02/12/2025

BIZ & FINANCE TUESDAY | DEC 2, 2025

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CAB Cakaran net profit surges to RM20m in Q4

capacity over the next two years. “This acquisition will also unlock a reliable, cost-effective supply of animal feed for the group, thereby fully supporting our long-term growth plans,” he said in a statement. To recap, CAB Cakaran acquired commercial animal feed manu facturer Cargill Feed for RM231 million in cash in July this year. The move will help CAB Cakaran strengthen its poultry business by producing its own animal feed for over 100 broiler and breeder farms across Peninsular Malaysia. Earlier last month, CAB Cakaran announced it will kickstart its Indonesian operations with its partner and Indonesia’s biggest conglomerate, The Salim Group. “These plans will be imple-mented by the second quarter of 2026. We are now proactively executing this joint venture to ensure that operations can start soon. We foresee FY26 to be a growth year for CAB Cakaran as we recognise contributions from our new venture with Cargill Feed. “Despite the bright outlook, we will continue to work hard and be diligent in ensuring all our busi nesses are run efficiently and deliver good profit,” Chuah said.

ported by additional sales from two newly opened outlets during financial year 2025. The increase in revenue, together with an insurance claim of RM0.37 million, contributed positively to the division’s performance. To date, CAB Cakaran has 16 retail outlets, comprising Pasaraya Jaya Gading Sdn Bhd and Home Mart Fresh & Frozen Sdn Bhd. Group managing director Christopher Chuah Hoon Phong said the Q4 earnings mark the company’s eighth consecutive profitable quarter since the discontinuation of govern ment subsidies. “Our sustained growth, especially on an operating level, demonstrates that we are efficient and can thrive without subsidies. Furthermore, these results were also achieved without the contribution from Cargill Feed Sdn Bhd. “Shareholders approved our acquisition of Cargill Feed on Nov 5, and we are set to complete it this month. This will allow us to consolidate Cargill’s earnings from next year onwards fully. While this is an earnings accretive acquisition, Cargill Feed is presently operating only at 60% capacity. We intend to reach full

o Eighth successive profitable quarter without govt subsidies, 1 sen final dividend proposed

Hengyuan Refining back in the black in third quarter PETALING JAYA:

PETALING JAYA: CAB Cakaran Corporation Bhd reported a 105.13% year-on-year surge in net profit to RM20 million for the fourth quarter ended Sept 30, 2025 (Q4 FY25), delivering its eighth consecutive quarter of net profit without govern ment subsidies and demonstrating the strong operating efficiency of its integrated poultry business. Revenue dipped 3.75% to RM569.73 million, due to lower trading volume of feed and reduced sales of broilers. Earnings per share for Q4 FY25 stood at 2.85 sen, up from 1.39 sen a year ago. The company said the decline was mainly attributable to lower contributions from the integrated poultry division. Despite lower revenue, the group achieved an operating profit of RM22.15 million, up 34.24%, driven primarily by stronger performance from the integrated poultry division. The board has proposed a final Manufacturing Purchasing Managers’ Index (PMI) rose to 50.1 in November from 49.5 in October, signalling the sector’s first expansion in 18 months and reinforcing expectations of a strong quarter despite earlier concerns over weaker conditions stemming from higher US tariffs. Kenanga Investment Bank Bhd (Kenanga IB) said the renewed momentum was underpinned by a surge in new orders, which reached a 43-month high as steady client confidence, recent product launches and a milder slowdown in export demand helped sustain growth. Its research arm said that although output volumes continued to contract, the pace of decline eased as firms navigated raw material shortages, intensifying competition and higher tax burdens. “Inventories increased for the first time in 41 months as manufacturers actively replenished stocks to support rising order volumes. “Cost pressures, however, intensified, with input prices climbing sharply for the second consecutive month on the back of rising raw material costs and tax obligations. These increases filtered through to clients, resulting in the steepest rise in output charges in 15 months,“ Kenanga IB said in a note yesterday. Even so, it said, firms remained optimistic, with business sentiment reaching its highest level since July 2013, buoyed by new product pipelines, expansion plans and stronger customer demand.

dividend of 1 sen per share for the financial year ended Sept 30, 2025. The entitlement date and payment date for the dividend will be determined later. The poultry division’s operating profit increased significantly, mainly due to a 10% reduction in feed costs compared to the same period last year, as well as higher dividend income from a subsidiary. For the whole of FY25 CAB Cakaran’s net profit increased 20.11% to RM90.65 million, while revenue was marginally down by 0.43% to RM2.31 billion. The group’s cash position rose to RM218.84 million from RM186.78 million a year ago. The group’s retail division has finally turned around this quarter, delivering an operating gain of RM0.33 million, compared to a loss of RM0.22 million in the same quarter of last year. The retail division posted a higher revenue of RM38.97 million, sup

Hengyuan Refining Company Bhd reported a net profit of RM21.04 million for the third quarter ended Sept 30, 2025 (Q3’25), returning to the black from a net loss of RM165.1 million during the same period a year ago, and achieving its highest quarterly net profit since FY22. The strong performance was mainly driven by enhanced plant efficiency and higher production yields, resulting from Hengyuan’s focus on operational excellence. In addition, higher crack spreads, which have risen year-on year and year-to-date compared to the same periods in 2024, contributed to an improved gross margin for the company. Revenue declined 12% to RM3.62 billion in Q3’25, from RM4.12 billion a year ago. The dip in revenue was due to reduced product prices and was further exacerbated by the weakening of the US dollar against the ringgit. Chief financial officer Yeo Bee Hwan ( pic ) said the company posted its strongest quarterly result since FY22, driven by persistent efforts and investments to enhance plant efficiency, improve yields, and seize new opportunities to expand its business. “In Q3 FY25, Hengyuan benefited from higher year-on year crack spreads. Concern over supply cuts is driving strong demand for middle distillates such as diesel and jet fuel, which has been positive for margins. “While the global oil market remains volatile, Hengyuan will continue to focus on operational efficiency, product quality, and prudent financial management. We remain committed to our target of returning to profitability by 2026,“ she said in a statement. On Oct 23, 2025, Hengyuan raised gross proceeds of RM234 million following oversubscription of its rights issue. The majority of the proceeds will be used to purchase additional crude oil feedstock, the primary raw material for refining and manufacturing petroleum pro ducts, to enhance production efficiency, reduce unit costs per barrel and strengthen the company’s competitiveness. On Oct 30, 2025, the company’s warrants issued pursuant to the rights issue began trading on the main market of Bursa Malaysia.

M’sian manufacturing PMI turns positive in November, marks first expansion in 18 months PETALING JAYA: Malaysia’s

Kenang IB says exports of the E&E sector should stay resilient as they remain exempt from higher tariffs. – BERNAMAPIC

robust mid-fourth quarter of 2025 manufacturing activity, likely sus taining expansion through year-end and challenging earlier expectations of a slowdown, it said. Together with mining recovery, steady services and firm domestic demand, growth is poised to out perform current estimates. “Never theless, we maintain our 2025 GDP growth forecast at 4.5% for now, with an upside bias to upgrade to 4.8% if current momentum persists,“ Kenanga IB said.

“However, caution remains as the lagged impact of US tariffs may weigh on external demand after the year-end festive season. “Even so, exports of the E&E sector should stay resilient as they remain exempt from higher tariffs, while domestic-oriented manufacturing will benefit from firm domestic demand, continued government spending under Budget 2026 and the rollout of the 13th Malaysia Plan,“ Kenanga IB noted. A strong November PMI indicates

“This confidence translated into higher employment, which grew at its fastest pace since September 2022, effectively ending a four-month decline,“ it said. On the manufacturing outlook, Kenanga IB said the PMI readings point to stable conditions despite lingering tariff uncertainties. Export-oriented sectors redirected shipments to other markets as US shipments fell in October. Steady domestic demand also supported manufacturing activity. renewed