a promising opportunity for Azam Jaya, particularly in regions where infrastructure development, such as roads and bridges, is poised to accelerate. A key component of this growth is the Pan Borneo Highway, where Azam Jaya plays a crucial role in linking Sabah and Sarawak, driving further modernisation and regional connectivity. En. Anuar Bin Omar, Head of Capital Markets / Corporate Finance at Inter-Pacific Securities Sdn Bhd commented, “The upcoming IPO will elevate Azam Jaya’s reputation among existing and potential customers and attract a broader talent pool. By leveraging its extensive industry experience and strong leadership of its management team, the Group is well-positioned to solidify its position as a key infrastructure player and seize new opportunities in the growing construction industry.” From the IPO proceeds of RM61.5 million, the Group has allocated RM8.0 million (13.0%) to boost construction capabilities and operational efficiencies by acquiring new machinery and equipment as well as technological upgrades. In addition, RM28.4 million (46.2%) is allocated for working capital purposes, RM20.0 million (32.5%) is earmarked for repayment of bank borrowings, and RM5.1 million (8.2%) will be used to defray listing expenses. On financial performance, the Group’s revenue grew from RM231.5 million in the financial year ended 31 December 2021 (“FYE 2021”) to RM280.8 million in the financial year ended 31 December 2023 (“FYE 2023”), representing a 2-year compound annual growth rate (“CAGR”) of 10.1%. In terms of dividend policy, Azam Jaya targets to distribute at least 30% of its net profit attributable to shareholders. Following the prospectus launch, applications for the public issue are open from today and will be closed on 24 October 2024 at 5.00 pm. The Group is scheduled to be listed on the Main Market of Bursa Securities on 11 November 2024. Inter-Pacific Securities Sdn Bhd is the Principal Adviser, Sole Underwriter and Sole Placement Agent for the IPO exercise.

PETALING JAYA: Southeast Asia’s leading fully integrated chemical group, Ancom Nylex Berhad (“Ancom Nylex” or the “Group”)  has announced its first quarter financial results for the period ended 31 August 2024 (“1QFY25”). For the current quarter under review, Ancom Nylex’s revenue rose 5.8% year-on-year (“YoY”) to RM515.5 million from RM487.4 million in 1QFY24. The improvement was largely driven by the Industrial Chemicals segment. However, the top-line increase was not reflected at the bottom-line as the agricultural chemicals (“Agrichem”) segment was impacted by higher freight costs for exports sales stemming from rising geopolitical instability and the sanctions on Chinese imports by the United States (“US”). 1QFY25 net profit attributable to the owners of the parent (“net profit”) came in at RM13.2 million versus RM20.8 million in the prior year. Revenue from the Agrichem segment grew marginally to RM136.6 million in 1QFY25 from RM136.3 million a year ago. Profit before tax (“PBT”) for the current quarter under review stood at RM22.1 million compared to RM26.9 million in 1QFY24 due to the aforementioned factor. On a brighter note, the Industrial Chemicals segment achieved a 10.4% YoY growth to RM339.5 million in 1QFY25 vis-à-vis RM307.4 million in the previous year. PBT jumped 106.3% YoY to RM7.5 million from RM3.7 million in 1QFY24. The improvements were chiefly attributed to higher selling prices and volumes for most of its products along with savings from rationalisation of its operating expenses. Managing Director and Group CEO of Ancom Nylex, Datuk Lee Cheun Wei said, “We are cognizant that our 1QFY25 performance was rather soft as the Agrichem segment was affected by higher freight costs arising from geopolitical conflicts. Geopolitical uncertainty remains elevated, exacerbated by armed conflicts and trade tensions in numerous parts of the world. Hence, global supply chains are being reshuffled as producers adapt to mitigate geopolitical risk, often at higher costs. Separately, the Middle Eastern conflict has caused seaborne trade to be rerouted, causing  shipping delays and snarled travel. Nevertheless, freight costs have somewhat moderated and we hope that it is a sign that it has peaked.” “The Group is mindful of the moderating factors but continues to uphold a positive view of our prospects. We continue to make good headway for our new active ingredient (“AI”) as well as our current products penetrating into new crops for the existing markets. We remain focused and steadfast in executing our growth plans.” “On the corporate front, HELM AG recently became our long-term strategic substantial shareholder in Ancom Nylex, which improves and strengthens our shareholding mix. We also see strong synergies as they are one of the world’s major independent chemicals marketing and distribution company with a very formidable crop solutions business. All in all, Ancom Nylex continues to uphold our growth trajectory while overcoming inevitable business challenges,” Datuk Lee concluded.   For the financial year under review, the Group has proposed a first interim dividend by way of distribution of treasury shares on the basis of 4 treasury shares for every 100 shares.

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.”