22/05/2025

BIZ & FINANCE THURSDAY | MAY 22, 2025

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Targeted perks for chip industry in the works

KUALA LUMPUR: Regional clean energy expert, Solarvest Holdings Bhd marked its third consecutive record-breaking year, achieving RM536.8 million revenue growth with an 8% year-on-year (YoY) increase in its fourth quarter and 12 months financial results for the period ended March 31, 2025 (FY25), from RM497 million in the previous financial year (FY24). Meanwhile, the group’s gross profit (GP) jumped 50.8% YoY to RM149.5 million (FY24: RM99.2 million), recording an expanded GP margin of 27.9%, from 20% in FY24. In addition, its profit after tax and non-controlling interest (net profit) recorded a stronger growth momentum, surging 59.2% YoY to RM51.9 million in FY25 from RM32.6 million in FY24. The strong growth trend features a consistent uptrend in net profit margin of 9.7% in FY25, compared to 6.6% in FY24 and 5.4% in FY23. This was primarily driven by higher profitability within its commercial and industrial (C&I) segment, lower solar panel prices, higher contributions from the utility scale solar (LSS) segment, and electricity sales from the group’s three LSS4 plants. The engineering, procurement, construction, and commissioning (EPCC) segment remained the group’s key revenue driver, generating RM459.5 million or 85.6% of total revenue in FY25, compared to RM454 million in FY24. Meanwhile, the group’s sales of electricity business experienced significant expansion, more than doubling its revenue to RM26.4 million or 4.9% of overall revenue in FY25, from RM12.1 million in FY24. Solarvest’s other business activities, which include solar project development, energy commodities trading, and other green energy solutions, also recorded strong He emphasised that Malaysia would continue to advocate global collaboration and dialogue to ensure the country remains relevant in the global supply chain. “We recognise the sovereign right of nations to develop their domestic industries, but we must also stress the importance of global collaboration,” he said. The minister noted that Malaysia has been part of the semiconductor industry since the 1970s and has grown steadily, built strong partnerships, and attracted some of the world’s most renowned companies. He said that last year, Malaysia’s semiconductor sector contributed about US$130 billion (RM575 billion) to national electronics exports and now accounts for 13% of global back end semiconductor output. Meanwhile, at a luncheon with industry leaders, Tengku Zafrul said Malaysia is actively diversifying its markets and has ratified 17 free trade

o Miti drawing up incentives, announcement to coincide with anniversary of launch of National Semiconductor Strategy in July: Tengku Zafrul

SINGAPORE: The Ministry of Investment, Trade and Industry (Miti) is creating targeted incentives aimed at further boosting the growth of the local semiconductor industry, said Minister Tengku Datuk Seri Zafrul Abdul Aziz. He said the announcement would be made in July to mark the first anniversary of the launch of the National Semiconductor Strategy (NSS). “I can’t reveal too much about what we will be announcing, but what I can say is that we are going to continue supporting this industry. “We’ve been engaging with the industry to understand its needs and

priorities. Of course, we know that what it wants is more fiscal support to strengthen the ecosystem, but also the right policy framework,” he said in his keynote address at the Malaysian Investment Development Authority supply chain event held here. The event is part of the ongoing Semicon Southeast Asia (SEA) 2025, the region’s premier platform for the global electronics and semiconductor industry. Tengku Zafrul added that Miti would continue working closely with players in the semiconductor sector as the ministry navigates changes within the industry amid geopolitical uncertainty. already begun supplying Timor-Leste through a direct tender. However, Qatar and other Middle Eastern markets remain challenging due to regulatory differences. “On the one hand, you have countries that are very keen to take advantage of our halal certification process in terms of products. But you can’t forget the fact that the product still remains a pharmaceutical, which means it needs to go through a registration process first before moving on to the halal certification process.” While these countries are interested in halal-certified products, he said they do not automatically accept Malaysia’s Jakim halal certification. “They actually want to conduct an audit – reviewing the dossier and related documentation – so it will take some time before we see any real traction in the Middle East,” he said. In February, Duopharma Biotech became the first Malaysian pharmaceutical company to obtain halal certification from Jakim for its erythropoiesis-stimulating agent product to treat anaemia, adding to the previous milestone of obtaining the first halal certification from Jakim for a cancer drug. Meanwhile, the company also introduced five new generics for breast cancer, heart and kidney patients in FY24. To enable more patients in overseas markets to access medicines produced by Duopharma Biotech, the company continued to pursue more international certifications for its manufacturing facilities. Following an audit by the Health Products Regulatory Authority, Ireland, Duopharma Biotech’s Highly Potent Active Pharmaceutical Ingredients manufacturing plant in Glenmarie, Shah Alam was certified as meeting European Union Good Manufacturing Practice standards.

As Malaysia expands trade pacts, its semiconductor sector is set for steady growth and a stronger role in the global market. – UNSPLASH PIX

Earlier, Tengku Zafrul launched the Malaysia Pavilion at Semicon SEA 2025. The Malaysia External Trade Development Corporation brought over nine Malaysian companies to participate in the event, offering a wide range of products and services tailored to the microelectronics and semiconductor value chain. More than 90 Malaysian companies are participating in this year’s Semicon SEA. – Bernama

agreements (FTA) to date. “The Malaysia-South Korea FTA will be finalised this October. We have resumed FTA negotiations with the EU. Negotiations for FTA upgrades with China and India are also ongoing at the Asean level, where Malaysia is leading the agenda this year as chair,” he said. He added that Malaysia is also advancing negotiations on the Digital Economic Framework Agreement this year.

Duopharma eyes Indonesia for halal product growth

Solarvest posts third straight record-breaking year, FY25 net profit surges to RM51.9 million

growth, rising 74.6% YoY to RM41.7 million or 7.8% of revenue, compared to RM23.9 million in the previous year. The operations and maintenance (O&M) division accounted for the remaining revenue, recording a 33.4% YoY increase to RM9.3 million in FY25, representing 1.7% of total revenue, up from RM7 million in FY24. During the quarter under review, Solarvest’s revenue surged twofold to RM224.9 million, compared to RM96.9 million in the previous year’s corresponding quarter (Q4’24), driven primarily by the active execution of several utility-scale projects under the Corporate Green Power Programme (CGPP). In tandem with a higher revenue base, the group’s net profit grew by 165.7% YoY to RM20.5 million in Q4’25, up from RM7.7 million in Q4’24. Solarvest executive director and group CEO Davis Chong Chun Shiong said, “We are proud to deliver another year of strong financial performance, reinforcing our position as a leading player in the renewable energy sector. However, this is just the beginning, we are confident to reach more than RM2 billion orderbook in FY26, supported by additional LSS5 contracts, anticipated LSS5+ award, as well as active participation in BESS and upcoming LSS6 tenders in Q2 and Q3 of this calendar year. In light of the potential rise in Malaysia’s electricity tariffs in July, we also foresee improved project feasibility under the Corporate Renewable Energy Supply Scheme. This creates compelling opportunities for Solarvest to scale beyond our RM2 billion orderbook target.” “The key drivers of our revenue growth include ongoing EPCC projects under the CGPP and LSS5 programmes. Beyond utility scale projects, C&I segment is also

expected to remain strong, with approximately RM200 million in annual replenishments.” As of March 31, 2025, the group’s unbilled order book stood at RM1,242 million, which will be progressively recognised in the financial years ending March 31, 2026 and 2027. The group also remains focused on expanding its tenderbook, which currently stands at 7.19 GWp, ensuring continued growth through upcoming opportunities and maintaining positive momentum. Solarvest is looking forward to the development of the Community Renewable Energy Aggregation Mechanism (CREAM) which are poised to unlock new growth catalysts for the RE industry. CREAM enables energy companies to source electricity from rooftop solar panels and sell it to both commercial and residential consumers. Additionally, Solarvest is well positioned to leverage its experience as an asset owner, with a solar asset portfolio developed under LSS4, CGPP, and LSS5. The group’s innovative financial solution Powervest Programme has also secured a cumulative capacity of 129 MWp through multiple corporate PPAs, and expected to generate RM50.8 million in annual recurring revenue upon full completion within 12 to 18 months. “While we remain cognisant of the ongoing US tariff developments, we do not foresee any material impact as we operate downstream and maintain a very strong project pipeline. Regarding solar panel supplies, we remain unaffected as we source panels directly from China. Cost-wise, we expect solar panel prices to remain stable due to the prevailing supply-demand imbalance and market oversupply,” Chong said.

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KLANG: Duopharma Biotech Bhd is eyeing Indonesia as a near-term growth market for its halal-certified products as the country prepares to enforce mandatory halal certification for over-the-counter (OTC) medicines by next year. Managing director Leonard Ariff Abdul Shatar said the regulation, originally scheduled to take effect in 2022 or 2023, had been postponed but is now expected to be implemented in 2026 or 2027. ““Indonesia is moving in that direction. In fact, they had a law slated to take effect in 2022 or 2023, requiring all over-the-counter products to be 100% halal. However, the implementation of that legislation has been delayed—possibly until 2026 or 2027. I see this as a viable opening for Duopharma’s products. Personally, I believe we’ll see more traction coming from Indonesia in the near term compared to the Middle East,” he said at a press conference after its AGM yesterday. As at end-2024, he said the Malaysian government contracts accounted for 50% of Duopharma’s revenue, the private sector 42%, and exports 8%. So there’s still a fair amount of headroom (in the export segment). “Regionally, we are seeing positive growth in the sales of consumer healthcare products, as well as generics and biosimilars, and medical devices,” he added. Leonard Ariff said the company does not want to have too much concentration in a single sector. “So, as a result, we de-risk through access to the private sector, and we also de-risk through the export market,” he said. Furthermore, in terms of halal, he said that Duopharma Biotech has