27/01/2025

BIZ & FINANCE MONDAY | JAN 27, 2025

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SCR broadens product range to meet evolving consumer demand PETALING JAYA: Supreme Con solidated Resources Bhd (SCR) is enhancing its product range through various initiatives this year to meet evolving consumer demand. continue to focus on enhancing its business operations. “We will also seek avenues to expand our geographical footprints and evaluate opportunities that can million, boosted by higher gross profit and net impairment gains on trade receivables amounting to RM1.1 million.

contributor, generating RM203.32 million, or 89.59% of total group revenue. Sarawak operations contri buted RM222.9 million, including a significant rise in ad-hoc export revenue from RM1.9 million to RM2.9 million. The group’s gross profit grew by 6.64% to RM25.45 million, supported by a 13.67% revenue increase. However, the gross profit margin narrowed to 11.21% from 11.95%, reflecting a higher pro portion of bulk sales with lower margins on frozen meat. Financial costs rose by RM310,000, attributed to increased interest rates and greater utilisation of the working capital line to fund stock purchases. Despite these challenges, profit after tax improved to RM10.01

nounced its strategic collaboration with MyDigital ID Solutions to establish a blockchain-powered national identity ecosystem, which is aimed at combating online fraud. The top MyEG warrants traded last week include MYEG-C6Z and MYEG C7V. To view the full list of structured warrants available on Bursa Malaysia, visit malaysiawarrants.com.my. Provided for Malaysian residents’ information only. This commentary has not been reviewed by the Securities Commission Malaysia. It is not an offer or recommendation to trade and is not research material. Past performance is not indicative of future performance. You should make your own assessment and seek professional advice. The warrants will not be offered to any US persons. “Together, we will be leveraging on our technical expertise and track record to secure more jobs there. This is in line with our plans to grow our infra structure segment as well. All in all, we believe this partnership will create significant value for all stakeholders as we continue to execute on our growth strategies and also improve our current shareholding mix,” Tee said. PETALING JAYA: James Liew Vun Tak has emerged as a substantial share holder in TCS Group Holdings Bhd after the acquisition of a 11.9% stake from managing director Datuk Tee Chai Seng, the building and infrastructure construction services provider announced. Commenting on the development, Tee said they welcome Liew as TCS’s new strategic long-term shareholder and partner as he brings with him vast experience in the infrastructure construction space with an established track record following his involvement in several major infrastructure and building projects in East Malaysia, including highways and bridges. Therefore, he added, this creates strong synergies for TCS as they look to enhance their presence in East Malaysia. channel where we sell our products through intermediaries who will then resell these products to their respective networks of customers. “Through the indirect distribution channel, we have wholesaler customers such as agents, stockists and distributors who utilise their existing network to sell our products to other wholesalers, retailers and Horeca (hotels, restaurants and cafes). “We also have retailer customers such as supermarkets, hypermarkets, grocery stores and sundry shops, as well as food service operator customers such as Horeca.” SCR’s business is supported by its distribution centres in Kuching and Miri. The distribution centres are equipped with ambient warehousing facilities and cold storage facilities to cater to the storage and distribution of various types of consumer pro ducts. TCS welcomes new strategic shareholder

SCR’s cash and cash equivalents stood at RM14.68 million in FY24, underscoring the group’s robust liquidity position. This solid financial footing ensures the ability to meet short-term obligations while main taining confidence in the group’s growth trajectory. SCR offers comprehensive market access and coverage for consumer products in Sarawak and Sabah. The company distributes both third-party brands and its own range of products, including frozen and chilled food, ambient food and beverage pro ducts, and non-food items. Wee said, “Having a wide distri bution network is key in ensuring that our products reach as many end consumers as possible. As such, we utilise the indirect distribution

The company is securing new local and international agency rights, acquiring other distributors, and driving the export and trading of dairy products. “Simultaneously, we are inten sifying efforts to strengthen our distribution network in Sarawak and Sabah, either through the acquisition of suitable distributors or by establishing an organic distribution network. To support this strategic growth, we will also expand our warehouse capacity to cater to the group’s increasing operational needs, SCR executive chairman and non independent director Datuk Richard Wee Liang Huat said. He said SCR remains optimistic about prospects and outlook and will

add value to our ongoing efforts in business sustain ability as well as business growth,” Wee said in the annual report filed with Bursa Malaysia.

SCR recorded a revenue increase of RM27.3 million to RM226.9 million for the financial year ended Sept 30, 2024 (FY24) from the previous year. The growth was driven by higher festive sales and bulk purchases of frozen meat and processed food products by wholesaler customers, alongside stronger export sales to Myanmar. The frozen and chilled segment remained the largest revenue

assuming Alliance Bank expects M’sia to post firm 2025 GDP growth o Bank cites strong fundamentals and diversified economic structure, with sustained consumer spending and increase in investments

By the chairmanship of Asean for 2025, Kam said, Malaysia is well positioned to enhance its global standing. Asean has consistently proven its resilience and appeal as a leading destination for foreign direct investment (FDI). The shifting pat terns and priorities in global FDI, he added,

OVERALL warrants turnover last week came in at RM530.6 million, representing a 7.5% gain week-on week (w-o-w) from RM493.4 million in the previous week. The main contributor to turnover came from warrants over the Hang Seng Index (HSI), which at RM353 million comprised 66.5% of the overall warrant’s turnover. Turnover for warrants over Malaysian stocks came in after at RM154.7 million, which was at 29% of the total turnover. Notably, there was a slight increase in activity in warrants over Hong Kong stocks, mainly due to increased trading volume in warrants over Alibaba Group. PETALING JAYA: Alliance Bank Malaysia Bhd said Malaysia’s economy is poised for growth in 2025 as domestic demand is likely to strengthen further with sustained consumer spending and ongoing increase in investment activities. “Its strong fundamentals and diversified economic structure, coupled with renewed government focus to spur higher economic growth will help ensure Malaysia’s growth trajectory remains on the uptrend,” it said. The bank expects Malaysia to achieve firm gross domestic product (GDP) growth in 2025 aligning with the government’s projection. Malaysia’s economy in 2024 exceeded expectations with GDP growth for the first nine WARRANTS WATCH

investment is expected to benefit from the improved external environment while the government continues with its expansionary fiscal policy to drive economic

The HSI ended in the green for three out of five market days last week. HSI futures kicked off the week 1.9% higher to 19,965 on Monday and extended the gain to 20,160 on Tuesday, tracking regional positive sentiment following Donald Trump’s inauguration as US president on Monday evening, before retreating on Wednesday to 19,846 (-1.6%) as investors weighed on news of Trump’s hints at new tariffs on Chinese imports. The HSI futures then fell to 19,734 on Thursday before re bounding to 20,142 (+1.9%) on Friday, tracking a rally on Wall Street and the prospect of warmer US-China relations following Trump’s latest speech at the World Economic Forum, which aided sentiment as he voiced optimism about Sino-American relations. Both HSI call and put warrants months at 5.2%, on track to achieve the government’s revised projection of 4.8%-5.3% (from 4%-5% previously) while 2025 growth projection was guided at 4.5%-5.5%, indicating a sustained growth trajectory. Malaysia’s economic growth momentum continues to be under pinned by the robust employment market which has been growing from strength to strength. “We are encouraged by the country’s improving unemploy ment rate of 3.2% and the increasing labour force participation rate of 70.5% in October 2024. This should bode well for Malaysia, given that domestic demand forms the bulk of our economy,” said Alliance Bank group CEO Kellee Kam Chee Khiong ( pic ). Meanwhile, he said, private

particularly the growing focus on digital and renewable energy, are evident in the region. More importantly, Asean’s rising prominence as a major hub for global supply chain underscores its competitive advantage in posi tioning itself as a partner for multinational companies, Kam said. “We are confident the nation’s economy will continue its growth momentum, bolstered by the Madani Economy Framework which reflects the goals to achieve a progressive, inclusive and dynamic economy,” he added.

growth. Third-quarter 2024 capital expenditure increased to a multi-year high growth of 15.3%, signifying the positive impact arising from approved investments in 2021-2023 and various government-led strategic developments. This underlines the robust prospects of an investment upcycle in Malaysia which will continue to provide further tailwinds in 2025, Kam said, adding that key down side risks include slower-than expected recovery in external demand and heightened geo political tensions.

Trading focuses on issues over HSI futures amid volatile Hong Kong market

Top MYEG warrants by volume traded Warrant Volume Issuer Exercise

Expiry date

name

(mil) 39.5 20.3

price

MYEG-C6Z MYEG-C7V MYEG-C6R MYEG-C7X MYEG-C7U

Macquarie Macquarie Maybank

RM0.890 RM0.940 RM0.790 RM0.980 RM0.800

24 Jan 2025 30 Jun 2025 24 Jan 2025 31 Jul 2025 25 Jun 2025

8.9 8.7 8.0

Affin

Maybank

tradable warrants exercisable at a discount to market price. Shares of YTL and YTL Power each fell more than 10% to RM2.12 and RM3.61, respectively On the back of the moves, warrants over YTL Power collectively saw volume traded of 320 million units, where the top traded warrant was YTLPOWR-C77 with over 141 million units traded. Meanwhile, MyEG recently an

garnered investors’ interest last week, including HSI-CWA1 and HSI-PWBR, which were among the top traded warrants by volume. In the local scene, trading was mostly focused in warrants over Gamuda Bhd, MY E.G. Services (MyEG), YTL Corpora tion Bhd and YTL Power, among others. YTL and YTL Power shares fell in active trading on Friday as the companies announced their intention to issue non