Malaysia

Steel Hawk Berhad, an established provider of oil and gas services and equipment, has reported a remarkable financial performance for the first quarter ended 31 March 2025 (1QFY25). The company achieved a more than two-fold increase in net profit, reaching RM8.17 million compared to RM3.23 million in the same period last year (1QFY24). This strong growth was driven by a significant surge in revenue, which rose to RM52.48 million in 1QFY25, compared to RM19.74 million in the previous year. The substantial improvement was primarily attributed to the robust performance of Steel Hawk’s core Engineering, Procurement, Construction, and Commissioning (EPCC) division, bolstered by new work orders from Petroliam Nasional Berhad (PETRONAS) and its affiliated companies. The EPCC division alone generated RM50.58 million in revenue during the quarter, accounting for 96.38% of the company’s total income, a notable increase from RM15.89 million or 80.50% in 1QFY24. Other revenue streams included the Installation and Maintenance (I&M) segment, contributing RM1.56 million or 2.97%, and the Supply of Oilfield Equipment (SOFE) segment, adding RM0.34 million or 0.65%. Steel Hawk’s Deputy Chairman and Executive Director, Dato’ Sharman K. Michael, expressed satisfaction with the company’s performance, highlighting it as a milestone in the company’s continued growth. “We are delighted to report another outstanding set of quarterly results, marking a significant moment in Steel Hawk’s continued growth,” he said. “This quarter represents our most substantial leap forward to date, both in scale and pace, underscoring the resilience of our business and the positive trajectory we continue to build on.” The company has successfully secured seven contracts in less than a year, significantly enhancing its project portfolio. Key achievements include its appointment as a panel contractor for the Construction and Modification Works of 27 Downstream Operating Plants and EPCC Services for Remote Operations, both awarded by PETRONAS Carigali Sdn. Bhd. (PCSB). Steel Hawk also secured an extension of its contract for Onshore Facilities Maintenance, Construction, and Modification Services, originally set to expire on 31 December 2024, with an additional award for Splash Zone Structural Repair and Maintenance Services from PCSB. Currently, the company holds 14 active contracts, ensuring a steady project flow secured through to 2030. Dato’ Sharman outlined the company’s strategic priorities, which include securing new contracts, executing projects with optimal efficiency, and maintaining a disciplined cost management approach. He also noted that despite oil price volatility, the company’s focus on operating expenditure (OPEX) rather than capital expenditure (CAPEX) supports its operational resilience and sustainability. Steel Hawk’s balance sheet remains robust, with a manageable net gearing ratio of 0.50 times as of 31 March 2025. Additionally, the company’s net assets per share increased to 11.13 sen from 9.46 sen at the end of December 2024.

Sapura Energy Bhd has reported a return to profitability for the first time in six years, posting a net profit of RM190 million for the financial year ended January 31, 2025 (FY25). This marks a significant turnaround from the previous financial year when the company recorded a net loss of RM509 million. The group’s revenue increased by 8.9% year-on-year (YoY) to RM4.7 billion, reflecting improved performance across its core business segments. The audited financial statements for FY25, prepared by external auditors Messrs. Ernst & Young PLT (EY), received an unqualified audit opinion. However, EY highlighted concerns regarding the company’s ability to continue as a going concern, noting that Sapura Energy’s current liabilities still exceed its current assets. The group continues to face severe liquidity challenges. Despite these concerns, the financial statements were prepared on a going concern basis, which EY stated is contingent on the timely approval, execution, and completion of the Proposed Regularisation Plan by the Long Stop Date of March 11, 2026. This plan is critical for the group’s schemes of arrangement (SOA), conditional funding agreements, and settlements related to previously terminated engineering and construction (E&C) projects. The issue of going concern uncertainties is not new for Sapura Energy, having been flagged in the financial statements for FY2022, FY2023, and FY2024. Previous concerns included the need for restraining order extensions, favourable legal outcomes regarding E&C claims, and at least 75% creditor approval at court-convened meetings for the SOA. Sapura Energy has achieved several critical milestones over the past few years, progressing towards finalising its regularisation plan. The group aims to make a formal submission to Bursa Malaysia by May 2025. In a statement to Bursa, the board expressed confidence in the company’s future, highlighting that successful execution of key restructuring initiatives has established a strong foundation for completing the regularisation plan. -Business Times

Kenanga Research has reiterated its “Buy” call on Mah Sing Group Bhd, maintaining its target price (TP) at RM2.46. The recommendation reflects continued confidence in the group’s strategic direction, particularly amid potential changes in AI chip export regulations that could benefit Malaysia’s data centre market. Recent developments surrounding the US AI diffusion rule indicate that the Biden-era restrictions on AI chip exports may soon be repealed. If enacted, this change could remove the current tiered system that limits chip exports based on country classification, including Malaysia. Instead, the US may adopt a more nuanced licensing regime, allowing greater flexibility for companies like Mah Sing to participate in data centre expansions. Kenanga Research views the potential removal of the tiered restrictions as a positive catalyst for data centre growth, with Malaysia positioned to benefit as global tech firms accelerate their infrastructure investments. The construction sector, particularly companies like Mah Sing with significant industrial land assets, is expected to see a valuation uplift. Mah Sing’s ongoing discussions to leverage its Bangi and Southville land for data centre projects align well with this potential policy shift. As data centres continue to be a high-growth area, Mah Sing’s strategic land positioning could unlock significant value, leading to potential long-term re-rating. Kenanga also highlights the broader market environment, where construction and utility sectors are set to benefit from increased data centre activities. YTL Power International Bhd and Tenaga Nasional Bhd, both with existing data centre infrastructure, are also well-positioned to gain. With potential easing of AI chip restrictions, Mah Sing’s strategic land bank could attract more partnerships and investments, strengthening its market position. Kenanga’s positive outlook on Mah Sing remains intact, supported by the company’s proactive approach to capitalising on emerging opportunities in the data centre sector.

KUCHING: The inaugural International Construction Week (ICW) Borneo 2025 has officially commenced at the Borneo Convention Centre Kuching (BCCK), marking a significant milestone for East Malaysia and the wider ASEAN region. Organised by the Construction Industry Development Board (CIDB) Malaysia in collaboration with Qube Integrated Malaysia Sdn. Bhd. (Qube), the event underscores Malaysia’s commitment to sustainable and innovative construction practices as the country takes on the ASEAN Chairmanship for 2025. The two-day event, themed “Innovative Construction for a Sustainable Future”, has attracted a wide array of participants, including policymakers, industry leaders, academics, and innovators. The official opening was presided over by the Premier of Sarawak, The Right Honourable Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Bin Tun Datuk Abang Haji Openg, with the Honourable Dato Sri Alexander Nanta Linggi, Minister of Works, also in attendance. The presence of these senior leaders highlights a firm commitment to sustainable infrastructure development, aligning with Malaysia’s National Construction Policy 2030 and the ASEAN Vision 2045. Addressing the gathering, the Premier of Sarawak emphasised the state’s proactive role in the green transition, describing Sarawak as a crucial player in shaping sustainable infrastructure not only within Malaysia but across Southeast Asia. Meanwhile, the Minister of Works underscored the significance of ICW Borneo 2025 as a platform that transcends industry networking, positioning it as a catalyst for resilient and forward-thinking infrastructure development in the region. As Malaysia leads the ASEAN development agenda under its 2025 Chairmanship, ICW Borneo 2025 serves as a key platform to promote sustainable construction, green energy innovation, and digital transformation. It reflects Malaysia’s ambition to establish itself as a regional hub for resilient, technology-driven, and inclusive infrastructure growth. Coinciding with the main event, the ASEAN Build Construction Working Group (BCWG) Meeting is taking place at the Sheraton Hotel Kuching. This strategic forum unites ASEAN member states to enhance cooperation in standardising the construction sector, addressing technical regulations, and reducing trade barriers. The meeting aims to foster a more integrated and resilient construction industry within the region. One of the highlights of ICW Borneo 2025 is the Construction Sustainability Summit (CSS), a thought leadership forum featuring prominent figures from across ASEAN. Notable speakers include the Deputy Premier of Sarawak, The Honourable Datuk Amar Haji Awang Tengah Ali Hasan, who discussed advancing sustainable construction and renewable energy in the state. Prof. Ir. Dr. Resdiansyah from Indonesia also shared insights on the country’s infrastructure development. The summit also features expert panel discussions on climate-resilient infrastructure, smart city innovation, and sustainable construction materials, involving industry leaders from Sarawak Energy Berhad, Gamuda Engineering, and international sustainability experts. Adding to the event’s dynamic presence is BuildXpo, the official trade showcase of ICW, featuring cutting-edge technologies from 32 local and international exhibitors. Among them are CIDB IBS, Regional Corridor Development Authority (RECODA), and Serendah Steel Manufacturing Sdn Bhd. The exhibition highlights innovative building systems, smart technologies, and sustainable construction materials, reinforcing the industry’s commitment to modernising the construction landscape. In addition, the event includes a series of specialised conferences and workshops focusing on construction revolution practices, project management, and facility management. These sessions aim to equip industry professionals with the knowledge and skills required to navigate the evolving landscape of Construction 4.0. On 15 May, participants will also engage in technical site visits to key energy facilities in Sarawak, including the Sejingkat Power Plant and the Hydrogen Production Plant and Refueling Station. Puan Zainora Zainal, Chief Executive of CIDB, highlighted the strategic importance of ICW Borneo 2025 as a turning point for the industry. By bringing together leading minds and organisations, the event aims to accelerate innovation and strengthen collaboration in the ASEAN construction sector. As the first edition held in East Malaysia, ICW Borneo 2025 signifies Sarawak’s readiness to lead sustainable infrastructure development. The event serves as a prelude to the 27th edition of ICW & BuildXpo 2025, scheduled to take place in Kuala Lumpur this October, further positioning Malaysia as a leader in advancing the region’s construction sector.

Kuala Lumpur, 13 May 2025 – Integrated engineering solutions provider, Oxford Innotech Berhad (“OXB”), has recently received approval from Bursa Malaysia Securities Berhad (“Bursa Securities”) to list on the ACE Market of Bursa Securities. OXB, through its subsidiaries (collectively known as the “Group”), is an integrated engineering solutions provider based in Penang that specialises in precision engineering components solutions, mechanical assembly solutions, as well as automation and robotic solutions. Leveraging its breadth of products and services, OXB serves manufacturers and assemblers across a broad spectrum of industries, including semiconductor, electrical and electronics (“E&E”), automotive, and modular building systems. Managing Director of OXB, Mr. Ng Thean Gin, said, “We are grateful to Bursa Securities for granting us the approval to list on the ACE Market. This reflects a shared confidence in our Group’s capabilities and the strategic value we bring to the engineering ecosystem as well as the broader equity market.” “It is exciting times ahead for OXB where we see great growth opportunities, particularly in the semiconductor and modular building systems sectors. We are thrilled to embark on the new chapter in our corporate journey as we continue pushing the boundaries of innovation and efficiency, while at the same time, helping customers streamline operations, reduce costs, and enhance productivity,” Mr. Ng Thean Gin concluded. OXB’s initial public offering (“IPO”) entails a public issue of 143.46 million new ordinary shares, and an offer for sale of 50.00 million existing shares. Collectively, these represent a total of 27.3% of OXB’s enlarged issued share capital of 710.0 million ordinary shares upon listing. The Group aims to be listed by the 3rd quarter of 2025. Malacca Securities Sdn Bhd is the Principal Adviser, Sponsor, Underwriter and Placement Agent, while WYNCORP Advisory Sdn Bhd is the Corporate Finance Adviser for the IPO exercise.