28/05/2025

BIZ & FINANCE WEDNESDAY | MAY 28, 2025

14

PETALING JAYA: Sime Darby Bhd (Sime) reported net profit from continuing operations of RM1.29 billion for the nine-month period ended March 31, 2025 (9M25), a growth of 9.9% from the previous corresponding period. The improved performance was mainly attributable to the higher contribution from the UMW division and a higher one-off gain on disposal of Malaysia Vision Valley land, despite lower profits from the industrial and motors divisions. The group’s revenue for the nine months increased by 8.2% to RM52.3 billion, compared with RM48.3 billion in the previous financial year. For the third quarter ended March 31, 2025 (Q3’25), net profit decreased to RM193 million, while revenue was down by 13.4% at RM16.3 billion. During the quarter under review, the industrial division recorded lower profit before interest and tax (PBIT) of RM221 million, mainly due to reduced profits from the division’s operations in Australasia. Profits in Australasia were impacted by a currency-related parts price adjust ment, unfavourable weather con ditions and a weaker Australian dollar against the ringgit. The motors division reported a reduced PBIT of RM114 million in

Sime Darby’s 9-month net profit improves to RM1.29b

PETALING JAYA: Businesses continue to anticipate a favourable business environment in the second quarter of 2025, supported by a positive confidence indicator of +2.0%, which reflects sustained optimism from the previous quarter of +3.2%, said Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin. Services, construction and industry are the sectors that expect steady business conditions in the second quarter of 2025. “Confidence in the services sector remains positive with a confidence indicator of +6.9%, compared to +13.5% in the previous quarter. Simultaneously, sentiment in the construction sector maintains favourable with +4.6% as against +12.5% in the first quarter of 2025,” said Mohd Uzir. Meanwhile, the industry sector remains optimistic about its business prospects, with the confidence indicator improving to +1.9% from +0.2% in the preceding quarter. In contrast, sentiment in the wholesale and retail trade sector indicates a pessimist condition, with the confidence indicator ¦ 6.7% in the second quarter of 2025 from ¦ 8.1% previously. In the perspective of states’ currency-related parts price adjust ment, the long-term prospects for our industrial division remains positive on the back of robust mining demand,” he said, adding that, across the group, they remain focused on cost discipline, efficient inventory management and operational agility to navigate the current environment. “As a result of our efforts, the reduction in inventories has resulted in a RM1.7 billion improvement to our operating cash flow for the nine months ended 31 March 2025. While the current landscape is undoubtedly tough, our operating cash flow is positive and our balance sheet is strong, underpinned by sustained revenue. These are fundamentals that will see us through during these choppy waters,” said Jeffri. KUALA LUMPUR: Synergy Esco, a Malaysian subsidiary of Hong Kong listed Unity Group Holdings International Ltd, has launched the world’s first light sets certified for carbon credit eligibility. ESG Light, a breakthrough in energy efficiency, consumes only 4.5 watts of power with a 180,000-hour lifespan, with up to 89% in energy savings. “The ESG Light is introduced into digital agriculture via a research initiative between Unity-UPM Sus tainability Research and Development

o Growth of 9.9% from year ago underpinned by better contribution from UMW division, higher gain from land disposal

Q3’25, attributed to lower vehicle sales in most markets, as well as increased competition. For the UMW division, PBIT for the quarter under review was largely contributed by the division’s auto motive business, particularly higher Perodua sales. However, the division saw a decline in PBIT to RM194 million as a result of competitive market conditions. Sime Group CEO Datuk Jeffri Salim Davidson ( pic ) said, “We

continue to face external headwinds, particularly in the motors division with ongoing economic uncertainty and the rise of Chinese automotive brands in-creasingly dominating the market. The consumer segment remains challenging amid the continuing price war and industry overproduction in China.” For the UMW division, he added, Toyota and Perodua continue to perform well in Malaysia. “Despite the impact of the

Malaysian businesses remain optimistic in Q2

business prospects in second quarter 2025, the confidence indicators show mixed performance. The states with optimistic sentiment are Johor (+1.5%), Kedah (+4.3%), Perlis (+3.5%), Terengganu (+18.0%), Kuala Lumpur (+0.9%) and Putrajaya (+3.7%). However, a majority of states showed pessimistic sentiment, namely Kelantan (-7.8%), Malacca (-2.0%), Negeri Sembilan (-1.2%), Pahang (- 4.5%), Penang (-5.1%), Perak (-6.3%), Selangor (-1.2%), Sabah (-0.3%), Sarawak (-2.9%) and Labuan (-3.9%). Looking ahead to the period of April to September, the overall business outlook continues to reflect positive sentiment with a net balance of +10.9%, compared to +11.9% in the previous period. Sentiment in the services sector remains sturdy, maintaining a net balance of +18.3%, consistent with the previous quarter. The construction sector projects an optimistic outlook with a net balance of +13.1% as against +12.5% for the corresponding period. Similarly, the industry sector anticipates encouraging business conditions with the confi dence indicator increases to +12.0% from +6.8% previously. Conversely, the wholesale and retail trade sector shows a subdued level of confidence on business expectations over the next six months. Centre and Shine Plus Group Sdn Bhd,” a statement from Unity Group and Synergy said yesterday. Shine Plus specialises in ESG digital farming and empowers communities to adopt sustainable living practices. “Through this partnership, the technology will be used in Shine Plus’s smart digital farming to reduce energy use by 70%, boost crop yields by 10 times, and support ESG compliance, enabling carbon tracking in food systems,” the statement said. – Bernama

Elridge Energy starts FY25 with healthy Q1 results PETALING JAYA: Elridge Energy Holdings Bhd recorded revenue of RM109.67 million and profit before tax of RM18.03 million for the first quarter ended March 31, 2025 (Q1’25). Pahang; and Lahad Datu, Sabah. These facilities will each house two PKS production lines with a combined annual output of 240,000 metric tons per site. The capacity expansion will enhance our ability to secure long-term export contracts and reinforce our position in the regional biomass supply chain.” To support the growing market, Eldrige Energy is executing its expansion plan with the development of manufacturing sites in Pasir Gudang, Kuantan and Lahad Datu. – ELRIDGE ENERGY PIC

Executive director and CEO Oliver Yeo said, “Our first-quarter per formance reflects the strong and growing demand for sustainable biomass fuel products in inter national markets. We are pleased to maintain our momentum post listing and deliver healthy earnings growth in line with our strategic direction.” According to Coherent Market Insights, the PKS industry in the Asia Pacific is expected to grow at a compound annual growth rate (CAGR) of 8.9% from US$308.6 million in 2024 to US$366.1 million by 2026 (RM1.4 billion to RM1.7 billion). The wood pellet market in the region is forecast to expand at a CAGR of 8.6%, reaching US$12.5 billion in 2026 from US$10.6 billion in 2024. Yeo said, “To support this growing market, we are executing our expansion plan with the develop ment of new manufacturing sites in Pasir Gudang, Johor; Kuantan,

After taxation of RM4.45 million, the group posted a net profit of RM13.58 million. The revenue and the profit were mainly contributed by customers based in Japan, Indonesia and Malaysia. As the group was only listed on the ACE Market of Bursa Malaysia in August 2024, no interim financial reports were prepared for the corresponding quarter in the previous year, and as such, no comparative figures are available. Palm kernel shells (PKS) remain the cornerstone of the group’s operations, contributing RM95.81 million or 87.36% of total revenue. The remaining RM13.87 million or 12.64% was derived from the trading and manufacturing of wood pellets.

Synergy Esco launches world’s first light sets with carbon credit eligibility

A total of RM68.14 million from the group’s initial public offering proceeds has been allocated to these projects. The investments form part of Elridge Energy’s long-term strategy to capitalise on rising global demand for biomass fuels and to contribute to decarbonisation efforts in energy and industrial sectors. “With a focused expansion strategy, a solid financial footing, and rising demand from international markets, Elridge Energy remains well positioned to deliver sustained value to our shareholders and support the global shift towards renewable energy,”Yeo concluded.