21/05/2025

BIZ & FINANCE WEDNESDAY | MAY 21, 2025

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Sports Toto posts higher Q3 revenue, pre-tax profit

RM45m contract for EPCC works on Kulim solar plant PETALING JAYA: Samaiden Group Bhd, a renewable energy specialist, announced that its wholly-owned subsidiary, Samaiden Sdn Bhd (SSB), has accepted a letter of award (LoA) from PAXS Renewables Sdn Bhd to undertake EPCC works for a 9.99MWac large scale solar photovoltaic (LSSPV) power plant in Padang Cina, Kulim, Kedah. Valued at RM45 million, the contract encompasses the complete scope of design, engineering, procurement, cons truction, testing, and commissioning of the LSSPV facility. The project, which was approved by the Energy Commission in December 2024 under the Large Scale Solar 5 (LSS5) programme, reflects Samaiden’s growing presence in Malaysia’s utility-scale solar segment. The project is scheduled to achieve commercial operation by July 12, 2027. Samaiden group managing director Datuk Chow Pui Hee said, “This contract win under LSS5 further validates Samaiden’s capabilities as a trusted solar EPCC partner in Malaysia. It reinforces our commitment to supporting the govern ment’s renewable energy agenda while building long-term value through con sistent project execution and sustainable earnings contributions.” As the group continues to secure strategic wins across Malaysia and the region, Samaiden remains focused on expanding its renewable energy portfolio and delivering consistent, long-term value to its stakeholders. PAXS is a Malaysian company primarily engaged in the installation of solar energy systems and the operation of electricity generation facilities. Its collaboration with Samaiden reflects confidence in the group’s proven track record and technical capabilities in delivering end-to-end RE infrastructure solutions.

o Nine-month results improve too, company declares third interim dividend of 2 sen per share

PETALING JAYA: Sports Toto Bhd (SPToto) reported revenue of RM1.91 billion for the third quarter ended March 31, 2025, a climb of 12.5% over revenue of RM1.69 billion in the previous year’s corresponding quarter. The group registered RM147.5 million pre tax profit, a commendable improvement of 45.7% from the pre-tax profit of RM101.2 million in the corresponding quarter of the previous year. The improved results for the quarter ended March 31, 2025 were mainly due to the strong performance of STM Lottery Sdn Bhd and improved performance of HR Owen Plc. STM Lottery’s current quarter revenue was higher by 20.8% despite the number of draws that remained the same as in the corresponding quarter of the previous year (42 draws). This was primarily driven by an exceptional surge in the accumulated jackpot from the Supreme Toto 6/58 game. Aligned with the higher revenue achieved and further supported by a lower prize payout, its pre-tax profit rose by 45.8% in the current quarter, as compared to the previous corresponding quarter. HR Owen’s current quarter revenue raised by 14% when compared to the previous year’s corresponding quarter mainly attributed to higher sales volumes in both new and used car sectors. Sales from the new marque, Lotus, which is now represented by the company contributed to the revenue increase, while the launches of certain new models also supported the improved performance in this quarter. When converted into ringgit, the revenue growth was only 6.9% due to the unfavourable foreign exchange effect. HR Owen’s pre-tax

profit increased to RM17.9 million from RM11.3 million in the last year same quarter which aligned with the improved revenue attained. For the nine-month period ended March 31, 2025, SPToto reported revenue of RM4.83 billion, an increase of 3.7% over the revenue of RM4.66 billion reported in the previous year’s corresponding period, mainly driven by the both STM Lottery and HR Owen. Pre-tax profit increased 24.8% to RM298.5 million from RM239.1 million in the corresponding nine-month period of the previous year. STM Lottery reported revenue growth of 6%, despite fewer number of draws conducted in the current period under review (123 draws versus 126 draws in the previous year corresponding period). The growth was primarily driven by a sudden surge in ticket sales from the Supreme Toto 6/58 game when its accumulated jackpot grew exceptionally in the period. In tandem with the revenue growth coupled with lower prize payout, its pre-tax profit increased by 23.6% in the period under review. HR Owen reported an increase in revenue of 6.8% compared to the previous year’s corresponding period, supported by optimistic demand from the used car sector as well as contribution from the new marque, Lotus, which is now represented by the company. However, the unfavourable foreign exchange effect resulted in a more modest revenue increase of 2.3% when converted into ringgit. It reported a lower pre-tax loss of RM1.4 million compared to a pre-tax loss of RM4.1 million in the previous year’s corresponding period, mainly attributed to the revenue growth as well as lower finance cost incurred following the

interest rate reduction in the UK. The board has declared a third interim dividend of 2 sen per share, amounting to about RM26.7 million for the financial year ending June 30 2025. The dividend is payable on July 18 and the entitlement date is June 30. With this, the total dividend distribution for the financial period ended March 31, 2025 is about RM80.3 million. The directors remain cautiously optimistic that the group’s business will remain stable and resilient. The number forecast operation (NFO) business is expected to continue its upward trajectory of per draw sales growth driven by favourable consumer spending and continued consumer interest in the jackpot games. Further with regard to the closure of legal NFO outlets in the two northern states (Kedah and Perlis), the directors are concerned with the continued encroachment of illegal operators in these underserved areas. Despite the prevailing uncertainties and global economy headwinds including trade protectionism and the inflationary tariff impact, the directors are confident that the group will continue its lead in terms of the market share in NFO market and the group’s businesses are expected to be encouraging and maintain a positive outlook for the remaining quarter of financial year ending June 30, 2025.

Petronas Chemicals reports Q1 net loss of RM18m as forex weighs

Palm oil prices tipped to recover starting from June

PETALING JAYA: Malaysian palm oil production recorded a notable increase in April, rising by 298,000 tonnes compared to the previous month, the Malaysian Palm Oil Council (MPOC) said. This increase was partly attributed to delayed harvesting activities in early March due to the monsoon season. MPOC said in a statement yesterday that the increase in production in April is likely to be followed by a moderate rise from May to September, mainly due to the high base effect. In line with the rise in production, palm oil stocks also saw an increase of 303,000 tonnes, reaching their highest level in six months. Meanwhile, the accumulation of stocks was primarily driven by subdued export performance in March and April. Sub-Saharan Africa remained the leading destination for Malaysian palm oil exports, with a 24% increase during the first four months of 2025. The Asean region recorded 8% growth, while exports to other regions declined. The vegetable oil and energy

markets have experienced volatility over the past two months, driven by escalating trade tensions between the United States and China, as well as the Organisation of the Petroleum Exporting Countries’ decision to increase crude oil output starting in June. This move has further dampened sentiment in the energy sector. MPOC said palm oil’s price competitiveness in China’s domestic market has improved significantly compared to six months ago. It said palm oil prices have declined by 18% since April, while soybean oil prices have risen by 7%. Looking ahead, palm oil prices are expected to remain in the range of RM3,750 to RM4,050 in May before gradually recovering. From June to September, global vegetable oil import demand is expected to shift in favour of palm oil, limiting further downside pressure on prices. Overall, the global vegetable oil market remains subdued, lacking strong bullish drivers. Weak energy prices continue to weigh on biodiesel margins globally.

KUALA LUMPUR: Petronas Chemicals Group Bhd reported a net loss of RM18 million in the first quarter ended March 31, 2025 (Q1’25) due to unrealised foreign exchange losses, unfavourable net foreign exchange impact from the specialities segment, among others, despite recording a higher revenue of RM7.66 billion. The group achieved a profit of RM668 million and a revenue of RM7.50 billion in Q1’24. In a Bursa Malaysia filing yesterday, Petronas Chemicals said the quarter’s higher revenue was mainly due to higher sales volume, partially offset by the strengthening of the ringgit against the US dollar. It said the reduction in net profit was mainly due to unrealised foreign exchange loss on revaluation of a shareholders loan to a joint operation entity, lower finance income arising from adjustment of timing for payment of trade payables in the preceding quarter and unfavourable net foreign exchange impact from the specialities segment. A higher plant utilisation rate of 94% was recorded compared to 87% in the previous corresponding quarter due to

improved plant performance as well as lower statutory plant turn-around and maintenance activities, mainly from fertilisers and methanol segment, resulting in higher production. On prospects, the group said the results of its operations were primarily influenced by global economic conditions and petrochemical product prices, which have a high correlation to crude oil price, particularly for the olefins and derivatives (O&D) segment, utilisation rate of its production facilities and foreign exchange rate movements. The utilisation of production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply, Petronas Chemicals said “The group will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark,” it said. Petronas Chemicals anticipates product prices for O&D will be impacted by the implications of the US tariffs, additional supply from new capacities and weak downstream demand. “Fertiliser product prices are

forecast to be firm with limited supply from the Middle East amidst seasonal demand from India, Southeast Asia and Australia. “However, ammonia and methanol product prices are forecasted to be soft due to ample supply and persistent weak demand from industrial and gasoline blending sectors,” it added. For specialties, Petronas Chemicals said the group remains cautious in navigating the challenging market conditions, as we anticipate demand uncertainty to persist across most of our end markets. Commenting on the Q1’25 performance, managing director and CEO, Mazuin Ismail said the group’s resilience in navigating the challenging market landscape underscores the strength of its diversified portfolio. “The improvement in earnings before interest, taxes, depreciation, and amortisation reflects our ongoing efforts on operational excellence with commendable plant utilisation rate achieved by our commodities business, despite setbacks in January 2025 that temporarily impacted operations at several plants in Kertih, Kemaman District, Terengganu,”he said. – Bernama