MONEY MASTER

Chinese IT Firm Picks Banks for Second Listing Amid China’s Market Shift Unisplendour Corp, a Beijing-based IT services provider, is planning a second listing in Hong Kong  to raise around  US$1 billion (RM4.42 billion)  to fuel its overseas expansion. BNP Paribas SA, China Merchants Bank International, and CSC Financial Co  have been tapped as lead banks for the offering, with more banks potentially joining the deal. The company confirmed it is  exploring equity financing in Hong Kong  but has  not finalized the plan or a listing timeline. China’s IPO Shift to Hong Kong Chinese firms are increasingly  turning to Hong Kong  for capital as  China limits domestic stock sales to stabilize its equity market. Other major Chinese companies  seeking Hong Kong listings  include: Contemporary Amperex Technology Co Ltd (CATL) – the world’s largest battery maker Jiangsu Hengrui Pharmaceuticals Co – a major drugmaker Foshan Haitian Flavour...

Mass Termination of US-Funded Health Programs Under Trump’s Foreign Aid Review Over 90% of US-funded global health programs have been terminated , following a 90-day review ordered by President Donald Trump. Programs addressing HIV, malaria, maternal health, and tuberculosis (TB) have been significantly affected. USAID cites "America First" policy alignment  as the basis for the cuts. Major Health Projects Affected UNAIDS' contract with USAID has been cancelled. Khana, a key HIV and TB organisation in Cambodia, received termination notices. Several large HIV/AIDS programs in South Africa lost funding , impacting services for vulnerable groups, including LGBT+ people and sex workers. US Secretary of State Marco Rubio’s Stance Dismissed concerns that  Washington is ending foreign aid  and emphasized that waivers were granted for life-saving programs. However,  recent court documents indicate broad termination of health programs, including some initially covered by waiv...

Record-High RM163.6 Billion Poured into Malaysia’s Digital Sector Digital investments in Malaysia more than tripled to RM163.6 billion in 2024 , up from RM46.8 billion in 2023. Government's push into AI and advanced computing  played a key role in attracting capital. Malaysia Digital Economy Corporation (MDEC)  led efforts in collaboration with other government agencies. Data Centres and Cloud Infrastructure Dominate Investment Landscape 76.8% of total approved digital investments went into data centres and cloud infrastructure . Malaysia has  established a Data Centre Task Force  to ensure growth aligns with sustainability goals. Foreign Direct Investment (FDI) Breakdown Singapore : RM57 billion (largest contributor). United States : RM23 billion. China : RM12 billion. Australia : RM2.6 billion. India : RM2 billion. Domestic Direct Investments Concentrated in Klang Valley Klang Valley : RM136 billion. Johor : RM22 billion. Penang : RM3 billion. Sabah : RM423 million...

Revenue Surges 26% on Strong Healthcare Demand, Acquisitions IHH Healthcare Bhd (KL:IHH) reported a slight increase in net profit to RM732 million  for  4QFY2024 , up from  RM728 million  a year earlier. Quarterly revenue jumped 26.5% to RM6.69 billion , fueled by: Higher inpatient volumes and revenue intensity from more complex cases. The consolidation of  Timberland Medical Centre  and  Island Hospital  post-acquisition. Dividend Payout Increased Final dividend declared: 5.5 sen per share, payable on April 28 . Total FY2024 dividend: 10 sen per share , up from  9 sen per share in FY2023 . Dividend payout ratio: 40% of profit after tax and minority interests (Patmi), exceeding the 30% policy threshold . Financial Performance Breakdown Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 33% YoY to RM1.4 billion . Excluding MFRS 129 effects (hyperinflation adjustments in Türkiye), revenue and EBITDA would have grown 1...

Higher Finance Costs, Weaker Revenue Impact Earnings Genting Bhd (KL:GENTING) reported a net loss of RM169.39 million for 4QFY2024 , reversing from a  RM150.99 million profit a year earlier . The group's  first quarterly loss since 4QFY2022  was driven by  higher finance costs, net impairment losses, and increased losses from joint ventures and associates . Quarterly revenue fell 5.3%  to  RM6.88 billion  due to  weaker performance in the leisure and hospitality segment , exacerbated by the  strengthening of the ringgit against key foreign currencies . Dividend Declared at Lower Payout Final dividend of 5 sen per share , down from  9 sen last year , bringing  total FY2024 dividend to 11 sen per share , compared to  15 sen in FY2023 . Financial Performance Breakdown Adjusted EBITDA down 27% YoY  to  RM1.68 billion  from  RM2.29 billion . Finance costs rose 35.1%  to  RM513.36 million . Impairment lo...

Bank Reverses Expansion Plans in China’s Digital Wealth Market HSBC is cutting nearly half of its workforce at Pinnacle, its China digital wealth business , with around  900 job reductions , sources told  Reuters . Pinnacle, launched in  2020 , was meant to drive HSBC’s digital insurance and fund sales in China. The  cost-saving move highlights the challenges HSBC faces in growing its China business amid a broader restructuring push . Cost Review & Workforce Reduction HSBC  reviewed Pinnacle’s staff compensation and supplier expenses last year , finding a sharp increase in costs outpacing revenue. More than 500 insurance agents  have already left since June 2024 as the bank scaled back operations. The  layoffs will affect 100 staff at Pinnacle’s fintech unit , while another  300 will be reassigned within HSBC China . HSBC’s China Strategy & Restructuring HSBC has  long positioned China as a key growth market , committing  $6 bill...

Tech Giant Calls for Revisions to US Trade Policies Microsoft will push the Trump administration to ease AI chip export restrictions  for key US allies, including  India, Switzerland, and Israel , according to a report by  The Wall Street Journal  on Thursday. The proposal, expected to be published in a  Microsoft blog post , argues that  current curbs could drive allies toward China for AI infrastructure needs . Microsoft did not immediately respond to requests for comment. US-China AI Battle Intensifies Washington’s expanded AI chip export restrictions—introduced during Joe Biden’s final days in office—aim to limit China’s access to advanced computing power. These measures have  hurt US chipmakers and Big Tech companies  that rely on China as a major market for semiconductors. China is  capitalizing on US export restrictions , promoting itself as a  more reliable AI technology partner  for other countries, Microsoft President...

Russell 2000 Extends Decline Amid Policy Uncertainty The  Russell 2000 Index, which tracks small-cap stocks, has fallen about 10% from its late-2024 peak , as optimism over  US President Donald Trump’s policies fades . Corporate leaders are also growing increasingly pessimistic, with  Bank of America’s analysis showing the most negative sentiment on small-cap earnings calls since 2004 . Reality Check for Small-Cap Optimism Small-cap stocks initially surged post-election on hopes that  Trump’s pro-business policies and tariffs would boost US-based companies . However, reality has set in, as  higher-for-longer interest rates, economic uncertainty, and potential trade war risks pressure earnings and balance sheets . Sectors vulnerable to  trade tariffs, including autos, capital goods, and transportation, make up 15% of the Russell 2000 , compared to just 9.1% in the  S&P 500 , according to Bloomberg Intelligence. Inflation, Growth, and Interest Rate P...

Tencent Enters AI Speed Race Tencent has launched its latest AI model, Hunyuan Turbo S , claiming it can respond to queries  faster than DeepSeek’s R1 —one of the most widely adopted AI models globally. The tech giant says  Turbo S can generate answers in under a second , setting it apart from models like  DeepSeek R1 and Hunyuan T1 , which require more processing time before responding. Performance and Competition Turbo S reportedly matches DeepSeek-V3  in fields like  knowledge, mathematics, and reasoning . DeepSeek-V3 has already surpassed OpenAI’s ChatGPT in app store downloads , adding pressure on Tencent and other Chinese tech firms to accelerate AI advancements. DeepSeek did not immediately respond  to Tencent’s performance claims. China’s AI Arms Race Intensifies DeepSeek’s rapid global success, particularly  its adoption in Silicon Valley , has  forced Chinese tech giants into a race to enhance their AI models . Last month, Alibaba launch...

Amazon Joins the Quantum Computing Race Amazon Web Services (AWS) has introduced its first-ever quantum computing chip, Ocelot , marking a significant step in quantum error correction. The chip aims to cut quantum computing error-reduction costs by up to 90% , according to the tech giant. Race for Quantum Dominance Heats Up Amazon’s announcement follows Microsoft's recent claim of a quantum breakthrough  and  Google's unveiling of its Willow quantum chip  in December. The competition among tech giants  underscores the push to solve one of quantum computing's biggest hurdles— error correction . How Ocelot Works Ocelot is a prototype, not a full-scale quantum system , designed to test error correction techniques. Quantum computers use qubits , which are highly sensitive to environmental noise, causing computational errors. Amazon's approach to quantum error correction will be key to scaling quantum systems for real-world applications. Potential and Skepticism Experts r...

Market Overview US equity futures bounced back on Wednesday , as investors  shifted focus to Nvidia's highly anticipated Q4 earnings  and  evaluated the impact of Trump’s evolving trade policies . The rebound follows a volatile session , where major indices  extended their declines  amid concerns over  rising tariffs and inflationary risks . Nvidia Earnings in Focus Nvidia (NVDA) , a  key driver of AI sector growth , is set to  report earnings later today . Key expectations : Revenue surge fueled by AI demand Guidance on next-gen GPU launches Competition with China's DeepSeek and regulatory challenges Investors will assess CEO Jensen Huang's comments on AI infrastructure and potential market risks . Tech Stock Movers Super Micro Computer (SMCI)  and  Palantir (PLTR)  saw  pre-market gains , reflecting  positive sentiment toward AI-linked stocks . Tesla (TSLA) continued its slide , with Elon Musk’s wealth  taking a maj...

Q4 Revenue Surpasses Expectations; Gross Margins Decline Slightly NVIDIA (NASDAQ: NVDA)  delivered another  strong quarter , with  Q4 revenue reaching $39.3 billion , up  78% YoY and 12% QoQ , exceeding consensus estimates by  2.8% . Gross margins  came in at  73% (GAAP), below the 73.4% expectation , reflecting increasing cost pressures. Net profit surged to $22.1 billion , marking a  79.8% YoY and 14% QoQ  increase,  beating forecasts by 5.9% . The company projects  Q1 FY2026 revenue of $43 billion , surpassing buy-side expectations of  $42 billion . Data Center Growth Leads Earnings as Blackwell Chips Launch NVIDIA’s  data center revenue reached $35.58 billion , up  93% YoY , reinforcing its  dominance in AI infrastructure . The  new Blackwell architecture  debuted, contributing  $11 billion in sales  within its first quarter—accounting for  50% of total data center revenue . CEO ...

KUALA LUMPUR, Feb 27 (Bernama) -- Bursa Malaysia retreated from yesterday's gains to close lower on Thursday as investors adopted a risk-off stance amid growing external uncertainties, said an analyst.  At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 2.11 points to 1,586.60 from Wednesday's close of 1,588.71. The market bellwether opened 0.72 of-a-point easier at 1,587.99 and moved between 1,583.45 and 1,588.29 throughout the day.  On the broader market, gainers led decliners 573 to 419, while 484 counters were unchanged, 912 untraded, and 97 suspended. Turnover improved to 2.89 billion units worth RM2.45 billion from 2.81 billion units worth RM2.47 billion on Wednesday.   

Market Skepticism Grows Over Trump Administration’s Cost-Cutting Claims Just weeks into  President Donald Trump’s second term ,  Elon Musk  has taken center stage in Washington, aggressively pushing  cost-cutting initiatives  through the newly created  Department of Government Efficiency (DOGE) . Yet, despite bold claims of budget savings,  bond markets remain unconvinced . Bond Market Challenges Musk’s Spending Cut Narrative Musk  boasted of saving $55 billion  through swift agency shutdowns, including the  US Agency for International Development (USAID)  and the  Consumer Financial Protection Bureau . However,  market analysts estimate the actual savings at only a third of that amount —far from the scale needed to tame a  $1.8 trillion fiscal deficit . The  10-year US Treasury yield  has fluctuated between  4.3% and 4.7% ,  failing to decline  despite the administration’s cost-cutting rhetor...

Sharpest Drop Since 2021 as Economic Pessimism Spreads US consumer confidence  fell 7 points in February to 98.3 , marking the  third consecutive decline  and the largest drop since August 2021. The report, released by  The Conference Board , showed  worsening perceptions of labor conditions, future incomes, and business outlook . Stocks and bond yields  declined following the data , as  recession fears intensified . Consumers Cutting Back on Major Life Plans A  Wells Fargo study found over half of Americans are delaying major financial decisions , citing  economic uncertainty and Trump’s tariff threats . Key postponements include : Home purchases  (one-third of respondents) Education plans  (one in six) Retirement plans  (one in eight) Wall Street Selloff Deepens The  Magnificent 7 stocks tumbled into correction territory , with a  $1.6 trillion market value loss  since December. Tesla led the declines, plunging...

Aggressive Price Cuts Shake AI Industry Chinese AI startup DeepSeek has announced steep discounts of up to 75% on its AI model usage during off-peak hours , according to an update on its website. The  move is expected to pressure global AI leaders like OpenAI and Google  to further lower their prices. Key Pricing Details Off-peak hours (1630 GMT – 0030 GMT)  will see: 75% reduction in API costs for DeepSeek’s R1 model 50% reduction for the V3 model While these hours are considered “off-peak” in Beijing (0030 – 0830 local time), they  coincide with peak daytime hours in the U.S. and Europe , potentially intensifying competition. Market Impact & Competitive Pressure DeepSeek’s rapid expansion and aggressive pricing strategy have already disrupted global AI markets , contributing to last month’s tech stock selloff. OpenAI and Google have responded by introducing their own price cuts  for their AI offerings. The company is now reportedly  accelerating the l...

Key Growth Strategy Eco World Development Group Bhd (KL:ECOWLD) aims to increase recurring income from 20% to 30% of total revenue within the next three to five years , according to  President and CEO Datuk Chang Khim Wah . Growth will be driven by  five key business pillars : Eco Hubs (commercial spaces) Eco Business Parks (green industrial parks) Quantum (data centres) Eco Townships (landed residential homes) Eco Rise (high-rise developments) Quantum, which focuses on large-scale data centre-related land leases, is one of the group's fastest-growing segments . Expansion in Data Centre Leasing EcoWorld has secured four industrial land lease deals worth RM1.59 billion since August 2024  with global tech giants  Microsoft and Google . The latest deal, announced Tuesday, involves a  20-year, RM266.1 million triple-net lease with Google's affiliate, Pearl Computing Malaysia Sdn Bhd, for 92 acres of land . Despite its data-centre expansion, EcoWorld  emphasized...

Financial Highlights 4QFY2024 net profit surged 26% YoY to RM335.47 million , driven by  strong contributions from construction, property development, and trading & manufacturing divisions . Quarterly revenue jumped 53% YoY to RM2.85 billion , up from RM1.87 billion in 4QFY2023. Earnings per share (EPS) rose to 5.03 sen, from 4.39 sen previously . Declared a second interim dividend of four sen per share , bringing the total FY2024 dividend to  six sen per share . Record-Breaking Full-Year Performance FY2024 net profit grew 56% YoY to RM1.15 billion , the  highest in three years . Annual revenue hit an all-time high of RM7.88 billion , marking a  28% increase from RM6.14 billion in FY2023 . Segment Performance (4QFY2024) 1. Property Development Revenue soared 63.4% YoY to RM809.6 million , driven by  higher sales and progress billings from local projects . Profit before tax (PBT) more than doubled to RM162.5 million  from RM69 million a year earlier. 2. ...

KUALA LUMPUR, Feb 26 (Bernama) -- Bursa Malaysia snapped two days of losses to end at its intraday high today, with the composite index gaining 1.32 per cent, driven by bargain hunting following the recent heavy sell-off.  At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) jumped 20.68 points to 1,588.71 from Tuesday's close of 1,568.03.  The market bellwether opened 1.76 points easier at 1,566.27 and subsequently hit an intraday low of 1,565.46 before moving in a upward trajectory towards closing.  On the broader market, gainers led decliners 534 to 471, while 473 counters were unchanged, 898 untraded, and 36 suspended. Turnover declined to 2.81 billion units worth RM2.47 billion from 3.14 billion units worth RM2.64 billion on Tuesday. 

Key Concerns & Credit Downgrade Municipal Market Analytics (MMA) downgraded its state-sector outlook from positive to neutral , citing  “rapid and chaotic activity”  from the Trump administration. Executive orders and policy shifts are threatening federal funding , which  accounts for about one-third of state budgets . States may have to tap into reserves, cut or pause projects , and  reduce aid to local governments, colleges, and hospitals . Financial Implications Uncertainty in federal funding could impact essential services , particularly in  education and healthcare . State housing finance agencies face higher risks , with  possible negative actions on US government bond ratings . Potential elimination or reduction of the municipal bond tax-exemption  poses a significant threat to state finances. Rising Costs & Legal Challenges States are incurring higher costs due to policy disruptions , including: Increased expenses for advisors and consu...