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DNeX Shares Soar 16% Following Cloud Services Partnership with Google

Shares of Dagang NeXchange Bhd (KL ) experienced a significant rally on Tuesday, reaching their highest level in over a month after the announcement of a partnership with Google to provide cloud services in Malaysia. The stock surged by 16% , gaining 5.5 sen to reach 39 sen , a price last seen on August 26, 2024. At 9:30 AM, the shares were trading at 38.5 sen , resulting in a market capitalization of RM1.34 billion . Trading volume reached 51 million shares by that time. This strategic partnership with Google positions DNeX to enhance its cloud service offerings, potentially boosting its market presence and revenue streams in the rapidly growing technology sector. Investors responded positively to the news, driving up the share price significantly.

Key Corporate Updates from Malaysia

Here’s a brief roundup of notable corporate news from Friday: Affin Bank Bhd: The Sarawak government increased its stake in Affin Bank to 31.25% from 4.8%, becoming the largest shareholder. The state acquired the additional stake through its unit SG Assetfin Holdings Sdn Bhd by signing a share purchase agreement with Lembaga Tabung Angkatan Tentera (LTAT) and Boustead Holdings Bhd . Gamuda Bhd: Gamuda secured a A$243 million (RM702 million) contract to construct the Boulder Creek Wind Farm in Queensland, Australia. The project involves 38 turbines with a total capacity of 228 megawatts and is expected to be operational by 2027. HeiTech Padu Bhd: HeiTech Padu is acquiring a 30% stake in Souqa Fintech Sdn Bhd , the owner of the PayHalal Islamic payment gateway, for RM16.17 million . The investment will be funded partly by cash and partly by services. Bintai Kinden Corp Bhd: Bintai Kinden is focusing on its construction division to exit Practice Note 17 (PN17) status, w

HeiTech Padu Acquires 30% Stake in Mirzan Mahathir-Linked Souqa Fintech for RM16.17 Million

HeiTech Padu Bhd is acquiring a 30% stake in Souqa Fintech Sdn Bhd , a company linked to Mirzan Mahathir , for RM16.17 million . HeiTech Padu’s subsidiary, Synergy Grid Sdn Bhd , signed a share subscription agreement to purchase 10.78 million new shares in Souqa Fintech at RM1.50 per share. Souqa Fintech operates the Islamic payment gateway PayHalal , catering to the growing demand for Islamic financial solutions . This acquisition aligns with HeiTech Padu’s strategy to expand into the Islamic-based e-commerce ecosystem alongside its conventional fintech services. The deal will be funded with RM11 million in cash, while the remaining RM5.17 million will be covered via invoiced services provided by HeiTech Padu to Souqa Fintech. Souqa Fintech is primarily owned by Asad Capital Sdn Bhd (58.29%), with Crescent Capital Sdn Bhd , led by Mirzan Mahathir , holding a 16.7% stake . Mirzan is the eldest son of former Prime Minister Tun Mahathir Mohamad . HeiTech Padu’s stock has surged

AirAsia X Proposes RM6.8 Billion Acquisition to Strengthen Aviation Group

AirAsia X Bhd (KL) has issued a comprehensive circular outlining its RM6.8 billion acquisition of Capital A Bhd's (KL) entire equity stake in AirAsia Aviation Group Ltd (AAAGL) and AirAsia Bhd (AAB) , for shareholders' review ahead of the extraordinary general meeting set for October 16. The proposed acquisition is part of a strategic move to create a focused aviation powerhouse , integrating seven airlines across Malaysia, Thailand, Indonesia, the Philippines, and Cambodia . The goal is to position the new aviation group to cover short-, medium-, and long-haul air travel services , tapping into the growing demand for international travel. According to AAX’s statement, the acquisition will significantly enhance the airline group’s competitive edge and make it more resilient and adaptable in a rapidly recovering global aviation market . AAX CEO Benyamin Ismail emphasized that the synergies with Capital A’s ecosystem —including digital services, ground handling, and in-flight

SAM Engineering Shares Drop 13% to Four-Month Low Following Disappointing Results

Shares of SAM Engineering and Equipment (M) Bhd (KL) fell sharply on Monday, declining by as much as 13% or 71 sen to RM4.64, their lowest level since April 24, 2024. The sharp decline followed the release of weaker-than-expected financial results for the first quarter ended June 30, 2024 (1QFY2025), leading to reduced earnings estimates and target prices from analysts. Key Takeaways: Disappointing Financial Performance : SAM Engineering's net profit for 1QFY2025 fell by more than half to RM10.10 million, compared to RM20.53 million in the same quarter last year. The results accounted for just 8% of consensus full-year forecasts, prompting two of the three analysts covering the stock to revise their estimates and lower their target prices. The company's aerospace segment faced setbacks due to delays in new product launches and quality defects in materials procured from suppliers. Analyst Reactions and Future Outlook : Despite the weak performance, Maybank Investment Bank (May

MBSB's 2Q Net Profit Drops 34% Amid Higher Operating Expenses and Impairment Allowances

MBSB Bhd, the financial holding company for MBSB Bank Bhd and Malaysian Industrial Development Finance Bhd (MIDF), reported a significant 34.5% drop in its net profit for the second quarter ended June 30, 2024 (2QFY2024). The company’s net profit fell to RM54.83 million from RM83.7 million in the same period last year, primarily due to increased operating expenses (opex) and higher impairment allowances. Key Points: Increased Costs and Impairments : MBSB's operating expenses rose to RM241.7 million in 2QFY2024, while impairment allowances surged to RM98.5 million. The higher impairment allowances were particularly notable, especially following significant write-backs in the previous quarter (1QFY2024). This led to a reduction in earnings per share, which dropped to 0.67 sen from 1.17 sen in 2QFY2023. Revenue Growth : Despite the drop in net profit, MBSB's quarterly revenue grew by 35% to RM960.85 million, up from RM711.53 million a year earlier. This increase was driven by high

Public Bank's 2Q Net Profit Rises 10%, Declares 10 Sen Dividend

Public Bank Bhd, Malaysia’s third-largest bank by assets, reported a solid 10% increase in net profit for the second quarter ended June 30, 2024 (2QFY2024), driven by higher net interest income and non-interest income. The bank’s net profit for the quarter rose to RM1.78 billion from RM1.62 billion in the same period last year. Key Financial Highlights: Profit and Dividend : Public Bank declared a first interim dividend of 10 sen per share, amounting to RM1.94 billion, payable on September 23, 2024. For 2QFY2024, net interest income rose 5% year-on-year to RM2.32 billion. The group's net profit for the first half of FY2024 (1HFY2024) was RM3.44 billion, up more than 3% from RM3.33 billion in 1HFY2023. Revenue and Income Growth : Revenue for 1HFY2024 increased by 8.9% to RM13.49 billion, compared to RM12.39 billion in the previous year. The bank’s non-interest income also recorded a growth of 5.8% to RM1.32 billion, largely driven by higher income from unit trust and stockbroking bu

Grab Malaysia Distances Itself from AIC's Open Letter to PM

Grab Malaysia has clarified that it was neither informed nor consulted about the recent open letter addressed to Prime Minister Datuk Seri Anwar Ibrahim by the Asia Internet Coalition (AIC), which expressed concerns over a proposed regulatory framework for social media and instant messaging platforms in Malaysia. In a statement issued on Monday, Grab emphasized that the proposed regulations do not affect its operations, stating, "Therefore we had no part in it. We did not and are not commenting on the matter." This response came after a Reuters report mentioned Grab as a member of the AIC, linking it to the coalition’s stance. Grab further distanced itself from AIC's position, reaffirming its commitment to working with the Malaysian government and contributing to the country’s development. The open letter from AIC, dated Friday, criticized the proposed licensing regime by the Malaysian Communications and Multimedia Commission (MCMC), which requires social media platform

KLK Expected to Deliver Strong 4Q on Seasonal Production Boost

Kuala Lumpur Kepong Bhd (KL) is anticipated to post a stronger performance in the final quarter ending September 30, 2024 (4QFY2024), driven by seasonal production increases, following third-quarter results that met market expectations. Key Highlights: Seasonal Production Boost: Public Investment Bank Research projects that KLK will "catch up" in the final quarter, supported by a seasonally stronger production period. The research house has maintained a "neutral" rating on KLK with an unchanged sum-of-parts (SOP)-based target price (TP) of RM21.33. Plantation Segment Outlook: The plantation segment is forecast to perform better in FY24, aided by cost-saving measures and modest yield improvements. The strong final quarter is expected to significantly contribute to KLK’s overall performance for the year. Manufacturing Segment Variance: The manufacturing segment presents a mixed outlook, with Europe’s oleochemical market recovering due to higher demand and better ma

Chinese Property Developer Kaisa and Bondholders Agree to Offshore Debt Restructuring

Chinese property developer Kaisa Group announced on Tuesday that it has reached an agreement with a key group of bondholders to restructure its offshore debt. The deal involves swapping existing debt for new notes and shares in the company, marking a significant step in addressing its financial challenges. Key Highlights: Debt Restructuring Agreement: Kaisa's restructuring plan covers US$12 billion in offshore bonds that it defaulted on in late 2021, along with other debts including loans and yuan-denominated asset-backed securities. The agreement includes issuing six tranches of senior notes maturing between 2027 and 2032, with cash interest rates ranging from 5% to 6.25%. Additionally, the company will issue eight tranches of mandatory convertible bonds maturing from 2025 to 2032, which will be converted into shares based on a predetermined allocation ratio. Shareholder Contribution: To facilitate deleveraging and improve liquidity, Kaisa stated that sponsors, including Chairma

tanChart Merges Industries Team into M&A, Cuts Over 20 Jobs

Standard Chartered has consolidated its industries coverage team into its dedicated mergers and acquisitions (M&A) advisory unit, resulting in the elimination of more than 20 roles globally. The restructuring is part of a broader effort to reduce duplication and streamline operations within the bank, according to a source familiar with the matter. Key Highlights: Team Consolidation: The industries coverage team has been absorbed into the M&A advisory team, effectively doubling the size of the M&A unit to over 100 bankers. Job Reductions: While some roles from the dissolved industries team will be integrated into the bank's wider coverage and capital markets teams, approximately two dozen positions will be cut to avoid overlap. Strategic Reorganisation: This move is part of a larger reorganisation announced on March 12, aimed at enhancing the bank's focus on key cross-border clients and improving accountability within its corporate and investment banking division.

Toyota Should Join Honda-Nissan Software Alliance

Last week, Honda Motor Co and Nissan Motor Co announced their collaboration to develop in-vehicle software. However, Professor Hiroaki Takada from Nagoya University believes Toyota Motor Corp should also join the alliance to better compete against global rivals. Key Points: Software-Defined Vehicles: Japan aims for its companies to capture 30% of the global software-defined vehicle market by 2030. The operating systems that power smarter and more autonomous cars will be as important as engines and batteries in the future of passenger transport. Current Leaders: Currently, Chinese automakers and Tesla Inc are leading in the field of automotive operating systems. Takada suggests that the car industry will likely be dominated by only two or three major operating system makers, similar to how Google's Android and Apple's iOS dominate smartphones. Potential Collaboration: If Toyota were to join Honda, Nissan, and possibly Mitsubishi Motors Corp in developing a car operating sys

Nvidia’s Next-Generation AI Chip Rollout Slowed by Engineering Snags

Nvidia Corp., a leading force in AI computing, has encountered engineering challenges that have delayed the rollout of its next-generation AI chips. The delays have affected the company's highly anticipated Blackwell lineup, which was announced in March, and highlight the difficulties associated with accelerating the pace of innovation in a competitive market. Key Issues with Nvidia's Blackwell Chips Engineering Challenges: The development of Nvidia's new AI chips, known as AI accelerators, has faced setbacks due to compatibility issues with existing data center infrastructure, particularly with Nvidia's earlier chip, the Hopper H100. Additionally, a new product that integrates a processor with a graphics chip is experiencing delays due to complications with supporting technology. Impact on Market Dominance: Nvidia has been a dominant player in the AI accelerator market, a position that has significantly boosted its sales and market valuation over the past two years.

Pentamaster's 2Q Profit Drops 16% Amid Lower Sales Volume in Automated Test Equipment Business

Pentamaster Corp Bhd reported a 15.87% decline in its second-quarter net profit due to reduced sales volume in its automated test equipment (ATE) segment, increased employee expenses, provisions for slow-moving inventories, and research and development expenditures. Financial Highlights: 2QFY2024 Performance: Net Profit: Fell to RM19.9 million from RM23.65 million in 2QFY2023. Revenue: Decreased by 3.11% to RM171.37 million from RM176.88 million in the same quarter last year. 1HFY2024 Performance: Net Profit: Declined by 12.58% to RM39.28 million from RM44.93 million in 1HFY2023. Revenue: Slightly decreased to RM342.16 million from RM342.19 million in 1HFY2023. Business Challenges: Automated Test Equipment (ATE) Segment: The ATE segment, Pentamaster's largest revenue contributor, faced subdued demand as global manufacturers exercised caution in capital equipment spending. The group's order book contracted during the period, with slower-than-expected replenishment and recove

PMB Technology to Raise RM300 Million from Rights Issue

PMB Technology Bhd (KL) has announced plans to raise approximately RM300 million through a rights issue, subject to the final issue price and basis of entitlement. Key Takeaways: Rights Issue Proposal: PMB Technology, involved in metallic silicon and aluminium manufacturing, construction, and fabrications, aims to raise RM300 million. The exact amount will be finalized and announced later. Current Shares: As of July 26, 2024, PMB Technology has issued 1.62 billion shares, including 25.2 million treasury shares. The company intends to retain these treasury shares and will not divest or distribute them before the entitlement date. Use of Proceeds: The funds raised from the rights issue will be used to repay bank borrowings and cover expenses incurred during the exercise. The initiative aims to strengthen the group’s financial position and reduce its gearing. Shareholder Participation: The proposed rights issue provides shareholders with an opportunity to participate in an equity of

Genting Plantations Unit Issues RM1.2 Billion Sukuk Wakalah

Genting Plantations Bhd’s (KL) wholly-owned subsidiary, Benih Restu Bhd, has successfully undertaken its first issuance of RM1.2 billion in Islamic medium-term notes (sukuk wakalah) under a RM2 billion sukuk wakalah programme based on the shariah principle of Wakalah Bi Al-Istithmar. Key Details: Issuance Details: The RM1.2 billion sukuk wakalah has a tenure of 10 years with an annual profit rate of 4.08%, according to Genting Plantations' filing with Bursa Malaysia on Monday. Utilization of Proceeds: Benih Restu will advance the proceeds from the issuance to Genting Plantations and/or its subsidiaries via shariah-compliant intercompany advances. The funds will be used for: Operating expenses Capital expenditure Investment Refinancing of existing borrowings and shariah-compliant financing facilities Future shariah-compliant financing facilities Working capital requirements General funding and corporate purposes Application of Proceeds: The proceeds will support various activitie

IHH Healthcare Ready to Explore Outcome-Based Payment Models

IHH Healthcare Bhd (KL), Malaysia’s largest hospital operator, announced on Monday its readiness to explore outcome-based payment models, driven by positive results from its recent value-driven outcomes (VDO) initiatives. Key Takeaways: Outcome-Based Payment Models: IHH Healthcare is prepared to assess the feasibility of outcome-based payment models, which tie payments to clinical results rather than predetermined costs. This follows successful VDO initiatives that have shown improved patient outcomes. VDO Initiatives: Colonoscopy Procedures: Achieved higher-than-benchmark detection of polyps that could lead to colon cancer. Total Knee Replacement: Surveys indicated significant improvements in pain relief, physical function, and quality of life. Executive Statement: Jean-François Naa, CEO of IHH Healthcare’s Malaysian operations, highlighted the maturity of data from VDO initiatives as a key factor in considering outcome-based payment models. Government and Industry Support: Healt

George Kent Appoints Leong as Director for Strategic New Ventures

George Kent (Malaysia) Bhd (KL) has announced the appointment of Datuk Thomas Leong Yew Hong as its director of strategy and investments, effective August 1. Leong’s role will focus on steering the group into new areas beyond its traditional industries, such as renewable energy and data centre solutions. Key Takeaways: Strategic Appointment: Datuk Thomas Leong Yew Hong will work closely with Executive Chairman Tan Sri Datuk Tan Kay Hock on long-term strategies, business development, and investments, including mergers and acquisitions. New Ventures: Leong’s focus will include exploring opportunities in renewable energy, high technology, artificial intelligence, and data centre solutions, positioning George Kent to diversify into "businesses of the future." Complementary Businesses: In addition to new ventures, Leong will also explore opportunities in complementary sectors such as water infrastructure and rail transportation, which the group has not yet fully explored. Indus

Key Corporate Update from Malaysia

Here is a brief overview of significant corporate announcements and business news from Friday: AirAsia X and Capital A: Update: AirAsia X Bhd will directly acquire Capital A Bhd’s aviation business without establishing a new company (NewCo) as part of an internal reorganisation. This decision aims to expedite the takeover process. Reason: The change was made to balance potential benefits with the need for a swift completion of the acquisition. Source: AirAsia X to take over Capital A’s aviation business directly without setting up NewCo Hibiscus Petroleum: Contract Award: Hibiscus Petroleum Bhd has been awarded a 65% participating interest and operatorship in a production sharing contract (PSC) by Petronas. The contract, effective from July 1, has a duration of 24 years. Partnership: The remaining share is held by Petronas Carigali Sdn Bhd. Source: Hibiscus awarded 65% participating interest in PSC by Petronas Dagang NeXchange (DNEX): Contract Award: Petronas awarded Ping Petr

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