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Investment & Market Trends

Energy & Technology, Investment & Market Trends

Masan High-Tech Materials Signs Definitive Agreements With Mitsubishi Materials Corp

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HO CHI MINH: Masan High-Tech Materials Group announced the signing of definitive agreements with Mitsubishi Materials Corporation Group, which includes MMC Group that will acquire 100% of HC Starck Holding (Germany) GmbH from MHT Group for an equity purchase price of US$134.5 million (RM633.09 million). The parties will enter into a long-term, win-win APT and tungsten oxide offtake agreement, where Masan will retain its ownership in Nyobolt, a fast-charging tungsten and niobium-based battery technology company based in the United Kingdom. Masan will also retain potential monetary upside from the future commercialisation of black mass recycling technology developed by HCS. Transaction proceeds will be used to reduce MHT’s outstanding debt balance, consistent with Masan Group’s target to reduce net debt to its earnings before interest, taxes, depreciation and amortization (EBITDA) to below 3.5 times. Masan is expected to report a one-time profit gain of approximately US$40 million (RM188.28 million) as a result of the transaction and benefit from long-term net profit after tax uplift of US$20-30 million (RM94-141 million). Meanwhile, in July 2023, Nyobolt unveiled an EV concept with a 6-minute charging time and has signed head terms with two major commercial customers. There is also a monetary upside for Masan as Nyobolt starts to commercialise its innovative tungsten-niobium battery technology. MHT Chief Executive Officer of Masan Group and Chairman, Danny Le commented, “We will focus on rebuilding MHT to the lowest cost producer of tungsten to maximize cash flows. At the same time, we will continue to explore strategic alternatives to transform Masan Group into a consumer pure-play.” MMC Group’s acquisition of HCS plays to its strengths in the mid-stream and downstream tungsten value chain. The acquisition will provide MMC Group with access to HCS’s production hubs in Europe, North America and China as well as a comprehensive tungsten scrap recycling platform backed by proprietary intellectual property including 90 worldwide patents and another 53 patents in the application phase. The transaction also marks the next step of business cooperation between the parties, representing a unique opportunity to create an end-to-end global tungsten alliance. UBS AG Singapore Branch acted as the financial advisor to MHT. The closing of the transaction is expected by the end of 2024 and is subject to customary corporate and regulatory approvals.

Energy & Technology, Investment & Market Trends

Primax, IAdea Enters Partnership to Revolutionise Smart Meeting Solutions

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TAIPEI: Primax Electronics and IAdea have announced a strategic partnership to invest in and develop cutting-edge smart meeting solutions that aims to position both companies as leaders in the smart conference ecosystem. Primax has long been dedicated to visual, audio, and interface integration technologies. With its strong manufacturing capabilities and AI development experience, the company provides customers with high-quality products. According to Frost & Sullivan’s 2024 market report, the video conferencing devices market is projected to grow at an annual rate of 16.8% to reach US$7.7 billion (RM36.25 billion) by 2028. As businesses increasingly seek to enhance meeting efficiency and reduce costs, new market opportunities will emerge through the integration of artificial intelligence, big data, and cloud computing in smart meeting management. IAdea focuses on smart workplace system integration and product development. Its cloud-based smart meeting device management (MDM) solution enables IT administrators to remotely manage, monitor, and troubleshoot devices via a centralized platform. IAdea’s security-enhanced embedded platforms benefit businesses by improving device manageability, extending equipment lifespan, and reducing IT management and deployment costs. Primax specialises in the development and manufacturing of visual, audio, and interface integration technologies. Through continuous innovation and R&D efforts, Primax applies its advanced technologies to a range of audio and video conferencing products, ensuring high-quality meeting solutions that meet customer demands for top-tier performance and reliability. IAdea and Primax are committed to infusing more innovation and value into smart meeting solutions. IAdea Co-Founder and CEO John Wang stated, “In the post-pandemic era, businesses face numerous challenges introduced by flexible work arrangements. “We are excited to combine IAdea’s expertise in smart workplace AIoT and cloud platforms with Primax’s leading manufacturing capabilities and audio/visual/interface technologies to launch smart meeting products with cloud-based management and security features,” he said, highlighting that it will add tremendous value to Taiwan’s electronic industry and allow the partnership to tap into emerging market opportunities. Meanwhile, Primax Senior Director, Janet Wang said, “Primax is committed to providing customers with a one-stop integrated video conferencing solution. Through advanced manufacturing and a professional R&D team, combined with IAdea’s cloud management system, we are creating an integrated video conferencing solution from the cloud to the edge to meet various customer needs.”

Investment & Market Trends, News

Malaysia to Prevent Leakages From Targeted Diesel Subsidy Via New System

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PUTRAJAYA: The government will implement a floating diesel price mechanism alongside targeted diesel subsidies to curb fuel subsidy leakages, which have been increasingly prevalent. Finance Minister II Datuk Seri Amir Hamzah Azizan said the diesel subsidy amounting to RM1.4 billion in 2019, surged tenfold to RM14.3 billion last year due to several factors. He highlighted that the consumption of subsidised diesel rose from 6.1 billion litres in 2019 to 10.8 billion litres last year, marking an approximate 70% increase. “From the perspectives of economic development and the rise in diesel vehicles, I cannot account for the 70% increase. We believe this surge is due to significant leakages,” he said during a recent briefing to senior editors at the Ministry of Finance. He noted the disparity between the retail price of diesel at RM2.15 per litre and the market price of approximately RM3.50 per litre, which some parties exploit for profit. Additionally, the fuel price differences, with neighbouring countries, such as Thailand (RM4.12 per litre), Indonesia (RM4.73) and Singapore (RM8.87), create opportunities for fuel smuggling from Malaysia. “To reduce leakages, the most logical solution is to float the price. When the government floats the price of diesel, the gap between retail and commercial prices is eliminated,” Amir Hamzah said. He added that reducing the gap between retail and commercial prices would prevent parties from profiting off subsidised diesel. When asked about the implementation timeline for the diesel subsidy mechanism, he suggested it could be ‘this year’ but did not provide specifics. Regarding the targeted diesel subsidies, Amir Hamzah said the government employs a ‘whole of government approach’, involving close cooperation among all ministries and agencies to ensure successful subsidy targeting. This includes enhanced enforcement to prevent leakages and profiteering. Additionally, Amir Hamzah mentioned that apart from enforcement, creative measures are necessary to reduce border leakages. “For instance, Singapore requires vehicles (with Singapore registration plates), entering Malaysia to have their fuel tanks at least three-quarters full and Malaysia could implement a similar reverse check,” he said, emphasising that targeted subsidies will be limited to qualified diesel vehicle owners and shift away from bulk subsidies. — BERNAMA

Investment & Market Trends

Autocount Q1 Sales Surge on Software Demand

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KUALA LUMPUR: Developer and distributor of financial management software Autocount Dotcom Bhd (ADB) posted strong earnings for the first quarter (Q1) ended March 31, 2024 (FY24), showcasing significant growth and resilience in its operations. The company’s revenue rose 31.22 per cent year-on-year (YoY) to RM13.67 million in Q1 FY24 from RM10.42 million in the same quarter last year. This surge was primarily attributed to increased sales of financial management software, which comprises 88.05 per cent of the total revenue. Technical support and maintenance business segment, and others, which contributed 9.24 per cent and 2.71 per cent to the ADB’s total revenue respectively, also saw improvements during the quarter. In line with the top-line improvement, ADB’s profit before tax (PBT) also increased by 13.73 per cent to RM5.38 million as compared with RM4.73 million in the corresponding quarter of the previous year. The PBT margin stood strong at 39.33 per cent. Meanwhile, net profit came in at RM4.07 million, representing an increase of 11.03 per cent from RM3.66 million reported in Q1 FY23. ADB managing director Choo Yan Tiee said the company’s strong performance in the first quarter reflects the robust demand for its financial management solutions. “With the upcoming implementation of e-invoicing by August 1, 2024, we are prepared to seamlessly integrate this service, enabling our existing clients to easily adopt this enhancement without disrupting their operations. “This additional service aligns with the national mandate and enhances our product offerings, ensuring comprehensive financial management solutions, including streamlined invoicing processes, improved tax compliance, and optimised reporting capabilities. “The anticipated increase in demand for e-invoicing is poised to significantly contribute to our growth trajectory as businesses seek efficient and compliant solutions in the evolving digital landscape,” he said in a statement. Since the company’s listing on the ACE market last year, demand and enquiries for ADB’s solutions have risen, in line with its objectives for listing, bolstering the company’s confidence in driving regional expansion. The company’s results are bolstered by significant contributions from its core segments, including the distribution of financial management software and technical support and maintenance services. The geographical revenue distribution shows Malaysia as the primary revenue contributor, followed by a notable presence in Singapore. “While the company’s primary revenue contributor continues to come from Malaysia at 86.7 per cent, ADB has established a notable presence in Singapore. “We will continue to leverage government initiatives across Malaysia and other Southeast Asia countries to promote digital transformation. “With a firm commitment to innovation and regional expansion, ADB is well-positioned to navigate the growing demand for digital financial solutions,” he said. Looking forward, ADB is optimistic about the growth prospects for the remainder of the year, which will be driven by ongoing digital transformation initiatives and the anticipated growth in the financial management software industry. With the integration of e-invoicing services, ADB’s approximately 210,000 client base will also benefit from the design that streamlines their invoicing processes, enhances compliance and improves overall efficiency. “This development presents substantial growth opportunities for the company, as we anticipate increased demand and further expansion in our market presence,” Choo said.

Investment & Market Trends, News

Global Air Cargo Demand Records Stronger Growth in April

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KUALA LUMPUR: The global air cargo market recorded a total of 21.7 billion cargo tonne-kilometres (CTKs) in April, representing an 11.1% year-on-year expansion, marking the fifth consecutive month of double-digit annual growth, according to the International Air Transport Association (IATA). Based on a statement yesterday, IATA said the global international traffic also rose by 11.6% in the month compared to April 2023, supported by all regions and major trade lanes. It said the largest contributors to this strong traffic performance were carriers from Asia Pacific and Europe, which together contributed two-thirds to the annual increase. “This contrasts with the preceding seven months, where the bulk of the annual rise had stemmed from airlines registered in Asia Pacific and the Middle East, even though the latter is one of the smaller regions by traffic volume (ranked fourth out of six regions),” it said. The association said that the solid upward trend in industry CTKs was driven by traffic on international routes, likely supported by booming e-commerce and capacity constraints in global maritime shipping. IATA Director-General Willie Walsh said that while many economic uncertainties remained, it appeared that the roots of air cargo’s strong performance were deepening. “In recent months, air cargo demand grew even when the purchasing managers index (PMI) was indicating the potential for contraction. “With the PMI now indicating growth, the prospects for continued strong demand are even more robust,” he added. — BERNAMA

Investment & Market Trends

KAB Secures RM29.5 Million Engineering Contract from Mah Sing Group

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KUALA LUMPUR: Sustainable energy and engineering solutions provider Kinergy Advancement Bhd (KAB) has bagged another engineering contract worth RM29.5 million from Mah Sing Group Bhd (Mah Sing). This marks the 14th contract won by KAB, following the M Nova project announced on December 5, 2023. In March, Pembinaan Bintang Baru Sdn Bhd (PBB) also firmly appointed KAB as their sub-contractor for electrical works for a contract worth RM9.8 million. These contracts highlight KAB’s 27-year reputation as an electrical specialist in the engineering sector, even as the company has transformed into a leading player in the energy industry, specifically in the realm of sustainable energy solutions (SES). Both contracts, valued at RM39.3 million, have been awarded to KAB in recognition of its valued engineering work and comprehensive range of electrical services for residential development over the years. KAB executive deputy chairman and group managing director Datuk Lai Keng Onn said the latest contract win marks the company’s 14th project for property giant Mah Sing and 13th for Bintang Baru. “Our expertise and reputation in the engineering field remain strong with returning and regular reputable clients. “Their trust in our competence and capabilities to drive the success and excellence of their esteemed projects keeps us optimistic. “We believe that the engineering sector will continue to sustain itself and play a pivotal role as one of the enablers to the company’s growth,” he said in a statement. Over the past 27 years, KAB has successfully executed 119 projects spanning residential, industrial, and commercial developments. The company’s engineering segment boasts an order book balance of approximately RM166.0 million and pending tenders worth RM153.8 million. This strong foundation also positions KAB favourably to benefit from Malaysia’s revitalised infrastructure development, increased demand for residential, commercial, and industrial projects, and heightened investment in infrastructure projects. With these new contracts, KAB is poised to continue its trajectory of success in the engineering sector.  

Investment & Market Trends

FSBM partners with Unitrade Industries to secure exclusive distributorship deal from Taiwan-based T-Parus

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KUALA LUMPUR: FSBM Holdings Bhd (FHB) via its wholly-owned subsidiary FSBM MES Elite Sdn Bhd (FME), signed a collaboration agreement (CA) with Syarikat Logam Unitrade Sdn Bhd (SLU), a subsidiary of ACE market-listed Unitrade Industries Bhd (UIB). With the agreement, FHB secured exclusive distribution rights for voltage SAG protectors (VSP) from Taiwan-based T-Parus Trading Co Ltd. These developments were announced during the signing ceremonies held with the launch of SEMICON Southeast Asia 2024, Malaysia’s largest semiconductor exhibition. FHB’s collaboration with UIB aims to enhance market access and product integration for energy-efficient solutions. The collaboration seeks to expand the market reach of VSP and energy-saving compressors to commercial and industrial customers across Southeast Asia. FHB executive director Pang Kiew Kun said Industry 4.0, also known as the Fourth Industrial Revolution, is characterised by real-time data connectivity, artificial intelligence (AI), the Internet of Things (IoT), and smart factory solutions. “These disruptive trends are transforming manufacturing, enabling companies to stay ahead of the curve and achieve their strategic objectives. “FHB’s offerings are integral to this revolution, creating highly efficient, interconnected, and adaptive manufacturing environments. “By combining our strengths and resources with UIB, we aim to deliver enhanced value to our customers and capitalise on the growing demand for innovative solutions and products in Southeast Asia. “We expect this collaboration to enhance our recurring revenue streams and contribute positively to FHB’s future earnings,” he said in a statement. In addition to the collaboration with UIB, FHB has secured exclusive distribution rights for VSP across Southeast Asia. The VSP stands out as a reliable power backup solution renowned for its multifunctional capabilities. Acting as a shield against voltage sags or sudden power outages that could potentially disrupt factory operations, VSP ensures an uninterrupted power supply, safeguarding sensitive electronic equipment from damage. What sets VSP apart is its innovative design, which eliminates the need for traditional battery backups, offering a scalable solution that is both energy-efficient and environmentally friendly. “FHB looks to the future, and it remains committed to leading the technological revolution in the semiconductor industry. Our partnership with T-Parus ensures that we can provide top-tier VSP solutions that are designed with top-tier solutions that mitigate voltage sags, save energy, and support environmental, social and governance (ESG) initiatives by protecting equipment and reducing operational downtime. “Furthermore, our company remains committed to seeking new opportunities and expanding our collaboration with new and strategic technology partners, including companies from China and Singapore. “We hope to bring in suitable supporting equipment for both semiconductor front-end and back-end manufacturing processes in line with the government’s ambition to position Malaysia’s semiconductor industry to move up the value chain,” Pang added. Notably, many major global semiconductor companies have recently made significant investments in Malaysia, including Micron, ASE Electronics (M) Sdn Bhd, Siliconware Precision Industries (SPIL), and many more. ASE Electronics is expanding more than double the size of its existing plant in Bayan Lepas, which is set to be completed in 2025, while SPIL just celebrated a significant milestone last week with the groundbreaking ceremony of its Malaysia P1 plant at Bandar Cassia Technology Park in Penang. “Therefore, now is the best time to ride on these significant milestones from ASE and SPIL’s expansion in Malaysia. We aim to continue providing the same services that our partner has offered in Taiwan and more to Malaysia. “Consequently, we are here with our partner to also expand market reach into new areas, such as data centres, which we are currently discussing with new strategic partners. “This expansion will include suitable supporting equipment for both semiconductor front-end and back-end manufacturing processes, aligning with the Madani government’s ambition to position Malaysia’s semiconductor industry to move up the value chain,” Pang said.

Investment & Market Trends, News

Govt Plans to Implement Six International Trade Missions This Year

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KUALA LUMPUR: The government – in collaboration with the Malaysian Franchise Association (MFA), plans to organise 6 international trade missions this year to foster and encourage more franchise exports abroad. Minister of Entrepreneur Development and Cooperatives Datuk Ewon Benedick said the trade missions that were already carried out were in Abu Dhabi and Taiwan and will continue to Thailand, the UK, Indonesia and the Philippines until the end of this year. “In 2023, a total of 8 international programmes and trade missions were held which generated RM864 million in potential investments compared with RM689 million in 2022. We hope that the recorded potential investments can be realised successfully,” he said. To date, Ewon said the number of franchise businesses registered with the Registrar of Franchises in the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) amounted to 1,274 companies. “Such achievements are important for enhancing the scale and competitiveness of franchise businesses comprising micro, small and medium enterprises (MSMEs),” he added. Malaysian Trade Industry on the Rise In April, the Department of Statistics (DOSM) revealed that the country’s total trade experienced a 5% increase from March 2023, which amounted to RM244.5 billion with exports and imports recorded RM128.6 billion and RM115.8 billion, respectively. Pulau Pinang remained as the top exporting state with a 32% share, followed by Johor (20%), Selangor (16.9%), Sarawak (8.1%) and WP Kuala Lumpur (4.5%). Meanwhile, imports also had an increase of 12.5%, amounting to RM12.9 billion, with some of the highest performing states being Johor (+RM8.2 billion), Melaka (+RM1.6 billion), Negeri Sembilan (+RM1.2 billion), WP Kuala Lumpur (+RM1 billion), Selangor (+RM996.7 million), Kedah (+RM419.7 million), Pahang (+RM152.6 million), Terengganu (+RM92.1 million), Kelantan (+RM71 million), Sabah (+RM55.5 million) and WP Labuan (+RM30.3 million). However, imports decreased in Pulau Pinang by RM521.9 million, Perak (-RM393.8 million), Sarawak (-RM115.9 million) and Perlis (-RM6.8 million). Johor dominates Malaysia’s imports with a share of 27.9%, followed by Selangor (23.6%), Pulau Pinang (19.2%), WP Kuala Lumpur (7.5%) and Kedah (5%). — BERNAMA

ESG, Investment & Market Trends, News

Atour Unveils Sustainability Records in 2023 With Milestone ESG Report

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SHANGHAI: Atour Lifestyle Holdings Ltd, a leading hospitality and lifestyle company in China, has released its inaugural Environmental, Social, and Governance (ESG) report for 2023, underscoring the company’s sustainability efforts over the past year and reflects the steady integration of ESG principles into its day-to-day operations. In essence, Atour is committed to reducing waste and making its operations more ecologically friendly. This is reflected in the company’s approach toward refurbishment and resource conservation. During the reporting period, Atour launched two new products, Atour Light 3.0 and Atour 4.0 ‘With Nature’, a midscale hotel offering and an upper midscale variation. They underwent refurbishment using modular designs, with modular elements accounting for over 90% and 80% of the overall designs, respectively. This initiative significantly reduces maintenance costs and non-essential construction waste. Sustainability practices extend beyond decoration. Atour hotels now are equipped with less carbon-intensive amenities, such as 100% biodegradable paper cups, as well as natural cotton beddings and natural bamboo paper products manufactured without bleach or fluorescents, easing the burden on the environment. Additionally, Atour promotes water conservation across some of its 1,210 hotels (as of the end of last year) using the dedicated-loop system for circulating hot water, resulting in a reduction of 12.67 tons of water consumption per room annually. Atour prioritizes customer experience, introducing innovations from Atour APLUS services to Late Night Congee to ensure customers feel at home during their stays. Customers can expect a carefree experience and peace of mind, thanks to Atour’s commitment to purified indoor air, fire safety, cleanliness, hygiene, and strict user privacy protection. Moreover, Atour has reinforced its support for franchisees through its ‘6 Commitments to Franchisees’ and ‘8 Supply Chain Procurement Commitments,’ empowering them with a responsible supply network, rights guarantees, as well as training on sustainability. Originating from Yaduo, a remote village in southwestern China, Atour has consistently given back to its place of inspiration by encouraging local villagers to grow tea, fueling economic development and rural revitalisation. As the report indicates, Atour purchased a cumulative 150 tons of processed tea leaves worth CN¥37 million from the villagers, benefiting some 1,400 households. As part of its charitable engagements, it also donated a batch of clothes with a value of around CN¥2 million to the needy and supported targeted poverty alleviation efforts. In urban areas, Atour contributes to societal well-being by offering resting places in its Shanghai headquarters for frontline workers such as couriers, delivery rider, and sanitation workers during their downtime. 10 years after its birth, Atour prides itself on creating a diverse, equitable, and inclusive workplace for its employees. Currently, over 58% of its 4,248 employees are female, and the company employs 17 people with physical disabilities and 162 members of ethnic minorities. On the corporate governance front, Atour has established an ESG working group tasked to report directly to its Executive Committee. The ultimate goal is to implement a coherent sustainability strategy throughout its corporate hierarchy, thereby embedding ESG concepts into Atour’s mission and core values. Recognising board diversity as a pillar for sustained growth, Atour aims to include factors like one’s gender, age, culture and professional background when nominating future board members. Currently, there are three independent directors and two female directors on the eight-member board. In aligning with its strategic vision to boast a network of 2,000 premier hotels by 2025 and deliver the optimum ‘Chinese experience’, Atour is set to invest more resources and energies in the realm of ESG. ‘Looking ahead, we aim to enhance our sustainable development initiatives and capacities consistently, turning our original aspirations of warmth and generosity into increased resilience through concrete measures,’ said Atour Founder and CEO Haijun Wang. “We remain committed to creating an intimate ambience where people can warmly connect and contribute to a greener ecology and a kinder, more compassionate society,” he added.

Investment & Market Trends, News, Property

Gamuda Secures RM1.74 Bil Contracts for SDP’s Hyperscale Data Centre

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KUALA LUMPUR: Gamuda Bhd’s wholly-owned unit Gamuda Engineering Sdn Bhd bagged 2 contracts worth a combined value of RM1.74 billion for the development of a hyperscale data centre at Sime Darby Property Bhd’s (SDP) Elmina Business Park. Gamuda said the project consists of 2 key phases, namely the construction phase, which has a contract value of RM815 million and the mechanical phase that is worth RM928.6 million. For the construction phase, it said Gamuda Engineering will be responsible for the construction, completion, testing and commissioning of the hyperscale data centre and associated ancillary facilities. “It is scheduled to begin on 27 May 2024, with a target completion date of 27 February 2026,” Gamuda said in a statement. For the mechanical phase, Gamuda said the contract covers the fit-out testing and commissioning of the data centre’s mechanical, electrical and plumbing systems in Elmina Business Park 1A. “This phase is expected to commence on 1 July 2025 and be completed by 9 September 2026,” it said. To meet the rising demand for data centre construction, Gamuda plans to ramp up its next-gen digital industrial building system (IBS) production capacity for data centre materials. “This strategic move positions Gamuda to capitalise on the significant opportunities,” it added. Sime Darby Property Shares Rise Sime Darby Property Bhd’s shares jumped by 7 sen to RM1.15 with 25.53 million shares traded at noon of 23 May 2024, following its announcement of doubled net profit for the first quarter ended 31 March 2024 (1Q24). The property company reported a net profit of RM123.58 million in 1Q24, up from RM60.67 million in the same quarter a year ago. Revenue also increased by 42.8% to RM978.69 million from RM685.33 million previously, with all segments contributing to the growth. RHB Investment Bank Bhd said the company is likely to exceed its RM3 billion sales target by year-end, as current bookings have already reached RM2.4 billion. “We like its strategic exposure to the industrial segment and strong earnings should continue to drive the re-rating of the stock,” it said in a note. The research firm has upheld its ‘buy’ recommendation, raising its 2024 and 2025 forecasts by 13-15% and setting a new target price of RM1.42 (up from RM1.05). — BERNAMA

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