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The Sun
20-05-2025
- Business
- The Sun
Higher-margin projects drive HE Group's Q1 profit surge
KUALA LUMPUR: Electrical engineering service provider HE Group Bhd posted a 92.6% year-on-year (YoY) growth in net profit for the first quarter ended March 31, 2025 (FY25), rising to RM2.9 million from RM1.5 million in the same quarter last year. This growth was driven by a higher-margin project mix, which resulted in an expanded net profit margin of 9.2%, up from 2.3% in the same quarter last year. Despite a softer revenue of RM31.5 million in Q1 FY25, primarily due to a few projects that were nearing completion, the company's strong profitability performance highlights its ability to adapt and deliver positive results. The power distribution system segment was the key contributor to HE Group's Q1 FY25 revenue accounted for RM14.5 million, or 45.9% of total revenue. The electrical equipment hookup followed this, and the retrofitting division generated RM11.3 million, representing 35.7% of revenue, marking a twofold increase from RM4.4 million in Q1 FY24. The other building systems contributed the remaining portion and works business, which recorded RM5.8 million, or 18.4%. HE Group managing director Haw Chee Seng said for the new financial year, the company faced a volatile operating environment shaped by global factors such as protectionist trade policies, trade tensions, and economic uncertainties. 'Nevertheless, our growing net profit and expanding margins reflect HE Group's resilience and our ability to adapt effectively, ensuring sustained profitability in a complex market landscape. 'Looking ahead, HE Group is well-positioned to benefit from Malaysia's rise as a digital infrastructure hub, which is driving significant investments in data centres. 'With the increasing adoption of cloud computing and artificial intelligence (AI), the country's data centre capacity is expected to double by 2025. 'Moreover, the electrical and electronics (E&E) sector, including the semiconductor industry, is experiencing growth driven by the rapid adoption of technologies like the Internet of Things and AI, coupled with a more stable global trade environment. 'These factors are set to encourage further expansion of multinational semiconductor operations in the region, aligning with HE Group's proven track record in delivering electrical infrastructure for high-tech facilities. 'Additionally, the renewable energy sector is gaining momentum as Malaysia progresses towards a low-carbon economy. 'The growing importance of the Battery Energy Storage Systems (BESS) to support renewable energy sources presents an opportunity for the HE Group. 'With government initiatives accelerating BESS deployment, we are actively exploring large-scale projects where HE Group can leverage its expertise and contribute meaningfully to the country's energy transition,' he said. Barring major disruptions, HE Group expects to sustain positive momentum. 'However, we remain mindful of macroeconomic uncertainties that could influence project timelines and investment decisions. 'In navigating this, HE Group will continue to focus on disciplined cost control, optimising operational efficiency, and strengthening financial resilience to manage risks effectively,' Haw said. HE Group maintains a strong net cash position, with total cash and cash equivalents of RM53.5 million, far exceeding total borrowings of RM1.1 million as of March 31, 2025. Moving forward, HE Group remains focused on delivering value to its stakeholders while overcoming the obstacles associated with the global operating environment. With a strong track record and a strategic focus on high-growth sectors, the company is well positioned to capture emerging opportunities and improve its overall performance. Haw said HE Group will continue to focus on disciplined cost control, optimising operational efficiency, and strengthening financial resilience to manage risks effectively.
New Straits Times
19-05-2025
- Business
- New Straits Times
PNB issues integrated report, gives out record RM14.5bil in income and bonus distribution
KUALA LUMPUR: Permodalan Nasional Bhd (PNB) has delivered a record income and bonus distribution of RM14.5 billion to unitholders across its 18 fixed price (FP) and variable price (VP) funds in 2024. The record performance, the company said, was driven by a positive macroeconomic and capital market environment, along with its continued asset diversification strategy. As a result, its total group net income rose 30.2 per cent, from RM13.04 billion to RM16.97 billion, PNB said its Integrated Report for the year ended Dec 31, 2024 (IR2024) issued today. The report is aimed at providing greater reporting standards and assurance, as well as broadened ESG disclosures. This is in line with its commitment for transparency, sustainable value creation, and alignment with global best practices, the fund said. PNB said it continues to be the preferred asset management company of choice trusted by all Malaysians, with the number of unique account holders and total number of accounts expanded to a record high of 13.1 million and 16.2 million respectively. Consequently, total asset under management (AUM) recovered to RM348.3 billion, up from RM337.0 billion in 2023. Group chairman Raja Tan Sri Arshad Raja Tun Uda said PNB is pleased with the strong performance it achieved in 2024. "Amanah Saham Nasional Bhd (ASNB) distributed a record dividend, benefitting all Malaysians with our flagship fund, Amanah Saham Bumiputra (ASB), distributing a total income of 5.75 sen, the highest over the last five years. "All our 18 FP and VP outperformed their benchmarks, with 11 out of 12 of our VP funds, ranked in the top or second quartile among their respective peer groups. "This performance positively reflects the long-term resilience of PNB in delivering its purpose to uplift the financial lives of Malaysians across generation," he said in a statement today. Moving into 2025, PNB president and group chief executive Datuk Abdul Rahman Ahmad said given the recent geo-political development and fundamental shift in US trade policies, the fund recognised it has to be realistic that the macroeconomic and capital markets will be highly uncertain and volatile for the year ahead. He said to navigate these challenges, PNB will remain steadfast in executing the strategic initiatives across the six pillars that we have developed under the company's LEAP 6 Strategic Plan. "Our focus remains in sustaining the performance of our funds through continued asset diversification strategy as we fulfil our commitment of delivering consistent, competitive returns to our unitholders. "A more pressing challenge now is to get Malaysians to save more and invest with ASNB given shifting spending habits, coupled with pressure on net disposable income, have lowered the propensity of Malaysians to save voluntarily compared to five or 10 years ago. "However, we are optimistic that we can address this by strengthening our sales and distribution capabilities, supported by product innovation, financial literacy programmes, and an expanded distribution platform," he noted. According to PNB, the IR for 2024 provided a wider breath of information that reflects the progress of the company over the past year. This includes PNB's latest initiatives, including the LEAP 6 Strategic Plan that established the target to grow AUM to RM400 billion by 2027, the rebranding of ASNB to re-energise efforts to attract the younger generation, together with the launch of Robo Investment Advisor and 'Celik Madani', as part of ASNB's aggressive strategy to expand the savings of Malaysians. The report also highlighted the substantial progress PNB is making in advancing its sustainability agenda, especially in achieving net-zero emissions at both the enterprise and portfolio levels and advancing the minimum living wage agenda across corporate Malaysia.
Free Malaysia Today
06-05-2025
- Business
- Free Malaysia Today
Hartalega expects Malaysian glove makers to gain US market share
Malaysia's share of the US glove market surged to around 60% in early 2025 from about 46% in 2024, according to Citigroup Inc. KUALA LUMPUR : Despite the threat of high US tariffs, glove maker Hartalega Holdings Bhd said Malaysian makers of the latex products are primed to gain further American market share as Chinese competitors face geopolitical headwinds. 'Escalating tensions between the US and China are creating an opening for Malaysian glove makers to gain ground in America,' Hartalega said in its earnings statement today. 'The fallout 'is likely to provide positive catalyst' for the country's glove makers, such as Hartalega,' the company said. Malaysia is negotiating with the US to bring its tariffs on the Southeast Asian nation down to zero, from the 24% that president Donald Trump pledged to impose. Chinese exporters to the US are grappling with Trump tariffs of 145%. Malaysia's share of the US glove market surged to around 60% in early 2025 from about 46% in 2024, according to a late April report from Citigroup Inc. China's US glove market share dropped to around 5% from 21% in the same period. 'Chinese companies had made 'significant inroads' in the US medical exam gloves market as a result of the pandemic,' it said. Nonetheless, the US market 'will be challenging in the short to medium-term' due to tariffs and competition that will put pressure on prices, particularly amid softer demand in the US during the first half of 2025 following 'earlier front-loading activities,' Hartalega said. 'Global demand has recovered beyond pre-pandemic levels in 2024, and the group anticipates continued healthy growth over the longer term,' the company said. Hartalega's fourth-quarter net income dipped 2.8% to RM14.5 million (US$3.4 million), weighed down by higher operating expenses, according to today's filing. The company said it will 'continue driving automation and digital transformation initiatives to enhance productivity and cost efficiency across all facilities'.
Business Times
06-05-2025
- Business
- Business Times
Hartalega expects Malaysian glove makers to gain US market share
Malaysia is negotiating with the US to bring its tariffs on the nation down to zero [KUALA LUMPUR] Despite the threat of high US tariffs, glove maker Hartalega Holdings said Malaysian makers of the latex products are primed to gain further American market share as Chinese competitors face geopolitical headwinds. Escalating tensions between the US and China are creating an opening for Malaysian glove makers to gain ground in America, Hartalega said in its Tuesday (May 6) earnings statement. The fallout 'is likely to provide positive catalyst' for the country's glove makers such as Hartalega, the company said. Malaysia is negotiating with the US to bring its tariffs on the nation down to zero, from the 24 per cent that US President Donald Trump pledged to impose. Chinese exporters to the US are grappling with Trump tariffs of 145 per cent. Malaysia's share of the US glove market surged to around 60 per cent in early 2025 from about 46 per cent in 2024, according to a late April report from Citigroup China's US glove market share dropped to around 5 per cent from 21 per cent in the same period. Chinese companies had made 'significant inroads' in the US medical exam gloves market as a result of the pandemic, it said. Nonetheless, the US market 'will be challenging in the short to medium term' due to tariffs and competition that will put pressure on prices, particularly amid softer demand in the US during the first half of 2025 following 'earlier front-loading activities,' Hartalega said. 'Global demand has recovered beyond pre-pandemic levels in 2024, and the group anticipates continued healthy growth over the longer term,' the company said. Hartalega's fourth-quarter net income dipped 2.8 per cent to RM14.5 million (S$4.4 million), weighed down by higher operating expenses according to the Tuesday filing. The company said it will 'continue driving automation and digital transformation initiatives to enhance productivity and cost efficiency across all facilities.' BLOOMBERG
