19/07/2025

BIZ & FINANCE SATURDAY | JULY 19, 2025

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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Enproserve diversifies to secure recurring income

3REN secures InvestPenang incentives to

would be introduced “eventually”, particularly as the company eyes a future transfer to the Main Market. Meanwhile, Enproserve is positioning itself as a key player in Malaysia’s largest-ever plant turnaround project – the PIC in Johor. The complex is described by Azman as “the biggest in Southeast Asia”, and the scale of the 2027 turnaround is expected to contribute signi ficantly to the group’s revenue. Though exact figures are subject to unit-rate contracts, Azman described the opportunity as “much larger than what we are currently securing”, and one that necessitates a full year of integrated planning. “We’re already mobilising internal resources and preparing our teams to ensure a seamless execution,” he said. “This is not just another job – it is the largest plant turnaround in Malaysia.” With more than two decades of experience, Enproserve is licensed by Petronas through Standardised Work and Equipment Categories codes, and is registered as a Grade G7 contractor with the Construction Industry Development Board, enabling it to undertake projects of unlimited value. As Malaysia’s oil and gas and petrochemical sectors prepare for cyclical maintenance and capacity expansion, Enproserve’s combination of niche expertise, deep client relationships, and fresh capital from its IPO places it in a strong position to ride the sector’s growth wave. “We believe in organic growth. And right now, the growth ahead of us is both significant and achievable,” Azman said.

become one of the few “pure-play” downstream service providers listed on the local bourse. This niche positioning analysts believe could attract institutional investor interest in the near future. The group’s current operations span Johor, Malacca, Terengganu and its Cyberjaya head quarters. While East Malaysia is not on its immediate roadmap, Azman said, the company remains open to expansion should the right partner or opportunity arise. “Right now, we’re staying focused on the 2027 Pengerang Integrated Complex (PIC) turnaround. It requires over a year of preparation, and we don’t want to stretch ourselves too thin,” he explained. Enproserve opened at 26 sen in its market debut yesterday, two sen above the initial public offering (IPO) price of 24 sen, with 5.31 million shares traded at the opening bell. The counter closed at 26.5 sen, 2.5 sen or 10.4% above the IPO price, with 75.849 million shares traded. The IPO raised RM50.4 million, with RM23.7 million earmarked for capital expenditure, including the purchase of cranes, forklifts, and other heavy machinery. These assets will support internal operations and be made available for rental. “We didn’t expect the price to rise this morning given current market sentiment, but it shows that investors are confident in our direction,” said Azman. “We feel relieved and optimistic.” While the group does not yet have a formal dividend policy, Azman confirmed that one

KUALA LUMPUR: Enproserve Group Bhd, a provider of plant maintenance and engineering services, is charting a strategic expansion into the heavy lifting and equipment rental segment – a move the company views as a scalable, recurring income stream beyond its traditional contract-based operations. While the group remains firmly anchored in its core offerings – plant maintenance and turnaround (PMT), and engineering, procure ment, construction and commissioning (EPCC) – it is now broadening its portfolio to include rental services for cranes, skylifts and small lorries. This diversification gained momentum following the recent signing of a master service agreement with Petroliam Nasional Bhd (Petronas), covering multiple subsidiaries including Petronas Chemicals Group Bhd, Petronas Gas Bhd and Petronas Chemicals Fertiliser Kedah Sdn Bhd. “This is an asset-heavy segment, but it’s one we are confident in,” Enproserve CEO Mohamad Nizam Yaakub said at a press conference following the company’s listing on Bursa Malaysia’s ACE Market yesterday. “The rental business provides recurring income, and we’re targeting strong demand across Peninsular Malaysia.” Enproserve currently holds 33 long-term contracts, primarily with Petronas and its subsidiaries, extending through 2029. Its exclusive focus on downstream operations provides a degree of insulation from the volatility of crude oil prices. “Plant maintenance will never stop. These are statutory requirements,” said group managing director Azman Yusof. “Unlike upstream operations, which may scale down during periods of low oil prices, downstream plants must remain operational – and that means ongoing maintenance is non negotiable.” This resilience has enabled Enproserve to o Plant maintenance and engineering services provider makes ACE Market debut, shares open 2 sen higher than IPO price Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

boost IC capabilities PETALING JAYA: 3REN Bhd, a provider of automation solutions and engineering services, announced that its wholly owned subsidiary, Sophic Automation Sdn Bhd, has signed an agreement with Invest-In-Penang Bhd (InvestPenang) to accept an incentive package aimed at strengthening its integrated circuit (IC) design and development capabilities. This agreement solidifies the partner ship between the parties, following the signing of a memorandum of understan ding in December 2024 to collectively collaborate on the Penang Silicon Design @5km+ (PSD@5km+) initiative. The incentive package awarded to 3REN includes monetary subsidies, grants and payments for facilities and services provided by participating stakeholders, effective until May 2028. The group plans to strategically leverage these incentives to make meaningful contributions to the growth of Malaysia’s semiconductor and IC design and development ecosystem, while driving further innovation in the sector. 3REN executive director and CEO Koh Dim Kuan said having worked alongside reputable counterparties and global players in the IC industry, the company is exceptionally proud to solidify its part nership with InvestPenang through PSD@5km+. “This initiative provides us with valuable opportunities to collaborate with local fabless IC design firms, EDA tool providers and academic institutions, and enhances our access to cutting-edge IC design and development techno logies. “It also connects us with like-minded, visionary organisations in a united effort to position Malaysia at the forefront of the global semiconductor landscape. “This collaboration further reflects our strong commitment to nurturing future talent, as the group strategically ad vances up the semiconductor value chain, building on its solid foundation in automation solutions and engineering services,“ he said.

Enproserve is one of the few ‘pure-play’ downstream service providers listed on the local bourse.

Ancom Nylex posts RM63.5m net profit for FY25 – a ‘demanding’ year PETALING JAYA: Southeast Asia’s leading fully integrated chemical group Ancom Nylex Bhd registered revenue of RM1.87 billion for the financial year ended May 31, 2025 (FY25) compared to RM2 billion a year ago. delivered revenue growth of 16.1% to RM135.4 million in Q4’25, up from RM116.6 million in Q4’24, driven by higher sales. Despite these headwinds, Malaysia’s eco nomic growth is anticipated to remain positive over the next 12 months, with potential for further advancement should global conditions stabilise, Lee noted. “The overall demand for our agrichem segment remains stable. Looking ahead, we anticipate the upcoming financial year (FY26) to be a better year for us, given the promising opportunities ahead while remaining vigilant of the headwinds.”

At the bottom line, Q4’25 net profit stood at RM17.1 million compared to RM18.4 million last year. This was primarily due to elevated production costs in the agrichem business as well as a higher effective tax rate. Managing director and group CEO Datuk Lee Cheun Wei said FY25 has been a demanding year, marked by key geopolitical events that led to elevated freight costs and unfavourable foreign exchange fluctuations, which in turn impacted the group’s overall performance. He said escalating tariffs and volatile trade conditions could further impact both global and domestic economic projections, making it increasingly challenging to predict trends in raw material costs and market prices.

“On a much brighter note, we are pleased to share that the commercial production of our new active ingredient (AI) has commenced. Production yield has been increasing steadily, and deliveries to our customers are already under way. This marks an important milestone, further strengthening our position in the value chain and cementing our role as the sole large scale producer of AI for herbicides in Southeast Asia,“ he said in a statement. Turning to Ancom Nylex’s MSMA-based products, Lee said the group continues to capitalise on its position as one of only two producers globally, seizing opportunities arising from the market demand gaps.

The drop was attributed mainly to softer contributions from the industrial chemicals segment, due to lower selling prices and volumes. Meanwhile, FY25 net profit came in at RM63.5 million, down from RM81.5 million last year, primarily attributed to elevated freight costs and unfavourable foreign exchange fluctuations. For the fourth quarter of FY25 (Q4’25), the group posted revenue of RM459.4 million, compared to RM487.2 million in the same quarter last year. This was predominantly due to the lower contribution from the industrial chemicals business. On a positive note, the agrichem segment

For FY25, the group has paid a first interim dividend by distributing treasury shares on a 4:100 basis, as well as a second interim dividend by distributing treasury shares on a 1:100 basis. Ancom Nylex’s financial position continued to improve, with net gearing improving to 0.29 times as of the end of May 2025, compared to 0.38 times at the close of the previous financial year (end of May 2024). Total borrowings fell to RM323.1 million at the close of the financial year under review from RM347.6 million as at 31 May 2024. Notably, more than 85% of the total borrowings are for short-term working capital needs.