“The focus on the financing for the purchase of residential properties, passenger vehicles and lending to small and medium enterprises, has remained a market niche for the Group as it has maintained a large market share in these lending segments despite the still challenging lending market.”
“The Group’s funding and liquidity position has remained healthy with its net loan-to-deposit ratio standing at 93.6% as at the end of June 2017.”
In addition, Vietnam will continue to be on the Public Bank Group’s overseas expansion plan. With the 100% foreign-owned bank license obtained in 2016, the Group has further expanded its business through the opening of 2 new branches in the first half of 2017. As at to date, it has 9 branches and is planning to open 4 more branches in the near term.”
…expects to see significant improvement in business and volume loadings from the mass production of new products from July 2017. The mass production of new products will enable the Group to register a strong recovery in its financial performance for the second half of the FY.
…will continue to focus on escalating up the value chain and riding on the R&D initiatives in new products design and development with our key customer. This initiative is expected to result in the manufacturing of additional new products in year 2017 and 2018.
On 28 November 2016, the Group successfully secured the distributorship for MYTV set-top-box (decoder) in anticipation of digitalisation of the Malaysian television broadcasting in 2018. By then, all households in Malaysia will require the decoders to receive television signals for continued access to Free-to-Air TV channels. This distributorship is anticipated to contribute to Group revenue in the shortto-medium term.
…aims to accomplish what we have set out to achieve by continuing to, among others, (i) leverage on our wide distribution network to improve effectiveness of product sales; (ii) expand our product offerings by leveraging on the intellectual properties across all subsidiaries; (iii) develop and introduce new print and online/digital educational products and materials to the market; (iv) grow the STEM education related offerings via Sasbadi Learning Solutions Sdn Bhd and its subsidiaries; (v) grow the direct sales/multi-level network marketing sales via Mindtech Education; (vi) explore opportunities for tenders under the Ministry of Education Malaysia; and (vii) explore collaboration opportunities for projects that leverage on the competitive strengths.
…strong performance came on the back of increased trading activities across all segments. We are seeing renewed interest especially from foreign funds who, I am pleased to note, are continuing to return to Malaysia’s capital market since the start of the year.
…achieved many milestones in 1H2017. These include the revision to the Tick Rule on Regulated Short Selling and Securities Borrowing and Lending to create a more facilitative trading environment. The Exchange also launched the Mid and Small Cap Research Scheme (MidS) to elevate the profile of mid and small cap PLCs. The first half of the year also witnessed the signing of a Memorandum of Understanding between Bursa Malaysia and the Shanghai Stock Exchange. The agreement allows both exchanges to explore potential ways to improve visibility and accessibility to market participants in Malaysia and China, reaffirming Bursa Malaysia’s status as the gateway for investors in the region.
“Our focus on growing the cider category is showing encouraging results, delivering double-digit growth in the first half. We are also proud of our latest innovation, Guinness Bright, which strengthens our winning portfolio and makes it even more exciting.”
Contraband remains a key industry concern with the continued influx, notably an increase in Peninsular Malaysia, representing a significant revenue loss to both the industry and the Government. The growing demand for contraband is a result of the large price gap between duty-paid and contraband products due to Malaysia’s excise structure, which ranks second highest in the world behind Norway and alongside Singapore.
Harvesting of newly mature fields in the oil palm plantation of the joint venture located in South Sumatera Province, Indonesia has been delayed due to unrest in the villages neighboring the estate. Commencement of harvesting is pending clearance by the relevant authorities. This has resulted in the joint venture suffering losses.
…due to lower demand for cement in the domestic market and lower average net pricing for both cement and readymixed concrete.
The ready-mixed concrete pricing has been under pressure from the prolonged price competition in the cement market and the segment’s margin of contribution was further affected by higher cost of cartage from rising diesel cost…
…more challenging with the prolonged price competition for cement due to lower demand for cement and weak sentiment of the domestic property market. The demand for cement and ready-mixed concrete would largely be driven by demand from the infrastructure and large-scale property projects.
Total property operating expenses was higher mainly due to higher maintenance cost incurred as well as higher provision for doubtful debts.
Manager’s management fee was slightly higher despite lower net property income due to the increased in total asset value. Borrowing cost was higher due to drawdown of additional borrowings for acquisition of investment properties and working capital purposes.
PBT was lower mainly due to higher manufacturing and raw material costs, higher operating expenses and unfavourable impact from foreign exchange rates.
Amid a challenging operating environment where profit margins are impacted by rising raw material costs, the Group will continue to focus on driving business growth through expanding its product range and market expansion as well as further strengthening its cost efficiency programs.
The increase in revenue was mainly attributed to the recoverability of the higher generation costs via the effective implementation of government approved Imbalance Cost Pass-Through (‘ICPT’) mechanism. The ICPT mechanism, a part of the wider regulatory reform called the Incentive Based Regulation (‘IBR’) allows for TNB to be financially neutral from any variations in generation costs and fuel prices.
The higher revenue was mainly contributed by the higher sales generated from existing outlets due to aggressive and extensive promotional campaign launched during FY2017.
During the quarter under review, we have established additional of 4 complex outlets, closed down 1 high street outlet and 1 specialty retail outlet. As of 31 May 2017, we have a total of 107 community pharmacies.
Demand for data backup is being driven by the proliferation of data such as emails, staff and business records, legal documents and more. Compliance with tighter regulations and business continuity requirements have led to the need for companies to safeguard their data more than ever before. As recent events have demonstrated, a safeguard against ransomware is also critical for business continuity.
Beyond the continuous efforts to build on the EDM business to meet the above demands, the Group is preparing to roll out its Transnational (cross border) backup solutions targeted for Singapore, Malaysia and Hong Kong. As announced in June 2017, Kronologi has entered into a strategic collaboration with Singapore Technologies Electronics Limited (“ST Electronics”) to expand in Hong Kong. This will be the second physical point of presence after Singapore for Kronologi, which is catering to the growing demand in Asia for data storage and protection solutions.
Shortage of workers had resulted extra cost to the Group especially in the leather upholstery sofa division which is labour intensive. The leather upholstery sofa division has been recording a declining trend in gross profit margin. The Board notes these economic challenges and does not anticipate the predicament of the shortage of labour to be resolved rapidly in the near future. With the completion of the disposal of SWSISB, this will soften the issue of shortage of workers facing by the Group.
The management is in the process to increase in productivity and investment in technology, thereby reducing reliance on labour-intensive manufacturing practices especially in wood based division.
With the acquisition of ELE, the Group has been diversified to plastic manufacturing industry with a better prospect.
“Automation is the first thing we must work on before we can talk about big data or artificial intelligence. It (automation) is a key thing. Hence, we are working on the automation of our new plant while the old lines will be revamped to improve efficiency … the building of the new plant is not only for expansion but also for transformation. New features such as automation and computerisation will be in place. Our internal target is to complete the automation of our plants by 2020.”
With the new technology, Kossan became the first Malaysian glove manufacturer in the world to be granted the “low dermatitis potential” claim in gloves by the US Food & Drug Administration. The “low derma” gloves already contribute to about 10% of the group’s earnings, said Lim, who expects the figure to jump to over 30% in two years as the patented-technology gloves have a wider area of application.
“That’s very much in progress. Indonesia is probably ahead of Philippines but both are going to be listed. This gives us the currency to look at combining into one AirAsia, which is my ultimate dream. I’ve highlighted to the market that AirAsia is not a company that takes short-term decisions, while the market was telling us to close down the Indonesia and Philippines units. We’re a company that takes a long-term view and we invest for the long term. Not for short-term quarterly profits.”
“I have never seen a potential in my life like there is from China to Malaysia. The market from China to Malaysia … I think people just don’t grasp the size of the opportunity for tourism in this country. It could easily double within the next six to seven years. I expect the China market to move from 8% to 9% of our business currently to about 20% in the next two to three years.”
“We (big construction companies) were looking at the prices these guys were bidding and we were scratching our heads. Some were bidding as much as 30% lower than us! If they think they can do it at those sort of prices, we are more than happy to let them do it. For us, we rather focus on projects that can make money.”
“Without naming names, there are some parties out there that are looking for financing help to do these highway projects. They simply do not have the capacity to do such large projects. There are these so-called agents running around approaching other contractors, looking for help.”
“When your margin is low, you will try to squeeze your suppliers. In the case of these elevated highways, they will try and get better prices from the precast [concrete] boys. But the precast boys have enough work to do, MRT (mass rapid transit) 2, LRT (light rail transit) 3 are keeping them busy. No need to take the risk and prop up these low-margin projects.”
Grab said it has a market share of 95% in third-party taxi-hailing and 71% in private vehicle hailing in Southeast Asia, and that the company will continue to strengthen its already-leading market position and invest in its proprietary mobile payment solution — GrabPay.
“We are delighted to deepen our strategic partnership with Didi and SoftBank. We’re encouraged that these two visionary companies share our optimism for the future of Southeast Asia and its on-demand transportation and payments markets, and recognise that Grab is ideally positioned to capitalise on the massive market opportunities.”
“The collaboration will introduce a world-class e-wallet for Malaysians, and we plan to bring differentiated products for local users.”
The JV seeks to leverage TnG’s existing market presence in Malaysia, with up to 17 million cards in circulation and six million average transactions per day across multiple services such as toll roads, vehicle parking, public transportations and retail outlets.
“As long as CIMB and TnG are concerned, this will primarily be a Malaysian business. We do not have any plans to do this in the region.”
“If you look at Bank Negara Malaysia’s (BNM) rate, the real affordable house, it has to be in the region of RM200,000 and below. That is the level where a first-time housebuyer will be able to get 90% or close to 100% financing, but the supply is not there. You talk to the private sector, their affordable house is RM500,000.”
“Today, you look at all the high-end properties in Kuala Lumpur at night, you can see only 10% of the total units have their lights on. I think this is an unproductive investment of our money in the economy.”