News

KUALA LUMPUR: Powerwell Holdings Bhd (PHB) posted a profit before tax (PBT) of  RM12.03 million for the third quarter (Q3) ended December 31, 2023 (FY24), a seven-fold jump from RM1.61 million posted in the same quarter last year. This leap in profitability was mainly due to the higher gross profit margin realised from key projects, particularly in the data centres, solar power plant project and semiconductor plant project, underlining the strong performance and growth trajectory in these sectors. The gross margin for PHB improved to 26.6 per cent in Q3 FY24 compared to 12.8 per cent in the same quarter a year ago. Accompanying this substantial increase in profitability, PHB also recorded a notable 49.9 per cent increase in revenue for Q3 FY24, reaching RM67.48 million, compared to RM45.03 million in Q3 FY23. The revenue growth was primarily driven by higher sales from Bangladesh due to project sales from the successful deliveries of the solar power plant and garment and yarn projects. Aside from that, the company also achieved a milestone entry into the Australian market in Q3. Meanwhile, Malaysia saw a reduction in project sales in Q3 FY24 as the semiconductor plant is nearing its completion. This decline was offset by the uptick in sales in high-value projects such as commercial properties and data centre projects. PHB executive director Catherine Wong Yoke Yen said Q3 performance reflects the strength and resilience of the company’s strategic initiatives and the team’s hard work. “We are particularly proud of our expansion into new markets and the successful delivery of high-value projects, which have significantly contributed to our growth,” she said in a statement. On PHB’s overseas expansion, Wong said the successful delivery of low-voltage switchboards to a factory in Australia reflects the company’s ability to deliver projects internationally. PHB also saw strong growth in Bangladesh, supported by successful deliveries of projects, including those in the solar power plant and garment and yarn projects. The year-to-date performance echoed this positive trend, with revenue of RM132.90 million, up from RM101.42 million. Meanwhile, PBT jumped more than three times to RM17.73 million during the first nine months of FY24, from RM4.98 million in the same quarter last year. “Looking forward, we are focused on sustaining our growth momentum while continuing to explore new opportunities for expansion and enhancing shareholder value. “PHB will leverage its market strengths, diversify its offerings and capitalise on opportunities in infrastructure and renewable energy sectors. “We believe our strong fundamentals, as seen by our improving balance sheet and resilient earnings growth, track record, commitment to timely project delivery and adaptability, position us well for future success despite the current uncertain global economic climate,” Wong said. The company’s declaration of its second single-tier dividend of 1.4 sen per ordinary share for the financial year ending March 31, 2024, supports the positive outlook, reflecting confidence in its financial health and future prospects. This brings the total dividend for the first nine months of FY24 to 2 sen per ordinary share.

KUALA LUMPUR: The 30% Club Malaysia has appointed Nurul A’in Abdul Latif as its new Chair. Nurul A’in is currently the executive chair and an assurance partner at PwC Malaysia. In this role, Nurul A’in will lead the drive to advance women leaders on corporate boards and management teams in Malaysia. 30% Club Malaysia founding chair Tan Sri Zarinah Anwar welcomed Nurul A’in as the new chair and expressed confidence that she will continue to drive the club’s mission with vigour and determination, refining strategies for achieving gender balance in boardrooms while fostering a culture of inclusivity. “This partnership with PwC Malaysia as our new corporate sponsor underscores the vital role that local corporations play in advancing diversity, equity, and inclusion (DEI) initiatives. “Our journey towards achieving true parity is a long one. Our campaign favours aspirational stretch targets, viewing sustainable change as a collective endeavour that demands holistic solutions at every stage of the talent lifecycle,” Zarina said in a statement. Based on data provided by the Securities Commission Malaysia, as of January 1, 2024, women hold 30.9 per cent of board seats in the top 100 public-listed companies (PLCs) and 25.6 per cent of seats in all PLCs on Bursa Malaysia. “Since our inception in 2015, we have embarked on a dedicated journey towards DEI to enhance female representation on boards and management of Malaysian PLCs. “The achievement of the 30 per cent minimum threshold for the top 100 PLCs in June 2023 is a significant milestone, providing greater impetus to our drive for parity in the boardroom. “The 30 per cent is not a ceiling. It is the minimum, a tipping point towards achieving true parity in boardrooms and C-suites, recognising talented and competent women by ensuring an equal playing field,” said Zarina. Nurul A’in said promoting inclusion and diversity has always been an important part of PwC’s values and strategy. “I am honoured to take on this role at 30% Club Malaysia and work alongside the many volunteer advocates to garner support from business leaders in Malaysia, in the mission to continue improving inclusivity on company boards and senior management levels. “With the global allocation of capital towards quality, diverse and inclusive companies, Malaysia needs to be well-positioned to promote the investability of our leading listed companies. “The case for inclusion and diversity on boards and senior management goes beyond financial returns. Today’s companies are faced with the pressure to transform, driven by technological disruption, environmental, social and governance (ESG) considerations and rapidly changing consumer preferences. “Diversity, especially at decision-making levels, makes room for the range of perspectives, experience and knowledge needed to differentiate themselves for long-term business sustainability,” she said. Central to addressing the challenges that women directors face in gaining visibility in the board circles is the 30% Club Malaysia’s Board Mentoring Scheme (BMS). Established in collaboration with PwC Malaysia in 2017, the BMS has provided invaluable guidance to 106 senior women leaders across eight cohorts. 41 per cent of mentees have secured board roles in PLCs, SMEs, and industry associations to date. “While we have achieved 30% of women in the top 100 PLCs, we need to close this gap for PLCs in Malaysia overall. “However, it’s incredibly important women who take on positions on boards are willing and able to contribute positively to organisations’ growth. “I look forward to driving greater engagement with business leaders to be advocates for gender parity in their own networks, mobilise greater collective action across public and private institutions to build a more inclusive business environment, and expand our quality, board-ready women pipeline for our PLCs,” Nurul A’in said. The 30% Club Malaysia is committed to driving top-down collective action, galvanising stakeholders across sectors with corporate advocates and partners’ support to accelerate progress towards a more inclusive future.

KUALA LUMPUR: Visa, a world leader in payments, today announced the opening of its transformed Singapore Innovation Center, a dedicated space for partners, clients and businesses in Asia Pacific. The centre enables stakeholders to engage with Visa technologists to co-create payment solutions ahead of demand as the payments landscape evolves rapidly,  delivering scalable innovation and addressing the biggest challenges and opportunities in digital payments in the region. Visa president Asia Pacific Stephen Karpin said Visa is bringing ideas to life in a way that’s truly unique to the Singapore Innovation Center, a dynamic hub where it transforms innovative concepts into practical solutions. “We are dedicated to helping businesses discover valuable insights early so they continue to stay ahead in the rapidly digitalising payments landscape. “By combining our expertise with cutting-edge technology and solution architecture, we work alongside our partners to materialise solutions that address payment challenges, driving real business value and growth for our clients,” he said in a statement. The Visa Singapore Innovation Center represents Visa’s vision of shaping tomorrow’s payment possibilities. Showcasing technologies like artificial intelligence (AI) in retail and payments, and reimagining modern credentials for enhanced security and convenience, it also serves as a springboard for thought leadership in decentralised and embedded finance, offering tailored solutions for businesses and fostering innovative collaborations with startups. Singapore Economic Development Board chairman Png Cheong Boon said the Visa Singapore Innovation Center deepens the longstanding partnership between Visa and Singapore and enables Visa to tap into the country’s vibrant innovation ecosystem to develop new solutions and create new business opportunities for the global market. “We look forward to strengthening and expanding this close partnership with Visa and also hope to encourage more global companies to undertake such activities in Singapore,” he said. Visa’s Singapore Innovation Center is at the forefront of developing advanced payment technologies, focusing on delivering significant business benefits.

KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK) has redesignated Tan Sri Lee Oi Hian as the executive chairman effective February 22, 2024, following the retirement of Raja Tun Alias. The redesignation was made at KLK’s 51st annual general meeting held on February 21, 2024. Raja Tun Alias has served as a board member since July 1, 1978, and was appointed as chairman of KLK on May 1, 2008. KLK in a statement said Raja Tun Alias has shown exemplary leadership and steered the company through some of its most challenging times. “KLK has been most fortunate and indeed privileged to have Raja Tun Alias serve on the KLK board for more than 45 years, the last 15, as our chairman. “We remain forever grateful for his astute leadership and steady oversight of KLK’s expansion and related diversification,” Lee said in the statement. Lee joined KLK in 1974 as an executive and was appointed to the board of KLK on February 1, 1985. In 1993, he was appointed as the group chairman and chief executive officer (CEO) and held the position until 2008, when he relinquished his role as chairman, but remained as an executive director and CEO of the KLK. Lee is also the chairman of Batu Kawan Bhd, the holding company of KLK. KLK board and management thanked Raja Tun Alias for his distinguished service to the KLK over the last 45 years.  

KUALA LUMPUR: Oil palm plantation player MKH Oil Palm (East Kalimantan) Bhd (MOP) signed an underwriting agreement with M&A Securities Sdn Bhd and Kenanga Investment Bank Bhd for its upcoming initial public offering (IPO) on the main market of Bursa Malaysia. Under the IPO, MOP will issue 220.0 million new ordinary shares, constituting 21.5 per cent of the company’s share capital of 1.02 billion. Additionally, 30.7 million existing shares, equivalent to 3.0 per cent of the enlarged share capital, will be offered for sale to selected investors through private placement. Among the 220.0 million new shares, 51.2 million new shares, or 5.0 per cent of the enlarged share capital, will be available for application by the Malaysian public through balloting. Out of these, 25.6 million shares or 2.5 per cent of the enlarged share capital, will be offered to the general public, with an equivalent amount reserved for Bumiputera public investors. Furthermore, 168.8 million new shares, representing 16.5 per cent of the enlarged share capital, will be allocated to chosen investors via private placement. MOP non-independent non-executive chairman Tan Sri Chen Kooi Chiew said this underwriting agreement marked a significant step towards listing the company on the main market of Bursa Malaysia. “With access to the broader equity market, MOP will have the necessary resources and flexibility to capitalise on the attractive opportunities ahead. “In line with our growth strategy, funds raised from the IPO will be used to expand our plantation landbank by acquiring land close to our existing plantation estates. “Additionally, we will also focus on enhancing our operational efficiency and increasing our processing capabilities and product offerings with new machinery and equipment,” Chen said in a statement. Under the underwriting agreement, M&A Securities and Kenanga Investment Bank will jointly underwrite 51.2 million new shares made available to the Malaysian public. MOP, an upstream oil palm plantation company, is engaged in oil palm cultivation, including the production and sales of crude palm oil (CPO) and palm kernel (PK). The company owns two oil palm plantation estates with a total area of 18,205 hectares, one palm oil mill and one jetty, all located in East Kalimantan, Indonesia. Within the plantations, most oil palms are in the prime mature stage, representing peak production years between the ages of 10 and 16. Situated along the equator, the plantations benefit from adequate rainfall and sunshine, creating an optimal climate for oil palm cultivation. The plantation’s operation is further supported by a palm oil mill and a jetty, easing logistics management. The plantation estates are strategically located in a prime area, close to the provincial capital of East Kalimantan, Samarinda, the financial centre of Kalimantan, Balikpapan and Indonesia’s new capital, Nusantara. “Overall, we are upbeat on our prospects, as the increase in global population is a crucial driver for rising demand for edible oils and fats globally. “We are well-positioned to benefit from the expanding global edible oils market and the rise in CPO consumption in Indonesia. “Moreover, MOP is set to gain from the economic transformation of East Kalimantan, spurred by the development of Nusantara, Indonesia’s new capital city,” Chen said. MOP will be listed in April with M&A Securities as the adviser, managing underwriter, joint underwriter and joint placement agent of the IPO exercise. Kenanga Investment Bank is the joint underwriter and joint placement agent. Upon completion of the IPO, MOP will be a 63.07 per cent subsidiary of MKH Bhd, from 100 per cent currently.

KUALA LUMPUR: Paramount Corporation Bhd’s (PCB) subsidiary, Co-labs Coworking, is expected to further grow its network of space offerings in the Klang Valley this year. The coworking space provider is also considering the viability of extending its presence to the north and south of the peninsula. The company officially launched its seventh space at The Five, Damansara Heights today. PCB deputy group chief executive officer Benjamin Teo, who is also a director of Paramount Coworking, said Co-labs Coworking is one of the top three coworking space operators in Malaysia and is poised to grow further beyond. “We are now in the final negotiations for our eighth location that we aim to launch by the middle of the year. “For our members, it means they can cross-locate under our Co-labs Coworking passport system, which means a bigger community and more opportunities for collaboration,” he said after the launching. Co-labs Coworking is a brand under Paramount Coworking, a subsidiary of PCB. “We are at an inflexion point in our industry. In 2024, only two per cent of the total office supply is made out of flexible offices. “Our bullish thesis is that this will grow 10-15 per cent in the next five years,” said Teo. He said with remote work and flexible schedules becoming increasingly popular, coworking is the perfect solution to meet the changing demands of the post-COVID office landscape. “Our spaces are designed to accommodate a mix of in-person and virtual collaboration, with more open spaces and shared facilities. “Through our community programming, we focus more on wellness and sustainability, with our spaces designed to promote employee health and environmental sustainability. “This is, in fact, the beginning of greater things,” he said. Co-labs Coworking’s optimism can be seen by its 47 per cent growth in the last three months as one of Malaysia’s top three coworking space operators. “We have expanded Co-labs Coworking by 52,000 sq ft since November 2023, from 115,000 sq ft to 167,000 sq ft,” said Teo. “We took up an adjoining space at Tropicana Gardens Mall at Kota Damansara and opened up two new spaces, Ken TTDI at Taman Tun Dr Ismail in Kuala Lumpur and The Five at Damansara Heights,” he said. Co-labs Coworking The Five, which offers 15,407 sq ft of coworking space across two levels at Block C of The Five @ KPD, has been open for business since 15 January 2024. It is located at one of the five low-rise buildings that house restaurants, cafés, retail outlets and office spaces. It is also a short walk from the Semantan MRT station. “Our coworking spaces are reenergizing these buildings, built in the early 1970s, with young people and their creativity energy and productivity,” Teo said. “Co-labs Coworking is not just an office space but a space for creativity, collaboration and community, for growth and productivity. Our community team members organise and curate activities that foster collaboration and community,” he said. Photo caption: At the launching of Co-labs Coworking. (From left to right) Paramount Coworking assistant general manager Wayne Yap, Paramount Corporation Bhd deputy group chief executive officer Benjamin Teo and group chief executive officer Jeffrey Chew.

KUALA LUMPUR: Daythree Digital Bhd (DDB) posted a revenue of RM89.9 million for the financial year ended December 31, 2023 (FY23), marking a 38.1 per cent increase over FY22’s revenue of RM65.1 million. This growth is a testament to DDB’s strategic alignment with the surging demand in the global business services (GBS) industry. Net profit increased 22.6 per cent to RM7.6 million in FY23 from RM6.2 million in FY22. In January 2023, DDB received approval in principle from the Malaysian Investment Development Authority (MIDA) for the tax exemption of an additional five-year term to February 15, February 2027. This exemption, however, will only apply upon the gazetting of the relevant tax exemption provisions, and until that time, statutory taxation remains in effect. For FY23, DDB posted a profit before tax (PBT) of RM10.8 million. Excluding the one-off listing expenses of RM1.2 million, the adjusted PBT stood at RM12.0 million. This represents a significant increase from FY22’s PBT of RM9.5 million. The year-on-year (YoY) growth in PBT of 26.3 per cent underscores DDB’s focus on growth, exemplified by securing eight new brands and two new lines of business from an existing client during the financial year. DDB managing director Raymond Davadass said the company prioritises understanding its clients’ unique challenges and crafting tailored solutions to drive their success. “We believe that through our consultative approach, we will not only attract new partnerships but also offer long-term relationships built on mutual growth and prosperity,” he said in a statement. Raymond said as a technology-driven company, DDB remain committed to innovation, focusing on technologies into services to boost efficiency and reduce reliance on manual labour for low value tasks. “Our dedicated digital transformation team continues to seek new ways to streamline processes, eliminate waste, and enhance our clients’ value,” said Raymond. The company’s growth momentum is supported by Malaysia’s digital economy aspirations and the government’s supportive policies, which have fostered a conducive environment for the GBS sector. Malaysia’s appeal as a GBS destination is further enhanced by its cost-effectiveness and minimal natural disaster risks, providing a stable business platform. The company’s energy and utilities sector remains a significant contributor, with RM39.9 million in revenue, embodying the DDB’s diversified strength across various segments including RM16.9 million from fintech and financial services, RM15.0 million from telecommunications and media, RM9.2 million from e-commerce and retail, RM5.4 million from travel and hospitality and RM3.5 million from other sectors. With the global GBS industry on an upward trajectory, DDB is optimally positioned to capture this growth. The Malaysian GBS industry is expected to expand from RM24.8 billion in 2023 to RM31.7 billion by 2027, at a compounded annual growth rate (CAGR) of 6.3 per cent. This promising outlook is mirrored in DDB’s strategic investments and utilisation of the RM33.1 million raised from the successful listing on the ACE Market of Bursa Malaysia, with a balance of RM25.2 million earmarked for further business expansion. Further, RM0.6 million has been utilised to recruit experts in the industry, RM0.3 million for capital expenditure, RM3.3 million for working capital, RM3.7 million for listing expenses, and a maiden RM0.01 million deployed in branding, marketing and promotional activities. As of February 21, 2024, DDB’s share price stood at RM0.355, indicating a market capitalisation of RM170.4 million, reflecting investors’ confidence in the company’s strategic direction and future potential.

KUALA LUMPUR: RHB Investment Bank Bhd (RHBIB), a wholly-owned subsidiary of RHB Bank Bhd (RHB) disposed its entire equity interest in RHB Securities Vietnam Co Ltd (RHBSV) and exited Vietnam’s stockbroking and securities market. RHB Banking Group group managing director and group chief executive officer Mohd Rashid Mohamad said the decision by RHBIB to divest its equity interest in RHBSV to Public Bank Vietnam Ltd aligns with the banking group’s long-term strategic business direction of focusing resources and efforts on bolstering RHBIB’s operations in other markets. “We remain committed to ensuring a smooth transition process and will ensure that we continue to deliver service excellence to our clients throughout the transition period,” he said in a statement. RHBSV is a wholly-owned subsidiary of RHBIB and is licensed under the laws of Vietnam to engage in the business of securities brokerage, securities investment consultancy, securities custodian services and proprietary securities trading. The corporate exercise is targeted to be completed by the end of the second quarter (Q2) of 2024. The divestment of equity interest in RHBSV will not affect the issued share capital and substantial shareholders’ shareholdings of RHB Bank. Alongside the disposal of RHBSV, RHB Bank will close its Vietnam representative office. “As we embark on this new chapter, we look forward to leveraging our strengths and expertise to pursue other opportunities. “We remain steadfast in our mission to deliver innovative solutions and superior services that create sustainable value for our clients, employees, and shareholders,” Mohd Rashid said.

KUALA LUMPUR: Aluminium extruder company PA Resources Bhd’s (PRB) wholly-owned subsidiary, PA Extrusion (M) Sdn Bhd (PESB), has acquired two parcels of industrial land equivalent to 18 acres in Batang Berjuntai, Kuala Selangor for RM21 million. The two parcels of land, located near its existing factory, will be funded via internal generated funds and bank borrowings. The acquisition is expected to be completed within 6 months. Upon completion of the acquisition, PRB will build a new factory on the land, which will double its production capacity in phases, from 3,200 tons a month to approximately 7,000 tons. PRB group executive chairman Tan Sri Chan Kong Choy said this expansion plan fits the company’s long-term growth strategy. “With our new factory, we will be able to match the escalating demand from our solar renewable energy clients. “Additionally, this expanded capacity enables us to diversify both our product range and the markets we serve, hence providing the company with additional streams of income. “With these objectives in mind, we aim to expedite the land acquisition process and promptly initiate the construction of our new factory. “We are confident that this investment will not only boost our production capacity but also contribute to the economic growth of the nation. “This initiative also promises sustainable long-term employment opportunities and advancing socio-economic development within local communities in that region,” Chan said in a statement. “We are proud that the company is in a position to contribute to the growth of green energy by providing lightweight, durable components and cost-effective material for solar panels,” he added.

KUALA LUMPUR: Domestic banks’ net interest income (NII) for the fourth quarter (Q4) could be flattish, with the expansion in the loan base offset by net interest margin (NIM) pressure due to the seasonal competition for deposits and from the lagged impact of May’s overnight policy rate (OPR) increase. RHB Research said while some banks offered deposit rates of more than 4 per cent, this does not appear to have been a widespread practice, and the banks expect an easing in competitive pressure in the first quarter (Q1) of 2024. “On non-II, fees could stay healthy on strong loan- and card-related fees, but market-related (ie trading and investment)and foreign exchange (FX) income may be lumpy and harder to forecast. “The 10-year Malaysian Government Securities (MGS) yield contracted by 24bps quarter-on-quarter (QoQ), which should be positive for trading activities, even though some banks may be inclined to rebuild their bond portfolios or hold on to the higher yields,” the bank-backed research firm said in a note today. RHB Research also noted that the Q4 2023 banking sector’s profit before tax (PBT) could be muted QoQ due to NIM pressure, higher operation expenditure (opex) and credit cost, with markets-related non-II being a swing factor. “CIMB Group Holdings Bhd’s results maybe slightly ahead of our estimates on higher- and lower-than-expected non-II and credit cost QoQ, but Affin Bank Bhd’s numbers may miss projections on NIM pressure. “What is more pertinent is the outlook – positive guides on return on equities (ROEs) and capital management initiatives are likely to be well-rewarded by investors,” RHB Research noted. Further, RHB Research sees the domestic banking sector is likely to report higher opex and loan impairments QoQ – a reflection of seasonality (opex) and base effect (credit cost). Larger banks such as CIMB and Malayan Banking Bhd reported lower credit costs in the third quarter (Q3) due to writebacks and model changes, which may not recur this quarter. Also, there could be provision top-ups to lift coverage for CIMB and AMMB Holdings Bhd), RHB Research noted. “Generally, we do not expect adverse developments in asset quality, but we would be keen to hear more on the small and medium enterprises (SME) segment. “Hence, sector PBT could be muted QoQ but the profit after tax and minority interests (PATMI) trend could be boosted by AMMB, depending on the extent it utilises its tax credits,” RHB Research said. Maintaining a Neutral call on the sector, and with several banks approaching the tail-end of their mid-term plans, RHB Research thinks investors would be keen to hear more about what would be next in the upcoming and future briefings. “We see investors ending up with a spread of choices – banks that will be investing for growth, banks in a steady state, banks with room to further optimise their capital and balance sheets, and banks that could offer a combination of the above,” the research firm noted.