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New Straits Times
29-05-2025
- Business
- New Straits Times
BHIC narrows losses to RM5.2mil, revenue surges in Q1 2025
KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) narrowed its net loss to RM5.2 million in the first quarter to March 31 2025 from RM6.7 million a year ago. BHIC's revenue surged to RM44.5 million from RM19.1 million in the same corresponsing quarter in 2024, underpinned by key defence contracts. "The growth was largely driven by continued progress on the Royal Malaysian Navy's Submarine In-Service Support (ISS) 2 programme," BHIC said today. Its In-Service Support for theRoyal Malaysian Air Force's EC725 helicopters, alongside contracts for the supply, maintenance and training related to the navy's Bofors 40MM L70 gun, are expected to contribute to its financial performance. BHIC said the developments reflect its ongoing efforts to strengthen its position in the defence sector while broadening its revenue base. At the recent Langkawi International Maritime and Aerospace Exhibition 2025, BHIC marked a major milestone by signing strategic Memorandum of Understanding with Airbus Helicopters and framework agreements with PT Dirgantara Indonesia and IPTN North America Inc. "These collaborations aim to boost Malaysia's aerospace and defence capabilities and promote greater regional cooperation. "Our improved performance in Q1 FY2025,with a significant increase in revenue and narrowing of losses, demonstrates that we are moving in the right direction," said BHIC chief executive officer Feroz Razi Ramli. "The momentum, underpinned by ongoing defence contracts and strategic collaborations, reinforces our focus on delivering sustainable growth and long-term value under our #BOLD27 strategy," he added. BHIC remains optimistic yet cautious for 2025. To drive future business growth, the group has introduced #BOLD27 - a three-year strategy (2025-2027) focused on strengthening its core defence business while expanding into selected commercial sectors. The strategy prioritises sustainability, profitability and cash flow, aiming to reinforce BHIC's financial resilience and long-term value creation. "These initiatives form part of #BOLD27, BHIC's strategic drive to elevate regional defence collaboration, aerospace integration and industrial self-sufficiency through meaningful partnerships," it said.
Borneo Post
23-05-2025
- Business
- Borneo Post
Ta Ann's 1QFY25 hurt by timber losses
Ta Ann's 1QFY25 FFB production rose 7.6 per cent per cent y-o-y to 136,800MT. Overhead extraction rate (OER) fell from 19.67 per cent to 19.26 per cent. KUCHING (May 23): Excluding net realised forex gains and minority interests, Ta Ann Holdings Bhd (Ta Ann) kicked off its first quarter of financial year 2025 (1QFY25) with a core profit of RM40 million. The results, down by 4.3 per cent year on year (y-o-y), were slightly below Public Investment Bank Bhd's (PublicInvest Research) expectations, but were within the street's expectations, making up 19 and 22 per cent, respectively. The weaker earnings, down RM41.8 million to RM40 million, were mainly dragged by the timber losses, as it reported a fourth straight quarterly loss of RM5.2 million. 'Sales increased from RM352 million to RM407 million, attributed to higher plantation sales but partially offset by weaker timber sales,' it analysed in its notes. 'Timber revenue tumbled 52 per cent y-o-y to RM28.6 million as log sales sank 53 per cent y-o-y to RM7.5 million while plywood sales nearly halved to RM21.7 million, as bad weather had affected logging activities. Notably, 1QFY25 average log export price enhanced from US$223 per cubic metre (cu m) to US$225 per cu m while plywood price dropped from US$530 per cu m to US$471. Log and plywood export volume tumbled 50.4 and 49.1 per cent, respectively. On the other hand, palm oil sales increased by 29.2 per cent y-o-y to RM377.7 million. 1QFY25 average CPO price surged from RM3,884 per metric tonne (MT) to RM4,825. Meanwhile, Ta Ann's 1QFY25 FFB production rose 7.6 per cent per cent y-o-y to 136,800MT. Overhead extraction rate (OER) fell from 19.67 per cent to 19.26 per cent. Meanwhile, earnings contributions from its subsidiary, Sarawak Plantation Bhd, and joint venture-owned refinery rose 15.5 per cent y-o-y to RM7.6 million. The heavy rainfall in the first two months had affected logging and palm oil activities, PublicInvest Research said. as FFB production was 20 per cent below expectation. 'For FY25, management targets FFB production growth of 16 per cent y-o-y to 770,000MT based on FFB yield of 18MT per ha. 'This year, it plans to replant another 3,000ha. Fertiliser application has reached 25 per cent of the full-year target. Meanwhile, it also targets log production of 180,000 cu m, with 94 per cent coming from natural forest. 'Despite lower log supplies, plywood production is expected to increase from 51,000 cu m to 72,000 cu m, led by increased third-party purchases. The demand for logs remains steady in India, while there is an urgent demand for plywood due to Japan's current low inventory level. 'The company has no forward sales policy in place, hence, we expect the realised CPO prices for the coming quarters to reflect the prevailing level of less than RM4,000 per MT. 'Lastly, management plans to allocate capex of RM56 million for FY25, with RM45 million allocated for plantation and RM11 million for timber, respectively.' financial year first quarter ta ann
BusinessToday
21-05-2025
- Business
- BusinessToday
Kenanga Revises Malaysia's FY GDP Downward To 4.3%
Malaysia's exports surged 16.4% year-on-year in April, marking a four-month high and far exceeding expectations, driven by robust demand for electrical and electronic (E&E) products and stronger shipments to major trade partners such as the US and Singapore, according to a trade report by Kenanga Investment Bank (KIBB). The export growth sharply beat market forecasts (KIBB: 7.2%, consensus: 7.8%) and followed a 6.8% rise in March. However, on a month-on-month (MoM) basis, exports dipped 2.7% following a strong 16.1% jump in March, indicating a cooling in momentum. E&E Products and US Demand Power Growth Exports were buoyed by a 35.4% surge in E&E products, the fastest pace since September 2022, amid a broader global tech upcycle driven by artificial intelligence and new tech product launches. By destination, shipments to the US jumped 45.6%, while exports to Singapore rose 26.1%. There were also rebounds in exports to Japan (6.8%) and China (2.1%), though growth to the EU moderated to 5.8%. By sector, manufacturing exports soared 19.0%, the highest in 31 months. However, this was partially offset by weaker mining exports (-1.3%) and a slower pace in agriculture exports (3.5%). Notably, liquefied natural gas (LNG) exports rebounded 6.7% after four consecutive months of contraction. Imports Rebound Sharply Imports surprised to the upside, rebounding 20.0% year-on-year after a 2.9% decline in March, smashing expectations (KIBB and consensus: 3.3%). The rebound was led by a 46.0% surge in re-exports and a 12.9% recovery in retained imports. Capital goods imports skyrocketed 114.1%, offsetting continued weakness in intermediate (-1.7%) and consumption goods (0.7%). On a monthly basis, imports rose 14.1%, a sharp acceleration from 6.5% in March, defying typical seasonal patterns. Trade Surplus Shrinks Sharply Despite the export gains, Malaysia's trade surplus narrowed drastically to RM5.2 billion, far below KIBB's forecast of RM19.0 billion and the consensus estimate of RM14.7 billion. This was due to the significant rise in imports outpacing export growth. Total trade surged 18.2% year-on-year, the highest in eight months, though MoM growth slowed to 4.8% from March's 11.6%. Outlook: Short-Term Boost, Long-Term Risks Despite the strong April figures, Kenanga has revised Malaysia's 2025 export growth forecast downward to 3.1% (from 5.0%), citing mounting risks in the second half of the year. Key drivers include: A front-loading of exports in Q2 as businesses move to avoid potential US tariffs. Ongoing strength in the global tech sector, particularly in AI and semiconductor-related products. Possible trade diversion amid continued US-China decoupling. However, risks abound, particularly from US policy uncertainty tied to the 90-day pause in President Trump's reciprocal tariff measures, which may end in July. The potential reimposition of tariffs could weigh on global trade, particularly in 2H25. A sluggish recovery in China also adds downside risk. GDP Forecast Cut Following weaker-than-expected Q1 GDP growth (4.4%), Kenanga has revised Malaysia's full-year 2025 GDP forecast to 4.3% from 4.8%. Still, the bank expects robust Q2 trade activity, as shown in April's numbers, to provide some buffer against anticipated headwinds in the latter half of the year. 'April's trade performance reflects strong global demand and pre-tariff frontloading. But sustainability remains in question as geopolitical and macroeconomic risks mount,' the report noted. Related
The Sun
20-05-2025
- Business
- The Sun
M'sia trade in April soars to RM261.9b
PUTRAJAYA: A consistent increase in the global economy, along with the shifts in international demand for Malaysia's goods, resulted in improved trade performance, said Department of Statistics, Malaysia (DoSM). Total trade showing a double-digit 18.2% uptick from RM221.6 billion in the previous year to RM261.9 billion mainly attributable from the growth in imports of 20%, reaching RM128.4 billion and exports 16.4%, reaching RM133.6 billion. On the contrary, trade balance fell by 33% to RM5.2 billion in April 2025 as reported yesterday in DoSM's Malaysia External Trade Statistics Bulletin, April 2025. Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said that Malaysia's export growth was driven by an increase in both domestic exports and re-exports in April 2025. Domestic exports, which accounted for 74.9% of total exports, rose by 9.1% to RM100 billion, while re-exports, making up 25.1% of total exports, expanded by 46% to RM33.5 billion as compared to April 2024. Additionally, imports amounted to RM128.4 billion, an increase of 20% or RM21.4 billion. The trade surplus decreased 33% to RM5.2 billion, the 60th consecutive month of surplus since May 2020. Comparing with March 2025, imports and total trade recorded an increase of 14.1% and 4.8%, respectively. Meanwhile, exports and trade balance showed a decrease of 2.7% and 79.1%, respectively. From the perspective of the commodity group, 136 out of 258 export groups and 136 out of 260 import groups showed an increase as compared to the same month of the previous year. Mohd Uzir also pointed out that higher exports was attributable mainly to the US (+RM6 billion), followed by Singapore (+RM4.8 billion), Mexico (+RM2.5 billion), Taiwan (+RM2.2 billion), Thailand (+RM959.3 million), Australia (+RM634.5 million) and Indonesia (+RM621.5 million). Moreover, higher imports were mainly contributed from the US (+RM9.7 billion), followed by Taiwan (+RM6.8 billion), China (+RM5.1 billion), Mexico (+RM827.8 million), Ecuador (+RM415.3 million), Vietnam (+RM388.8 million) and Kuwait (+RM300.6 million). Commenting further on exports, he said the increase was reflecting the rise in electrical & electronic products (+RM15.8 billion); machinery, equipment & parts (+RM1.5 billion); other manufactures (+RM826.9 million); processed food (+RM771 million); palm oil-based manufactured products (+RM627.7 million); and optical & scientific equipment (+RM621.9 million). Furthermore, the increase in imports was logged for electrical & electronic products (+RM21.5 billion); machinery, equipment & parts (+RM1.6 billion); transport equipment (+RM1 billion); other agriculture (+RM361.3 million); palm oil & palm-based agriculture products (+RM314.6 million); and processed food (+RM268.3 million). Adding to this, Mohd Uzir also underscored the upsurge in imports by end-use which was in accordance with higher demand for capital goods.
New Straits Times
07-05-2025
- Business
- New Straits Times
Malaysia, Kenya explore palm oil processing venture to boost trade
KUALA LUMPUR: Kenya has expressed keen interest in partnering with Malaysia to set up a palm oil processing centre at the Mombasa Industrial Park in Nairobi, as part of efforts to deepen bilateral trade ties and support local employment. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the proposal reflects Kenya's strong intent to grow two-way trade and position itself as a regional hub for palm oil processing and distribution. The proposal was raised during a meeting between Johari and Kenya's Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui, on the second day of Johari's three-day official visit to the East African nation. "I have just met Kenya's trade minister and he stressed that we are Kenya's biggest exporter of palm oil, reaching more than RM5 billion," Johari said. "He proposed that we look at ways to enhance trade between both countries to ensure the trade deficit faced by Kenya does not widen further." In 2024, Malaysia exported RM5.2 billion worth of palm oil and related products to Kenya, accounting for nearly 95 per cent of its total exports to the country. Johari said the proposed palm oil processing centre would not only strengthen Kenya's domestic downstream sector, but also serve as a springboard into the wider East African Community (EAC). The EAC comprises over 330 million people across countries including Uganda, Tanzania and Rwanda. "One of the suggestions was to invite investors involved in the palm oil industry to open a processing centre at the Mombasa Port," he said. "With this, they can see that the economic activities are not limited to just exporting palm oil, it can also create job opportunities for locals in Kenya." He added that Malaysia views Kenya not only as a strategic trade partner, but also as a key entry point to the broader African continent. "Mombasa is a major trade gateway to eight East African countries and this presents a good opportunity for us to scale up our palm oil exports and industrial cooperation," Johari said. Also present at the meeting were Plantation and Commodities Ministry Deputy Secretary General (Commodities) Datuk Razali Mohammad and Malaysian Palm Oil Council chief executive officer Belvinder Sron.
