Latest news with #ReachTenHoldingsBhd
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.
The Star
3 days ago
- Business
- The Star
Reach Ten declares maiden dividend of 1c per share
Reach Ten managing director Leo Chin KUALA LUMPUR: Reach Ten Holdings Bhd - which was listed on the Main Market of Bursa Malaysia on May 2, 2025 - has announced its first interim dividend of one sen per share, along with its financial results for the first quarter ended March 31, 2025. According to to statement by the group, the post-listing dividend is in line with its dividend policy to distribute up to 30% of its net profit. During the first quarter, the Sarawak-based telecommunications service provider said it recorded a net profit of RM7.12mil on the back of revenue of RM23.05mil, which translates to an earnings per share of 0.89 sen. The reported results cover only two months - February and March 2025 - following the completion of the merger of its subsidiaries on Feb 5, 2025, which is in accordance with Malaysian Financial Reporting Standards. "As such, the revenue and profit solely represent the post-acquisition performance of the consolidated entities," it said in a statement. On a full-quarter basis, revenue and net profit would have been RM28.4mil and RM8.2 mil, respectively, said the group. There are no comparative figures for the corresponding preceding quarter's results as this is only the second interim financial report being announced by the company in compliance with the listing requirements. According to the group, revenue for the quarter was mainly driven by its satellite-based communication networks and services segment, which contributed 63.2% of total revenue. Fibre optic communication networks and services accounted for 21.4%, while telecommunications infrastructure and managed services contributed 15.4%. "We remain confident in the group's growth trajectory, driven by rising demand for digital connectivity, supportive government policies, and ongoing infrastructure expansion. Managing director Leo Chin said the group 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," he said.
New Straits Times
26-05-2025
- Business
- New Straits Times
Eco-Shop slips on second trading day after upbeat debut
KUALA LUMPUR: Eco-Shop Marketing Bhd saw its share price dip in early trade on its second day of listing on the Main Market of Bursa Malaysia, falling 4.17 per cent to RM1.15 as of 10.08am. The counter opened at RM1.19, its intraday high so far and already below last Friday's closing price of RM1.20, before retreating to RM1.15, the morning's low at press time. This came after the discount retailer defied market expectations with a solid debut at the end of last week. The initial public offering (IPO) was priced at RM1.13 per share. With 19.61 million shares changing hands, Eco-Shop was the third most actively traded stock on Bursa Malaysia this morning. At RM1.15 per share, the company's market capitalisation stood at RM6.61 billion. Whether the stock can regain ground remains to be seen, but its weaker showing likely reflects broader market jitters and fragile sentiment amid global uncertainties. Eco-Shop's listing came amid a stretch of subdued IPO debuts, with most counters closing below their offer price on the first day of trade. Its first-day performance bucked a recent trend in which many new Main Market listings struggled to hold above their IPO prices. Between March and May, most Main Market IPOs recorded either negative or modest first-day gains, except for Reach Ten Holdings Bhd and Hi Mobility Bhd, amid cautious investor sentiment. Eco-Shop's IPO, Malaysia's largest in eight months, raised RM974 million in total. The company plans to channel the proceeds into expanding its retail and distribution footprint, repaying borrowings and upgrading its information technology infrastructure. Founded in 2003, Eco-Shop operates 349 outlets across Malaysia as of March 2025, offering everyday items such as snacks, kitchenware and household essentials. The brand is known for its fixed pricing model, RM2.60 in West Malaysia and RM2.80 in East Malaysia, which has resonated with price-sensitive consumers.
The Sun
02-05-2025
- Business
- The Sun
Reach Ten to expand fibre optic link in Sarawak to Miri, Sibu and Bintulu
KUALA LUMPUR: Sarawak-based telecommunications service provider Reach Ten Holdings Bhd is set to expand its fibre optic duct infrastructure in the state to Miri, Sibu and Bintulu over the next three years, tripling its fibre footprint to 767km from 217km currently. Managing director Leo Chin said the company took about 14 to 15 years to build the first 217km of fibre optic duct in Kuching and Samarahan. 'With the IPO proceeds, we will be able to expand beyond Kuching to Sibu, Miri and Bintulu within three years for another 550km of duct infrastructure. 'That is the scale we are referring to. Instead of spending another 14 or 15 years, this time we just need three; we can triple the distance we have,' Chin said at a press conference following the company's listing ceremony today. He said new towers will be located in urbanised areas like Miri, Sibu and Bintulu, which are key commercial and manufacturing hubs, to meet the growing demand for high-speed connectivity. 'These efforts will cater to the immediate connectivity needs and lay the foundation for Sarawak's smart city initiatives, including intelligent traffic systems and digital services,' he added. Chin said Reach Ten's market share in Sarawak's fibre and tower segments is below 1%, but it sees strong growth potential. 'We believe that in three to five years, the fibre business will pick up strongly because we are spending RM60 million over the next three years to expand outside Kuching. So, naturally, we expect to generate significant revenue from that segment,' he said. Currently, 90% of Reach Ten's revenue comes from its satellite segment, which it expects to remain its core business. 'We have to accept the fact that we are operating in Sarawak, with the big landmass and also the challenging terrain; satellite services are still the preferred choice when you talk about providing services to the underserved communities.' Founded in 2005, Reach Ten provides connectivity solutions in Sarawak for businesses, government bodies and the telecommunications industry, with a focus on infrastructure expansion and technological innovation. Reach Ten has been involved in major government-led digital initiatives, including Jendela, Smart and Saluran, ensuring secure, high-speed connectivity throughout the state. 'As Sarawak continues its journey towards becoming a digital economy leader, Reach Ten remains committed to providing the infrastructure and technology necessary for the state's transformation,' Chin said. Reach Ten shares opened at 52 sen each, the same as its IPO price. It closed at 54 sen, 3.85% above the IPO price. The company raised RM104 million from its public issue of 200 million new shares. The listing also includes an offer for sale of 100 million existing shares to selected investors by way of private placement. Of the total proceeds, RM60 million (57.7%) is allocated to expand its existing fibre optic communication networks infrastructure in Kuching and to establish three new fibre optic communication networks infrastructures in Miri, Sibu, and Bintulu. A further RM25. million (24%) will be used for the construction of the additional 100 4G and 5G telecommunication towers across Sarawak – particularly in Miri, Sibu and Bintulu – to support the state government's initiatives to widen internet coverage and connectivity, especially the 4G and 5G coverage in rural areas. Part of the proceeds amounting to RM4.3 million (4.1%) will be used to enhance its satellite-based communication networks and service capability by acquiring additional mobile and fixed satellite terminals, hardware, and software, as well as enhancing its facilities in the teleport. The remainder ill be used for working capital requirements amounting to RM5 million (4.8%); RM1.7 million (1.6%) to repay bank borrowings; and the remaining RM8 million (7.7%) to defray the estimated listing expenses. Based on the enlarged share capital of one billion shares, Reach Ten is expected to have a market capitalisation of RM520 million after listing. M&A Securities Sdn Bhd is the principal adviser, underwriter and placement agent for the IPO exercise.
