23/05/2025

FRIDAY | MAY 23, 2025

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BIZ & FINANCE

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MSM records PBT of RM8 million for Q1’25

Deleum delivers record net profit, dividend payout KUALA LUMPUR: Oil & gas (O&G) services provider Deleum Bhd yesterday reinforced its commitment to sustainable growth at its 20th Annual General Meeting (AGM), underscoring strategic collaborations, technological innovation and operational excellence as key enablers moving forward. In FY2024, Deleum delivered record breaking financial performance with revenue of RM907.5 million and net profit of RM74.2 million, driven by steady growth in its Power and Machinery segment as well as a strong turnaround in the Oilfield Integrated Services segment. In line with this performance, Deleum paid its highest dividend payout since its listing, amounting to RM37.3 million, affirming its continued commitment to shareholder returns. Having laid a strong operational foundation over the years, Deleum said in a statement that it is transitioning into a growth-focused phase, underpinned by financial strength, synergistic mergers and acquisitions, and a clearly defined roadmap for long-term shareholder value creation. “We have spent the past few years building a strong foundation to grow our business beyond its previous limits,” group CEO Rao Abdullah said. “The group’s strategy of strengthening our core competencies while broadening our service offerings has positioned us well to navigate a dynamic and evolving energy landscape. Deleum has consistently delivered stable and long-term value to its shareholders. “With the strategies now in place, we are confident that this will translate into continued returns and sustainable growth for our shareholders. “We are excited about what lies ahead for Deleum. Our performance in FY2024 marks a new baseline – one that we fully intend to build on as we move forward.” At the AGM yesterday, the group highlighted several key drivers expected to support its strategic growth plan for FY2025. These include the upcoming completion of PT OSA Industries Indonesia acquisition, which is expected to contribute positively in the second half of the year, the conversion of a strong orderbook of more than RM1.6 billion secured through major contract wins in FY2024, and improved performance across all business segments, with all business units expected to be profitable in FY2025. Advancecon bags RM47m sub-contract KUALA LUMPUR: Advancecon Holdings Bhd’s wholly-owned subsidiary, Advancecon Infra Sdn Bhd (AISB), has been appointed as sub-contractor for the RM47.49 million development of the Gerbil Data Centre in Port Dickson, Negeri Sembilan. In a filing with Bursa Malaysia, Advancecon said AISB has accepted the letter of award from Mujur Minat Sdn Bhd on May 21, 2025. AISB will provide earthworks, civil engineering services, and construction materials for Gamuda Bhd’s Gerbil Data Centre project. “The sub-contract will be completed on Aug 30, 2025 from the date of acceptance,” it said. Advancecon said the sub-contract is expected to contribute positively towards the future earnings of the group for the duration of the contract. – Bernama

KUALA LUMPUR: MSM Malaysia Holdings Bhd, the producer of the national refined sugar brand “Gula Prai”, recorded a profit before tax (PBT) of RM8 million in the first quarter of its financial year ending Dec 31, 2025 (1QFY2025), 88% lower compared to PBT recorded in the same quarter last year (1QFY2024) of RM66 million, attributed to lower Average Selling Price (ASP) and lower sales volume, outweighing the gains of lower production costs. Operationally, the group achieved 10% reduction in production cost compared to 1QFY2024, driven by lower NY11 and foreign exchange rates. Revenue for 1QFY2025 stood at RM750 million, 17% lower than RM907 million in 1QFY2024. The decline in revenue was mainly attributable to lower sales volume and a reduced average selling price. The group reported a lower capacity utilisation factor (UF) of 47% in the 1QFY2025, compared to 52% in the corresponding period of 1QFY2024 due to plant shutdown in both refineries but mitigated by consistency in efficiency yield. MSM group CEO Syed Feizal Syed Mohammad said: “The sugar industry is expected to face continued headwinds in 2025, driven by persistently high input costs and volatility in raw sugar prices amid fluctuating global production. “The dumping practices of imported sugar into the country without control have also impacted sales volume and prices. “However, the matter has been raised by the joint local sugar industry with the government authorities for needed anti-dumping actions. “The joint local sugar industry expects the matter to be resolved in ensuring price stability and food security sustainability. “Meanwhile at the global front, we remain vigilant of escalating geopolitical tensions and the ongoing trade war, both of which pose risks to global supply chains, trade flows, and currency stability.” o Sugar producer remains cautious on high production costs and price volatility

A view of skyscrapers and flyover bridges in Jakarta. MSM aims to expand its market presence in several countries, including Indonesia. – AFPPIC

export footprint and help mitigate domestic market volatility,” Syed Feizal said. MSM remains actively engaged with the government to finalise a sustainable pricing mechanism for the domestic retail market and to propose effective measures to regulate imported refined sugar – key initiatives aimed at safeguarding national food security and ensuring the long-term viability of the sugar industry. MSM is listed on the FTSE4Good Bursa Malaysia Index (F4GBM) and FTSE4GOOD Bursa Malaysia Shariah (F4GBMS), having heightened its Environmental, Social and Governance (ESG) initiatives recognised by Russel FTSE UK rating threshold. Since 1964, MSM has firmly established itself as a leading national sugar refinery and ranks among the top 10 refiners globally. MSM’s growth is underpinned by a robust ESG framework fully integrated into the business and operations. MSM is advancing a circular economy through its waste-to-green or 4R initiatives and are actively reducing its carbon footprint. MSM aims to achieve carbon neutrality ahead of 2030.

Operationally, he added they will continue to sweat their assets. For MSM Prai, the goal is to maintain high performance with a UF above 80%, yield targets around 97% and energy efficiency below 1.0 Ts/Tr. “With MSM Johor having stabilised operations, we will focus on ramping up to 45% UF, with a targeted yield of 94% and continued improvements in energy consumption. The completion of Boiler 3 in Johor by late 2025 will further enhance production capacity and operational efficiency,” said Syed Feizal. The group, he added continues to maximise its domestic market and optimise its export presence, supported by steady demand and growing opportunities in the value-added product segment. “We aim to expand our market presence, particularly in China and the Asean region, including Vietnam, Indonesia, Singapore and the Philippines. Our goal is to increase total export volumes to 360,000 MT in 2025, with an emphasis on value added products like liquid sugar and premixes from MSM Johor. “This diversification will strengthen our

ELK-Desa registers 14% increase in revenue for Q4 KUALA LUMPUR: ELK-Desa Resources Bhd a non-bank lender focused in the used-car segment, registered a 14% increase in revenue to RM53.02 million in its financial results for the fourth quarter ended March 31, 2025 compared to RM46.63 million in the corresponding quarter a year ago. RM113.23 million. However, profit before tax decreased by 14% to RM39.39 million from RM46.05 million, mainly due to a 67% increase in impairment allowance and a higher credit loss charge of 6.34% compared to 4.12% previously. Accordingly, net impaired loans ratio increased slightly to 0.60% as at 31 March 2025, as compared to 0.56% as at 31 March 2024. record of depositors of the Company as at June 16, 2025. In addition to the first single tier interim dividend of 2 sen per share which was paid on Dec 18, 2024, the total dividend for the financial year ended March 31, 2025 would be 4.50 sen per share (FY2024: 5 sen).

This represents a dividend payout ratio of approximately 62% of the net profit, which is higher than the dividend policy of 60% set by the Board. With the declaration of the second interim dividend, the board of directors will not recommend any final dividend for the financial year ended March 31, 2025. Executive director and chief financial officer, Teoh Seng Hee said: “ELK-Desa’s performance for FYE2025 was lower than expectations, despite a healthy year-on-year growth of its hire purchase receivables. “Nonetheless, we acknowledge emerging pressures in collections and recovery activities, particularly due to uncertainties stemming from subsidy rationalisation and rising living costs.” Looking ahead to FY2026, he said ELK-Desa remains committed to sustainable growth, focusing on expanding its hire purchase portfolio.

This was mainly driven by higher contributions from both its hire purchase and furniture segments. Profit before tax for the quarter, however, declined by 25% to RM9.8 million from RM13.1 million, largely due to higher impairment allowances in the hire purchase segment. On a cumulative basis, group revenue rose 17% to RM196.68 million from RM167.78 million a year ago. Despite the top-line growth, profit before tax fell 11% to RM43.72 million from RM49.04 million, attributed primarily to higher impairment allowance and increased finance costs. As at March 31, 2025, hire purchase receivables grew by 12% to RM716.43 million from RM641.75 million a year earlier, in line with the Group’s strategy to expand its core hire purchase portfolio. Revenue from this segment increased by 13% to RM128.04 million from

Finance costs rose 34% to RM16.26 million from RM12.13 million in tandem with the increase in borrowings to support hire purchase receivables. Gearing remained at a manageable level of 0.76 times, compared to 0.62 times a year ago. The group’s furniture segment delivered a strong performance in FY2025, with revenue rising 26% to RM68.64 million from RM54.55 million, driven by higher domestic furniture sales, particularly in Sabah and Sarawak. Gross profit margin improved to 35% from 34%, while profit before tax increased to RM4.33 million from RM2.99 million. The board of directors has declared a second single tier interim dividend of 2.50 sen per share in respect of the financial year ended March 31, 2025. The dividend will be paid on June 26, 2025 to the shareholders whose name appear in the