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The Star
a day ago
- Business
- The Star
Malaysia's manufacturing sales rise 4.8% in April
KUALA LUMPUR: Malaysia's manufacturing sector recorded a 4.8 per cent year-on-year increase in sales value to RM160.6 billion in April 2025, according to the Department of Statistics Malaysia (DoSM). Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the growth was mainly driven by the food, beverages and tobacco sub-sector, which continued its double-digit expansion with an 11.1 per cent rise. "This was accompanied by steady growth in the electrical and electronics products, and the non-metallic mineral products, basic metal and fabricated metal products sub-sectors, which expanded by 9.8 per cent and 4.6 per cent, respectively,' he said in a statement. However, on a monthly basis, sales value fell 2.3 per cent from RM164.3 billion in March. Mohd Uzir said export-oriented industries, which made up 70.3 per cent of total sales, saw growth mainly from the manufacture of vegetable and animal oils and fats. Meanwhile, the manufacture of computers, electronics and optical products rose 10.6 per cent, while machinery and equipment increased by 7.9 per cent. Domestic-oriented industries expanded by 3.6 per cent in April, supported by a 10.0 per cent rise in food processing products, 5.9 per cent in basic metals, and 3.7 per cent in fabricated metal products (excluding machinery and equipment). On employment, Mohd Uzir said the sector recorded 2.40 million workers in April, an increase of 1.2 per cent year-on-year. "The growth was largely supported by food, beverages and tobacco (1.9 per cent); non-metallic mineral products, basic metal and fabricated metal products (1.9 per cent); and electrical and electronics products (1.3 per cent),' he said. Salaries and wages paid in April totalled RM8.3 billion, up 2.4 per cent from a year earlier, though they declined 0.9 per cent from RM8.4 billion in March. As a result, sales value per employee rose by 3.6 per cent to RM66,907. Average salaries and wages per employee climbed 1.2 per cent to RM3,460. - Bernama
Malaysian Reserve
22-05-2025
- Business
- Malaysian Reserve
Dutch Lady 1Q profit falls 6% on one-off transition costs, declares 25 sen dividend
DUTCH Lady Milk Industries Bhd posted a 6.1% drop in net profit to RM25.03 million for the first quarter ended March 31, 2025 (1QFY2025), weighed down by RM8.3 million in one-off costs tied to its transition to a new distribution centre. Its operating profit declined 4.1% to RM34.8 million, it told the bourse in a filing today. Revenue rose 2.9% year-on-year to RM373.4 million, supported by higher sales in core liquid milk, infant formula, and new product innovations. The group declared a 25 sen interim dividend, payable June 17. It remains cautiously optimistic but warned of continued margin pressures from forex volatility, rising input costs, and regulatory risks. Dutch Lady shares closed 44 sen higher at RM30.10 today, giving it a market capitalisation of RM1.93 billion. –TMR
New Straits Times
19-05-2025
- Business
- New Straits Times
Keyfield cautiously optimistic for FY2025 amid macroeconomic headwinds
KUALA LUMPUR: Keyfield International Bhd, an offshore support vessel (OSV) provider, is adopting a cautiously optimistic outlook for the financial year ending December 31, 2025 (FY2025), despite a slower-than-usual start to the year and broader macroeconomic uncertainties. Group chief executive officer and executive director Datuk Darren Kee Chit Huei said the company's performance would continue to hinge on fleet size, utilisation rates, and daily charter rates, which are the key metrics that drive both revenue and profitability. "These three factors will determine the revenue of the company as well as the bottom line of the company. For us to increase the revenue, we have to achieve, hopefully, all three of the above," he told Bernama in an interview recently. For the first quarter ended March 31, 2025 (1Q2025), Keyfield International posted a lower net profit of RM20.68 million compared with RM30.30 million in the same period last year, while revenue declined by 18.5 per cent to RM86.75 million from RM106.39 million, mainly due to reduced vessel revenue. The group said revenue from its vessels fell by 10.3 per cent, or RM8.3 million, to RM72.6 million from RM80.9 million year-on-year, while revenue from third-party vessels declined by RM11.4 million (44.7 per cent) to RM14.1 million (1Q2024: RM25.5 million). Kee noted that while FY2024 was a strong year, FY2025 started slowly due to monsoon season disruptions, which typically result in lower vessel utilisation during the first quarter. "We still have several vessels that are working during this period. But, during this first quarter, utilisation is typically low. Not just us. All the vessel companies would encounter this problem," he explained. Despite global uncertainties, including the ongoing tariff war and a slight decline in oil prices, Kee said business operations remained unaffected. "Business is still as usual for us. We do not have anything that is adversely affecting our vessel at the moment," he affirmed, adding that Keyfield International's exposure to overseas income was minimal. Addressing scheduled vessel dry docking in the first quarter, Kee said the company has intentionally chosen this off-peak period to minimise financial impact. However, he acknowledged that the bottleneck at Labuan Shipyard had caused some delays. On geographical deployment, Kee said at the moment 95 per cent were in Malaysia, and the company's vessels were active in Sabah, Sarawak, Kemaman, and the joint development area between Malaysia and Thailand. The company also has vessels operating in India and the Middle East. Recently, Keyfield International's wholly-owned subsidiary Keyfield Offshore Sdn Bhd has also entered into a memorandum of understanding with PT Elnusa Trans Samudera (ETSA) to explore and pursue marine services opportunities, primarily in the oil and gas as well as related industries across Indonesia. Kee revealed that the company has acquired a cable-laying barge set to begin work in Saudi Arabia soon as part of plans to increase international presence. "We should try to aim to increase our presence in the Middle East," he said, naming Saudi Arabia, Kuwait and Qatar as priority markets. On the local offshore support vessel (OSV) sector, Kee pointed to an ageing fleet in the market and Petronas' reported concern over a potential shortage of vessels. "We are lucky. We have several young vessels which will continue to give us the edge," he said, highlighting that many other players have not been investing in new OSVs. Keyfield currently owns 15 vessels, with an average utilisation rate last year of 80.4 per cent. However, for FY2025, Kee anticipates a slightly lower utilisation due to a slow start and dry-docking schedules. "Our contract in hand is about RM420 million as of today," he added. Kee also touched on the company's capital strategy. Keyfield raised RM200 million through a sukuk issuance in December last year, part of a RM1 billion AA3-rated sukuk programme. "We have not fully used up the bond proceeds. At the moment, there is no immediate need to issue another round of sukuk bonds," he said, adding that the company maintains a clean balance sheet with healthy internal cash flow. Kee noted that Keyfield International targets to pay out 20 per cent of its net profit as dividends, as stated in its prospectus. "But last year, our overall payout was around 39 per cent," he added. For the financial year ended Dec 31, 2024 (FY2024), the group declared a fourth interim dividend of three sen per share, bringing its total dividend payout for FY2024 to 11 sen per share. This represents a dividend payout ratio of 38.9 per cent, almost double the company's initial target of a 20 per cent payout ratio. Kee said the group aims to maintain a strong dividend yield, currently close to 6.0 per cent, while also being viewed as a growth stock. Keyfield International is also gradually diversifying into non-oil and gas segments, with a goal for such activities to contribute around 20 per cent of total revenue in the medium term. The newly acquired cable-laying barge in Saudi Arabia marks a move in that direction. "We hope to be able to diversify our income base so that at least 20 per cent of our income base is derived from the non-oil and gas sector," he said. Kee reiterated a "cautiously optimistic" stance on the OSV market, noting that demand for accommodation vessels remains stable due to their critical role in offshore maintenance. "Maintenance work needs to be carried out every year, even when oil prices are down. We are still bullish and optimistic that the demand will continue to be there," he emphasised.
The Star
15-05-2025
- Business
- The Star
Keyfield's 1Q25 net profit drops to RM20.7mil on lower vessel revenue
KUALA LUMPUR: Keyfield International Bhd posted a lower net profit of RM20.68 million for the first quarter ended March 31, 2025 (1Q 2025), compared with RM30.30 million in the same period last year. Revenue declined by 18.5 per cent to RM86.75 million from RM106.39 million, mainly due to reduced vessel revenue. "Revenue from own vessels fell by 10.3 per cent, or RM8.3 million, to RM72.6 million from RM80.9 million year-on-year, while revenue from third-party vessels declined by RM11.4 million (44.7 per cent) to RM14.1 million (1Q2024: RM25.5 million). "The decrease in revenue from our own vessels was mainly due to a lower number of chartered days in 1Q 2025, representing a 44.1 per cent utilisation rate, compared with 67.1 per cent in 1Q 2024,' the company said in a filing with Bursa Malaysia today. It added that the lower utilisation rate in 1Q 2025 was mainly due to four of its vessels undergoing five-yearly special surveys during this period, making them unavailable for charter. Additionally, several chartering projects concluded in late 4Q 2024, and some new projects only began later in 2025, further affecting 1Q utilisation. On prospects, the group remains cautiously optimistic about the outlook for the financial year ending 2025 (FYE 2025) and beyond. "We have been expanding our fleet with additional owned vessels since 2022, which has been a key driver of our revenue and profit growth. "In FYE 2025, we have continued this fleet expansion path while strategically recalibrating our fleet to ensure that it remains relevant to customer needs and in good demand,' it said. Keyfield International also noted that its strong balance sheet, with zero net gearing as of the end of 1Q 2025, position the company well to capitalise on market opportunities as they arise. "We will continue to be on the lookout for additional suitable vessels to support our business growth,' it added. The group declared a first interim dividend of one sen per ordinary share in respect of FYE 2025, amounting to approximately RM8.1 million. The dividend will be paid on June 13, 2025, to shareholders whose names appear in the record of depositors as at May 30, 2025. - Bernama
New Straits Times
09-05-2025
- Business
- New Straits Times
Sharp return of foreign funds, UOB warns volatility amid US policies uncertainty
KUALA LUMPUR: Foreign investors have made a sharp return to the Malaysian market as they turn net buyers of local instruments at RM8.3 billion in April from a net sell of RM1.4 billion in March. But UOB said emerging markets, including Malaysia, are expected to face volatile capital flows amid continued uncertainty over the Trump administration's tariff policies and trade negotiations. UOB said investors are likely to stay selective across asset classes, factoring in country-specific elements such as trade exposure and how economies adapt to the evolving global tariff landscape, with US policy shifts and the performance of the US dollar remaining key influences. "Given fluid global conditions, capital flows will reset as and when an individual country's fundamentals are impacted by new developments, particularly on its real rates and policy differentials," it said today. According to UOB, Malaysia is among the 18 nations that have so far successfully conducted meetings with the US government regarding tariff-related matters. US Treasury Secretary Scott Bessent informed House lawmakers on Tuesday that the US is engaged in discussions with 17 of its 18 key trading partners, with China being the only exception. Meanwhile, UOB said the return of foreign portfolio inflows last month was solely driven by strong purchases of Malaysian debt securities at RM10.2 billion. Foreign investors still sold Malaysian equities for the seventh consecutive month at RM1.9 billion. This came as global market sentiment recovered after US President Donald Trump suspended his reciprocal tariffs for 90 days on April 9 and toned down his criticism on the US Federal Reserve chair during the month. "It was more than enough to offset persistent foreign selling of Malaysian equities for the seventh straight month in April, albeit moderately at RM1.9 billion," it said. Foreign investors ramped up their purchases of Malaysian Government Securities (MGS) in April by RM9.1 billion, the strongest monthly increase since May 2014, compared to just RM1.7 billion in March. In contrast, other debt instruments saw only modest foreign interest, with Government Investment Issues (GII) attracting RM0.6 billion, Malaysia Treasury Bills (including Islamic T-bills) at RM0.5 billion, and private debt securities including private sukuk, at just RM0.002 billion. As a result, foreign holdings of Malaysian government bonds (MGS and GII combined) surged for the second straight month, rising by RM9.7 billion to RM268.1 billion in April, the largest increase since June 2020. According to UOB, this accounts for 21.4 per cent of total government bonds outstanding, up from 20.9 per cent in March, marking a five-month high. Foreign ownership of MGS alone reached a record RM216.8 billion, representing 33.6 per cent of total MGS in circulation.
