28/05/2025

BIZ & FINANCE WEDNESDAY | MAY 28, 2025 15 Alliance Bank reports

Powerwell achieves FY25 revenue of RM137.4 million

record-breaking financial results

KUALA LUMPUR: Alliance Bank Malaysia Bhd delivered its strongest financial performance to date for the financial year ended March 31, 2025 (FY25), with revenue climbing 12.3% year-on year (YoY) to RM2.3 billion and net profit after tax rising 8.7% to a record RM750.7 million. The bank’s revenue growth was supported by improvements in both net interest income (NII) and non-interest income (NOII). NII rose by 13.2% YoY to RM1.95 billion, driven primarily by higher loan volumes, while net interest margin remained one of the industry’s highest at 2.45%. NOII increased by 7.7% to RM323.4 million, mainly due to higher foreign exchange sales and trade fees, wealth management income (excluding the one-time Bancassurance business model fee recognised in FY24), as well as treasury and investment income. The cost-to-income ratio for the year stood at 48% as the bank continued its investments in technology and people. Total gross loans expanded by 12% YoY to RM62.4 billion, more than double the industry growth of 5.2%. Growth was broad-based across all segments: SME (10.6%), commercial (15.8%), corporate (8.4%), and consumer (12.6%). The Casa ratio remained among the highest in the industry at 41%, supported by a 14.7% YoY increase in customer deposits. The bank maintained robust capital and liquidity positions, with a Common Equity Tier 1(CET1) Ratio of 12.2%, Tier-1 Capital Ratio of 13.4%, and Total Capital Ratio of 16.7%. Liquidity Coverage Ratio stood at 171.6% and Loan-to-Fund Ratio at 85.6%. Net credit cost, including pre-emptive provisions, was 31.9 basis points. The bank’s CET1 will be further strengthened following the proposed rights issue in July to raise RM600 million in fresh capital which remains subject to shareholders and regulatory approvals. Alliance Bank has proposed a second interim dividend of 9.9 sen per share, bringing the total dividend for FY25 to 19.4 sen per share and resulting in a 40% total dividend payout ratio, amounting to RM300.3 million. The bank is also advancing its sustainability agenda, achieving RM14.4 billion in new sustainable banking business as of FY25, progressing towards its RM15 billion target by FY27. “Our record-breaking results for FY25 reflect the successful execution of our Acceler8 strategy and reinforces our longer-term growth trajectory,” said Alliance Bank group CEO Kellee Kam. ITMAX kicks off 2025 with 15.5% PAT growth KUALA LUMPUR: ITMAX System Bhd, an artificial intelligence-powered integrated digital infrastructure service provider, recorded a 10.7% year-on-year (YoY) increase in revenue to RM50.7 million in its financial results for the first quarter of its financial year ending Dec 31, 2025. The performance was primarily driven by a 64.2% increase in revenue contribution from the digital infrastructure solutions segment. The group reported profit before tax and profit after tax of RM27.3 million and RM20.7 million respectively, reflecting YoY growth of 16.4% and 15.5% respectively. ITMAX System managing director/CEO William Tan Wei Lun said, “We are pleased to kick off the financial year with a robust set of results, which reflect the strength of our business model and the growing market confidence in our AI powered digital infrastructure solutions. Our continued expansion of smart city solutions into new states is not only fueling strong financial momentum but also reinforcing our role in building smarter, safer, and more connected urban environments. As cities evolve and modernise, our R&D team stays at the forefront—delivering innovative solutions that boost efficiency and meet our clients’ changing needs.”

SHAH ALAM: Home-grown power distri bution specialist manufacturing low voltage (LV) and medium voltage electrical distribution equipment Powerwell Holdings Bhd’s revenue came in at RM137.4 million for the financial year ended March 31, 2025 (FY25) compared to RM154.8 million a year ago, chiefly attributed to lower contribution from overseas. On a brighter note, Malaysia segment posted a year-on-year (YoY) increase of 38.7% to RM135.6 million for FY25 vis-à-vis RM97.7 million last year, mainly driven by higher deliveries. At the bottom-line, Powerwell posted a profit after tax and non-controlling interest (PATNCI or net profit) of RM19 million for FY25, versus RM19.7 million in the previous year, largely due to the aforementioned lower contribution from the overseas market. Nevertheless, the group’s net profit margin remained healthy at 13.9% for FY25, compared to 12.7% in the prior year. Managing director Catherine Wong Yoke Yen said, “We are pleased to close FY25 on a solid note against the backdrop of a demanding business environment marked by elevated macroeconomic uncertainty. More excitingly, our Malaysia segment delivered commendable double-digit growth driven by higher deliveries.” Looking ahead, she said they see ample opportunities to capitalise on, given their leading position and track record in the power distribution industry, particularly in the data centre, large-scale infrastructure, semiconductor, renewable energy and high end manufacturing segments. Furthermore, she said the establishment of the Johor-Singapore Special Economic Zone presents new growth opportunities for Powerwell. “Our team continues to work actively on o Malaysia segment leads with 38.7% year-on-year growth, driven by higher deliveries

Wong expressed confidence in capitalising on future opportunities, citing their strong track record in power distribution across data centres, infrastructure, semiconductors, renewable energy, and high-end manufacturing. – POWERWELL WEBSITE

the ongoing geopolitical tensions, which have created a volatile trade environment characterised by tariffs, export controls, and supply chain restrictions that may impede global market access and influence capital allocation,” Wong said. For the current quarter under review, the group’s revenue jumped 2.2 folds to RM47.5 million from RM21.9 million in Q4’24, on the back of higher deliveries. Sequentially, Q4’25 net profit rose 16.2% YoY to RM7.5 million vis-à-vis RM6.5 million. The board has declared a first interim dividend of 1 sen per share amounting to approximately RM5.8 million for the current quarter under review. This represents a 30.5% payout based on FY25 net profit of RM19 million.

more tenders, while our order book remains healthy at approximately RM116 million as at end-March 2025,” said Wong. “On the mergers and acquisitions (M&A) front, we are pleased to share that we completed the acquisition of a 51% stake in Firerex Technology Sdn Bhd and Brandrich Fire Solutions Sdn Bhd respectively in April 2025. These synergistic acquisitions broaden our capabilities and offerings, strengthening our position along the value chain. At the same time, we continue to explore further M&A opportunities to elevate our market position.” “All in all, we are upbeat on Powerwell’s prospects, underpinned by our order book and exciting opportunities ahead. Meanwhile, the group remains mindful of

Northern Solar posts RM14.2m full-year core profit KUALA LUMPUR: Northern Solar Holdings Bhd, a renewable energy solutions provider, delivered a commendable full-year performance, achieving revenue of RM84.9 million, primarily driven by robust project execution within its core engineering, procurement, construction, and commissioning (EPCC) of solar photovoltaic (PV) systems segment. expand into larger-scale solar projects. Our strengthened financial position places us in a favourable position to pursue strategic growth opportunities, particularly in the large-scale solar (LSS) segment.” renewable energy mix by 2050. Upcoming initiatives, including the Large-Scale Solar schemes (LSS5, LSS5+, and LSS6), are projected to unlock between RM15 billion and RM18 billion in EPCC opportunities within the next two years, providing substantial growth potential for the group.

As at March 31, 2025, Northern Solar maintained a healthy unbilled order book of approximately RM70 million, providing clear earnings visibility into the next financial year. Furthermore, the group holds a robust tender book of approximately RM1.8 billion, which notably excludes potential contributions from upcoming large-scale solar projects. This substantial tender pipeline underscores the group’s strong growth prospects. Northern Solar’s financial standing post-IPO remains robust, reflected in a solid cash balance of RM52.2 million and a low gearing ratio of just 0.15 times. The group’s financial stability is further strengthened by healthy operating cash flows amounting to RM7.2 million generated during FY25. Looking ahead, the outlook for Malaysia’s renewable energy industry remains highly positive, supported by the government’s firm commitment under the National Energy Transition Roadmap (NETR) to achieve a 70%

Lew said: “With our significantly strengthened balance sheet and enhanced financial resources, Northern Solar is now actively eyeing opportunities in these large scale initiatives, alongside the Corporate Renewable Energy Support Scheme and Corporate Renewable Energy Agreement Model. We are optimistic about capturing our fair share of these major projects, further enhancing our project pipeline and reinforcing our growth trajectory.” Northern Solar also remains focused on expanding its recurring income streams. Currently operating approximately 5MW of renewable energy generation assets, the group aims to triple this capacity in the upcoming financial year. This strategic move is expected to contribute to earnings stability and further strengthen the company’s financial profile.

The company disclosed this when announcing its financial results for the fourth quarter ended March 31, 2025 (FY25). Northern Solar recorded a full-year core profit after tax (Core PAT) of RM14.2 million, after adding back one-off IPO listing expenses of RM2.76 million incurred during the financial year. For Q4’25 specifically, the core net profit after adding back the IPO expenses was RM3.3 million, broadly stable compared to the preceding quarter’s profit of RM3.4 million, demonstrating sustained operational efficiency. Managing director Lew Shoong Kai said: “Our FY25 financial results reflect solid operational performance and effective cost management. The successful IPO in February 2025 significantly enhanced our balance sheet, providing us with a strong foundation to