Malaysian Investor Thread

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 16: Thailand | Fraser & Neave Holdings Bhd’s (F&N)
Analysts upbeat on F&N's earnings prospects as Thai ops set to improve
Hailey Chung February 07, 2023 14:55 pm +08

KUALA LUMPUR (Feb 7): Analysts are optimistic about Fraser & Neave Holdings Bhd’s (F&N) performance in the quarters ahead as they see its operation in Thailand improving with the return of international tourists and the strengthening of the baht against the ringgit and US dollar.

Other factors such as the full-year impact of the economy reopening and demand recovery bode well for the food and beverage (F&B) company.

F&N reported a 10% top line growth for its first financial quarter ended Dec 31, 2022 (1QFY2023), with its operation in Malaysia (24% year-on-year growth) offsetting its weaker performance in Thailand (5% y-o-y decline), which was hit by lower export sales to Indochina on price hikes.

The group's revenue rose to RM1.22 billion from RM1.11 billion a year ago, while its net profit more than doubled to RM198.8 million in 1QFY2023 from RM92.95 million in 1QFY2022.

CGS-CIMB Research analyst Walter Aw expects the recovery of its Thai operations, along with lower freight costs to uplift F&N’s export sales and gradual easing of input costs to drive F&N’s margin, will help the group to post stronger performance for the rest of its financial year ending Sept 30, 2023 (FY2023).

He is projecting F&N to post an 11.3% y-o-y growth in net profit to RM447.4 million for FY2023, RM486.5 million for FY2024 and RM525.8 million for FY2025. The group posted a net profit of RM383.21 million on revenue of RM4.47 billion in FY2022.

Aw is maintaining an “add” call on the stock, with a higher target price (TP) of RM28.30 from RM23.70 previously.

Kenanga Research analyst Ahmad Ramzani Ramli is also positive on F&N’s earnings prospects, premised on the full-year impact of the economy reopening, accommodative policies, bigger celebrations of coming festivities.

He added that the top line will be boosted by a full-year contribution from Cocoaland Holdings Bhd, following the acquisition of the entire equity interest in Cocoaland by F&N in November 2022 for RM489.2 million cash.

Ahmad Ramzani also noted that F&N’s downside risk to margins is now more manageable given the weakening of the US dollar against both the ringgit (-12%) and baht (-18%). However, he warned that food commodity prices, which F&B players in general are at the mercy of, remain volatile.

Kenanga Research is maintaining a TP of RM26.11, but downgraded the stock to “market perform” from “outperform" as it said valuations have become rich after the recent run-up in its share price.

At noon break, shares of F&N closed 96 sen or 3.84% higher at RM25.96, translating into a market capitalisation of RM9.52 billion. The counter was the second top gainer on Bursa Malaysia in the morning session. Its share price has risen 7.63% over the past year.

https://www.theedgemarkets.com/node/654238

[nazrey]

MALAYSIAN INVESTOR
WORLD 2023
Part 9: Australia | Petronas
Petronas set to buy Wirsol's Australian renewable energy assets — sources
Scott Murdoch & Yantoultra Ngui Reuters February 03, 2023 16:53 pm +08

SYDNEY/SINGAPORE (Feb 3): Petroliam Nasional Bhd (Petronas) is finalising its first acquisition of an Australian renewable energy business, set to pick up German firm Wirsol's solar farms and a large development pipeline, two people involved in the transaction said.

One person involved in the talks said the sale price could be between A$900 million and A$1 billion (US$705 million or RM3.01 billion).

The potential deal comes as Petronas looks to build a renewables business through its company Gentari, formed last year, which aims to have 30-40 gigawatts (GW) of renewable energy capacity, particularly in solar, by 2030.

Gentari and Wirsol spokespeople did not respond to requests for comment.

Wirsol, owned by Wircon GmbH, put its Australian renewables business up for sale last year after scrapping plans to publicly list the business.

It runs solar farms and a battery across seven sites with a capacity of 746MW, has a development pipeline of about 700MW, and is the asset manager for 349MW in Australia's eastern states, according to the company's website.

A banker familiar with Wirsol's previous attempt to sell its Australian assets said that based on a rough calculation, the operating assets are worth around A$700 million.

The company has had difficulty selling its Australian solar farms previously due to issues with congestion in the grid where its solar farms are located, the banker said.

Data from the Australian Energy Market Operator shows it planned to curtail power from Wirsol's solar farms by between 3% and 11% in the financial year to June 2023 due to the grid congestion.

Petronas is already active in Australia through its stake in the Gladstone liquefied natural gas project, run by Santos Ltd.

https://www.theedgemarkets.com/node/654002

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 17: Indonesia | Maybank Investment Banking Group (Maybank IBG)
Maybank Investment Banking Group expands structured warrants business to Indonesia
Priyatharisiny Vasu February 13, 2023 14:50 pm +08



Maybank IBG regional head of equity and commodity derivatives Azzahir Azhar (third from left) and Maybank IBG CEO Michael Oh-Lau (eighth from left)

KUALA LUMPUR (Feb 13): Maybank Investment Banking Group (Maybank IBG) has spread its wings to Indonesia with the maiden listing of structured warrants on the Indonesia Stock Exchange (IDX) for eight blue-chip component companies on the IDX30.

In a statement on Monday (Feb 13), Maybank IBG said with this launch, the group’s structured warrants business is now in three Asean countries — Malaysia, Thailand and Indonesia.

“The expansion into Indonesia reinforces our regional position and commitment to customer centricity. We are seeing the rapid rise in participation and sophistication of the Asean retail investor.

“In an expanding and volatile market with investors turning to trading and the willingness to seek out alternative investment products, we believe the interest in structured warrants will grow. As a leading regional player in investment management, we will continue to put customer needs first with innovative products,” said Maybank IBG chief executive officer Michael Oh-Lau.

This issuance in Indonesia follows Maybank IBG’s recent introduction of seven new structured warrants over companies in Malaysia with market capitalisations of between RM500 million and RM1 billion, a first after Bursa Malaysia revised its requirements on Jan 19.

“Our new structured warrants over stocks with a market capitalisation of least RM500 million offer more diversity. They are popular names amongst retail investors, and represent different sectors of the economy,” said Maybank IBG regional head of equity and commodity derivatives Azzahir Azhar.

In 2022, Maybank IBG launched more than 400 structured warrants in Malaysia and Thailand.

https://www.theedgemarkets.com/node/654989

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 18: Indonesia | Infomina Bhd
Infomina bags contract worth US$3.3 mil from Bank Maybank Indonesia
Sufi Muhamad February 15, 2023 19:40 pm +08

KUALA LUMPUR (Feb 15): Infomina Bhd's wholly-owned subsidiary, PT Infomina Solution Indonesia has secured a maintenance and support contract worth approximately US$3.3 million (RM14.5 million) from PT Bank Maybank Indonesia TBK, boosting its ambitions of expanding into the country.

In a Bursa Malaysia filing, Infomina said its Indonesian subsidiary received a letter of confirmation dated Feb 15 for the provision of technology application and infrastructure operations, maintenance and support services to Maybank Indonesia — a part of the Malayan Banking Bhd Group — valued at approximately US$3.3 million.

The duration of the contract is for five years commencing from Nov 30 till Nov 29, 2027.

Yee Chee Meng, managing director of Infomina in a press statement said the contract adds to the company's outstanding orderbook which has increased to over RM500 million.

“This is truly a fantastic achievement that will kick-start the expansion of our footprint in Indonesia.

“Over the near term, we look forward to more such wins as we leverage on our superior domain expertise to deliver solutions to our customers in key markets across the region,” he added.

He said none of the directors, major shareholders of Infomina and/or persons connected with them has any interest, whether direct or indirect, in the deal.

Infomina’s share price closed one sen or 0.74% higher to RM1.37. Its market capitalisation stood at RM823.71 million.

https://www.theedgemarkets.com/node/655381

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 19: Thailand | TIME dotCom Bhd
Some minority shareholders prefer Time dotCom not to sell stake in data center business
Priyatharisiny Vasu February 14, 2023 21:59 pm +08

KUALA LUMPUR (Feb 14): TIME dotCom Bhd’s board will be seeking shareholders' approval at its EGM on Wednesday (Feb 15) to sell its major stake in its data center business to US infrastructure investor DigitalBridge Group for RM2 billion cash.

The proposal is to pave the way to form a partnership with DigitalBridge to further grow capital-intensive data center business, in which TDC will be holding a smaller 30% stake.

Furthermore, the stake sale will help unlock the value of TDC’s data center business. TDC intends to allocate RM1 billion for dividend. This will translate into a dividend per share of 54 sen based on issued share capital of 1.8 billion shares.

However, some minority shareholders are resisting the proposal.

To recap, TDC will sell 49% of the ordinary shares and 100% of the irredeemable convertible preference shares in AIMS Data Centre Holding, and 21% of the ordinary shares in AIMS Data Centre (Thailand) Ltd, according to the company’s filing with Bursa Malaysia on Nov 22 last year.

Some minorities raised concerns that upon divestment of AIMS, TDC will de-consolidate the high growth data center segment and thus the company may be losing a positive catalyst for its share price to appreciate.

A minority shareholder, who declined to be named, wrote in a statement sent to The Edge that TDC can leverage its balance sheet to pay dividends and undertake organic and inorganic expansion of its data center business in the ASEAN region, including the option to form partnerships and joint ventures with global data center players, without divesting AIMS and de-consolidating its high growth data center assets in the accounts.

“Shareholder activism is all about being able to exercise your rights as a shareholder. And if a minority shareholder has concerns, he/she should ask the relevant questions at the EGM and hold the Board accountable,” Minority Shareholder Watch Group’s (MSWG) CEO Devanesan Evanson commented when contacted by The Edge.

However he added it is important to appreciate that there may not be unanimous views among the minority shareholders.

“Some may see value in the transaction while some may not. What is important is they act according to their honest beliefs. The law provides rights to shareholders and they should use these rights if they feel truly aggrieved,” he said.

Pulau Kapas Ventures Sdn Bhd is the largest shareholder in TDC with 28.91% shareholding, followed by Khazanah Nasional Bhd at 10.65%, Kumpulan Wang Persaraan Diperbadankan (KWAP) has 5.79%, and AIA Bhd has 5.32%. The top four shareholders collectively hold 50.67% stake in TDC.

For the third quarter ended Sept 30, 2022, TDC's net profit increased by 18.1% to RM118.74 million compared with RM100.54 posted in the same period in 2021.

Quarterly revenue increased 17.53% to RM407.57 million against RM346.76 in 3Q21 driven by growth in retail and wholesale segment as well as continued healthy demand for its data and data center offerings.

In the past year TDC's share price has climbed 32% to RM5.30, and since the announcement of the proposed divestment the share price has gained 8.18%.

At Tuesday’s close TDC shares were unchanged at RM5.30, giving the company a market capitalization of RM9.74 billion.

https://www.theedgemarkets.com/node/655234

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 20: Thailand | Tenaga Nasional Bhd
TNB signs with major Thai firms to capitalise regional demand for greener power
By Asila Jalil - February 10, 2023 @ 4:46pm

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has signed three memoranda of understanding (MoU) with major energy players in Thailand to capitalise on regional demand and potential in greener power in Asean.

Through the partnerships, TNB said it aspired to strengthen Asean power interconnections and enable the various partners to leverage each other's resources and develop the related regional infrastructure for renewable energy (RE).

"These collaborations are strategic steps to realise key milestones in our responsible Energy Transition plan, and TNB's overall sustainability pathway commitment," said TNB president and chief executive officer Datuk Indera Ir. Baharin Din.

The national electricity corporation signed an MoU with the Electricity Generating Authority of Thailand (EGAT) to set up a joint working committee to study the feasibility of a proposed enhancement of the interconnection capacity between Peninsular Malaysia and Thailand.

Two of TNB's subsidiaries, TNB Renewables Sdn Bhd (TRe) and TNB Power Generation Sdn Bhd (TNB Genco), signed MoUs respectively with Planet Utility Co Ltd (PU) and B.Grimm Power Public Co Ltd (B.Grimm).

The TRe-PU MoU was for exploring potential RE and power generation technologies opportunities in Thailand while the TNB Genco-B.Grimm MoU aimed at exploring any opportunities for collaborations, participation and development of RE power projects in the Southeast Asia region.

The MoU with PU entailed evaluating strategic options for potential RE investment in floating solar, solar rooftop and ground-mounted solar projects in Thailand, which will contribute positively to TRe business growth and market expansion.

Under the MoU signed with B.Grimm, both companies aim to collaborate, co-develop and invest in mutually selected sustainable green-field and brown-field power projects of B.Grimm Power, within Southeast Asia.

Baharin said the collaborations would accelerate the carbon neutrality ambition of the respective partner companies and strengthen the growth momentum for RE in the Asean region.

"With the International Renewable Energy Agency's (IRENA) projection of more than 60 per cent of installed generation in 2050 for Asean countries coming from RE, this translates to at least 1,500 gigawatts of generation capacity, in which TNB hopes to extend our participation," he said.

https://www.nst.com.my/business/2023...-greener-power

[nazrey]

MALAYSIAN INVESTOR
WORLD 2023
Part 10: Australia, NZ | Malaysia Marine and Heavy Engineering Holdings Bhd (MHB)
Malaysia Marine partners FuelCell to produce large electrolysers facilities in Asia, Australia & NZ
By Azanis Shahila Aman - February 16, 2023 @ 6:02pm



Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has partnered with FuelCell Energy to deliver solid oxide electrolysers for large scale green hydrogen production.

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has partnered with FuelCell Energy to deliver solid oxide electrolysers for large scale green hydrogen production.

MHB said its wholly owned Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) had today signed a memorandum of understanding (MoU) to collaborate on the development of large-scale electrolyser facilities in Asia, New Zealand and Australia.

MHB said these facilities were being designed to dramatically increase the efficiency and reduce the cost of green hydrogen production.

"Together, the companies expect to deliver electrolyser equipment to make large-scale clean hydrogen production an easily accessible and viable energy option," it said.

According to MHB, the collaboration aimed to address the two most significant challenges in the production of green hydrogen, namely the cost of input electricity and the capital cost of the production facility.

Due to its efficiency in producing hydrogen, MHB said FuelCell Energy's solid oxide technology required less energy input compared to lower efficiency and low-temperature electrolysis.

On the other hand, MHB said its ability to modularise and build at scale was expected to reduce the total capital cost for largescale electrolyser projects.

"The joint solution is expected to produce zero-carbon hydrogen to power hundreds of thousands of homes from each production facility," it said.

MHB managing director and chief executive officer Pandai Othman said in addition to the company's involvement in carbon capture and storage space, MHB recognised that hydrogen also increasingly played an important role in energy transition and decarbonisation.

Pandai said MHB was extremely pleased to be a go-to-market partner to FuelCell to provide a solution in expediting the production of hydrogen-fueled clean energy.

"This MoU is part of MHB's deliberate move to build a sustainable portfolio supporting the transition to a low-carbon future through collaboration with technology partners.

"We are optimistic that both companies will empower global industries in their goals to achieve net-zero emission targets," he said.

FuelCell chief commercial officer Mark Feasel said the company had accepted orders for its solid oxide electrolyser platform, the result of 20 years of research and development (R&D) and testing.

Feasel said the collaboration with MHB was the next significant milestone, as the company prepared to offer green hydrogen production for energy at a very large scale and lower cost.

"We are excited about this collaboration and look forward to working together to help decarbonise the globe," he said.

https://www.nst.com.my/business/2023...ers-facilities

[nazrey]

MALAYSIAN INVESTOR
WORLD 2023
Part 11: Bangladesh | HSS Engineers Bhd (HEB)
HSS Engineers makes first inroads into Bangladesh with RM3.6mil railways consultancy contract
By NST Business - February 15, 2023 @ 12:51pm

KUALA LUMPUR: Engineering and project management consultant HSS Engineers Bhd (HEB) has made its first inroads into Bangladesh by securing a railway consulting contract in the country.

HEB's associate company, HSS Integrated Sdn Bhd (HISB) and joint venture partners Oriental Consultants Global Co Ltd, Japan (OCG) and EGIS Rail S.A, France (EGIS) signed a contract agreement with Bangladesh Railway to provide consulting and technical services for the Asian Development Bank (ADB)-funded railway connectivity improvement preparatory facility project in Dhaka.

HEB executive vice-chairman Tan Sri Ir Kuna Sittampalam said this milestone represents the first-fruit for the HEB since the signing of the company's preferred partnership with OC Global in July last year.

"This contract places us on the global map in terms of engineering consultancy expertise alongside other experts.

"The scope of services is well within our skillsets in the urban transport space, particularly in mass railway networks, and we are proud to bear the Malaysian flag in such a prestigious undertaking funded by the ADB," he said in a statement today.

Kuna said HEB's orderbook of RM1.6 billion gives the company earnings visibility for the next five to eight years, paving the way for positive momentum in the future.

HISB's scope of services within the OCG-EGIS-HISB joint venture, valued at US$833,400 (approximately RM3.6 million), will include the preparation of feasibility studies, detailed designs, cost estimates, and business plans for Bangladesh Railway.

Given the rapidly-growing freight and passenger transport demand in Bangladesh, the Bangladesh government, together with the Asian Development Bank, initiated the capacity augmentation programme of Bangladesh Railway in terms of line capacity, the safety of operations, maintenance improvements and operating cost savings.

The primary objectives of the technical assistance are to complete all necessary preparatory tasks, including feasibility study, detailed design, and preparation of tender documents, along with other related preparatory works for the readiness of 11 sub-projects for implementation.

The 30-month contract is expected to contribute positively to HEB's earnings in the financial year ending 31 December 2023 till 2026.

https://www.nst.com.my/business/2023...ys-consultancy

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 21: Indonesia | Maybank
Maybank Indonesia posts profit before tax of 2.04 trillion rupiah in 2022
Bernama February 22, 2023 17:24 pm +08

KUALA LUMPUR (Feb 22): Maybank Indonesia’s profit before tax (PBT) eased 7.4% to 2.04 trillion rupiah for the financial year ended Dec 31, 2022, from 2.20 trillion rupiah a year before, primarily due to lower loan yields.

The Maybank group said the decrease was due to tight competition within the industry, as well as a drop in global markets (GM), bancassurance and wealth management incomes.

“However, Maybank Indonesia continued to improve its cost of funds and booked lower provisions, in line with improving loan quality,” it said in a statement.

The bank’s net interest margin expanded by 36 basis points to 5.1% in December 2022, contributed by lower cost of funds, higher current account and savings account (Casa) balance, and growth in the higher margin auto-loan businesses.

Maybank Indonesia recorded a drop in fee-based income of 15.8%, contributed by a significant drop in GM-related fees, which fell 62.7% year-on-year (y-o-y), impacted by the spike in global interest rates and volatile markets.

“However, retail forex services income from branch offices improved in almost all regions across Indonesia,” it said.

The bank’s total loans grew 5.9% to 107.82 trillion rupiah, mainly driven by higher corporate banking and consumer loans.

Following upward trends in consumers’ purchasing power, the bank’s community financial services’ retail loan segments grew significantly by 13.6% to 38.99 trillion rupiah, led by the two- and four-wheeler business, which grew 22.6%. Credit card business and personal loans expanded by 14.7% and mortgages by 4.6%.

The consolidated non-performing loan (NPL) ratio improved to 3.5% (gross) and 2.3% (net) in December 2022, from 3.7% (gross) and 2.6% (net) in December 2021.

“From a liquidity perspective, the bank's Casa stood at 54.35 trillion rupiah, with a slight growth in the bank’s current account by 0.2% to 32.43 trillion rupiah and savings account at 21.91 trillion rupiah,” it said.

The bank also managed to reduce high-cost deposits, resulting in a decline of 15.3% in time deposits to 51.36 trillion rupiah from the year before.

“Loan to deposit ratio was at a healthy level of 86.9% in December 2022 from 76.3% in December 2021, and liquidity coverage ratio was at 168.5% in December 2022, exceeding regulator’s minimum level of 100%,” it noted.

Maybank Indonesia’s total shariah banking assets grew 2.1% to 40.04 trillion rupiah, comprising 26.9% of the bank’s total standalone assets.

“(Islamic) financing grew 3.1% to 26.43 trillion rupiah, with more focus on small and medium enterprises (SME) and retail financing,” the banking group said.

As for subsidiary PT Maybank Indonesia Finance, the group said it recorded a significant growth of 15.4% in PBT to 566 billion rupiah, amid “growing demand for four-wheeled financing”.

Another subsidiary, PT Wahana Ottomitra Multiartha Tbk, registered a jump of 82.3% in PBT to 280 billion rupiah from the year before, on rising demand for two-wheeler vehicles and other financings.

https://www.theedgemarkets.com/node/656320

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 22: Indonesia | KPJ Healthcare Bhd
KPJ sells Indonesian hospital operations
Bernama March 01, 2023 22:11 pm +08

KUALA LUMPUR (March 1): KPJ Healthcare Bhd has entered into a share sale agreement with PT Nusautama Medicalindo via three subsidiaries for the proposed disposal of its Indonesian hospital operations and facilities involving KPJ Medica for a total consideration based on an enterprise value of RM150.2 million.

The subsidiaries are Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB), Crossborder Aim (M) Sdn Bhd (CAMSB) and Crossborder Hall (M) Sdn Bhd (CHMSB).

In a filing with Bursa Malaysia on Wednesday, KPJ said the proposed disposal involves a 75% stake in KPJ Medica by KPJSB, and a 100% stake in Al-Aqar Bumi Serpong Damai by CAMSB and CHMSB to PT Nusautama Medicalindo at a provisional purchase price of Indonesian Rupiah equivalent to RM13.66 million, subject to adjustment based on closing cash, closing debt and closing working capital.

Meanwhile, KPJ said the proposed disposal is part of its hospital operations restructuring in Indonesia necessitated by a challenging business environment, licensing and regulatory requirements imposed on foreign operators like KPJ.

“The proposed disposal marks KPJ’s exit from operating specialist hospitals in Indonesia to enable KPJ to realign its strategies and focus on managing specialist healthcare facilities in Malaysia,” it said.

https://www.theedgemarkets.com/node/657412

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 23: Indonesia | Sarawak Energy Bhd
Mentarang hydroelectric project signifies good Indonesia-Malaysia cooperation, says Jokowi
Mohd Iswandi Kasan Anuar Bernama March 01, 2023 16:50 pm +08

JAKARTA (March 1): Malaysia's participation in the hydroelectric power station project in North Kalimantan is a sign of good cooperation between the two countries, said Indonesian President Joko Widodo.

The president, better known as Jokowi, also expressed his happiness with the development, and believes that the project worth US$2.6 billion (RM11.63 billion) can contribute to the well-being of his people.

"Today, I am very happy because the Mentarang hydroelectric power station project has started," he said at the ground-breaking ceremony in Malinau, which was also attended by Sarawak Premier Tan Sri Abang Johari Tun Openg.

"And, I am even happier that this was done by the Indonesian-Malaysian consortium, showing that we as allied partners can really work together well," he said.

The Mentarang hydroelectric project will generate 1,375 megawatts of electricity for the North Kalimantan industrial zone. Construction is expected to start in the first quarter of 2024, and be completed by the end of 2029.

The construction involves Indonesian investment holding company PT Kayan Hydropower Nusantara and Sarawak Energy Bhd, the main energy supplier company owned by the Sarawak government.

According to the president’s secretariat office, Jokowi also inspected the 13,000-hectare Kalimantan Industrial Park in Bulungan, which mainly produces electric batteries, petrochemicals and aluminium.

"The electricity from the Mentarang hydro project will be channelled to the industrial park," said Jokowi.

https://www.theedgemarkets.com/node/657351

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 24: Indonesia | CIMB Niaga
CIMB Niaga’s FY2022 consolidated net profit rises 24%
Syafiqah Salim February 17, 2023 21:54 pm +08

KUALA LUMPUR (Feb 17): PT CIMB Niaga Tbk, the 92.5%-owned subsidiary of CIMB Group Holdings Bhd, saw its consolidated net profit grow 24.35% to 5.1 trillion rupiah for the financial year ended Dec 31, 2022 (FY2022), from 4.1 trillion rupiah a year earlier, amid the Indonesian economy’s recovery from global uncertainty and challenges.

Earnings per share rose to 202.21 rupiah from 164.48 rupiah, according to CIMB’s filing with Bursa Malaysia.

“Looking ahead into 2023, our strategic initiatives are focused on the area of consumer banking and Casa (customer account saving account) growth through digital proliferation, further asset quality improvement, non-interest income contribution and digital banking innovation through advanced technology, with a wide range of customised services,” said CIMB Niaga president Lani Darmawan.

CIMB Niaga’s capital adequacy ratio and loan to deposit ratio closed at 22.2% and 85.6% respectively as at Dec 31, 2022.

Total consolidated assets stood at 307 trillion rupiah, solidifying the bank’s position as Indonesia’s second largest privately owned bank.

Total deposits, meanwhile, reached 227 trillion rupiah with Casa ratio rising to 63.6%, which resulted from deepening customer relationship and customer experience through digital touchpoints.

Additionally, total loans or financing grew 9.4% year-on-year to 199 trillion rupiah, contributed mainly by growth in corporate banking and consumer banking.

Mortgages grew by 7.0%, while auto loans rose 35.3%, including contributions from the bank’s subsidiary, PT CIMB Niaga Auto Finance.

In sharia banking, CIMB Niaga’s Islamic business unit, CIMB Niaga Syariah, maintained its position as the largest Islamic business unit in Indonesia, with total financing valued at 9.3 trillion rupiah and deposits at 39.5 trillion rupiah as at end-December last year.

Shares of CIMB settled down three sen or 0.55% at RM5.40 on Friday (Feb 17), valuing the group at RM57.59 billion.

https://www.theedgemarkets.com/node/655770

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 25: Singapore | Genting
Genting Singapore FY2022 net profit up 85%, final dividend double that of previous year
Jovi Ho February 21, 2023 16:21 pm +08

SINGAPORE: Genting Singapore has reported net profit of S$340.1 million for FY2022 ended December, 85% higher year-on-year (y-o-y), as profit before tax more than doubled during the year.

Revenue grew 62% y-o-y during the period to S$1.7 billion, while cost of sales grew 52% y-o-y to S$1.1 billion.

https://www.theedgemarkets.com/node/656137

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 26: Thailand | Wellspire Holdings Bhd
Wellspire renews distribution contract to sell snack products in Thailand
Surin Murugiah February 22, 2023 09:18 am +08

KUALA LUMPUR (Feb 22): Wellspire Holdings Bhd has renewed its distributor supplementary agreement with QiaQia Food Co, Ltd.

In a bourse filing on Tuesday (Feb 21), the company said its 75.01% owned subsidiary Bai Li Enterprise had been appointed as QiaQia’s exclusive distributor of ChaCha sunflower seeds and nuts products in Thailand since 2013, whereby the products supplied by QiaQia will only be sold by Bai Li Enterprise in Thailand.

Wellspire said Bai Li had renewed its distribution contract with QiaQia — the producer of roasted seeds and nuts, and baked snack foods in China.

It said the renewed distribution contract, which will commence from July 1 2022 to June 30, 2023, will see Wellspire continue to distribute the products in Thailand.

Wellspire chief executive officer and executive director Mo Guopiao said the renewal of the contract is a testament to its expertise and wide distribution networks through the company’s indirect distribution channels, honed over a decade in the consumer packaged foods industry in Thailand.

“The contract also reaffirms our position as an established consumer packaged foods distributor in Thailand and is expected to contribute positively to the group’s earnings during the duration of the contract,” he said.

Mo said the demand for healthy snacks like sunflower seeds and nut products is expected to increase in Thailand, as household income and consumer spending are recovering in the post-pandemic phase.

https://www.theedgemarkets.com/node/656242

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 27: Cambodia | The Securities Commission Malaysia (SC)
SC, Cambodian securities regulator ink MOU on cooperation, capacity building
Bernama February 28, 2023 17:51 pm +08

KUALA LUMPUR (Feb 28): The Securities Commission Malaysia (SC) and the Securities and Exchange Regulator of Cambodia (SERC) signed a memorandum of understanding (MOU) on Monday (Feb 27) to facilitate greater regulatory, enforcement, and supervisory cooperation between the two regulators.

In a joint statement on Tuesday, the two regulators said the MOU was signed in light of growing globalisation, and cross-border activities of regulated entities and persons in the two countries.

They said the agreement, which covers cross-border enforcement assistance, regulation, and supervision of capital market intermediaries, and the facilitation of licensing information, would strengthen collaboration in areas of mutual regulatory interest.

“In addition, the MOU also addresses capacity building and human capital development, as well as the exchange of regulatory expertise and technical knowledge to facilitate and encourage the development of the respective capital markets, in tandem with continued growth and development of both Malaysian and Cambodian capital markets,” the statement said.

SC chairman Datuk Seri Dr Awang Adek Hussin said as connectivity between Asean markets grows, increased regulatory cooperation between authorities becomes imperative.

“This MOU significantly enhances bilateral ties between the two authorities, and will be mutually beneficial as we develop and regulate our respective capital markets”, he said.

SERC director general Sou Socheat said: “With the MOU signing, the cooperation between the two authorities is highly valued, signalling strong, trusted relationships and sharing of experiences in various areas, especially regulation and supervision.

“Both markets will gain from this cooperation, as this will create long-term benefits for our people and countries in the globalisation of the financial market.”

Following the signing of the MOU, senior officials of the SC and SERC held a bilateral discussion as a first step to explore the MOU’s objectives to facilitate the development of the respective capital markets.

The two authorities said areas of discussion included investor protection, capacity building, and product offerings and development.

“In furthering some of these areas, the SC and SERC agreed that consultation with domestic market participants would enable stakeholders to gauge relevant demand and feasibility,” they added.

https://www.theedgemarkets.com/node/657169

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 28: Philippines | Petroliam Nasional Bhd (Petronas)
Petronas, Phoenix Petroleum to explore opportunities in Philippines
Bernama March 23, 2023 16:36 pm +08

KUALA LUMPUR (March 23): Petroliam Nasional Bhd (Petronas) has inked a memorandum of understanding (MOU) with Phoenix Petroleum to jointly explore a partnership opportunity in the downstream marketing business and associated technology solutions in the Philippines.

In a joint statement, the parties said that under the MOU, Petronas and Phoenix will conduct a joint feasibility study to take the collaboration to the next phase of execution.

“This would see the two companies coming together to potentially create a unique experience, capitalising on high-quality fuels and innovative digital solutions.

“If materialised, the collaboration would give Phoenix access to Petronas’ branded marketing offerings, including its fuel and fluid technologies, while allowing Petronas to expand its footprint into the Philippines," it said.

The MOU marks the second collaboration between the two companies after their first agreement in 2017, when Phoenix acquired Petronas’ entire liquefied petroleum gas (LPG) business in the Philippines, now owned by the company’s subsidiary, Phoenix LPG Philippines Inc.

Petronas is present in over 90 countries, including the largest retail footprint in Malaysia with more than 1,000 stations, while Phoenix is a company with close to 700 retail stations across the Philippines and has expanded its business to Singapore and Vietnam.

https://www.theedgemarkets.com/node/660435

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 29: Singapore | Genting
Last cruise ship from former Genting Hong Kong sold in Singapore, says report
Surin Murugiah March 03, 2023 11:43 am +08

KUALA LUMPUR (March 3): The last cruise ship from the former Genting Hong Kong operation, Dream Cruises’ World Dream, has been sold in Singapore.

Industry magazine The Maritime Executive on Thursday (March 2) reported that the vessel was renamed Manara on Friday (March 3) while still in the Singapore anchorage and re-registered with a new homeport of Majuro, Marshall Islands, while Cruise Saudi confirmed that it has acquired the ship.

Singapore’s High Court listed the cruise ship among the assets sold as of Feb 24, with details due to be published as an official notice in the Singapore Government Gazette on March 3.

The World Dream came under the control of the Singapore court in May 2022, as the liquidators worked to resolve the bankruptcy of Genting Hong Kong.

The ship was arrested by KfW IPEX-Bank in March 2022 as the financial institution that had financed the construction of the ship in Germany for Genting HK.

The Maritime Executive said the ship had failed to receive a winning bid at a December auction conducted by the sheriff of Singapore, with most observers believing that the bank was blocking low-priced offers.

Meanwhile, Cruise Saudi’s chief executive officer Lars Clasen said the ship has been renamed to reflect its new ownership and will now undergo a refit.

He said plans for the new ship will be announced in due time. Observers noted that Al Manara is also the name of a luxury hotel in Aqaba, Jordan.

Built in 2017 by Meyer Werft, the 150,700 gross-tonne World Dream was largely based on a design developed for the Norwegian Cruise Line.

Genting Hong Kong had taken control of Norwegian as an investor in 1999, starting a revitalisation of the US-cruise brand building a series of ships at Meyer Werft. Norwegian introduced the Norwegian Breakaway in 2013, and a sister ship the Norwegian Getaway in 2014.

Genting Hong Kong ordered two nearly identical ships named Genting Dream and World Dream, which were used in 2016 and 2017 in Asia, to launch the company’s new brand Dream Cruises.

The cruise line suspended operations early in 2022, after the financial collapse of Genting Hong Kong.

https://www.theedgemarkets.com/node/657643

[nazrey]

MALAYSIAN INVESTOR
ASEAN 2023
Part 30: Indonesia | Scientex Bhd
Scientex inks JV to build affordable homes in Indonesia
Surin Murugiah & Priyatharisiny Vasu March 21, 2023 17:18 pm +08



(From left) Scientex Bhd executive director Koay Teik Chuan and chief executive officer Lim Peng Jin, Mustika Land finance director Felix Widjaja and CEO David Sudjana, as well as Creed Group founder and managing director Toshihiko Muneyoshi and MD Masanobu Kamiyama at the signing ceremony.

KUALA LUMPUR (March 21): Scientex Bhd announced on Tuesday (March 21) it had inked a joint venture (JV) with Indonesia’s Mustika Land and Japan’s Creed Group to make its maiden foray into building affordable homes in Indonesia.

This comes shortly after the group's RM518.1 million cash purchase of a 960-acre (388.5-hectare) land in Tebrau, Johor from S P Setia Bhd was cancelled on March 6, following its failure to obtain a waiver of the Bumiputera equity condition imposed by the Economic Planning Unit for the acquisition. The acquisition was to expand its landbank, and geared towards Scientex's goal to build 50,000 affordable homes throughout the nation by 2028.

In a statement, the packaging manufacturer and property developer said its unit Scientex Quatari Sdn Bhd (STX) had entered into a JV with PT Graha Mustika Tamansari (PT GMT) and Creed Property PH-1 Pte Ltd (CRD) to form a JV company, with PT GMT holding a 60% stake, and STX and CRD holding 20% each.

The JV company will develop the 40-acre Graha Mustika Tamansari township in Bekasi, Greater Jakarta. Scientex said the JV company will acquire land from PT GMT for the township's Phase 1, which involves developing 400 affordable landed homes with an estimated gross development value (GDV) of US$19 million (RM85.5 million).

Mustika Land, according to Scientex, has 18 property development projects in Greater Jakarta since 1995, including three township developments and commercial properties.

Creed Group, meanwhile, is a Japanese real estate investment group focusing on property development in Southeast and South Asia, including Cambodia, Thailand, Indonesia, Vietnam and Bangladesh. Creed Group has developed projects worth over US$3 billion in GDV in Southeast Asia since 1996.

Scientex chief executive officer Lim Peng Jin said Scientex is now ready to embark on its cross-border strategy to penetrate new markets in Southeast Asia and fulfil regional demand, after having delivered nearly 28,000 affordable landed homes of RM8 billion in cumulative GDV across Malaysia.

“While our JV with these reputable property players leverages their deep knowledge of the local domain in Indonesia, Scientex will bring to the table our proven expertise in developing large-scale townships with quality and efficiency, based on our home-grown building technologies, which has been our hallmark for the past 28 years.

“Our long-term vision is to expand our Scientex brand in Indonesia’s property development sector, and share our affordable housing knowledge, expertise and experience in the region,” he said.

The JV company will develop Phase 1 of Graha Mustika Tamansari, comprising approximately 12 acres, in 2023, with targeted completion in 2025.

At the close on Tuesday, Scientex had added 1.48% or five sen to RM3.42, with 846,700 shares traded.

https://www.theedgemarkets.com/node/660048

[nazrey]

MALAYSIAN INVESTOR
WORLD 2023
Part 12: Angola | Yinson Holdings Bhd
Yinson inks 15-year contract worth US$5.3b to supply FPSO in Angola
Surin Murugiah February 28, 2023 14:26 pm +08

KUALA LUMPUR (Feb 28): Yinson Holdings Bhd has inked a firm contract with Eni Angola SpA, a wholly owned subsidiary of Azule Energy, to supply a floating, production, storage and offloading asset for the Agogo Integrated West Hub Development Project in Angola (FPSO Agogo).

In a statement on Tuesday (Feb 28), the company said its unit Yinson Production (YP) had signed the deal with Azule, which is Angola’s largest independent oil and gas producer as well as a 50:50 joint venture between BP plc and Eni SpA.

Yinson said the contract has an estimated aggregate value of approximately US$5.3 billion and a firm period of 15 years from the date of the final acceptance, with the option to extend for a further five years.

It said FPSO Agogo is expected to commence operations in the fourth quarter of 2025.

The signing of the firm contract follows the signing of an agreement for preliminary activities on Dec 2, 2022 between the parties.

FPSO Agogo will be YP’s first offshore production project in Angola and marks YP’s eighth FPSO project in the West African region. It will increase YP’s total order book to approximately US$22.4 billion.

Yinson group chief executive Lim Chern Yuan said the contract award is a testament of YP’s standing as a reliable FPSO contractor.

“Our long-standing relationship with Eni, one of the JV partners in Azule alongside BP, started with the contract award for FPSO John Agyekum Kufuor back in 2017, which we delivered three months ahead of schedule.

“We have also maintained an excellent safety and uptime track record which paved the way for our involvement in the FPSO Agogo project. Together with our client, we hope to further contribute to the production of energy in this region,” he said.

Meanwhile, YP chief executive officer Flemming Grønnegaard said the company had been operating in the African region since 1995, and it was a vital market.

“We are committed to delivering value-added results for our client, whilst implementing a low emission design that helps to mitigate climate change.

“Together, we hope to pioneer some sustainable technologies such as carbon capture that we believe can pave the way for the decarbonisation of the FPSO industry,” he said.

At the midday break on Tuesday, Yinson slipped 0.37% or one sen to RM2.69 with 7.57 million shares traded.

https://www.theedgemarkets.com/node/657117

[nazrey]

MALAYSIAN INVESTOR
WORLD 2023
Part 13: India | MAHB
S&P: MAHB-linked GMR Hyderabad’s partial offer to buy back debt is 'opportunistic', no risk of default
Isabelle Francis February 22, 2023 11:19 am +08

KUALA LUMPUR (Feb 22): Standard & Poor's (S&P) said GMR Hyderabad International Airport Ltd's (GHIAL) proposed offer to buy back its outstanding debt of up to US$100 million (RM443.9 million) is an opportunistic exchange, and even if investors do not bite, it will not be at risk of a default within the next one year.

The rating agency said the exercise will strengthen GHIAL’s capital structure and reduce its financing cost, because the Indian airport operator (BB-/Stable/--) is managing its debt maturities well ahead of the final maturity of its notes.

S&P noted that the transaction is a continuation of a tender offer that concluded in December 2022. Malaysia Airports Holdings Bhd (MAHB) has an 11% stake in GHIAL.

GHIAL successfully repurchased US$139 million of the outstanding debt — US$126 million towards US$300 million 5.375% senior notes due 2024, and the remainder for US$300 million 4.75% senior notes due 2026. Funding was done through a 10-year domestic loan with a lower interest cost of 8.8%.

“We expect the airport operator to fund the proposed tender offer with similar financing terms and cost. The tender price will be set at a premium to the notes' current market price. In our assessment, the company is not at risk of a conventional default in the next 12 months, even if investors do not accept the tender offer,” said S&P.

The rating firm said while the proposed transaction is a proactive liability management exercise, the buy-back offer for the 2024 notes would be given higher preference than the 2026 notes to extend the company's maturity profile.

S&P said passenger traffic rebound is likely to be a key driver of GHIAL's cash flow, supporting a recovery in its financial performance.

Total passenger traffic at the Hyderabad airport in the first nine months of fiscal 2023 (the year ending March 31, 2023) was close to 15.4 million, with domestic traffic rebounding to 93% of that in the same period in 2019, and international traffic recovering strongly to 83%.

It estimated that total traffic at the airport will increase to about 21 million passengers in fiscal 2023 and 23.5 million in fiscal 2024, from 12.4 million passengers in fiscal 2022.

“We expect the bulk of the company's terminal expansion (about 90%) to be completed by the end of March 2023, with the remainder to be finished by August. Lower spending requirements thereafter will also support an improvement in financial ratios.

“The stable rating outlook on GHIAL reflects our view that the company's ratio of operational cash flow to debt will improve to more than 5% on a sustained basis, following the recovery in passenger traffic volumes,” added S&P.

https://www.theedgemarkets.com/node/656264