Investment & Market Trends

SINGAPORE: Mintegral, the leading data-driven, programmatic, and interactive advertising platform dedicated to helping mobile apps bridge the gap among the world’s most valuable markets, today announces the key findings in the dynamic market of Southeast Asia from its latest report ‘The State of Media Buying H1 2024 – SEA Spotlight’. The report reveals that Southeast Asia remains the second-largest market by ad media buying volume(app with ad media buys) after the United States (excluding China), reflecting the region’s dynamic growth and strategic importance in the mobile gaming industry. The region ranks first for ad views, again ex-China.  This represents a year-on-year growth of 11% in the volume of ad creatives produced compared to the other regions. Southeast Asia makes up approximately 55% of global in-promotion mobile games compared to global figures. Trailing behind the US, the Southeast Asian region is expanding rapidly. Countries like Indonesia, Thailand, and Vietnam lead in market size and revenue, with Indonesia emerging as the largest single market. The region’s mobile game revenue distribution shows Thailand and the Philippines as the most lucrative markets, with gaming revenues expected to see substantial growth by 2027. Rebounding from last year, action and puzzle games are particularly prominent in the region, both in terms of the number of games promoted and the volume of ad creatives produced, while playable ads are slowly gaining traction. The shift towards playable advertising is pronounced, with a high output of new playable creatives catering to various game genres. This trend is particularly strong in markets like Indonesia, Vietnam, and Thailand, where playable ads have become a crucial component of user acquisition and engagement strategies, underscoring the region’s robust demand for mobile gaming and its burgeoning advertising ecosystem. Erick Fang, CEO of Mintegral, said: “Southeast Asia’s position as a leading market by media buying highlights the region’s critical role in the global mobile gaming ecosystem. Our report provides valuable insights for marketers and game developers aiming to capitalise on this vibrant market. By understanding regional trends and adopting effective advertising strategies, businesses can unlock new growth opportunities and build awareness around their games.” Benefiting from this growth are games in the Philippines, demonstrating the efficacy of targeted advertising strategies. By leveraging Mintegral’s targeting capabilities and flexible bidding strategies, one of the games achieved over 2 million user downloads and improved in-game purchase rates, significantly boosting its market presence. Part of Mobvista Group, Mintegral is a data-driven, programmatic, and interactive advertising platform dedicated to helping mobile apps bridge the gap among the world’s most valuable markets. Mintegral’s full-stack programmatic products and services include a self-service advertiser platform, monetization platform, and a creative automation platform powered by Mindworks, Mintegral’s creative studio.  The full report can be found on: https://www.mintegral.com/en/blog/southeast-asia-media-buying-report-h1-2024.

GEORGE TOWN: Texchem Resources Bhd, a prominent Malaysian conglomerate listed on the Main Market, has released its financial results for the second quarter (“2QFY24”) and first half (“1HFY24”) ended June 30, 2024. During 2QFY24, Texchem’s revenue surged 22.6% year-on-year to RM294.7 million from RM240.5 million in 2QFY23, driven by robust sales across all core divisions. This growth propelled Texchem back to profitability, reporting a net profit of RM1.0 million compared to a net loss of RM6.3 million in the same quarter last year. Executive Chairman Tan Sri Dato’ Seri (Dr) Fumihiko Konishi commented on the turnaround, stating, “The 2QFY24 financial performance marks a significant improvement, and the Group remains committed to enhancing its operational efficiency.” Key highlights include the Industrial Division achieving a 25.5% YoY revenue growth to RM134.7 million, driven by sales enhancements, while the Polymer Engineering Division saw revenue rise 35.2% YoY to RM56.9 million, buoyed by recoveries in semiconductor, hard disk drive, and medical life sciences sectors. The Food and Restaurant Divisions also reported revenue increases of 17.3% YoY and 10.6% YoY respectively. For 1HFY24, Texchem’s revenue rose 12.1% YoY to RM570.4 million, primarily due to improvements in the Industrial and Polymer Engineering Divisions. The Group’s bottom-line performance improved as well, with a narrowed net loss of RM0.4 million compared to RM6.5 million in 1HFY23.

ISKANDAR PUTERI: Iskandar Investment Berhad (IIB) launched Tech Medini today, a landmark initiative marking a significant leap forward in solidifying Medini’s position as Johor’s premier Digital and Innovation Hub. The event was held at Mall of Medini with approximately 200 members of IIB’s quadruple helix ecosystem in attendance. Tech Medini, a 160-acre clustered development zone, is set to become a tech hub where ecosystem players thrive in developing emerging technologies with like-minded innovators from various fields such as AI, Autonomous Drones, Robotics, Cybersecurity, Bioengineering, Quantum Computing, Immersive Reality, Space Technology, and more. This initiative aligns with Iskandar Investment Berhad’s target of driving RM9 billion in investments and creating 65,000 jobs in the Medini area, contributing to the evolution of Malaysia into a high-income nation in the era of Industry 4.0.   Dato’ Idzham Mohd Hashim, President/Chief Executive Officer of IIB stated, “With a strategic focus on supporting the Johor-Singapore Special Economic Zone (JS-SEZ) framework, Tech Medini aims to position Medini as a premier destination for investors, offering a cost-efficient business environment for the region. Leveraging on emerging technologies and fostering creative collaborations, Tech Medini seeks to empower businesses in adopting new innovations and accelerating digitalisation to drive sustainable growth in the region. This, in turn, fuels the reinvigoration strategy we’ve established for Medini, attracting high-tech businesses and skilled talents, ultimately contributing to a sustainable and thriving metropolis.”    The Heart of Innovation and Sustainable Growth   Building upon the success of existing initiatives like Global Business Services (GBS) Iskandar@Medini, Drone and Robotics Zone (DRZ) Iskandar and Blockchain Village@Medini (BV@M), Tech Medini serves as a nucleus designed to empower startups and accelerate them towards growth and success. Tech Medini offers a range of growth development programmes and support services with the announcement of Medini Nexus and Medini Soft Landing Programme.   The Medini Nexus is a platform that provides the startup community an avenue to ideate, accelerate and validate their ideas. It grants access to ready co-working spaces, mentorship by seasoned entrepreneurs, entrepreneurship programmes and test site environments. This platform would enable the startups to build a strong foundation for success, fostering creativity and innovation towards shaping a sustainable business in the future.   Acknowledging the challenges faced by the international startups, The Medini Soft Landing Programme helps to facilitate international companies in setting up their business in Medini. It offers a packaged support services in allowing the ease of market entry with guided consultation on business registration setup, office spaces, accommodation options, talent requirements, and localisation services.     As we continue to help nurture and boost the startup ecosystem, IIB also supports the Dana Impak initiative under Khazanah’s Future Malaysia Programme. This initiative was launched in March 2023 with the aim to spur the local startup ecosystem with a commitment of RM6 billion of funds to be deployed over five years. Dana Impak is a key pillar under the Khazanah’s Advancing Malaysia strategy, seeking to invest across six (6) themes based on issues and challenges facing the nation, which include Digital Society and Technology, Quality Health and Education for all, Decent Work and Social Mobility, Food, and Energy Security, Building Climate Resilience and Competing in Global Markets. At the same time, IIB invites potential VC partners to be part of the funding ecosystem by growing their portfolio of investments and optimising value creation in the region.   IIB calls upon more collaborators to embrace the next wave of innovation by joining the vibrant ecosystem at Tech Medini and contribute to shaping the future of Johor’s premier innovation and digital hub. For more information on Tech Medini, visit www.techmedini.com  

Swing & Pillows, Malaysia’s leading and largest co-living and hotel chain operator, is unpacking new opportunities as they announce a strategic expansion into the Bukit Bintang area. Marking a significant milestone in their growth journey, the expansion, paired with the acquisition of five hotels under the new Kingston brand, consolidates their aim of solidifying their presence in key strategic locations and expanding their reach to serve multiple market points from entry-level to premium. “This expansion marks a major move for us, and we’re looking forward to seeing the opportunities it brings,” shares Ken Lee, Chief Executive Officer of Swing & Pillows. “Traditional hospitality and housing as we used to know it has changed— with the rise in remote work, cost of living and the general changing sentiment around home ownership, there is a growing need for accommodations that offer flexibility and comfort. It’s a whole new world out there, and one that we intend to cater to as best as we can. As we expand into the Bukit Bintang area, we’re looking to go over and above our ongoing commitment to raising the bar in hospitality, in alignment with our core values of innovation, quality, and customer satisfaction.”  Co-living is a modern housing trend where individuals share living spaces and resources within a community-oriented environment, blending private and communal living arrangements to cater to the needs of those who seek both personal space and social interaction. This concept provides numerous benefits, including affordability, convenience, flexibility, and community-building opportunities. Recent data highlights positive growth in the global co-living market, with the market valued at approximately USD 13 billion in 2022, and expected to expand at a CAGR of 29.9% during the forecast period, reaching USD 63 billion by 2028.  On the local front, co-living is shifting from a niche market to a mainstream option as the concept gains popularity with the rise of digital nomads and the growing preference for flexible living arrangements. Recognising the sectors’ potential, Swing & Pillows, powered by iBilik, was established in May 2022 and has since rapidly expanded to become Malaysia’s largest co-living and chain hotel operator, boasting a portfolio of over 120 hotels and 3 resorts in major city centres, including Kuala Lumpur, George Town, Johor Bahru, Malacca, Subang Jaya, Petaling Jaya, and Shah Alam.  Initially founded to help smaller chain hotels recover from the economic slowdown post-pandemic, Swing & Pillows co-living model instead allows a portion of unused rooms to be repurposed into long-term rental units, maximising asset utilisation and creating steady alternative revenue streams. In doing so, Swing & Pillows redefines the local hospitality landscape as it caters to the evolving needs of modern travellers, expatriates, and working professionals by offering innovative and flexible accommodation solutions.  The brand’s latest expansion into Bukit Bintang, coupled with the previously mentioned hotel acquisition marks a notable shift as they seek to cater to customers within the premium market as well — locals, expatriates, and tourists alike. A literal star in Kuala Lumpur’s urban jungle, Bukit Bintang’s popularity among locals and tourists alike, thanks to its vibrant mix of entertainment, shopping, and business opportunities, makes it the ideal location from which to kick off their expansion plans.  This acquisition also reinforces Swing & Pillows commitment to providing exceptional living experiences characterised by quality and convenience. With the introduction of the Kingston sub-brand, they seek to elevate the accommodation experience, offering luxurious amenities and top-tier services to meet the expectations of discerning guests, a move that enhances their ability to serve a premium clientele while placing themselves as a dominant player in the district, and the sector as a whole.  The recent acquisitions are anticipated to significantly boost Swing & Pillows revenue, with projections indicating potential earnings of over RM 60 million by the end of 2024. Meanwhile, the brand’s focus on strategic growth and market penetration positions them for continued success and leadership in Malaysia’s hospitality sector.  As Swing & Pillows stands poised to become the biggest player in the co-living area, they remain committed to providing exceptional living experiences for their guests. For more information about them, please visit https://swingandpillows.com/ 

Sik Cheong Berhad (“Sik Cheong”), a prominent player in the repackaging, marketing, and distribution of RBD palm olein oil products, has launched its prospectus today for an initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad. The company, operating through its subsidiaries, specializes in refined, bleached, and deodorized palm oil products marketed under brands such as “Sawit Emas,” “Vitamas,” and “Pingat Emas,” alongside third-party products like margarine upon customer demand. With over three decades of experience, Sik Cheong serves a diverse clientele including retailers, wholesalers, hospitality sectors, and food manufacturers, with notable long-term relationships such as The Chicken Rice Shop Restaurant Sdn Bhd and NSK group of companies. Managing Director Mr Wong Hing Ngiap highlighted the essential role of RBD palm olein cooking oil in Malaysian cuisine, noting its dominant market share in the country’s vegetable oil consumption, which accounted for 76.7% in 2023. Anticipating further growth, Sik Cheong plans to leverage IPO proceeds to expand its operations significantly. This includes rebuilding Factory No. 9 to enhance packaging capabilities, particularly for a new high oleic soybean oil product line, and acquiring modern machinery and equipment. Strategically, Sik Cheong aims to broaden its market reach beyond Kuala Lumpur and Selangor into neighbouring states such as Perak, Negeri Sembilan, Melaka, and Pahang, supported by an expanded fleet of delivery trucks to ensure efficient distribution. The IPO targets to raise RM17.8 million, with allocations earmarked for facility expansion (40.3%), new delivery trucks (5.0%), working capital (33.4%), and listing expenses (21.3%). The public offering comprises 66.0 million new shares (24.8% of enlarged share capital) and 20.0 million existing shares (7.5%), including private placements. Financially, Sik Cheong reported robust revenue growth from RM42.6 million in FYE 2021 to RM79.6 million in FYE 2024, with a compound annual growth rate (CAGR) of 23.2%. Profit after tax also demonstrated strong growth, achieving a 50.6% CAGR over the same period, totalling RM6.3 million in FYE 2024. Applications for the IPO are open until 30 July 2024, with Sik Cheong scheduled for listing on 13 August 2024. TA Securities Holdings Berhad serves as the Principal Adviser, Sponsor, sole Underwriter, and Placement Agent for the IPO exercise, underlining confidence in Sik Cheong’s market debut.