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BusinessToday
3 days ago
- Business
- BusinessToday
Reach Ten Posts RM7.1 Million In Net Profit, Declares Maiden Dividend Post-Listing
Sarawak-based telecommunications company Reach Ten Holdings Bhd has declared its first interim single-tier dividend of one sen per share, amounting to RM10 million, for the financial year ending Dec 31, 2025. The dividend will be paid on July 31, 2025, to shareholders on record as of June 30, 2025. The announcement comes shortly after the company's listing on Bursa Malaysia's Main Market on May 2, and marks its first dividend payout as a public entity. Managing Director Leo Chin said the move aligns with Reach Ten's policy to distribute up to 30% of the company's net profit, reflecting its focus on sustainable shareholder returns. 'With healthy cash and bank balances and fixed deposits of RM63 million, Reach Ten aims to strike a balance between rewarding shareholders and reinvesting for future growth,' Chin noted. Chin shared that for the company's first quarter results for the period ended March 31, 2025 (1Q25), Reach Ten posted a net profit of RM7.1 million on revenue of RM23.1 million, representing two months of post-merger performance under MFRS 3 compliance. On a full-quarter basis, adjusted figures would have stood at RM28.4 million in revenue and RM8.2 million in net profit. Reach Ten's performance was driven primarily by its satellite-based communications segment, which contributed 63.2% of revenue. Fibre optic services and telecom infrastructure accounted for 21.4% and 15.4%, respectively. Chin noted that with broadband coverage in Malaysia's populated areas nearing 97.3%, and growing demand in Sarawak, Reach Ten sees strong momentum ahead. 'We remain confident in our growth trajectory, especially with our strategic focus on underserved markets in Sarawak. 'This, combined with supportive government policies and expanding infrastructure, positions us well to deliver long-term value,' Chin added. Related
New Straits Times
3 days ago
- Business
- New Straits Times
Reach Ten logs RM7.1mil net profit on RM23.1mil revenue in Q1
KUALA LUMPUR: Sarawak-based telecommunications service provider Reach Ten Holdings Bhd (Reach Ten) posted a net profit of RM7.1 million on revenue of RM23.1 million for the first quarter (Q1) ended March 31, 2025. Revenue for the quarter was mainly driven by Reach Ten's satellite-based communication networks and services segment, which contributed 63.2 per cent of total revenue. "Fibre optic communication networks and services accounted for 21.4 per cent, while telecommunications infrastructure and managed services contributed 15.4 per cent," it said in a statement. There are no comparative figures for the corresponding preceding quarter's results as this is the second interim financial report by the company in compliance with the listing requirements. Reach Ten declared a first interim single-tier dividend of 1.0 sen per share for its financial year ending December 31, 2025 (FY25). The payout, totalling RM10.0 million, will be paid on July 21 to shareholders whose names appear on the record of depositors on June 30. Managing director Leo Chin said the maiden post-listing dividend is in line with the company's dividend policy to distribute up to 30 per cent of its net profit, reflecting its commitment to enhancing shareholder value and delivering sustainable returns. "With healthy cash and bank balances, as well as fixed deposits of RM63.0 million, Reach Ten aims to maintain a balanced approach between rewarding shareholders through dividend distributions and retaining sufficient capital to support future growth and strategic initiatives," Lee said. Reach Ten remains optimistic about its business outlook, supported by positive structural trends in Malaysia's telecommunications sector. "Our strategic focus on underserved markets, particularly in Sarawak, positions us well to capture emerging opportunities and deliver long-term value to our shareholders," Chin added.
Borneo Post
3 days ago
- Business
- Borneo Post
Sarawak's Reach Ten posts RM7.1 million for 1QFY25, declares maiden dividend
Looking ahead, Reach Ten said the company remains upbeat about its outlook, supported by sustained growth in Malaysia's telecommunications sector. KUCHING (May 30): Newly listed Sarawakian telecommunications provider Reach Ten Holdings Berhad (Reach Ten) recorded a net profit of RM7.1 million on revenue of RM23.1 million for its first quarter results for the period ended March 31, 2025 (1QFY25). The results only cover February and March, following the completion of its subsidiaries' merger on February 5. For the two-month period, Reach Ten garnered an earnings per share of 0.89 sen. Gross profit stood at RM11.5 million, translating to a gross margin of 49.7 per cent. It also declared its first ever interim single-tier dividend of 1.0 sen per share for the financial year ending December 31, 2025 (FY25). The company in a statement today said the RM10 million payout will be made on July 21, 2025 to shareholders listed in the Record of Depositors as of June 30, 2025. Managing director Leo Chin said the dividend reflects the Company's commitment to deliver shareholder value, in line with its policy to distribute up to 30 per cent of net profit. 'With healthy cash and bank balances, as well as fixed deposits of RM63 million, Reach Ten aims to maintain a balanced approach between rewarding shareholders through dividend distributions and retaining sufficient capital to support future growth and strategic initiatives,' he said. Leo Chin The company said its strong margin was supported by the completion of service scopes under the VSAT broadband project in FY24 and continued extensions of the project this year. 'Revenue for the quarter was mainly driven by its satellite-based communication networks and services segment, which contributed 63.2 per cent of total revenue. 'Fibre optic communication networks and services accounted for 21.4 per cent, while telecommunications infrastructure and managed services contributed 15.4 per cent,' it added. There are no comparative figures from the same period last year as this is the company's second interim financial report following its Main Market listing on May 2. Chin added that the figures reflect only two months of post-merger performance, and that on a full-quarter basis, revenue and net profit would have been RM28.4 million and RM8.2 million respectively. Looking ahead, Reach Ten said the company remains upbeat about its outlook, supported by sustained growth in Malaysia's telecommunications sector. National broadband coverage in populated areas has reached 97.28 per cent, pointing to steady demand for connectivity. Sarawak has also experienced consistent growth, reinforcing the region's long-term potential. 'We remain confident in our growth trajectory, supported by rising demand for digital connectivity, favourable government policies, and continued infrastructure expansion. 'Our focus on underserved markets, especially in Sarawak, positions us well to capture future opportunities and deliver long-term shareholder value,' added Chin.
Malaysian Reserve
07-05-2025
- Automotive
- Malaysian Reserve
Malaysia's general insurance grew 6.9% in 2024
THE nation's general insurance (GI) industry posted a commendable 6.9% year-on-year (YoY) growth in gross written premiums (GWP) in 2024, reaching RM23.1 billion. The growth was primarily driven by a recovery in vehicle sales and sustained activity in infrastructure-related projects. However, rising claims and cost pressures eroded profitability, with underwriting profit declining by 11%. Despite ongoing global economic headwinds — including persistent trade tensions and inflationary pressures — the local insurance sector demonstrated resilience. According to the General Insurance Association of Malaysia (PIAM), growth was particularly strong in the motor, fire, marine, aviation and transit (MAT) segments, supported by renewed domestic demand and industrial expansion aligned with the national economic framework. Motor, Fire Lead, Profitability Under Pressure Motor insurance continued to dominate the GI market, registering a 6.7% increase in premiums, equivalent to RM651.1 million in new business. This was bolstered by a 2.1% rise in new vehicle registrations in 2024, according to the Malaysian Automotive Association (MAA). However, profitability in the segment was squeezed by higher repair costs, increased Sales and Service Tax (SST), and a spike in accident claims. Net claims incurred in the motor segment rose by 18.8% over five years to RM6.5 billion in 2024. Fire insurance, the second-largest premium contributor, expanded by 5.8% or RM258.5 million. The increase was attributed to a 4.9% rise in average premiums, reflecting higher material and reconstruction costs. Despite mounting reinsurance expenses and a rise in weather-related incidents, Fire remained profitable, with a Net Claims Incurred Ratio (NCIR) of 34.1%. Health Insurance Grows Medical and Health Insurance (MHI) saw a 10% jump in premiums last year, even as average premium levels dropped by 12.5%. However, the NCIR in this segment remained elevated at 68.3%, underlining the persistent challenge of medical cost inflation. 'If premium levels are not managed moving forward through industry-wide initiatives, the industry could face future headwinds in sustaining profitability and managing risks within this class,' PIAM said in the statement. Other standout performers included personal accident insurance (+14.8%) and MAT (+14.2%), while the liabilities segment also grew 8.1% due to expanding public and business liability exposures. Notably, the contractor's all-risk and engineering (CARE) segment under the miscellaneous class surged 141.6% over five years, reflecting renewed momentum in infrastructure projects nationwide. Investment Income Cushions Profitability The industry's NCIR rose from 53.7% in 2022 to 57.6% in 2024, largely due to deteriorating motor claims, which made up 60.9% of 2024's net earned premium. Nevertheless, the industry maintained a healthy combined ratio of 93.4%, suggesting continued operational efficiency. Investment income proved crucial, contributing 60% of total operating profits, while net commission ratios stayed stable at 10.4%. Looking ahead, PIAM projects a sustained growth trajectory in 2025, anchored by Malaysia's solid economic fundamentals. 'GI industry remains on a steady growth path,' the statement said, with strategic focus shifting toward sustainable underwriting, electric vehicle (EV) insurance innovation and building resilience against climate-related risks. Bank Negara Malaysia (BNM) has forecast continued GDP growth through 2026, supported by consumer spending, investment and export recovery. However, insurers will need to contend with rising inflation, driven by fuel subsidy reforms and SST expansion, and an expected increase in medical cost inflation from 15% in 2024 to 16.4% in 2025 — significantly above the Asia-Pacific average of 10%. — TMR
The Sun
30-04-2025
- Automotive
- The Sun
PIAM: General insurance industry remains on a steady growth path
KUALA LUMPUR: Malaysia's general insurance (GI) industry remains on a steady growth path despite external uncertainties and inflationary costs, said the General Insurance Association of Malaysia (PIAM). In a statement today, it said 2025 will see continued emphasis on sustainable underwriting, innovation in electric vehicle insurance, and resilience-building against climate risks, as insurers align their strategies with evolving consumer needs and regulatory expectations. 'Malaysia's GI sector is poised for further growth in 2025, driven by economic recovery and increased demand for digital insurance products. 'There is also growing interest in natural catastrophe insurance. Medical cost inflation remains a concern, with projections rising from 15% in 2024 to 16.4% in 2025, significantly above the Asia-Pacific average of 10%,' it said. According to PIAM, Malaysia's GI industry recorded a resilient performance, with gross written premium growing by 6.9% year-on-year (y-o-y) to RM23.1 billion in 2024, driven primarily by the recovery in vehicle sales and continued momentum in infrastructure and liability-related insurance. 'The GI industry remained robust despite global economic headwinds stemming from escalating trade tensions and inflationary pressures,' it said. PIAM noted that motor, fire, marine aviation and transit segments led the premium growth, supported by strong domestic demand and industrial recovery initiatives under the national economic framework. It said motor insurance contributes the largest share of total gross written premium, rising 6.7% to an additional RM651.1 million in premiums against the previous year, underpinned by a 2.1% y-o-y rise in new vehicle registrations, as reported by the Malaysian Automotive Association. 'Meanwhile, fire insurance premiums grew by 5.8%, amounting to RM258.5 million in additional premiums, driven by a 4.9% rise in average premiums – a reflection of higher material and reconstruction costs. 'Nevertheless, the fire business line remains the second-largest line and profitable with net claims incurred ratio at 34.1%, despite rising reinsurance costs and the frequency of weather-related events,' it added. – Bernama
