03/09/2024

BIZ & FINANCE TUESDAY | SEP 3, 2024

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Kenanga invests in S’pore fintech firm Helicap

Public Investment Bank upgrades glove sector KUALA LUMPUR: Public Investment Bank Bhd (PIB) is optimistic about the Malaysian glove sector’s recovery trajectory, on the back of higher sales volume and improving average selling prices quarter-on-quarter (q-o-q). In a research note yesterday, the investment bank upgraded its call on the Malaysian glove sector to “overweight” from “neutral”, noting that the sector’s growth is further supported by the ramp-up of new production lines, which indicates an improvement in utilisation rates and a strengthening of operational efficiency. “Recent results from the glove manufacturers under our coverage indicate an uptick in sales volume, driving sequential q-o-q revenue growth. Customers have shown increased acceptance of higher ASPs, on the back of restocking activities on depleting inventories. The industry’s blended ASPs currently stand at US$20-21 (RM86-91) per 1,000 pieces of gloves,” it said. The investment bank anticipates overall raw material price to normalise in the second half of 2024, giving room to sustain operating margin, as natural gas prices are expected to trend downward during the same period. “We observe that the raw material prices, namely nitrile butadiene have been rising albeit slightly, while latex price has dropped since April 2024,” it noted. PIB said the weakening of the US dollar is likely to have minimal impact on the bottom line, as the normalisation of US dollar-quoted raw material costs creates a natural hedge against fluctuations in glove pricing. “Consequently, we do not foresee any significant impact on operating costs or profitability due to currency movements,” it added. – Bernama FOREIGN NET BUYING ON BURSA HITS HIGHEST WEEKLY AMOUNT SINCE MARCH 2016 KUALA LUMPUR: Foreign investors net bought RM1.5 billion in equities in Malaysia last week, said MIDF Amanah Investment Bank Bhd (MIDF). It said foreign investors net bought every day last week, marking the highest weekly net buying amount so far this year and the highest since the week ended March 18, 2016. The top three sectors were financial services of RM1.30 billion, utilities (RM259.7 million) and construction (RM88.7 million). They net sold in technology (– RM60.4 million), transportation and logistics (–RM57.2 million) and industrial products and services (–RM41 million), it said. Meanwhile, local institutions net sold RM1.26 billion last week, the highest since the week ended March 4, 2022. Similarly, local retailers net sold for the second consecutive week, at RM245.4 million. – Bernama DRB-HICOM TO APPEAL AGAINST RM246M NOTICE OF ASSESSMENT FROM IRB KUALA LUMPUR: DRB-Hicom Bhd said it will appeal against – and if required initiate legal proceedings to challenge – the basis and validity of the assessment notice from the Inland Revenue Board (IRB) amounting to RM246.25 million (including penalty) for assessment year 2020. In a filing with Bursa Malaysia yesterday, DRB-Hicom said the notice received by its subsidiary, Hicom Holdings Bhd (HHB) on Friday was raised pursuant to IRB’s decision to treat a gain from the disposal of a long term investment held in a subsidiary as income subject to tax under Section 4(a) of the Income Tax Act 1967 for year of assessment 2020. “HHB is given 30 days from the date of the notice to appeal against the IRB’s decision. Upon consulting its tax counsel and solicitors, HHB is of the view that there are valid legal grounds to defend against the notice,” it added. – Bernama

partnerships and capitalise on the dynamic growth in the region, as well as the rising income and affluence among Southeast Asian investors. Helicap Securities co-founder and CEO David Z Wang said the collaboration represents a significant milestone as it unites Kenanga’s robust local market presence and billions in assets with an extensive client base with Helicap’s powerful, sector-agnostic, data-driven platform and proprietary analytics technology. As a leader in Asia’s private credit space, Helicap is poised to drive meaningful growth in Malaysia, he added. “Our commitment to financial inclusion and innovative investment solutions remains unwavering, as we continue to address the dynamic needs of investors and lenders alike,” Wang said. Since its establishment in 2018, Helicap, through its regulated subsidiaries, has deployed almost S$500 million (RM1.65 billion), offering investment opportunities in Southeast Asia to accredited and institutional investors. As a leading platform operator in Southeast Asia, it has strategically focused its investments primarily on financial companies, leveraging its unique credit screening system and enhanced loan structure to deliver stable and consistent returns.

Kenanga Group managing director Datuk Chay Wai Leong said, “By focusing on digital innovation, we have provided multiple touchpoints to enable our clients to engage with our services more efficiently and effectively. Therefore, our investment into Helicap is a natural progression in our digitalisation journey, as Helicap’s proprietary technology can potentially be embedded into Kenanga’s own lending and investment banking business seamlessly to provide greater loan book transparency and analysis, portfolio and credit risk monitoring and granular-level data to identify nascent opportunities and obtain microeconomic insights.” Kenanga Group’s latest investment builds upon its broader digitalisation initiatives, following its successful investments into Rakuten, CapBay, Tokenize Malaysia and Merchantrade. Kenanga Investors executive director and CEO Datuk Wira Ismitz Matthew De Alwis remarked that their enhanced partnership with Helicap will enable them to tap into its global network as a source of offshore capital as well as to facilitate deal co-origination and syndication efforts in both Singapore and Malaysia. Ultimately, he added, they believe this will provide a strategic base for Kenanga Group to build further cross-border collaborative

PETALING JAYA: Kenanga Investment Bank Bhd is partnering with Singaporean fintech firm Helicap Pte Ltd to advance its digitalisation initiatives. As part of the partnership, Kenanga Group, through a fund managed by its asset and wealth management arm, Kenanga Investors Bhd, has collectively taken a stake of 8% in Helicap. The investment forms Helicap’s Series B funding round, which sees Kenanga Group as lead investor alongside Saison Capital Pte Ltd, the corporate venture capital arm of Credit Saison, one of Japan’s non-bank financial companies that is listed on the Tokyo Stock Exchange. Subsequently, Kenanga Group’s stake will be increased to about 10%, making Kenanga Group the largest institutional investor in Helicap. Helicap, one of the first fintech private investment platforms specialising in the alternative lending space in Southeast Asia, has built its success on a foundation of innovation and technology. Central to its competitive edge is its proprietary credit analytics engine, which stands as the company’s strongest asset. o Initial stake of 8% will be increased to 10%

BR I E F S

VentureTECH, Tokyo bourse to drive Asian IPOs From left: Kenanga Investment Bank group chief financial and operations officer Cheong Boon Kak, Chay, Ismitz Matthew, Wang, Helicap Investments co-founder and chief investment officer Quentin Vanoekel and co-founder and group chief operating officer Jeremy Tan at the signing ceremony for the partnership.

PETALING JAYA: VentureTECH Sdn Bhd is collaborating with Tokyo Stock Exchange Inc (TSE) to support the listing of multinational companies on the Japanese bourse. The partnership marks a significant step towards strengthening cross-border financial ecosystems and enhancing Asian participation in Japan’s capital markets. The collaboration aligns with the establishment of TSE Asia Startup Hub, an initiative by the TSE to attract promising Asian companies for initial public offerings (IPO) in Japan. The hub provides extensive support in business development, fundraising, and IPO preparations, with the goal of increasing the number of cross-border listings on the TSE. VentureTECH will provide support in response to requests from TSE Asia Startup Hub. By fostering stronger relationships between Asian and Japanese companies, the collaboration also aims to enhance Japan’s role as a globally competitive financial centre.

potential Malaysian businesses.” He added: “By providing access to Japan’s dynamic capital markets, we are enabling our local companies to scale faster, attract strategic investment, and elevate their market presence on a global stage. Moreover, this collaboration is a testament to VentureTECH’s vision of empowering Bumiputera entrepreneurs and high-growth industries in Malaysia, facilitating their expansion into international markets. We look forward to working closely with TSE Asia Startup Hub to promote innovation and sustainable economic growth, while further strengthening the ties between Malaysia and Japan.” TSE Asia Startup Hub will begin recruiting eligible companies, with a focus on businesses that exhibit strong connections with Japan or possess significant potential for growth. VentureTECH is committed to providing hands-on support to these companies, from their business development phases through to successful IPO.

TSE Asia Startup Hub was created to recruit and nurture high-potential companies from across Asia, focusing on supporting their journey from growth stage to IPO. The TSE offers guidance to companies interested in expanding their business presence in Japan, provides tailored assistance such as business matching, visibility enhancement, and facilitating connections with Japanese venture capital and corporate investors. VentureTECH CEO Ahmad Redzuan Sidek said, “We are excited to collaborate with the Tokyo Stock Exchange, one of the most prestigious financial bourses in the world. This partnership not only opens new horizons for our local companies but also reinforces our commitment to driving the growth of high