24/05/2025

BIZ & FINANCE SATURDAY | MAY 24, 2025

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Eco-Shop targets 15-20% rise in 2025 revenue, Patami

MPOC seeks EC’s clarification on ‘standard risk’ status for Malaysia KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) will request clarification from the European Commission (EC) on its full bench marking methodology used in its assessment on the “standard risk” status given to Malaysia under the European Union Deforestation Regu lation (EUDR). An announcement made by the EC on Thursday has confirmed reports that Malaysia was given a‘standard risk’status under the EUDR country benchmarking system, while other countries with meagre records on forest loss and degradation, including EU member states, were given “low risk” status. MPOC CEO Belvinder Sron said the EC’s decision discredits the whole country’s benchmarking system as the EUDR should encourage genuine progress, especially from countries such as Malaysia that have already shown leadership in sustainable forest management “We will request clarification from EC on its full benchmarking method ology used in its assessment. This will be our top priority. “The ‘standard risk’ status for Malaysia does not recognise at all the progress and achievements made by the Malaysian palm oil industry in reducing deforestation and producing sustainable palm oil for European consumers,” she said in a statement. Belvinder noted that Malaysia has consistently demonstrated a strong and measurable commitment to forest conservation, achieving a significant reduction in deforestation over the past ten years. She said the latest independent satellite data from Satelligence showed Malaysia’s palm oil sector has transformed its environmental foot print for the better, and confirms its leadership in tackling deforestation, while even the older UN data used by the EU highlighted the country’s strong performance “Furthermore, Global Forest Watch provided transparent, accessible, and consistent data, showing that Malaysia retains far more primary forest than many historically industrialised nations, and we are doing better at preserving it,” she said. – Bernama The segment achieved PBT of RM31.8 million in Q1’25, compared to RM36.8 million in Q1’24. The construction segment posted a threefold increase in revenue to RM1.238 billion in Q1’25, up from RM372.5 million in the corresponding quarter last year. PBT soared 170.4% to RM114.5 million in Q1’25. The significant increase in the construction segment’s contribution was primarily fuelled by the accelerated progress of data centre projects. The segment is confident of achieving its replenishment target of between RM4.5 billion and RM6.0 billion for the year as it has to date secured RM2.2 billion of new orders. healthcare

million (47.6%) to expand its distribution centres, RM10.90 million (2.6%) for investment in information technology hardware and software, RM100 million (23.8%) to repay bank borrowings and RM52.7 million (12.6%) for working capital purposes and to defray the cost of the IPO and listing. EcoShop’s Patami has grown at a compounded annual growth rate of 156% over the last three financial years from May 31, 2022 to 2024. The company recently reported Patami growth of 36% year-on-year for the nine months ended Feb 28, 2025. Maybank Investment Bank Bhd is the principal adviser, joint global coordinator, joint bookrunner and sole underwriter for the IPO. UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore branch, are joint global coordinators and Joint bookrunners, while RHB Investment Bank is also a joint bookrunner.

Ng said the company is open to future expansion into the Asean market, although its current focus remains on Malaysia. “The dollar shop segment is still relatively new in Asia. Outside of mature markets like the US and Japan, there’s a lot of room to grow. We’re the first in this segment to list, and if the opportunity arises, we will evaluate it.” Eco Shop made its debut on the Main Market at RM1.25 with a 12 sen premium over its initial public offering (IPO) price of RM1.13, with 25 million shares traded. Eco-Shop closed at RM1.20, up 6.19% from its IPO price, with over 209 million shares changing hands, making it one of the most actively traded counters. The IPO raised RM419.87 million for Eco-Shop, which has allocated RM56.27 million (13.4%) to ac celerate the expansion of its retail footprint nationwide, RM200

Ng noted that about 75% of the company’s products are house brands, many of which are custom packaged in smaller quantities to maintain affordability and variety. “We buy in bulk and break them down into smaller packs – like our sachet drinks – making them more accessible to our customers. Our focus remains on daily essentials and basic home living needs.” To enhance customer ex perience, Ng said, Eco-Shop has refreshed its store image and layout to provide a more comfortable and enjoyable shopping environment. Eco-Shop plans to open 70 new stores annually, including five to six outlets under its Ecoplus brand, a premium retail concept aimed at urban markets and located in shopping malls. Ecoplus offers an expanded range of products beyond the standard RM2.60 price point, with options priced at RM6, RM10 and RM20.

KUALA Eco-Shop Marketing Bhd is targeting growth of 15%–20% in revenue and profit after tax and minority interest (Patami) in 2025, supported by business volume and consumer demand, despite recent price adjustments. Chief financial officer Chong Yew Kai said the company observed no negative reaction when it raised its product entry price from RM2.40 to RM2.60 last month. “In terms of not only revenue but also Patami, we are looking at 15% to 20% of growth year-on-year. Last round we had this price increase in 2022. So similar trends. Things are moving as per our expectation,” he told a press conference after the company’s listing on the Main Market of Bursa Malaysia yesterday. CEO Jessica Ng said the listing marks a new chapter for the household products retailer, enabling it to scale growth and strengthen its market position. “With enhanced capital, we are now better positioned to expand our nationwide footprint, strengthen our warehousing and distribution capabilities, and invest in technology to enhance operations and customer experience – all while staying true to our promise of delivering unbeatable everyday value.” She said Eco-Shop’s business model is built on high volume and scale, which enables it to achieve operational efficiency while keeping prices ultra-affordable. o Company’s share price opens at RM1.25 for 12 sen premium in debut on Main Market of Bursa Malaysia Ű BY HAYATUN RAZAK sunbiz@thesundaily.com LUMPUR:

At Eco-Shop’s listing ceremony yesterday. The company plans to open 70 new stores annually.

PayNet, FAOM in fintech innovation tie-up PETALING JAYA: Payments Network Malaysia Sdn Bhd (PayNet), a payments network and central infrastructure provider, has signed a memorandum of understanding (MoU) with the Fintech Association of Malaysia (FAOM), the country’s financial technology industry body, to collaboratively advance innovation and drive growth within Malaysia’s fintech landscape. industry insights to promote regu latory engagement, regional colla boration and market access for Malaysian fintech players. “This partnership with FAOM is about making it easier for fintechs to turn ideas into real solutions,” PayNet chief marketing officer Gary Yeoh said, adding that the hub gives startups a place to build, test and connect with the ecosystem that powers Malaysia’s financial services. collaborative ecosystem where new innovation can thrive and scale. FAOM will serve as a critical conduit between its members and the hub community, offering valuable path ways for networking, mentorship and participation in joint initiatives involving regulators such as Bank Negara Malaysia and Securities Commission Malaysia.

Sunway delivers strong set of first-quarter results

PETALING JAYA: Sunway Bhd kicked off its financial year ending Dec 31, 2025 (FY25) with a robust performance in the first quarter, recording a 66.8% year-on-year surge in revenue to RM2.367 billion. Profit before tax (PBT) increased 34.2% to RM304.1 million from RM226.7 million in Q1’24. The strong performance was supported by higher contributions across most segments. In the first quarter, the property development segment recorded revenue of RM263.3 million and PBT of RM33.4 million. This compares to revenue of RM287.7 million and PBT of RM38.8 million in the corresponding quarter of last year.

“We are extremely pleased to have signed this MoU with PayNet. This is the first step in an evolving partnership where we can leverage our individual strengths to serve the fintech community,” said FAOM president Anil Singh Gill. “We have worked closely with the team from PayNet and we are confident of delivering value to our membership through this collaboration.”

The MoU marks the set up of PayNet Fintech Hub, a platform to empower fintech startups and foster collaborative opportunities that support the development of inno vative financial technologies and solutions. Through the partnership, PayNet and FAOM will leverage their respective networks, expertise and

“It’s a step towards a more open and innovative ecosystem, where new players can grow and make a real difference,” he said. Through PayNet Fintech Hub, startups gain a direct line to the systems, players and infrastructure powering Malaysia’s financial services. The hub aims to build a more open,