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Investment & Market Trends, News

MNRB’s Net Profit Reaches Best-Ever Performance in 50 Years

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KUALA LUMPUR: MNRB Holdings Bhd recorded a jump in net profit to RM428.34 million for the financial year ended 31 March 2024 (FY24) from RM142.64 million in FY23, marking the best-ever financial performance in the company’s 50-year history. This was mainly driven by strong business expansion, underwriting results and investment returns. Revenue increased to RM3.6 billion from RM2.97 billion in the previous year, it said in a filing with Bursa Malaysia. Revenue from the insurance and takaful businesses rose 21.1% to RM3.6 billion from RM3 billion in FY23. It also noted that its profit after tax (PAT) for FY24 surged by 200.4% to RM428.4 million, surpassing the RM400 million mark. “This was mainly due to the results of the reinsurance/retakaful business amounting to RM362.4 million, primarily fuelled by strong underwriting results coupled with robust investment performance. “Overall, the group’s profitability was further strengthened by the takaful segment’s solid business fundamentals and operational efficiencies,” MNRB said. Despite challenges in the domestic and global capital markets from the macroeconomic headwinds, MNRB’s investment income and yield reached a five-year record high, with investment results touching RM588.3 million up 61.3% from FY23. With a yield of 5.64%, MNRB’s investment performance was in line with the strong returns delivered by larger institutions in Malaysia. “This purposely designed growth, with more than 80% concentration in the Malaysian market, was mainly attributable to favourable returns, following a strategic alignment of the investment portfolio, trading strategies and asset allocation model,” it noted. Additionally, the group’s reinsurance/retakaful subsidiary, Malaysian Reinsurance Bhd achieved a record-breaking RM2.5 billion gross written premiums and gross written contributions (GWP/GWC) in FY24, surpassing the RM2 billion mark for the first time. As of 31 March 2024, Malaysian Reinsurance secured the top place among Asean’s reinsurers for its GWP. For the fourth quarter ended 31 March 2024 (Q4 FY24), MNRB’s net profit rose to RM232.63 million against RM94.94 million a year ago, while revenue rose to RM816.79 million versus RM637.97 million in Q4 FY23. The group’s insurance and takaful revenue increased 30.6% to RM707.2 million in the period from RM541.3 million recorded in Q4 FY23. MNRB President and Group Chief Executive Officer Zaharudin Daud said the sukuk issuance has also helped to bring down the cost of capital and provided the company with the flexibility to execute the group’s transformation effectively. It also enabled strategic diversification into international markets and facilitated strategic partnerships, he added. Meanwhile, MNRB Chairman Datuk Johor Che Mat said the key to the company’s success was the rollout of strategic initiatives across all business lines. The significant improvements in FY24 were strategically planned with an ongoing commitment to prioritising stakeholders’ interests and championing good governance. “We noted that investors’ interest in the group has increased, reflecting the market’s confidence in the company throughout the financial year. “We continue to look beyond Malaysian shores and are leveraging current opportunities in the hard market while preparing to surmount challenges in the upcoming soft market,” he added. — BERNAMA

Investment & Market Trends, News

Rich Baby Boomers Pass On US$1.9 Tril Wealth to Future Generations

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KUALA LUMPUR: Malaysia is set to draw more foreign inflows as Asia’s largest intergenerational wealth transfer is on the cards, said Securities Commission Malaysia (SC) Chairman Datuk Seri Dr Awang Adek Hussin. He said that according to HSBC Bank, Asia’s wealthy baby boomers are expected to pass on about US$1.9 trillion (RM9.01 trillion) of wealth to future generations in the coming years. “The financial planning industry is well placed to capitalise on this opportunity due to long-term relationships built over the years,” he said at the Financial Planning Symposium 2024 that was organised by the Financial Planning Association of Malaysia (FPAM). Moreover, this opportunity not only promises to elevate the quality of financial planners’ services but also broadens their client base. Furthermore, Awang Adek pointed out the growing interest in sustainability among millennial investors, something which financial planners could potentially tap into. A survey by the Institute of Capital Market Research revealed that more than 70% of millennials and Gen X are likely to invest in options that also promote sustainability. “While many investors have good intentions, they may lack knowledge about sustainable investments like environmental, social and corporate governance (ESG) or Sustainable and Responsible Investment (SRI) Funds, which we in the capital markets industry may be used to. “As such, financial planners must increase their understanding and develop capabilities in this area,” he said. To facilitate this, the SC and the Federation of Investment Managers Malaysia will issue a comprehensive guide to assist planners and consultants in navigating the complexities of SRI Funds. This guide aims to ensure that SRI considerations become a routine component of financial advice. According to Awang Adek, the financial planning sector has seen a notable improvement in the number of firms, with an increase of more than 32% since 2015. “In this regard, the release of the firm’s operating standard by FPAM is a positive step towards professionalising the industry. “It serves as a guide to support firms in establishing a solid foundation and promoting good conduct that prioritises client needs,” he said. Awang Adek said on the regulatory side, the SC has issued revised Guidelines on Conduct for Capital Market Intermediaries to elevate standards of professionalism and integrity, which will assist firms in attracting and retaining long-term clients. The revised guidelines will come into effect on 1 October 2024, allowing sufficient time for capital market intermediaries to make preparations to meet the new requirements. “Financial planners should thoroughly review and take necessary steps to ensure compliance, especially with regards to personal advise obligations,” he said. He also called financial planners to protect their clients, ensuring that they do not fall prey to unlicensed schemes and activities. Between 2019 and 2023, the SC reviewed over 3,000 complaints and inquiries related to unlicensed activities and scams, a 321% rise from under 800 complaints in 2019. He said the SC also recognises that smaller firms may struggle with market profiling. “Hence, I am pleased to announce that Capital Markets Malaysia, the SC’s promotional arm, will work in tandem with the SC to provide a platform to profile financial planning firms further. “This will serve as a contact point for prospective investors to connect with firms for various financial planning needs,” he said. — BERNAMA

Investment & Market Trends, News

Bursa’s RM2 Tril Market Cap Signals Good Trading Prospects, Says MIDF Research

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PETALING JAYA: MIDF Research has forecasted “good prospects for trading activities in Bursa Malaysia this year from a corporate earnings and valuation point-of-view”. “This follows the local bourse hitting RM2 trillion in market capitalisation for the first time yesterday, with the key index at a two-year high,” it said. The research firm said it also anticipates robust economic growth, which consequently drives corporate earnings. “We also anticipate that the expectations of US interest rate cuts will lead to positive sentiment, especially among foreign investors, and this will drive better market valuations,” it said in a research note. MIDF said it has seen better trading activities thus far this year on the back of the expectation of US Federal Reserve (Fed) interest rate cuts, adding that Bursa is well-positioned to continue developing the marketplace and make further progress in its strategic plans. In the short-term though, MIDF said the ongoing global and local developments would continue to influence the volatility and performance of the securities and derivatives markets, “which at the current juncture we are sanguine.” “Hence, we are maintaining our ‘buy’ call on the stock exchange with an unchanged target price of RM8.20, pegging financial year 2025 (FY 2025) earnings per share (EPS) to a price-earnings ratio (PER) of 25 times,” it added. On the index performance, the FTSE Bursa Malaysia KLCI (FBM KLCI) saw year-to-date (YTD) (as at May 7, 2024) gains of 10.4%, making it the best-performing index in Asean thus far. “Compared to peers, only Japan’s Nikkei has outperformed with a 16% gain,” it said. MIDF noted that the support provided by local investors and the return of foreign funds in May has lifted sentiment. “Although we observed a foreign funds net outflow of RM4.25 billion between March and April, there has been a net inflow of RM1 billion in May thus far. “We are sanguine on the prospect of foreign funds returning to the Malaysian market on the back of expected US interest rate cuts and the subsequent expectation of the US dollar to weaken in light of this,” it added. Yesterday, the FBM KLCI rallied for a fourth straight day to close above the 1,600 level for the first time in two years, closing at 1,605.68, its highest close since April 8, 2022.–BERNAMA

Investment & Market Trends, News

Malaysia to Engage in Deeper Collaboration with China

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KUALA LUMPUR: Malaysia foresees significant potential for deepened collaboration with China, mainly in industries such as infrastructure, digital economy, green development, new energy vehicles and the rare earth, said Deputy Prime Minister Datuk Seri Fadillah Yusof. He noted that Malaysia’s MADANI initiative aligns with the values and principles of the Community Shared Future (CSF) advocated by President Xi Jinping since 2013. “Both concepts advocate and promote innovation, care and compassion, inclusiveness and mutual respect. The MADANI economic framework aims to strengthen national competitiveness by focusing on fiscal sustainability, excellent governance and effective service delivery. “The two countries can translate these concepts into reality for the benefit of their people,” Fadillah said during his keynote speech at the Malaysia-China Commemorative Forum, which was presented by Deputy Energy Transition and Water Transformation Minister, Akmal Nasrullah Mohd Nasir. Fadillah also emphasised on Malaysia’s leadership in promoting renewable energy through its partnership with China, considering that both nations are heavily investing in clean technologies such as solar, wind and hydroelectric power. He said that the Malaysia-China collaboration has expanded beyond technology, with both countries actively participating in knowledge-sharing initiatives to harness the immense potential of green energy. “Through these initiatives, we strive to reduce greenhouse gas emissions and mitigate the impacts of climate change. By prioritising innovation and sustainable development, Malaysia and China are making significant contributions. “We are addressing global climate challenges while also unlocking new economic opportunities. This dual approach promotes growth while ensuring environmental stewardship,” he added. China has remained Malaysia’s largest trading partner for the past 15 years, with total trade between the 2 countries reaching US$98.8 billion (RM450.84 billion) in 2023, with imports from China amounting to US$56.69 billion (RM258.63 billion). These imports predominantly consist of electrical and electronics products, machinery and chemicals, underscoring the robust economic relationship between the two nations. Meanwhile, Malaysia-China Business Council Executive and Acting Director Datuk Alvin Tee Guan Pian highlighted an increasing interest among Chinese investors, particularly in the data centre industry. “Malaysia is among the earliest countries in the region to venture into the digital economy. We established the Multimedia Super Corridor to accelerate the industry’s growth. As we open our doors to investors, we need to ensure that we meet the local content requirements. “We must ensure that wherever investors from China come in, the local content contribution is reasonable. We don’t want to close our doors, but it must genuinely be a win-win situation,” he added. — BERNAMA

News

Kinergy Advancement on Aggressive Expansion Mode

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KUALA LUMPUR: Kinergy Advancement Berhad (KAB), a leader in sustainable energy solutions, continues its upward trajectory, highlighted by its record-breaking Profit After Tax (PAT) in FY2023, substantial orders nearing RM1 billion by the year’s end, and a doubling of its concession assets within just one year. With pending tenders totaling RM3 billion, KAB is poised for even greater growth in FY2024. In FY2023, KAB achieved a pivotal milestone with the completion of its rebranding effort, unveiling a new name and logo that embody its steadfast commitment to sustainable energy solutions (SES). This strategic repositioning, initiated in 2018, underscores KAB’s dedication to SES, enhancing its profile and influence in the regional energy sector. The SES division remains the primary engine of growth for KAB, encompassing Clean Energy Generation (CE), Renewable Energy Generation (RE), and Energy-Efficient (EE) solutions. With twenty-seven projects under management and expanding operations across Southeast Asia, including Thailand, Indonesia, and the Philippines, KAB is solidifying its presence in the region. Of significant note is the increase in concession assets from six to fourteen as of December 31, 2023, encompassing a diverse range of energy solutions such as co-generation plants, waste heat recovery facilities, solar PV systems, a biogas plant, and a mini-hydro plant. Dato’ Lai Keng Onn, Executive Deputy Chairman cum Group Managing Director of KAB, expressed confidence in the strategic shift towards SES, emphasizing its alignment with Malaysia’s National Energy Transition Roadmap and broader sustainability objectives. FY2023 marked substantial gains for KAB, with FY2024 projected to witness further advancements, including the completion of the 52.0 MW gas engine power plant project at the Sipitang Oil & Gas Industrial Park, a joint venture with PETRONAS Gas Berhad. Additionally, strategic collaborations such as the MoU with LCS Holdings Co., Ltd for a 20.0 MW solar farm development in the Philippines and the proposed acquisition of shares in Tunjang Tenaga Sdn. Bhd. for a 9.6 MW hydro plant in Malaysia underscore KAB’s commitment to renewable energy and energy efficiency initiatives. Financially, KAB’s performance in FY2023 demonstrated significant growth, with revenue reaching RM199.4 million, a 6.6% increase from the previous year, and a record-breaking Profit After Tax of RM27.6 million, marking an impressive 862.6% rise. With a robust order book nearing RM1 billion and pending tenders totaling RM3 billion, KAB’s focus on high-margin SES projects ensures continued profitability and sustainability.

News

Shell in Talks to Sell Malaysia Fuel Stations to Saudi Aramco, sources say

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SINGAPORE: Shell is currently in discussions with Saudi Aramco regarding the potential sale of its gas station business in Malaysia, which stands as the country’s second-largest network. The talks, according to four industry sources familiar with the matter, could result in a deal valued at up to $1 billion. Although Shell and Saudi Aramco have declined to comment on the negotiations, it’s noteworthy that Malaysia holds significant importance for Shell. The London-based energy giant wholly owns approximately 950 fuel stations across Malaysia, trailing only behind the state-owned Petronas in terms of network size. These discussions, initiated in late 2023, are progressing, with the possibility of finalizing a deal in the near future, as suggested by one insider. Estimated to be between 4 billion to 5 billion ringgit ($844 million to $1.06 billion) in value, the potential deal aligns with Shell’s strategic decision to concentrate on its most profitable ventures under CEO Wael Sawan’s leadership. Beyond fuel stations, Shell is engaged in various operations in Malaysia, including the sale of industrial lubricants and offshore production of crude oil and natural gas. Additionally, it has stakes in two liquefied natural gas (LNG) ventures. This proposed sale is part of Shell’s broader divestment strategy, aiming to shed 500 gas stations this year and next, alongside the ongoing process of selling its Singapore refinery and petrochemical complex. Notably, the move to sell its Malaysia fuel stations mirrors its decision to divest its Bukom Island refinery in Singapore, which supplies the Malaysian network. While Saudi Aramco doesn’t currently operate fuel stations in Malaysia, it holds a 50% stake in the Pengerang refinery in Johor, a joint venture with Petronas. Aramco’s operations extend to petrol stations in Saudi Arabia and other regions, including joint ventures with major players like TotalEnergies and South Korea’s S-Oil Corp.–REUTERS

News, Uncategorized

Sime Darby Motors Unveils Enhanced BYD ATTO 3 2024, Setting New Standards in EV Innovation at RM149,800

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ARA DAMANSARA: Sime Darby Motors, the authorized distributor of BYD vehicles in Malaysia, proudly introduces the highly anticipated BYD ATTO 3 2024, showcasing the latest advancements in electric vehicle (EV) technology. This upgraded version of the acclaimed electric SUV demonstrates BYD’s unwavering dedication to innovation and quality, promising Malaysian drivers an unparalleled driving experience. Crafted upon BYD’s advanced e-platform 3.0 and the revolutionary Ultra-Safe Patented Blade Battery Technology, the BYD ATTO 3 2024 sets new standards for safety and performance. Recognized with a maximum five-star rating by Euro NCAP, Europe’s leading independent safety institute, it also boasts the distinction of being the world’s first intelligent cabin designed with a focus on sports and fitness. With its cutting-edge technology, the BYD ATTO 3 2024 instills confidence in every journey, offering both power and sustainable mobility at the fingertips of drivers. Key Enhancements for 2024 include: – Exterior Refinements: A sleek black fin at the D-pillar replaces the previous white fin, adding a touch of sophistication. Additionally, the iconic BYD logo now graces the rear, exemplifying the vehicle’s modern appeal. – Interior Upgrade: Introducing a new “Black-Dark Blue” color scheme enhances the interior aesthetics. Customers now have two interior color options—Black-Dark Blue and Dark Blue-Light Grey, depending on the selected exterior color. – Advanced Technology: The BYD ATTO 3 2024 is equipped with wireless charging capabilities and an expanded intelligent rotating touch screen, now measuring 15.6 inches, providing enhanced entertainment features and visibility. Seamless connectivity with Android Auto and Apple CarPlay ensures a convenient driving experience. – New Color: Cosmos Black joins the lineup, offering customers an additional choice to suit their preferences. With its sleek appearance, Cosmos Black enhances the overall aesthetic of the BYD ATTO 3 2024, providing consumers with more options to match their style preferences. The BYD ATTO 3 2024 has received numerous accolades worldwide, cementing its position as a leader in the EV industry. As the world’s No. 1 New Energy Vehicle (NEV) manufacturer, the model has been honored with prestigious awards such as “Electric Car of the Year” by News UK and “Best EV SUV” in Thailand’s Car of the Year 2023 awards. Jeffrey Gan, Managing Director of Southeast Asia at Sime Darby Motors, expressed his enthusiasm for introducing the enhanced BYD ATTO 3 2024 to Malaysians, emphasizing their commitment to excellence in the EV segment. Backed by a robust network of advanced showrooms and expanding dealerships nationwide, Sime Darby Motors aims to provide quality service and excellent customer care. Price and Package: The BYD ATTO 3 2024 is available in a single variant priced at RM149,800, offering optimal performance value and tailored features for customers. With the addition of Cosmos Black, the model is now available in four colors: Boulder Grey, Ski White, Surf Blue, and Cosmos Black. The Boulder Grey and Cosmos Black variants feature the new interior color of Black-Dark Blue. Comprehensive Warranty Package: – 6-year or 150,000km vehicle warranty – 8-year or 160,000km battery warranty – 8-year or 150,000km drive unit warranty Additionally, BYD offers comprehensive service packages including Service Standard and Service Plus, ensuring a seamless ownership experience and long-term cost savings for BYD EV owners. Expanded Product Range: With the debut of the BYD ATTO 3 2024, BYD presents a comprehensive product range tailored to diverse preferences and budgets. From the Compact Hatchback BYD DOLPHIN starting at RM99,900, to the Enhanced Compact SUV BYD ATTO 3 2024 priced at RM149,800, and the dynamic Sports Sedan BYD SEAL starting from RM179,800, Malaysians now have a plethora of options to choose from. Commitment to Safety and Satisfaction: Ensuring the safety and satisfaction of our customers remains our top priority. Each vehicle undergoes rigorous quality assessments to meet the highest standards. Additionally, BYD continues to invest in digital solutions, including a user-friendly mobile app, to enhance the convenience and accessibility of EV ownership. Explore the latest BYD ATTO 3 2024 by visiting your nearest BYD showroom. For more details, visit the [BYD Sime Darby Motors website](http://byd.simedarbymotors.my/) or connect with BYD Cars Malaysia on [Facebook](http://www.facebook.com/BYDCarsMalaysia) or [Instagram](http://www.instagram.com/bydcarsmalaysia/). For inquiries, reach out to our Customer Care team at 1300-38-1888.

Investment & Market Trends, News

Malaysian Banks to Withstand External Headwinds, Expert Says

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KUALA LUMPUR: Malaysian banks are demonstrating robust asset quality and are well-positioned to navigate external challenges, as highlighted in a chartbook-style commentary published by S&P Global Ratings. Titled ‘Malaysian Banking Sector Review: Standing Firm in the Face of External Headwinds’, the chartbook underscores the superior asset quality of Malaysia’s banks compared to regional counterparts, evident in lower credit losses and non-performing loan (NPL) ratios. “Economic conditions are stable in Malaysia, which will support credit demand,” said S&P Global Ratings Credit Analyst Nikita Anand. Noting an uptick in corporate borrowing driven by key infrastructure initiatives, Nikita pointed out that credit expansion is expected to increase to 6% in 2024 from 5% last year. “Additionally, retail credit growth is projected to remain robust, while funding conditions are expected to stabilise with fixed deposit rates appearing to have peaked,” she added. She also highlighted the limited upside to profitability for Malaysian banks, with the sector’s return on assets expected to remain flat at 1.2% in 2024. “This is because net interest margins could decline further, especially if competitive pressures intensify in the country’s saturated banking sector,” she said. Moreover, Nikita said that the banking sector’s exposure to currency depreciation risks is deemed manageable, given its limited direct exposure to external debt. The sector’s exposure to corporates with unhedged foreign currency liabilities represents a mere 0.5% of total loans. To this, Nikita continued, “We anticipate a modest deterioration in asset quality. This could come from restructured loans for low-income households and small businesses.” According to her, sustained currency depreciation could impact import-reliant sectors such as manufacturing, construction and agriculture. She said stable labour market conditions, along with proactive write-off policies are expected to assist banks in maintaining low NPL ratios. — BERNAMA

Investment & Market Trends, News, Uncategorized

South Korea Export Growth ccelerates

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SEOUL: South Korea witnessed a surge in export growth last month, signaling the potential for sustained economic momentum following a faster-than-expected expansion in the previous quarter. Adjusted for working-day differences, shipments increased by 11.3% compared to the previous year, as per data released by the customs office yesterday. Unadjusted figures showed headline exports rose by 13.8%, with overall imports also experiencing a 5.4% increase, resulting in a trade surplus of US$1.5 billion. South Korea, a significant player in global trade, has seen demand for its goods rebound since late last year. The economy expanded by 1.3% in the first quarter, surpassing even the most optimistic estimates, largely driven by exports. Despite ongoing Middle East tensions and elevated global interest rates, semiconductor sales have seen a resurgence. Major companies like SK Hynix Inc and Samsung Electronics Co have reported better-than-expected earnings, benefiting from increased demand for memory chips. “Export growth is expected to continue driving growth this quarter, especially fueled by strong demand for semiconductors,” noted Dave Chia, an associate economist at Moody’s Analytics, prior to the release of trade figures. South Korean exporters have particularly benefited from robust demand in major economies like the United States. The International Monetary Fund predicts a growth pickup in advanced economies this year, while emerging markets may experience a slight slowdown. “While Asian exports, especially semiconductors, are likely to remain robust, caution is warranted regarding the broader outlook for external demand,” said Sheana Yue, an economist at Oxford Economics. A major concern for policymakers is the weakening value of the won against the US dollar. While some companies like Hyundai Motor Co have seen improved earnings due to this, smaller firms and importers are grappling with higher costs of raw materials and energy. Additionally, the outlook for demand from China remains uncertain. The second-largest economy is struggling to recover from a domestic spending slump, as highlighted by a surprise decline in industrial profits in March. Exports to China in April totaled US$10.5 billion, marking a 9.9% increase from the previous year, while exports to the United States amounted to US$11.4 billion, a 24% rise, according to the Trade Ministry. — BLOOMBERG

Investment & Market Trends

PublicInvest positive on Farm Price Holdings’ expansion, earnings outlook

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KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) is seeing a positive outlook for Farm Price Holdings Bhd’s (FPHB) expansion plans, particularly its enlarging operational facilities to expand its market coverage for business growth and enhance its supply chain in fresh vegetables. In a report, PublicInvest highlighted several developments that are expected to fuel FPHB’s growth in the near future. These include building more facilities in Senai, Johor, expanding areas for value-added processing, buying new machinery and equipment, increasing their transportation fleet, setting up an additional regional distribution centre, and establishing a sales and marketing office in Singapore. Further, PublicInvest noted that FPHB also has several competitive advantages, which include an established track record, a broad range of products along with value-added services, well-developed supporting infrastructure, a wide network of suppliers to reduce the risk of supply disruptions, a dual-channel distribution system, and an experienced management team. The bank-backed research firm said as of March 27, 2024, FPHB had about 980 stock-keeping units (SKUs) of fresh vegetables. This inventory includes around 510 SKUs of whole fresh vegetables, 320 SKUs of pre-packed vegetables, and 150 SKUs of fresh-cut vegetables. The pre-packed vegetables are mostly sold under FPHB’s brands, Farm Price and TLC Fresh, along with some brands owned by customers. Fresh-cut vegetables are primarily sold to foodservice operators and wholesalers. A small amount of these are also marketed under the Farm Price brand, but none under third-party brands. PublicInvest said that as of March 27, 2024, FPHB’s Senai Centralised Distribution Centre spans 78,721 square feet, including 24,066 square feet of cold room facilities for storage, processing, and packing, alongside areas for ambient temperature storage. The company plans to expand this centre by building additional structures on a 1.9-acre plot purchased in 2023, directly behind the existing facilities. The planned expansion includes a 2-storey operational building with office and cold room facilities, a 4-storey accommodation block for workers, and a covered workshop. When completed, the expanded area will be approximately 84,790 square feet, which includes an extra 4,000 square feet of cold room space. This will increase the centre’s capacity from handling 29,669 pallets per year to about 40,000 pallets per year by 2026. On the same date, an architect was hired to prepare the building plan submission, and the new operational building is expected to start operations by the first quarter of 2026. Additionally, FPHB intends to grow its processing capabilities by adding around 4,000 square feet of floor space at the Senai Centre, particularly to enhance its range of value-added products such as pre-packed and fresh-cut vegetables. The related renovations, which will expand the processing area and the cold room facilities, are set to start in the third quarter of 2025 and should be completed by the end of the fourth quarter of 2025. Touching on earnings forecast, PublicInvest said while FPHB’s current facility is operating at full capacity, the research firm anticipates that the company’s growth will be supported by new distribution centres in Cameron Highlands and Nilai. These centres are expected to start operating in the fourth quarter of 2024. Additionally, FPHB can increase its production capacity by adding extra processing shifts and making more delivery trips if needed. “As a result, we are projecting that FPHB’s core net profit will grow by an average of 18 per cent in the financial years 2024-2025. “This growth is expected to come from better economies of scale, expansion into new geographical areas, and improvements in the supply chain with the start of the new distribution centres,” PublicInvest noted. “FPHB’s net gearing ratio currently stands at 0.4x. We expect the company to be in a net cash position after IPO,” the firm noted.

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