Malaysian Investor Thread

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MALAYSIAN INVESTOR
WORLD 2023
Part 14: China | IHH Healthcare Bhd
IHH's 4Q net profit falls 58% on RM306m impairment loss from China assets
Lam Jian Wyn February 28, 2023 20:53 pm +08

KUALA LUMPUR (Feb 28): IHH Healthcare Bhd reported a 57.8% decline in its net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022) to RM191.3 million, from RM453.6 million a year ago, due to an impairment loss of RM305.9 million in relation to the group's assets and goodwill in China amid Covid-19 restrictions, and higher net finance costs and adjustments relating to MFRS 129.

In a Bursa Malaysia filing, the group said its earnings per share (EPS) fell to 2.2 sen from 4.9 sen in 4QFY2021.

Meanwhile, revenue rose 8.9% to RM4.9 billion from RM4.5 billion a year ago, thanks to more local and foreign patients returning.

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"Foreign patient volume recovery was especially strong in Malaysia and Singapore. The ramp-up of Gleneagles Hong Kong Hospital (GHK) and contribution from Acibadem Bel Medic in Serbia and Acibadem Adana Ortopedia Hospital in Türkiye also contributed to the higher revenue," it said.

For the full year ended Dec 31, 2022 (FY2022), the group's net profit slipped 17% to RM1.5 billion from RM1.9 billion a year ago, despite its revenue rising 5% to RM18 billion from RM17.1 billion.

Net profit declined due the RM1.5 billion impairment loss relating to its assets and goodwill in China, while revenue rose due to a high Covid-19 base in FY2021, as well as the impact from a weaker lira and MFRS 129-related adjustments.

"Even with the impairment losses, return on equity was at 6.4% as at end-December 2022. Balance sheet remained strong, with net cash generated from operating activities of RM3.7 billion and an overall cash balance of RM3.7 billion.

"Net gearing improved to 0.25 times (from 0.27 times as at September 2022)," it said.

EPS dipped to 17 sen from 20.2 sen in FY2021.

IHH Healthcare group chief operating officer Joe Sim said its fourth quarter results were the strongest revenue performance for the entire year.

"We recorded a robust core performance with revenue growth amidst inflationary pressures, rising interest rates and a sharp drop in Covid-19-related services.

"Reported net income was mainly impacted by a one-off RM305.9 million impairment in China — which will better position us for the year ahead — as well as higher operating costs.

"Underpinned by robust demand from both foreign and local patients, we expect to improve revenue as we keep focus on our ‘Care. For Good.’ strategy to deliver quality care and create sustainable value for all.

"We also continue to support our Acibadem colleagues in Türkiye, to keep our staff safe while rendering assistance to affected communities. Operationally, Acibadem is unaffected and has been able to step up support across the country.”

He also gave thanks to Dr Kelvin Loh, who resigned as IHH Healthcare's managing director, for his leadership of the group over the past three years.

"... he has been instrumental in setting a true north for the company of putting patients first, steering IHH out of the challenges presented by the Covid-19 pandemic and embarking on our sustainability journey," Sim said.

The group said it expects its cluster strategy and a strong pent-up demand for high quality private healthcare to drive return on equity and growth for its core hospitals and healthcare business, while it will develop its laboratory business into a core platform to provide end-to-end services to patients and clients.

"IHH will maintain a tight rein on costs and leverage synergies from its scale as well as operational productivity to mitigate cost pressures. It is confident that it will navigate the near-term challenges and deliver value for patients and long-term sustainable growth for all stakeholders."

The group declared a first and final dividend of seven sen per share, with an ex-date of March 30 and a payment date of April 28.

Its stock closed two sen or 0.34% lower at RM5.79, with a market capitalisation of RM50.99 billion.

https://www.theedgemarkets.com/node/657211

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MALAYSIAN INVESTOR
WORLD 2023
Part 15: Australia | Gamuda Bhd
Gamuda unit to acquire Australian transport projects business worth RM636m
Syafiqah Salim February 22, 2023 20:03 pm +08

KUALA LUMPUR (Feb 22): Gamuda Bhd has executed an asset sale agreement to acquire the Australian transport projects business at an enterprise value of A$212 million (RM636 million) cash.

Its Australian unit DT Infrastructure Pty Ltd inked the agreement on Wednesday (Feb 22) to take over Downer’s Australian transport projects (DTP) business — which provides civil construction services in delivering transport projects, with specialist rail capability — from Downer EDI Works Pty Ltd and VEC Civil Engineering Pty Ltd.

Gamuda said the cash deal, which is expected to be completed by June, will be financed by internal generated funds as well as borrowings.

The move is in line with Gamuda’s growth plan in the Australian market of achieving annual revenue of A$3 billion in the next two to three years, the group said in a filing with Bursa Malaysia.

The enterprise value, which values DTP at A$212 million, was arrived at on a willing buyer-willing seller basis after negotiations between the parties and taking into consideration its historical performance and, among others, comparable companies’ trading multiples, projected profitability, growth, as well as future prospects of the DTP business on the broader Gamuda platform, explained Gamuda.

The construction giant said the enterprise value was justified based on applying multiples associated with similar recent transactions and comparable companies in the Australian market.

As at Oct 31, 2022, Gamuda’s cash and bank balance stood at RM3.36 billion while its total borrowings were at RM5 billion.

Gamuda group managing director Datuk Lin Yun Ling commented that this acquisition accelerates the group’s local expertise in Australia across a wider range of infrastructure projects, and connects its regional expertise in turnkey infrastructure delivery with existing and new local clients.

“We believe there are positive opportunities for growth in Australia, and this move enables us to expand not only our revenue base, but also enables participation in different segments of the transport infrastructure market — from large tunnelling and infrastructure jobs to medium-sized projects in rail, track construction, line electrification, delivery of depots and stabling yards, and construction of railway stations,” said Lin.

“Gamuda [also] can augment and build on DTP’s long-term relationships with various public and private stakeholders, particularly the government, public transport authorities and the community. Gamuda would be leveraging this strong stakeholder relationship with an increased focus on stakeholder exposure, networks, and resources,” he added.

Gamuda shares closed up 11 sen or 2.78% at RM4.06 on Wednesday, translating into a market capitalisation of RM10.64 billion.

https://www.theedgemarkets.com/node/656341

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MALAYSIAN INVESTOR
WORLD 2023
Part 16: Australia | Sime Darby Bhd
Sime Darby to acquire Australia’s Onsite Rental Group for RM1.92 bil
Surin Murugiah March 02, 2023 09:57 am +08

KUALA LUMPUR (March 2): Sime Darby Bhd is acquiring Australia’s Onsite Rental Group Limited (Onsite) for RM1.92 billion.

In a statement to the bourse on Thursday (March 2), the conglomerate said its unit Sime Darby Allied Operations Pty Ltd (Sime Darby) is buying Onsite, which provides business to business equipment rental solutions to blue chip customers across a range of industries in the Australian market including resources, energy, industrial and commercial.

Sime Darby Bhd group chief executive officer Datuk Jeffri Salim Davidson said Sime Darby is strategically positioning itself to capture demand across the resources, infrastructure and energy sectors.

“The Onsite acquisition complements our existing portfolio and provides geographic expansion to position our industrial division in high growth areas of the Australian market,” he said.

Davidson said Onsite employs more than 500 people through a network of over 30 branches across Australia, providing dry hire solutions and industry leading “digital rental management” solutions.

It has a large and diverse fleet of over 60,000 assets, providing diversification to Sime Darby’s industrial rental equipment offerings across a broad range of industries in Australia.

Davidson said Sime Darby has retained Onsite’s strong management team and looks forward to working with them to build on its leadership in the mining and construction equipment rental market.

Meanwhile, Onsite chief executive officer Mike Foureur said Sime Darby is a natural fit for Onsite.

“With this backing, Onsite can invest into adjacencies, achieve supply chain efficiencies, expand into new markets and enhance our offering to accelerate growth and contract wins,” he said.

Trading in the securities of Sime Darby Bhd was halted for one hour from 9am-10am on Thursday.

https://www.theedgemarkets.com/node/657460

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MALAYSIAN INVESTOR
WORLD 2023
Part 17: India, Australia | Petronas
Petronas clean energy arm sees India, Australia as key in rapid growth plans
A Ananthalakshmi and Mei Mei Chu/Reuters March 01, 2023 23:06 pm +08

KUALA LUMPUR (March 1): Gentari, the clean energy arm of Malaysia's state oil firm Petronas, sees India and Australia as its key markets for growth and expects to tap more financing to meet its ambitious targets, its chief executive told Reuters.

Petronas launched Gentari as a separate entity in June, aiming to build renewable energy capacity of 30-40 gigawatts and produce up to 1.2 million tonnes per year of hydrogen by 2030 in Asia Pacific.

It also plans to establish 25,000 public charging points for electric vehicles.

In an interview on Wednesday, Chief Executive Officer Sushil Purohit said India and Australia will be primary markets for growth in the near term in all fields of operation.

Both countries have provided the right policies to facilitate projects, while Malaysia also has a lot of potential, he said, adding growth could come from acquisitions and organically.

"In terms of expansion, we will seek to collaborate with companies in different markets. If there is a good strategic fit for us, we would look at that as an opportunity for us to buy into the company or acquire the company in totality," Purohit said.

Petronas, like other oil majors, is ramping up investments in clean energy as part of its net zero carbon emissions goals.

The state-owned company has said it would allocate 20% of its overall capital expenditure for decarbonisation projects and cleaner energy solutions from 2023 to 2026.

Petronas planned capital expenditure of RM60 billion last year.

Gentari's home base of Malaysia still require polices and incentives that encourage private investments in the sectors, Purohit said, adding that the firm intends to invest strongly in the Southeast Asian nation.

Last month, Gentari purchased Australian renewables firm Wirsol Energy, which has solar and battery energy storage systems. Gentari declined to disclose the price of the purchase, but one source put the enterprise value of the deal at A$1 billion.

In 2019, before Gentari's formation, Petronas acquired Singapore-based solar energy company Amplus Energy Solutions which has projects in India, the Middle East and Southeast Asia.

Purohit said Gentari will seek out new investors for particular projects or countries to support its rapid growth plans.

"The capital requirement would be quite large. And that's the reason we need to go out and get also funds from outside," he said, without specifying an amount or time frame.

https://www.theedgemarkets.com/node/657424

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MALAYSIAN INVESTOR
WORLD 2023
Part 18: Saudi Arabia | DOC2US
DOC2US plans to invest US$1 mil to set up physical ops in Saudi Arabia, say sources
Surin Murugiah February 25, 2023 10:04 am +08

KUALA LUMPUR (Feb 25): Digital health platform and e-prescriptions issuer DOC2US is set to be physically operating in Saudi Arabia, bringing in and setting up its ecosystem and infrastructure in the country to provide digital healthcare services for international pilgrims and travelers.

According to sources who are familiar with the plan, DOC2US plans to invest US$1 million in the initial stage of its expansion.

The company has been actively seeking to capitalise on the Middle Eastern market, riding on its recent announcement on collaboration with Umrah & Haj Travel Agency Association (Papuh)

Under the deal, DOC2US is offering its avenue of accessible and affordable digital healthcare services to Malaysian pilgrims on Umrah and Haj through the agencies of Papuh.

Following this, DOC2US has signed a memorandum of understanding (MOU) with Selgate Corporation to collaborate further on providing comprehensive digital healthcare solutions for pilgrims leveraging on their combined technology and infrastructure.

The sources, who spoke with The Edge on condition of anonymity, said DOC2US has committed to the expansion in Saudi Arabia through several partnerships with local hospitals and pharmacy groups, building its network of healthcare professionals in the country to serve all pilgrims.

https://www.theedgemarkets.com/node/656781

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MALAYSIAN INVESTOR
ASEAN 2023
Part 31: Philippines | Solarvest Holdings Bhd
Solarvest to construct grid-connected solar PV plants in the Philippines
Priyatharisiny Vasu March 06, 2023 17:47 pm +08

KUALA LUMPUR (March 6): Solarvest Holdings Bhd has formed a consortium with a solar energy solutions provider based in the Philippines to provide rural electrification in Mindanao Island there.

In a statement on Monday (March 6), Solarvest said it is partnering with Edward Marcs Philippines Inc to work with Philippine government-owned National Power Corporation (NPC) to construct electricity distribution systems in rural areas.

Small grid-connected solar photovoltaic (PV) power plants will be installed at distribution substations within the geographical region.

“Solarvest was appointed as the engineering, procurement, construction, and commissioning solutions provider for the project,” the company said.

The project is administered by the World Bank and funded by the European Union under the Access to Sustainable Energy in the Philippines Programme that aims to provide affordable, clean, and disaster-resilient energy systems to isolated communities in the Philippines.

“We are honoured to work with NPC to construct grid-connected solar PV plants in supporting secluded households and communities in a sustainable manner.

“Other than introducing new energy generation capacity as a competitive approach to brown energy alternatives, this project is an important step for us to advance our regional expansion agenda and expand within the Philippine market,” said Solarvest group chief executive officer Davis Chong Chun Shiong.

He added that Solarvest is confident of its expertise as a regenerative partner to uplift the quality of life by providing access to green electricity.

Shares in Solarvest closed 2.5 sen or 2.7% higher at 95 sen each, giving the company a market capitalisation of RM630.77 million.

https://www.theedgemarkets.com/node/657954

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MALAYSIAN INVESTOR
ASEAN 2023
Part 32: Vietnam | Toyo Ventures Holdings Bhd
Toyo Ventures sign O&M, EPC contracts for 2.12GW power plant in Vietnam
Adam Aziz March 09, 2023 20:19 pm +08

KUALA LUMPUR (March 9): Toyo Ventures Holdings Bhd, which owns the 2.12-gigawatt (GW) coal-fired power plant project Song Hau 2 in Vietnam, has inked an agreement for the operations and maintenance (O&M) of the upcoming power plant.

Toyo Ventures’ wholly owned unit Song Hau 2 Power Co Ltd signed the O&M contract with Power Engineering Consulting Joint Stock Company 2 (PECC2) with an annual contract price of US$86 million (RM388.81 million) for the upcoming US$2.42 billion power plant.

The contract comprises site works, technical services and advisory services, it said.

“The entering into this agreement demonstrates the commitment of the owner (Song Hau 2 Power) to fulfil the requirements of the BOT (build-operate-transfer) contract,” Toyo Ventures said.

The O&M contract came just a week after Toyo Ventures’ unit signed a separate contract worth US$2.42 billion with a consortium of Sunway Construction Sdn Bhd and PECC2 to develop the power plant.

The project is scheduled for completion in four and a half years from the date Toyo Ventures issues a notice to proceed to the contractor.

Sunway Construction Sdn Bhd is a unit of Sunway Construction Bhd, while PECC2 is a subsidiary of Vietnam state-owned Vietnam Electricity.

“The contract price consists mainly of the estimation cost for preparatory works, civil part, boiler and auxiliaries, mechanical plant and electrical,” Toyo Ventures said when announcing the engineering, procurement and construction (EPC) contract on March 1.

Export-Import Bank of Malaysia Bhd had offered their services as mandated lead arranger, bookrunner and coordinating arranger for the syndicated financing facilities of up to US$2.42 billion for the project, it said.

Toyo Ventures announced back in December 2020 that it had executed the BOT contract with Vietnam’s Ministry of Industry and Trade (MOIT).

The BOT contract involves 25 years of concession before the facility is transferred to an entity nominated by MOIT.

A 20% equity portion of the US$2.42 billion project amounts to US$484 million or RM2.19 billion, rough calculations showed.

The ink and precision mould manufacturer, which has been largely loss-making since the pandemic, had RM88.07 million in cash and fixed deposits against RM7.93 million in borrowings.

It also has RM404.15 million in other payables, including RM355.15 million in payables to substantial shareholders Ng Lu Siong @ Ng Soon Huat, Eng Lian (L) Inc (ELLI) and Bukit Asa Sdn Bhd (BASB), which Toyo Ventures intends to settle via the issuance of 295 million five-year irredeemable convertible unsecured loan stocks at RM1.20 apiece for RM354 million.

Ng has a direct stake of 0.9% and an indirect stake of 14% in Toyo Ventures, while ELLI has 8.27% and BASB holds 5.73%, based on Toyo Ventures’ share base of 117.7 million shares. The exercise is yet to be completed.

Shares of Toyo Ventures closed at RM1.30, down one sen, on Thursday, giving it a market capitalisation of RM153.01 million. Year-to-date, the counter has risen nearly 33%.

https://www.theedgemarkets.com/node/658528

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MALAYSIAN INVESTOR
ASEAN 2023
Part 33: Philippines | Infomina Bhd
Infomina bags job worth US$5.4m from Philippine National Bank
Surin Murugiah March 27, 2023 13:10 pm +08

KUALA LUMPUR (March 27): Infomina Bhd has secured a contract worth US$5.4 million (RM23.9 million) from the Philippine National Bank (PNB).

In a bourse filing on Monday (March 27), the company said Infomina Philippines Inc had secured the contract for the provision of technology application and infrastructure operations, maintenance and support services to PNB, over a period of three years from March 1, 2023 to Feb 28, 2026.

It said the contract is expected to contribute positively to earnings of the Infomina group over the period.

At the midday break, Infomina had dipped 0.68% or one sen to RM1.45, with 568,400 shares traded.

https://www.theedgemarkets.com/node/660860

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MALAYSIAN INVESTOR
ASEAN 2023
Part 34: Indonesia | Pecca Group Bhd
Pecca to acquire 80% stake in Indonesian firm for RM1.88 mil
Sufi Muhamad March 10, 2023 21:36 pm +08

KUALA LUMPUR (March 10): Pecca Group Bhd, through its wholly-owned subsidiary Pecca Leather Sdn Bhd, has entered into a shares transfer agreement on March 8 for the acquisition of an 80% equity interest in PT Gemilang Maju Kencana (GMK).

The price tag of the acquisition is Indonesian rupiah 6.4 billion or approximately RM1.88 million, which will be fully satisfied by cash via internal funding.

GMK, similar to Pecca, is also involved in the business of upholstery leather wrapping and seat covers for the automotive industry in Indonesia.

The company is currently jointly-owned by West Java-based carton box trading firm PT Multi Berjaya Asindo (61%), Selangor-based car interior accessories maker CSC Automotive Sdn Bhd (22%), Tan Kim Cheang (16%) and Herny Pramana (1%).

Under the deal, Pecca will become the controlling shareholder of GMK with an 80% stake, whereas Herny and Neo Hwee Leong will take up a 10% stake each.

Herny, a 51-year-old Indonesian woman, is currently a minority shareholder and the head of the finance department of GMK. She will be raising her stake in the company from 1% to 10%.

Neo, a 36-year-old Malaysian, joined GMK as an operational manager in 2017, before he was promoted to general manager in 2021.

It is worth noting that Pecca, Herny and Neo had agreed to inject additional capital into GMK for working capital.

Main Market-listed Pecca said that the acquisition enables the group to enlarge its foreign presence in the automotive industry by entering the Indonesian market.

“Pecca has the competitive advantage of securing new orders with new customers in the Indonesia market,” it said.

“The well-established market presence of GMK will help Pecca accelerate its presence in the OEM (original equipment manufacturer) automotive industry in Indonesia,” the company added.

Barring any unforeseen circumstances, the acquisition is expected to have a positive contribution on the earnings and net assets of Pecca for the financial year ending June 30, 2023.

Pecca’s share price closed 0.5 sen or 0.52% lower at 95 sen, giving its market capitalisation of RM710.68 million.

https://www.theedgemarkets.com/node/658703

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MALAYSIAN INVESTOR
ASEAN 2023
Part 35: Indonesia | JNJ Management Consultants Sdn Bhd
JNJ Group and Indonesia's OK OCE team up on digital entrepreneurial platform
Bernama March 21, 2023 15:59 pm +08

JAKARTA (March 21): JNJ Management Consultants Sdn Bhd (JNJ Group) has partnered with Indonesia-based OK OCE to form an digital entrepreneurial community platform known as Digital Serumpun.

The parties said in a joint statement that the platform would provide expertise and infrastructure to assist the development of Malaysian and Indonesian entrepreneurs in pioneering their respective businesses.

The two parties inked a memorandum of cooperation on Monday here, witnessed by Indonesia’s Tourism and Creative Economy Minister Sandiaga Salahuddin Uno.

Founded in 2017, OK OCE is a social movement that creates job and micro-business opportunities, targeting Indonesian youths.

“We adapt and complement the structure implemented by OK OCE, whereby they focus on social development followed by the community before developing a business.

“While on the Malaysian side, we will bring businesses that have the potential to cooperate with the community before generating a social movement,” said JNJ Group chief executive officer Fauziah Husain.

OK OCE general manager Iim Rusyams said this collaboration would expand efforts in scaling up more ultra-micro entrepreneurs (small business owners) between the two countries through a solid network.

“This of course opens up a wide range of opportunities for ultra-micro entrepreneurs to reach a wider market and create more job opportunities between Malaysia and Indonesia,” he said.

Meanwhile, Sandiaga was optimistic that the agreement would increase the capacity of entrepreneurs, particularly in the creative industry and tourism.

“This partnership will be beneficial for both sides as we provide support for more business and job opportunities. We are also hoping for a swifter revitalisation of the economy,” he said.

JNJ Group is a private consulting company with 15 years of industry experience in guiding local entrepreneurs in Malaysia to expand their businesses.

https://www.theedgemarkets.com/node/660074

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MALAYSIAN INVESTOR
ASEAN 2023
Part 36: Indonesia | Lotte Chemical Titan Holding Bhd
Lotte Chemical’s unit secures loan for US$2.4 bil petrochemical facility in Indonesia
Priyatharisiny Vasu March 21, 2023 18:10 pm +08

KUALA LUMPUR (March 21): A unit of Lotte Chemical Titan Holding Bhd (LCT) has entered into a loan facility of US$2.4 billion (RM10.58 billion) with the Export-Import Bank of Korea, Korea Trade Insurance Corporation and other commercial banks to fund the development works of an integrated petrochemical facility in Indonesia.

In a filing to Bursa Malaysia on Tuesday (March 21), LCT said its subsidiary PT LOTTE Chemical Indonesia (LCI) secured the 12-year term loan for a project known as the Lotte Indonesia New Ethylene (LINE) project.

LCT holds an effective equity interest of 51% in LCI, the owner of the LINE project, while LOTTE Chemical Corp (LCC) holds the remaining 49% and is also the guarantor of the loan facility.

LCT president and chief executive officer Park Hyun Chul said the construction of the LINE project commenced in January 2022, and it is slated for completion in 2025.

“As at Jan 6, 2023, LCC and LCT had completed their portion of equity injection of US$1.6 billion into LCI, representing 40% of the capital structure. The completion of the loan facility for the LINE project marked an important milestone with the finalisation of the remaining capital funding for the project," he said in a separate statement.

He added the LINE project serves as a key strategic expansion for the group to solidify LCT’s position as a top-tier petrochemical company in Southeast Asia.

“The project also provides synergistic advantages to the group’s three existing standalone polyethylene plants which are in the vicinity of the project by reducing feedstock transportation and logistics costs as well as higher operational and cost efficiencies,” added Park.

The LINE project includes the development of a cracker plant that will use naphtha and liquefied petroleum gas as its feedstock to produce, among others, 1,000 kilo tonnes per annum (KTA) of ethylene and 520 KTA of propylene.

Upon completion, the production capacity of the group will increase by 65% to 5,878 KTA from its existing production capacity of 3,568 KTA.

“As Indonesia is a net importer of petrochemical products, the project will enable us to capitalise on the anticipated increase in demand for our products in the country,” said Park.

Shares of LCT closed 0.77% or one sen lower to RM1.29, giving the company a market capitalisation of RM2.98 billion.

https://www.theedgemarkets.com/node/660110

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MALAYSIAN INVESTOR
ASEAN 2023
Part 37: Singapore | IHH Healthcare Bhd
IHH Healthcare invests undisclosed amount in Singapore's digital mental healthcare provider Intellect
Chester Tay March 15, 2023 12:11 pm +08

KUALA LUMPUR (March 15): IHH Healthcare Bhd has made a strategic investment in Singapore's digital mental health company Intellect at an undisclosed price, aiming to further expand the hospital operator’s offerings to its customers.

As a strategic investor, IHH will co-develop and customise digital mental health programmes with Intellect for its patients, corporate clients, and staff, according to a joint statement on Wednesday (March 15).

In a pilot initiative, Intellect’s offerings will be made available first to maternity patients at Gleneagles Hospital in Singapore.

There are also plans to extend Intellect’s solution to corporate clients of IHH Singapore’s iXchange and to IHH employees.

Intellect was founded in 2019, and has accumulated three million subscribers using its platform across 20 countries, including Malaysia, Singapore, India and Hong Kong.

Intellect offers end-to-end mental health services, including telehealth coaching, clinical therapy, psychiatry, self-guided cognitive behavioural therapy-based programmes, urgent distress support, and mental health screening, all done either virtually via the Intellect platform or in-person at an Intellect clinic.

“Mental and physical health are equally important components of total well-being. Mental health issues affect one in every four persons. We are pleased to invest in Intellect, a market leader in this rapidly growing category, to boost their growth and enhance access to millions more people who require support, care or treatment,” said IHH group chief strategy and business development officer Ashok Pandit.

Intellect co-founder and chief executive officer Theodoric Chew said this partnership enables the management to scale up mental healthcare offerings through IHH’s global healthcare network.

“We are truly excited to be partnering with IHH to form what we believe will be a game-changer alliance to effectively transform mental healthcare across Asia,” he said.

Prior to this strategic investment, Intellect raised a US$20 million (RM89.45 million) Series A funding round last year, backed by investors like Tiger Global, Y Combinator, Insignia Ventures, HOF Capital, MS&AD Ventures, Singtel Innov8, K3 Ventures and East Ventures.

Shares in IHH Healthcare were trading unchanged at RM5.89 as at 11.47am, giving the group a market capitalisation of RM51.87 billion.

https://www.theedgemarkets.com/node/659216

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MALAYSIAN INVESTOR
ASEAN 2023
Part 38: Cambodia | Artroniq Bhd
Artroniq wins US$10 mil blockchain R&D contract from Cambodian bank
Sufi Muhamad March 15, 2023 20:50 pm +08

KUALA LUMPUR (March 15): Artroniq Bhd has accepted a letter of award from Cambodian-based Panda Commercial Bank PLC for a research and development (R&D) blockchain based financial services contract valued at US$10 million (RM44.8 million). The contract is for a period of two years, starting from March 15 this year to March 31, 2025

The award pertains to the development of basic blockchains, functional API, web and mobile related solutions applicable for Panda Bank, according to an Artroniq bourse filing.

“The contract will not have any effect on the issued share capital and the substantial shareholders’ shareholdings in Artroniq as the contract does not involve any issuance of new shares of Artroniq,” said the group.

The contract is also not expected to have any material effect on its net assets and gearing for the financial year ending Dec 31, 2023.

“Nevertheless, the contract is expected to contribute positively towards the future earnings of the Artroniq group for the duration of the contract.”

The group made a net profit of RM1.04 million in its fourth quarter ended Dec 31, 2022 from a net loss of RM293, 000 in the same quarter a year earlier (4QFY2021).

Quarterly revenue, however, fell by 75.3% to RM19.45 million from RM78.71 million due to lower contribution from its Information and Computer Technology (ICT) segment.

For 2022, its net profit decreased 76.56% to RM1.13 million from RM4.82 million in 2021, on the back of lower revenue by 46.47% to RM143.22 from RM267.57 million.

Artroniq’s share price closed six sen or 8.96% higher to 73 sen on Wednesday (March 15), giving it a market capitalisation of RM239.66 million.

https://www.theedgemarkets.com/node/659324

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MALAYSIAN INVESTOR
ASEAN 2023
Part 39: Cambodia | Fraser & Neave Holdings Bhd (F&N)
F&N seals exclusive rights for Nestlé's Bear Brand sterilised milk in Cambodia
Bernama March 14, 2023 19:34 pm +08

KUALA LUMPUR (March 14): Fraser & Neave Holdings Bhd (F&N) has secured extended rights from Societe Des Produits Nestlé SA and Nestec SA (Nestlé) as the exclusive manufacturer and distributor of Nestlé’s Bear Brand sterilised milk in Cambodia.

In a statement on Tuesday (March 14), F&N said the group would now manufacture as well as distribute and market the milk products directly to end consumers in Cambodia, effective March 1, 2023 until 2037.

“This contract expansion is part of licence agreements originally granted by Nestlé in 2007 and subsequently renewed in 2015,” it said, adding that the deal further boosted its presence in the Indo-China market.

F&N said that it currently manufactures and distributes the Bear Brand sterilised milk and Bear Brand Gold milk for Thailand and Laos.

“In addition, the group manufactures, promotes, and distributes the Carnation brand in Thailand, Laos and Cambodia, as well as sells Carnation canned milk, ideal evaporated milk, and Milkmaid sweetened condensed milk and sweetened beverage creamer in Malaysia, Brunei and Singapore until 2037,” it said.

F&N chief executive officer Lim Yew Hoe said the expanded term indicated the confidence Nestlé has in F&N and a strategic partnership that would allow both companies to generate synergistic values by leveraging each other’s strengths in this region.

“Together with our newly completed milk and plant-based beverage factory in Wang Muang, Thailand, F&N intends to play a much bigger role in the liquid milk segment.

“We are confident that our expertise in the market and commitment to innovation would spur greater growth in this segment,” he said.

https://www.theedgemarkets.com/node/659126

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MALAYSIAN INVESTOR
WORLD 2023
Part 18: India | Petronas
Petronas offers US$460m for stake in India's NTPC's green arm, say sources
Sarita Chaganti Singh/Reuters March 16, 2023 19:46 pm +08

NEW DELHI (March 16): Malaysia's Petronas has offered 38 billion rupees (US$460 million or RM2 billion) to buy a 20% stake in the green energy arm of India's largest power producer, NTPC, in the first deal of its kind by a state-run firm, three sources told Reuters.

The offer price was higher than the 30 billion rupees NTPC had been expecting when it asked for expressions of interest in NTPC Green Energy (NGEL) last year and was 78% above the second-highest bidder. It values the NGEL at US$2.3 billion.

NTPC and Petronas did not immediately respond to requests for comment. The sources declined to be named as the deal is still being finalised.

The deal was the first time an Indian state-run company has offered a stake in a renewable energy arm and comes as the country's renewables sector is attracting increasing foreign investment.

Renewables are among the country's top five industries for overseas funds this fiscal year, taking a 5% share of all inflows from April to September 2022 against 3.3% in the same period a year earlier, data from India's commerce ministry showed. Petronas outbid other local firms for the stake with an offer of 27.52 rupees per share, one government official, an industry source and a banker said. The second-highest bidder, REC Ltd, offered 15.47 rupees per share, while Indraprastha Gas Ltd (IGL) placed a bid of 6.67 rupees per share, the banker said.

REC and IGL were also not immediately available for comment.

NTPC plans to use the proceeds from the sale to expand its non-fossil businesses. The company has earmarked investments of more than US$30 billion in the next 10 years to raise the share of non-fossil energy in its portfolio to 45% from the present 9.41%. The company has committed to adding 60 gigawatts of renewable energy by 2032 on a total group capacity of 130 gigawatts by that date. NGEL will drive the parent company's non-fossil businesses. India has set a goal to become net-zero by 2070 and has committed to have 50% of its installed electric power capacity from non-fossil fuel-based energy by 2030.

The country targets 500 gigawatts of renewable energy generation by 2030. Renewable energy sources including wind, hydro and biomass, constitute 30% of the country's present installed capacity of 412 gigawatts.

Earlier this month, the CEO of Petronas' clean energy arm told Reuters that India and Australia are its key markets for growth and it expects to tap more financing to meet its ambitious targets.

The Petronas transaction needs to be approved by the federal government.

https://www.theedgemarkets.com/node/659487

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MALAYSIAN INVESTOR
WORLD 2023
Part 19: UK | Gamuda Bhd
Gamuda and partner buy Winchester House London for RM1.39b to turn into best-in-class ESG office space
Izzul Ikram March 27, 2023 18:26 pm +08

KUALA LUMPUR (March 27): Gamuda Bhd, together with its partner Castleforge Partners Ltd — a UK-based real estate private equity investor — has bought the eight-storey commercial building Winchester House London for £257 million (RM1.39 billion).

The construction and property group and its partner, via Venta Belgarum II Ltd Pt (VB II), have signed a sale and purchase agreement with Wessex Winchester Ltd Pt to acquire 100% equity interest in Wessex Winchester Propco Ltd, the owner of the 317,000 sq ft Winchester House. Gamuda's wholly owned Gamuda Land (Labuan) Ltd holds a 75% stake in VB II, while Castleforge’s wholly-owned partnership entity Athelstan Ltd owns the remaining 25%.

Post acquisition, Gamuda said it plans to refurbish and upgrade the property into a best-in-class, top-rated environmentally sustainable ESG office space that caters to global or multinational financial institutions, legal firms, and mega-tech corporations.

“Gamuda intends to dispose of this investment by the fifth year or prior, after locking in strong pre-lease arrangements by quality tenants,” it added, noting that the Winchester House is Deutsche Bank AG's current London headquarters, with its lease due to expire in April 2024.

The acquisition is part of its property development arm Gamuda Land’s quick-turnaround-project (QTP) strategy, which aims to build a regional portfolio of real estate projects with high internal rates of return with investment time frames of five years or less, Gamuda's filing showed. “The QTP strategy is intended to diversify the portfolio, maximise returns on capital, and grow Gamuda Land’s geographical presence beyond Malaysia,” the group said.

According to Gamuda, the group’s outlay for the 75% equity interest in Wessex Winchester Propco via VB II will amount to £52 million, which will be funded via foreign currency-denominated bank borrowings.

Regarding the £257 million purchase consideration, Gamuda said it was arrived at on a willing buyer, willing seller basis, considering market values of comparable assets at £809 per sq ft.

With strong demand for top-class ESG buildings, coupled with an acute lack of supply, Gamuda expects to double its equity investment from the asset upon disposal within five years.

“Acquiring the Winchester House presents a strategic opportunity for Gamuda, as we substantially expand our property development footprint to the Building Research Establishment Environmental Assessment Method (BREEAM) outstanding rate properties, which are few and far between in London.

“It is a compelling site in a highly sought-after location, as this commercial office project is situated in the heart of the City of London, the square mile that is the financial centre of the world and increasingly a mega-technology hub of the world too,” the group added.

The proposed acquisition, which is not subject to the approval of shareholders or any regulatory authority, is expected to be completed by May 2023.

Shares in Gamuda ended seven sen or 1.71% higher at RM4.17 on Monday (March 27), giving the group a market capitalisation of RM11.09 billion.

https://www.theedgemarkets.com/node/660948

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MALAYSIAN INVESTOR
WORLD 2023
Part 20: UK | Gamuda Bhd
DNeX, Riyadh-based Ajlan to "revolusionise" smart cities integration in Saudi Arabia & MENA
By NST Business - March 24, 2023 @ 2:13pm

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) and Ajlan & Bros Holding Group have teamed up to "revolutionise" smart cities integration and large IT projects in Saudi Arabia as well as other countries in the Middle East and North Africa (MENA).

Both companies signed an agreement to establish a joint-venture company for the purpose on Thursday during Prime Minister Datuk Seri Anwar Ibrahim's three-day official visit to the kingdom.

The JV was poised to undertake the business of systems integration in smart cities and large enterprise projects in MENA as well as projects within Ajlan and its subsidiaries, DNeX said today.

Ajlan will be responsible for jointly bidding on Saudi Arabia smart city projects with DNeX, as well as its existing large enterprise projects.

DNeX will be responsible for the design, supply, delivery, installation, testing and commissioning of information and communication technologies (ICT) infrastructure and applications.

DNeX will also provide subsequent maintenance of the ICT infrastructure and applications while providing service delivery management to oversee its project deliverables.

Executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the JV would further cement DNeX's global presence, leveraging Ajlan's strong network of influence to undertake various mega infrastructure projects in Saudi Arabia and MENA markets.

"We will utilise our in-house digital capabilities to drive Saudi Arabia's smart cities projects, riding on our reinforced partnership with Ajlan & Bros Holding.

"This will also enable DNeX to deploy home-grown technologies and facilitate the kingdom's urban transformation projects, catering to the overarching objectives of Saudi Vision 2030," he added.

Through Ajlan, DNeX has been registered as one of the vendors participating in the NEOM project, a planned smart city in Tabuk Province in north-western Saudi Arabia.

"We expect to work closely in growing the capability of the JV with the full support from both DNeX and Ajlan & Bros Holding," Syed Zainal added.

Ajlan, headquartered in Riyadh, is one of the largest private sector conglomerates in the Middle East.

It has businesses and coverage in more than 20 sectors including water, power and healthcare, and employs over 15,000 people in more than 25 countries and across 75 companies.

https://www.nst.com.my/business/2023...n-saudi-arabia

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MALAYSIAN INVESTOR
WORLD 2023
Part 21: China | Bioalpha Holdings Bhd
Bioalpha gets greenlight to develop 21-acre Malaysian Agricultural Hub in China
Syafiqah Salim March 31, 2023 13:18 pm +08

KUALA LUMPUR (March 31): Health supplement company Bioalpha Holdings Bhd has received approval from China’s local authority to develop a 21-acre Malaysian Agricultural Hub in Hainan.

In a statement on Friday (March 31), the group said the initial phase of the hub will focus on the upstream and downstream activities such as formulation, manufacturing and even commercialisation of functional food products using Malaysian indigenous and tropical herbs.

“Within the hub, the planned development of a research and development facility and factory complex on site can further bolster the group’s formulation and manufacturing activities.

“As announced earlier in July 2022, this endeavour will also allow Bioalpha to be eligible for tax incentives and exemptions offered by the local government,” Bioalpha explained.

Bioalpha managing director William Hon said the hub, which will take three to five years to complete, is expected to contribute positively to the group.

“Having received the approval by the authority for our Master Development Plan, we are now working on the next steps in order to get the project to kick off. As part of our strategic focus to grow our presence in Hainan, we have also established our China headquarters there,” he said.

“Besides our involvement to develop the hub, we also supply health foods to customers in Guizhou, China. Leveraging the group’s infrastructure and resources in China, we have ready capacity and are able to facilitate and expedite orders more efficiently,” Hon added.

Bioalpha has been a loss-making company since the financial year ended Dec 31, 2020 (FY2020).

In FY2022, the group widened its net loss to RM46.7 million from RM1.3 million a year earlier as revenue declined to RM35.8 million from RM96.7 million.

“All in all, we are focused on executing our strategic initiatives in China, particularly in Hainan, to capitalise on arising opportunities. To support our plans, we have expanded our headcount and hired new experienced talents in China to accelerate our expansion,” Hon concluded.

At Friday's noon break, Bioalpha's share price was unchanged at 11.5 sen, with a market value of RM133.36 million.

https://www.theedgemarkets.com/node/661600

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MALAYSIAN INVESTOR
WORLD 2023
Part 22: China | MyEG Services Bhd
MyEG top active, rises 7.5% on deal with China customs agency
Isabelle Francis March 31, 2023 10:27 am +08

KUALA LUMPUR (March 31): MyEG Services Bhd's share price rose as much as 7.5% in early trade following a deal with the General Administration of Customs of China (GACC) to jointly provide a full suite of cross-border trade facilitation services that include certificates of origin on MyEG's blockchain platform, Zetrix.

The scope of the agreement covers international exports going into China, and MyEG will, via Zetrix, provide the digital service to connect to China's blockchain platform.

As at 9.45am, MyEG shares stood at 78.5 sen with 75.13 million shares traded.

China (Guangdong) RCEP Malaysia Digital Economy delegation conducts study visit to J&T Express Malaysia

Almost five years since its establishment here in August 2018, J&T Express continues to make an impact on the Malaysian market.

MyEG was also in the news recently after group managing director Wong Thean Soon gradually increased in his stake and a recent share buyback exercise by the group.

In the most recent shareholding changes filing to Bursa Malaysia on March 29, Wong bought five million shares or 0.068% in the e-government service provider via Asia Internet Holdings Sdn Bhd, for 72 sen each.

The direct deal increased Wong’s stake, both direct and indirect, to 30.63%.

The change in interests excludes the 71.27 million shares bought back by the company, which are retained as treasury shares, the filing said.

Wong has recently been acquiring MyEG shares after the counter fell on selling pressure, following a news report that all immigration services and processes will revert to the Immigration Department by 2025, including those being managed by third parties such as MyEG.

The most recent share buyback announced by the company was on March 22, where it bought two million shares at 72.5 sen a piece.

https://www.theedgemarkets.com/node/661573

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MALAYSIAN INVESTOR
WORLD 2023
Part 23: Germany | Pentamaster Corp Bhd
Pentamaster sets up German unit for expansion in Europe
Sufi Muhamad March 30, 2023 18:52 pm +08

KUALA LUMPUR (March 30): Pentamaster Corp Bhd said that its subsidiary Pentamaster Technology (M) Sdn Bhd (PTSB) had in turn established a wholly foreign-owned limited liability company in Germany named Pentamaster Automation (Germany) GmbH (PAG).

In a bourse filing, Pentamaster said that the setting up of PAG is part of the group’s expansion plan to broaden its geographical footprint into Europe.

The group already has distributors and customers in Europe. This marks Pentamaster's fifth international setup, after the US, China, Japan and Singapore, based on its latest annual report.

PAG’s principal activity involves the design and development, production and sales of automated test equipment, factory automation systems and other handling solutions, as well as providing consulting services and related support services.

PAG was incorporated with a share capital of €25,000 (RM120,306) on Wednesday (March 29), in pursuant to the provisions of the German Act on Limited Liability Companies.

Pentamaster said that with the exception of Chuah Choon Bin and Gan Pei Joo being directors of Pentamaster and PTSB, none of the directors and/or substantial shareholders of Pentamaster had any interest in PAG.

Pentamaster closed eight sen or 1.68% higher at RM4.84 a share on Thursday, valuing the group at RM3.45 billion.