23/08/2025

BIZ & FINANCE SATURDAY | AUG 23, 2025

12

Malaysia attractive to companies eyeing SE Asia

Techbond closes FY25 with net profit of RM15.9m

PETALING JAYA: Techbond Group Bhd, a home grown pioneer in developing and manu facturing industrial adhesives and sealants, posted revenue of RM146.5 million for the financial year ended June 30, 2025 (FY25), compared to RM151.1 million in the previous year, mainly attributed to softer contributions from the chemical business. The appreciation of the ringgit also affected the translation of foreign currency-denominated revenue. Notably, export sales registered growth on a constant currency basis. Industrial adhesives, sealants, and chemicals continued to be the primary revenue driver, accounting for 94.6%, or RM138.6 million, of total revenue for FY25. The group’s gross profit margin remained stable and healthy at 26.7% for FY25, compared to 26.8% in the previous year. Meanwhile, net profit for FY25 stood at RM15.9 million, compared to RM16.4 million in the preceding year, primarily due to the aforementioned impact from the translation of foreign currency-denominated revenue. The board opines that the financial performance in the upcoming financial year (FY26) will be satisfactory, barring any unforeseen circumstances. For the fourth quarter of FY25 (Q4’25), the group recorded revenue of RM34.1 million compared to RM38.5 million in Q4’24. This was primarily due to softer contributions from the chemical business, as it was affected by the Putra Heights pipeline fire. Sequentially, PBT for Q4’25 came in at RM3.6 million versus RM6 million in Q4’24. This was chiefly attributed to the lower sales achieved by the chemical business due to the gas supply disruption, coupled with higher operating costs arising from the sourcing of alternative fuel. The quarter’s PBT included an unrealised foreign exchange loss of RM1.3 million, compared to an unrealised foreign exchange gain of RM0.6 million in Q4’24. Consequently, the net profit was RM3 million, compared to RM4.9 million in the same quarter last year. Techbond declared a total dividend of 1 sen per share, or RM6.8 million for FY25, translating to a dividend payout ratio of 43% based on a net profit of RM15.9 million. International reserves rise to US$122b as at Aug 15: Bank Negara KUALA LUMPUR: The international reserves of Bank Negara Malaysia (BNM) rose to US$122 billion (RM515.75 billion) as of Aug 15, 2025, up from US$121.3 billion recorded on July 31, 2025. In a statement yesterday, the central bank said the reserves position is sufficient to finance 4.8 months of imports of goods and services, and is 0.9 times the total short-term external debt. The main components of the reserves were foreign currency reserves (US$108.4 billion), the International Monetary Fund’s reserve position (US$1.3 billion), special drawing rights or SDR (US$5.9 billion), gold (US$4.1 billion) and other reserve assets (US$2.3 billion). Total assets amounted to RM605.67 billion, comprising gold and foreign exchange and other reserves, including SDR (RM515.65 billion), Malaysian government papers (RM13.61 billion), deposits with financial institutions (RM2.78 billion), loans and advances (RM27.48 billion), land and buildings (RM4.57 billion), and other assets (RM41.55 billion). BNM said total capital and liabilities amounted to RM605.67 billion, comprising paid up capital (RM100 million), reserves (RM194.59 billion), currency in circulation (RM172.21 billion), deposits by financial institutions (RM116.90 billion), federal government deposits (RM5.16 billion), other deposits (RM75.34 billion), Bank Negara papers (RM10.10 billion), allocation of SDRs (RM27.77 billion), and other liabilities (RM3.47 billion). – Bernama

KUALA LUMPUR: Malaysia continues to stand out across various industry sectors as a credible and well-positioned base for establishing and expanding regional opera tions, according to a consulting firm. Exponasia Growth Partners founder Giuseppe Di Lieto said these were driven by, among others, the country’s multilingual workforce, regional connectivity, modern infrastructure and active digitalisation efforts. “These factors make Malaysia parti cularly attractive to companies looking to test and scale within Southeast Asia,” he told Bernama in an email interview recently. He said the firm had observed a clear “wait and see” stance in recent months, parti-cularly among international small and medium enterprises, which are their core focus. Much of this hesitation, he said, stemmed from uncertainties surrounding the United States’ tariff dynamics, and given their limited capital and lower risk appetite, SMEs tend to delay expansion when the global trade outlook is unclear. Despite seeing steady requests for information and pre-feasibility discussions, most companies have been holding back. “Now that the tariff situation seems to be stabilising, and Malaysia’s tariff being reduced to 19%, we expect many of these plans to move into active consideration,” he added. More broadly, despite global headwinds persisting, Southeast Asia remains a long term growth priority, but expansion strategies have become more selective and pragmatic, said Di Lieto. He said recent developments, such as the US tariff dynamics, have reinforced the strategic importance of diversification. “For Malaysia, this means positioning itself not merely as a cost-competitive location, but as a stable, well-connected, and capable hub o Expert says country stands out as credible and well-positioned base for setting up and expanding regional operations

Di Lieto cites Malaysia’s multilingual workforce, regional connectivity, modern infrastructure and active digitalisation efforts.

intensive talent and enabling SMEs to scale beyond proximity markets. He said top talent abroad will not return for income alone, but also for opportunities – a credible, growth-oriented ecosystem of em ployers that offers not just jobs, but meaningful professional challenges, inter-national exposure, and long-term career prospects. “For this, Malaysia needs a stronger pipeline of SMEs evolving into regional champions. These firms generate the roles, environments and career paths that high calibre professionals seek. “Just as importantly, a more ambitious and globally-oriented SME sector would streng then Malaysia’s position as a launchpad for companies looking to expand into Southeast Asia,” he said. Di Lieto said initiatives such as the Industry ESG Framework for SMEs and targeted support under Budget 2025 are encouraging signs that Malaysia is moving in the right direction. To fully unlock their impact, these efforts can be strengthened with expanded access to funding, tailored export advisory support, and continued investment in digital upskilling. “The more home-grown success stories, the more compelling Malaysia becomes, not only for foreign investors but also for Malaysians abroad who are ready to come home and contribute,” he added.

for regional operations. “To attract global and regional brands, Malaysia must continue investing in ease of doing business, talent development, and infrastructure, while clearly articulating to the global business community its role as a strategic diversification node in a fragmented global landscape,” he added. Di Lieto lauded Malaysia’s ongoing reforms under the Madani Economy Frame work, from industrial policy updates to digitalisation initiatives under the 13th Malaysia Plan (13MP), as it signalled a serious intent to raise the country’s competitiveness. “At the same time, the government’s pro active stance on regional diplomacy, including Malaysia’s recent leadership in brokering a ceasefire between Thailand and Cambodia, has further elevated its standing as a trusted regional actor. “This kind of stability-focused diplomacy enhances Malaysia’s credibility in the eyes of global investors seeking predictability, neutrality, and constructive engagement in Asean. “For businesses looking to expand, Malaysia increasingly offers the right combination of opportunity, capability and connectivity throughout the Southeast Asia region,” he said. Commenting on 13MP, Di Lieto believed that Malaysia should double down on two priorities – bringing back knowledge

Berjaya Research keeps ‘neutral’ call on Uchi Tech PETALING JAYA: Uchi Technologies Bhd is expected to encounter lower sales volumes in the near term, driven by continued weakness in European retail demand. This sluggish outlook is likely to weigh on the company’s bottom-line performance. could provide downside support to the company’s share price. In terms of performance, Pacific region. However, Patami rose 5.0% to RM22.4 million from RM21.4 million, helped by a lower effective tax rate of 22.0%, compared to 23.7% in Q1 2025. Looking ahead, Berjaya

Uchi Technologies’ first half of 2025 revenue and core Patami (excluding unrealised forex and derivative impacts) came in line with expectations, repre senting 46.3% and 46.7% of Berjaya Research’s full-year forecast, respectively.

According to Berjaya Research Sdn Bhd, the cautious sentiment may extend into the second half of 2025, as global economic uncertainties persist. These include reciprocal trade tariffs, geopolitical tensions and rising inflationary pressures, all of which could negatively impact demand and margins. The research house also highlighted that the stronger ringgit may compress profit margins, as Uchi Technologies’ sales are predominantly denominated in US dollars. “With the likelihood of a US interest rate cut, the ringgit may continue to strengthen in the coming quarters. In this environment, earnings visibility will likely remain clouded until a more robust recovery in demand materialises,” it said. Nevertheless, Berjaya Research noted that projected dividend yields of over 8%, backed by a solid net cash position in 2025 and 2026,

Research is keeping its 2025 and 2026 revenue and Patami forecasts for Uchi Technologies unchanged. “We maintain our ‘Neutral’

recommendation on Uchi Technologies with a target price of RM2.93, based on a multi-stage dividend discount model using a dividend growth rate of 1% and a required return on equity of 8.4%,” it said. Despite current challenges, the firm continues to favour Uchi Technologies for its attractive dividend payout, strong balance sheet, and robust profitability, with a Patami margin of 50% in first-half 2025. Key downside risks include customer concentration, supply chain disruptions, a weakening US dollar and the potential non renewal of the company’s pioneer tax status.

On a year-on-year basis, revenue for second quarter 2025 fell 24.2% to RM44.8 million from RM59.1 million, largely due to softer sales in its key European market (-23.8%) and the adverse impact of currency movements. Consequently, Patami declined 30.3% to RM22.4 million, down from RM32.2 million, as operating margins narrowed to 64.2% from 67% in second-quarter 2024, amid higher raw material and labour costs. Quarter-on-quarter, revenue dipped slightly by 0.4% to RM44.8 million, impacted by a stronger ringgit and weaker European sales, which offset stronger sales in the Asia