30/08/2025

BIZ & FINANCE SATURDAY | AUG 30, 2025

12

Fibromat eyes fresh funds to back RM2.7b tender pipeline

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: CIMB Group Holdings Bhd is maintaining its full-year FY2025 guidance of 5–7% overall asset growth, including loans and bonds, despite a softer performance in the first half of the year (H1’25). Group CEO Novan Amirudin said corporate activity was subdued earlier due to tariff uncertainties, but sentiment has started to improve after recent announcements from the United States provided clarity. “Our wholesale growth will be driven by corporates’ capex and bond issuance plans. From our client discussions, we observe a gradual return of confidence as market clarity improves following the tariff announcements. “While it is still early days, we believe this will encourage corporates to proceed with investments and repayment deci sions,” he told reporters at the group’s H1’25 results briefing yesterday. CIMB Group expects asset and loan growth of 5–7% for FY25, compared with 6.1% achieved in the first half. The group’s proactive asset-liability management strategy has helped pre serve net interest margin (NIM) stability, supported by strong asset quality and a healthy loan-to-deposit ratio of 88%. “Our well-capitalised balance sheet not only ensures resilience but also gives us the flexibility to pursue future growth and strategic priorities. This enables us to sustain returns, support capital distri bution, and reinforce our commitment to long-term shareholder value,”Novan said. For FY25, CIMB Group is targeting a return on equity of 11–11.5%, broadly in line with the 11.1% achieved in H1’25. KUALA LUMPUR: Geosynthetics and erosion control specialist Fibromat Bhd is eyeing fresh fundraising to back its RM2 billion tender pipeline in infrastructure projects, alongside a RM700 million dam development. CEO Danny Ng Kian Boon said the company recently secured RM10 million through BR Capital Malaysia’s peer-to-peer financing platform and is exploring additional options, including bank loans. “We are definitely looking for fundraising because when we listed, our order book was only RM40 million. Now our order book is almost RM400 million, so naturally we need more funds,” Ng said during the company’s second quarter FY2025 (Q2’25) results briefing yesterday. The group now has RM36 million in project financing facilities and is in talks with banks for further funding. Beyond loans, it also taps performance advances and letters of credit to fund raw material sourcing. “We are talking to advisers and bankers to expand our loan, and how they can assist us. Because we need funding, definitely,” Ng said. Fibromat, which transferred to Bursa Malaysia’s ACE Market earlier this year in May, is moving up the value chain from being a lower-tier supplier to taking on direct contractor roles. “The growth in just over three months has been very encouraging. Going forward, the opportunity for Fibromat is quite positive,” Ng said. He expects opportunities from its RM2.7 billion tender pipeline to extend into 2028– 2029, providing long-term earnings visibility if awarded. “Depending on the project size, it could, you know, from once they call for bidding, until award, until completion, normally it will take about three years, at least.”

The government now only invites technically and financially strong players into selective tenders with a growing preference for design-and-build contractors, Ng said. “There are two fundamental criteria for qualification. The first is technical – having the requisite expertise and proven experience to perform the task effectively. “The second, and more critical, is financial – demonstrating the capacity to undertake and sustain the project. Only those who meet both requirements will be shortlisted among the select few. “In addition, the government increasingly emphasises the ability to offer both design and execution capabilities. This integrated ap proach is precisely what enables us to step in as a design-and-build contractor,” Ng ex plained. Fibromat’s latest wins include an RM283 million Central Spine Road package in Kelantan secured in May, while bids are under way for major reclamation and ground o Group has secured RM36 million , in talks with banks for further project financing facilities

From left: Fibromat contract manager Shaun Lim, chief financial officer Nadiah Firdaus, Danny Ng and executive director Wallace Ng Chun Hou at the company’s briefing.

public offering to about 300 today. “As we speak today, with the Central Spine Road and all the projects from prefabricated vertical drains, Fibromat’s workforce task force has increased to approximately 300 personnel internally. They range from labourers to professionals, all with the expertise to undertake the projects that you have seen,” he added.

treatment projects such as Penang’s Silicon Island development, as well as jobs in Malacca and Johor. Fibromat recently acquired new pre fabricated vertical drain assets and contracts worth RM46.9 million, expanding its fleet to 25 rigs, all of which are fully utilised. Ng said Fibromat’s workforce has expanded from 80 at the time of its initial

Market confidence returning as clarity on US tariffs improves: CIMB Group CEO

Sunway proposes to list healthcare arm on Main Market by Q1 2026

Novan (right) and chief financial and strategy officer Khairul Rifaie at CIMB Group’s first half financial results press conference.

KUALA LUMPUR: Sunway Bhd has proposed to list its healthcare arm, Sunway Healthcare Holdings Bhd, on the Main Market of Bursa Malaysia by the first quarter of 2026. As at July 31, 2025, Sunway Healthcare is a direct 84%-owned joint venture company of Sun City, which in turn is a direct wholly owned subsidiary of Sunway. The remaining 16% equity interest in Sun way Healthcare is held by Greenwood Capital Private Ltd. In a filing with Bursa Malaysia, Sunway said the proposed initial public offering (IPO) will involve up to 1.97 billion Sunway Healthcare shares, com prising an offer for sale of up to 1.4 billion existing shares by SunCity and Greenwood Capital, and a public issue of 575 million new shares to retail and institutional in-vestors. As part of the exercise, Sunway Healthcare will carry out a share split of one share into nine shares, which will enlarge its share base without affecting its issued share capital. After the proposed share

split, SunCity will distribute the distribution shares to Sunway by way of dividend in-specie. Post-split, the IPO shares will represent up to 17.2% of Sunway Healthcare’s en larged share capital. Sunway said the pro ceeds it will receive via dividends from SunCity will be used to repay bank borrowings, fund working capital, and cover listing related expenses. Meanwhile, proceeds from the new share issuance will accrue directly to Sunway Healthcare and be channelled into expan ding existing hospitals, building a new hospital, partially redeeming its Islamic medium-term notes, and defraying expenses relating to the IPO. According to Sunway, the proposed listing is ex pected to unlock share holder value, allow direct participation in Sunway Healthcare’s growth, im prove access to capital, enhance financial flexibility, sharpen strategic focus, and ensure continued partici pation in the expansion of the group’s healthcare arm. – Bernama

RM3.86 billion versus RM3.9 billion in the same period last year. The drop was mainly due to foreign exchange translation and softer NII from regional rate cuts, though this was cushioned by higher trading and fee income. Revenue for H1’25 stood at RM11.1 billion, compared with RM11.23 billion previously. CIMB Group declared a first interim dividend of 19.75 sen per share, amounting to about RM2.1 billion, or 55.5% of net profit. Looking ahead, CIMB Group will launch its business banking app, OCTOBiz, in Malaysia and Indonesia in Q4’25, with further rollouts planned across other markets. “These initiatives underscore our commitment to delivering sustainable returns and to strengthening our position as the leading focused Asean bank,” Novan said. - by HAYATUN RAZAK

The cost-to-income ratio is expected to remain at 46–47%, while loan loss charges are projected to be 25–35 basis points, following 29 bps in the first half. The group also highlighted its CET1 ratio of 14.7% and contractual CET1 of 214%, reflecting solid capital buffers to support growth and shareholder returns. For the second quarter ended June 30, 2025, CIMB Group posted a net profit of RM1.89 billion, down from RM1.96 billion a year earlier, as weaker net interest income (NII) offset stronger non-interest income (NOII). Revenue was flat at RM5.6 billion. Net earnings declined 3.8% year-on year in Q2, primarily due to regional rate cuts in Indonesia, Thailand, and Singa pore, which pressured NII. However, this was partly mitigated by a 5.3% quarter on-quarter rise in NOII, supported by trading gains. For the first half, net profit came in at