01/07/2025

BIZ & FINANCE TUESDAY | JULY 1, 2025

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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MyAxis Group: RM11.3m to expand processing capacity

Foreign investors turn net buyers, RM33.2m inflow last week: MIDF

KUALA investors registered a net inflow of RM33.2 million on Bursa Malaysia, reversing a fifth week of selling trend, said MIDF Amanah Investment Bank Bhd. In its Fund Flow Report for the week ended June 27, MIDF Amanah said foreign investors’ activities were mixed throughout the week, with net buying recorded on Tuesday and Thursday, while Monday and Wednesday saw net outflows. “Inflows ranged from RM5 million to RM144.1 million, whereas outflows were between -RM50.7 million and -RM65.2 million,“ it said in a note. It added that the three sectors that recorded the highest net foreign inflows were utilities (RM102.6 million), transport and logistics (RM45.9 million) and industrial products and services (RM22.9 million). Meanwhile, the top three sectors that recorded the highest net foreign outflows were financial services (-RM109.9 million), property (-RM35.9 million) and telco and media (-RM28.0 million). Similarly, local institutions continued their buying activities, extending to a sixth week buying streak with net inflows amounting to RM142.8 million, smaller than the previous week’s inflow of RM510.6 million. Meanwhile, local retailers returned to net foreign sellers last week, recording a net outflow of -RM176.0 million, snapping their one-week inflow streak. “The average daily trading volume saw a broad-based increase last week, except for foreign investors. “Local retailers and local institutions saw an increase of +12.7% and +9.7%, respectively, while foreign investors saw a decline of -17.0%,“ it said. – Bernama LUMPUR: Foreign PETALING JAYA: Energy-related services provider Reservoir Link Energy Bhd’s wholly owned subsidiary Reservoir Link Sdn Bhd has received a work order award from Petronas Carigali Sdn Bhd for the provision of annulus wash and cement assurance. The contract is expected to generate up to RM25 million annually. The contract will be valid for four years until 2029, which collectively amounts to an estimated RM100 million in value. Reservoir Link executive deputy chairman Thien Chiet Chai said, “We are incredibly proud to announce a significant achievement having secured our second contract win from Petronas Carigali in 2025. This milestone is not only testament to our team’s dedication and hard work but also solidifies our strong market presence within the oil and gas industry where we have the proven ability to consistently deliver on projects of this scale.” He added that the sustained success will place Reservoir Link in an optimum position to secure more contracts, leveraging its established expertise and reliability. The latest achievement serves as a solid foundation for continued growth and expanded partnerships, and the group is excited to see what opportunities this momentum will bring, Thien said. Reservoir Link wins second contract from Petronas Carigali this year

o Company’s share price closes at 23 sen, 11 sen above its IPO price, in debut on LEAP Market

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Meat processor and distributor MyAxis Group Bhd plans to invest RM11.3 million in capital expenditure (capex) to expand its processing capacity following its LEAP Market debut. MyAxis intends to double its poultry capacity to 708,000 kg from 336,000 kg and triple red meat handling to 1.87 million kg from 624,000 kg. “The investment will include an increase in the group’s annual cold storage capacity by more than 10 times to 566,000 kg to cater for the increasing meat processing volume,” it said in a statement. The investment will be funded by bank borrowings, and internally generated funds, as well proceeds from its initial public offering (IPO). Executive chairman Datuk Tan Hwa Sing said the operations of the new halal-certified pro cessing facility are expected to commence in the next six to nine months. “Hopefully, by the second quarter of next year, 2026, it will be able to contribute to our revenues. We are just waiting for the funds (IPO proceeds) to come in. From there, we will be able to move faster and expedite,” he said in a press conference after the listing ceremony yesterday. The new processing facility is located near the Malaysia-Thailand border at Bukit Kayu Hitam and has a built-up area of 17,567.7 square feet. The location helps in enhancing container security and ensuring product quality for frozen meats imported from Thailand.

From left: MyAxis Group business development manager Mike Tan Yun Jian, Zico Evolve Capital CEO Abd Ghafar Hamzah, MyAxis director Khoo Lay Tatt, Tan, directors Datin Ng Siew Suan and Che Rogayah Sudin, finance manager Oh Lean Sim and assistant sales manager Khoo Yi Xuan at the listing ceremony

regional participation in the event. MRCA welcomes Tourism Malaysia as a supporting partner to connect FEM with the tourism ecosystem. “Tourists visiting Malaysia are not just here for sightseeing but also for cultural and shopping experiences. They are potential franchise investors too,” Phua said. FEM 2025 will be held at the Kuala Lumpur Convention Centre from Aug 21 to 23. The three-day event is expected to attract about 18,000 visitors and will feature 364 booths across four halls. Phua said this year’s theme, “Invest in the Future”, highlights opportunities in digitali sation, tourism recovery, and regional inte gration. “The theme captures the essence of what lies ahead. Strong consumer spending and the strengthening ringgit have created fertile ground for local businesses to thrive.” Turning to other issues, Phua said MRCA and five other business associations met with the Ministry of Finance last Thursday to discuss the planned expansion of the Sales and Service Tax (SST). He added that it had a dialogue with the government to consider deferring or adjusting the SST expansion. “Eight per cent is really, really very, very MyAxis opened at 18 sen on Bursa Malaysia’s LEAP Market yesterday, a six-sen premium over its IPO price of 12 sen. Tan said the opening price reflects the market’s confidence in myAxis of its growth potential, business model, and strategic development in the meat processing sector. “We are very satisfied with the opening price.” The stock closed at 23 sen, 11 sen or 91.7% above the IPO price. Tan said the group is eyeing a transfer to the ACE Market within two years following its debut. The group plans to remain on the LEAP Market for two years while fully utilising funds raised from its IPO. “By the end of 2026, we can talk to Bursa about transferring to the ACE Market. In July or early next year, production will start, and once the funds are fully utilised, only then can Bursa consider it (the transfer),” he disclosed. MyAxis has a dividend policy of paying

20.0% of net profit to the shareholders. The policy will be effective from the financial year ending July 31, 2026. MyAxis’ IPO on the LEAP Market entailed a public issue of 44.1 million new shares to sophisticated investors, at an issue price of 12 sen per share, representing 12.9% of the enlarged share capital of the company. Out of the total IPO proceeds of RM5.3 million, RM600,000 will be utilised for the purchase of machinery for its new meat processing facility and RM200,000 for brand building. A further RM3 million will be allocated for repayment of borrowings; RM500,000 for working capital and the remaining RM1 million for defraying listing expenses. The market capitalisation of MyAxis upon listing amounts to RM40.1 million. Zico Evolve Capital Sdn Bhd is the adviser for MyAxis’ IPO exercise. significant to our costs. We barely make about 10% to 20% in gross profit. So with all these costs involved, our net profit will either dwindle or, in the worst situations, some may have to close their businesses.” Phua said the SST, particularly its application to rental costs, would significantly increase operating expenses for franchisors and franchisees. “Many of whom manage multiple outlets. Can you imagine the impact that will be having on their operating costs as well as the labour costs that has increased? We are also going to be paying the foreigners 2% on the EPF as well.” Phua said the government has listened to some of their concerns and already raised the SST registration threshold from RM500,000 to RM1 million. “But it is not good enough. With SCCIM, ourselves and many other associations, our plea is to have it, in fact, deferred or the threshold level up to RM3 million.” Additionally, Phua said it has requested a deferment of the electricity tariff increase that is set to start from today. “At this point, manufacturers, including those exporting, are already facing tariff pressures from the US. A rate hike now is not timely, especially when we are encouraging more entrepreneurial activities.” - by HAYATUN RAZAK

MyAxis is currently focused on the domestic market with supplies sourced from Thailand and China in an even 50:50 ratio. MRCA eyes RM120m transaction value from FEM 2025

KUALA LUMPUR: The Malaysian Retail Chain Association (MRCA) is targeting RM120 million in transaction value for 8th Franchise Expo Malaysia 2025 (FEM 2025), up 20% from the RM100 million achieved in 2024.

MRCA president Datuk Ken Phua ( pic ) said the higher target is driven by record-high international participation and strong local demand. “We have added 10 overseas countries, including the US, Japan, and the UK. Our existing partners from Thailand and China have also expanded their booths. We are almost fully occupied, which points to a very eventful and successful expo,”he said at a press conference on FEM 2025 yesterday. Phua said,

Malaysia’s role as chair of Asean this year supports