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Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Financial institutions ready to support JS-SEZ investors, say industry leaders
FMT managing director Azeem Abu Bakar (left), head of FDI advisory in the CEO's office at UOB Chiok Sook Yin (second from left), Affin Hwang Investment Bank's head of research Loong Chee Wei (centre), and Deloitte Malaysia executive director Thean Szu Ping during a session at the Nikkei Forum Medini, Johor 2025, co-organised by Iskandar Investment Bhd in Iskandar Puteri, Johor, yesterday. ISKANDAR PUTERI : Financial institutions are prepared to provide end-to-end support for investors in the Johor-Singapore special economic zone (JS-SEZ), offering a full suite of services to facilitate foreign direct investment, say industry leaders. Chiok Sook Yin, head of foreign direct investment advisory in the CEO's office at United Overseas Bank Ltd, said the bank was well-positioned to 'connect the dots' for businesses entering Malaysia. 'Besides having strong network connectivity, we have financial supply chain management solutions that help investors expand local sourcing and support new suppliers that follow (prominent) companies into Malaysia. 'We're also helping lower the barrier to entry for investors and addressing their concerns before they enter the markets they've targeted,' she said during a session at the Nikkei Forum Medini, Johor 2025, co-organised by Iskandar Investment Bhd here today. Chiok was responding to a question from FMT managing director Azeem Abu Bakar, who moderated the session, on the role that financial institutions play in supporting expansion into the JS-SEZ. 'Johor is an up-and-coming hub where we're seeing a lot of cross-border opportunities and businesses. 'What's going to unlock this potential is the financial aspect, and to make things happen here, the money has to come in,' he said. JS-SEZ was formally established in January through an agreement between Malaysia and Singapore to boost economic connectivity between the state and the republic. It aims to attract 100 projects worth RM100 billion and create about 100,000 jobs in high-value sectors such as manufacturing, digital economy, logistics, clean energy, and tourism over the next decade. Chiok noted that JS-SEZ was attracting strong interest not only from Singaporean companies but from those in Europe and North Asia as well. Meanwhile, Affin Hwang Investment Bank's head of research, Loong Chee Wei, said the bank had evolved beyond financing to help connect stakeholders such as state authorities, manufacturers, and supply chain partners. 'We have strategic agreements to collaborate with key sectors and promote investment, including from Japan to Malaysia. 'We also advise our institutional investors and organise trips to Johor to explore opportunities,' he said. Deloitte Malaysia executive director Thean Szu Ping added that while financial institutions played a key role as facilitators, the government was also stepping up efforts to attract investment, especially in high-tech industries. 'For these industries, a special tax rate of 5% is available for up to 15 years. 'There are also additional incentives for capital-intensive industries, which will receive an investment tax allowance instead of a reduced tax rate,' she said.
New Straits Times
02-06-2025
- Business
- New Straits Times
Removal of Biden-era AI diffusion rule positive for Nationgate
KUALA LUMPUR: The US' move to revoke and revise the Biden-era artificial intelligence (AI) diffusion rule is seen as a near-term positive for Nationgate Holdings Bhd. The original rule, which aimed to restrict AI chip exports, was set to take effect on 15 May. Affin Hwang Investment Bank Bhd said the US is also reportedly considering replacing the tiered approach with a global licensing regime and using it as a negotiating tool in trade talks. "As such, the access to AI chips will likely eventually hinge on the respective government-to-government agreements with the US. "We make minimal changes to our financial year 2025 to financial year 2027 (FY25-FY27) earnings per share (EPS) forecasts for housekeeping reasons pending further clarity on the AI chip export rule," it said. Affin Hwang updated its valuation base year to financial year 2026 and raised the 12-month target price to RM1.73, maintaining its target price to earnings ratio (PE) of 19.4 times. The firm also upgraded the stock to a 'Buy' call, following a 43 per cent year-to-date pullback in its share price. Affin Hwang said Nationgate's core net profit of RM78 million for the first quarter of 2025 (1Q25) exceeded expectations, making up 45 per cent of its full-year forecast and 39 per cent of the consensus estimate. Nationgate's performance was driven by higher-than-anticipated deliveries of AI servers.
The Star
07-05-2025
- Business
- The Star
Pan Merchant inks underwriting agreement for ACE Market listing
From left: Pan Merchant Bhd executive director Wong Voon Yoong, Pan Merchant managing director Wong Voon Ten, Affin Hwang Investment Bank Bhd managing director of capital markets Johan Hashim and Affin Hwang head of equity capital markets Arvin Chia. KUALA LUMPUR: Pan Merchant Bhd has signed an underwriting agreement with Affin Hwang Investment Bank Bhd as part of its initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia Securities Bhd. In a statement, the solid-liquid filtration solutions provider said its IPO involves 250.2 million ordinary shares in Pan Merchant — 232.2 million new shares and 18.0 million offer-for-sale shares — representing 27.3% of the enlarged share capital. Of the new shares, 114.5 million will be privately placed to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), while 57.3 million will be allocated to selected investors through private placement. Additionally, 45.8 million new shares will be offered to the Malaysian public through balloting, while 14.6 million shares will be allocated for application by eligible directors, employees, and contributors to the group's success. The 18.0 million offer-for-sale shares will be offered to selected investors through private placement. Pan Merchant managing director Wong Voon Ten said the company is eager to tap into opportunities in the capital market to drive its next phase of growth as it embarks on its IPO and listing journey. 'As we embark on this IPO, we are eager to tap into the opportunities the capital market offers to drive our next phase of growth with our listing status. 'We strongly believe that being listed on Bursa Malaysia will position us with enhanced credibility among customers worldwide for our long-term success and expansion into new regions and industries,' Wong said. Meanwhile, Affin Hwang chief executive officer Nurjesmi Mohd Nashir said: 'Upon listing, Pan Merchant will be the only solid-liquid filtration solutions provider listed on Bursa Malaysia, marking a unique issuer on Bursa Malaysia and reinforcing its position as the largest homegrown solid liquid filtration solution industry player in Malaysia in terms of its revenues.' 'With the group's strong fundamentals, growth prospects, industry experience and niche expertise, we are optimistic that Pan Merchant will garner strong investor interest.' The proceeds from the IPO will mainly be used for capital spending, including buying new machines, equipment, and tools, and upgrading the group's manufacturing plants to boost capacity and efficiency. A portion of the funds will also be allocated for product development, business expansion, working capital and estimated listing expenses. Pan Merchant is expected to be listed on the ACE Market of Bursa Malaysia in the second quarter of 2025. Affin Hwang is the principal adviser, sponsor, sole placement agent, and sole underwriter for the group's IPO exercise.
New Straits Times
07-05-2025
- Business
- New Straits Times
Pan Merchant gears up for ACE Market listing in Q2
KUALA LUMPUR: Pan Merchant Bhd has signed an underwriting agreement with Affin Hwang Investment Bank Bhd as the sole underwriter for the group's initial public offering (IPO) ahead of its ACE Market listing in the second quarter of 2025. The IPO exercise entails 250.2 million ordinary shares in Pan Merchant, comprising 232.2 million new shares and 18.0 million offer-for-sale shares. The total number of shares represents 27.3 per cent of the enlarged share capital. Of the new shares, 114.5 million will be offered to Bumiputera investors and 57.3 million will be allocated to selected investors, both via private placement. A total of 45.8 million new shares will be offered to the Malaysian public via balloting, and 14.6 million new shares will be made available for application by eligible directors, employees and contributors to the group. "We are pleased to have Affin Hwang on board, supporting us with their experience and market insights in our IPO journey," managing director Wong Voon Ten said in a statement today. "As we embark on this IPO, we are eager to tap into the opportunities the capital market offers to drive our next phase of growth with our listing status," he added. Pan Merchant provides filtration solutions for industries such as edible oil refining, sustainable fuel production, food processing and water treatment. Its operations cover Malaysia, Singapore, the Netherlands and the United States, with three manufacturing facilities spanning 4.05 hectares in Ipoh, Perak. Proceeds from the IPO will primarily be used for capital expenditure, including the acquisition of new machinery, equipment, and tools, as well as renovation of the group's manufacturing plants to enhance operational capacity and efficiency. A portion of the funds will also be allocated for product development, business expansion, working capital and estimated listing expenses. Affin Hwang is the principal adviser, sponsor, sole placement agent, and sole underwriter for the group's IPO.
New Straits Times
04-05-2025
- Business
- New Straits Times
LPI Capital faces exposure from Putra Heights gas blast?
KUALA LUMPUR: LPI Capital Bhd's potential exposure to the Putra Heights gas pipeline explosion may be minimal due to an Excess of Loss (XOL) treaty, a research house said, The XOL ensures the reinsurer covers losses above the retention limit for properties and motor vehicles, according to Affin Hwang Investment Bank Bhd. Affin Hwang expects LPI Capital's claims and combined ratios to stabilise in the coming quarters. The research firm also noted that LPI Capital's net profit for the first quarter of 2025 (1Q25) was 3.3 per cent lower compared to the previous year. But this is in line with expectations, with weaker earnings mainly due to significantly higher claims in the insurer's fire and miscellaneous units. Affin Hwang maintained its "Hold" rating on the insurance company with a target price of RM14.20, on a cum-special dividend basis. This is is derived from a price to book value multiple target of 2.3 times on the 2025 book value per share of RM6.19. "We have factored in a lower target multiple on LPI due to the impact of lower subsequent earnings loss of annual investment income from PBB's dividends, leading to a flat net profit in 2026," it adds. Meanwhile, Kenanga Research said LPI Capital has yet to fully realise the synergistic benefits from its acquisition by Public Bank Bhd, despite making significant progress in its fire insurance segment. Kenanga Research said the company has formed a working committee to gradually implement cross-selling strategies, with the integration of agency and branch networks expected by financial year 2026 (FY26). LPI Capital received shareholder approval on April 29 for the sale of its 1.13 per cent stake in Public Bank. The company aims to distribute around 70 per cent of the proceeds as special dividends, while the remainder will be used to expand its investment portfolio. In the financial year 2024 (FY24), dividend income from Public Bank accounted for about RM44 million, or 12 per cent of total earnings. "We opine the disposal of LPI's shares in Public Bank would be from September 2025, after receiving the bank's first interim dividend for financial year 2025 (FY25), yet still ahead of the December 2025 disposal deadline," it said.
