20/05/2026

BIZ & FINANCE WEDNESDAY | MAY 20, 2026

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

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Trading, services segment lifts Fiamma’s Q1 revenue

CPO to remain supported at around

RM4,400 a tonne PETALING JAYA: Malaysia’s palm oil stocks recovered marginally to 2.31 million tonnes in April, supported by a seasonal rise in production, said Malaysian Palm Oil Council (MPOC). MPOC said palm oil production typically trends higher between March and October, as

PETALING JAYA: Fiamma Holdings Bhd, a distributor of home appliances, sanitaryware and healthcare devices, recorded a 5.9% year on-year increase in revenue to RM104.36 million for the first quarter ended March 31, 2026 (Q1’26), up from RM98.51 million in Q1’25. The top-line expansion was primarily driven by accelerated output from the group’s core trading and services segment, which grew 11.6% to RM87 million, contributing 83.4% of total revenue. Fiamma reported profit before tax (PBT) of RM13.41 million, compared with RM41.19 million in the corresponding quarter last year. The year-on-year variance is mainly due to the non-recurring items recorded in Q1’25, predominantly a RM23.22 million one-off gain arising from the equity dilution in Aricia Sdn Bhd and Dawn Land Sdn Bhd. Excluding the one-off accounting gains, Fiamma’s Q1’26 performance reflects a clean, normalised earnings baseline. Segmental PBT for trading and services remained relatively stable at RM10.47 million, as the group actively navigated industry-wide margin pressures from currency fluctuations, logistics costs and supplier pricing dynamics. The property development segment contributed RM16.02 million in revenue, supported by ongoing contributions from East Parc, Vida Heights and Amberwood projects. A substantial portion of the segment’s revenue was derived from the Amberwood mixed development in Johor Bahru, showing progressive billings as the project advances. Crucially, the group announced a proposed joint venture with Sinaran Urusjuta Sdn Bhd (SUSB). This marks the third property entity within Fiamma transitioning from a wholly owned subsidiary to a 30%- owned associate structure, validating the group’s systematic pivot toward a highly efficient, capital-light property development strategy. Fiamma continues to operate from a position of profound financial strength. As at March 31, the group held cash and cash equivalents of RM139.55 million against total borrowings of RM90.66 million, translating into a net cash position of RM48.9 million. Net assets per share improved to RM1.49. Inventories increased by RM34.2 million to RM322.8 million during the quarter, mainly due to development costs incurred and capitalised o Net assets per share climb to RM1.49, supported by healthy cash position

drier weather im proves harvesting and fresh fruit bunches yield higher oil extraction rates. Cumulative ex ports from January to April 2026 rose by 25.5% (+1.1 million tonnes) to 5.38 million tonnes, the

highest level since 2019. However, exports fell 14.3% month-on-month in April to 1.3 million tonnes. Despite the monthly decline, exports remained firm, accounting for 80% of Malaysia’s palm oil production during the month. Soybean oil prices in the European market rose to the highest level since November 2022 in mid-May, making it the most expensive major vegetable oil, supported by demand from the US biofuel sector. During this period, soybean oil was trading at a premium of US$145/tonne over rapeseed oil, US$110/tonne over palm oil and US$45/tonne over sunflower oil in the global market. The latest US biofuel developments have improved palm oil’s price competitiveness across major markets. Palm oil remains the most competitively priced vegetable oil in India, while palm olein prices in Malaysia were also trading at a marginal discount to Argentine soybean oil, a pricing dynamic that should continue to support palm oil demand. In Q1 2026, MPOC said, combined palm oil exports from Malaysia, Indonesia and Thailand rose by 1.9 million tonnes. However, this trend is expected to reverse from April to September, with Oil World projecting combined exports from the three countries to decline by 2 million tonnes in Q2 and Q3, mainly due to lower Indonesian exports. “Malaysia’s exports are projected to rise by 400,000 tonnes during the period, while Indonesia’s exports are forecast to decline by 1.7 million tonnes as more palm oil is redirected towards domestic energy use. As a result, a sharp build-up in palm oil stocks is unlikely during the upcoming peak production season in Southeast Asia,” it added. The USDA released its first estimates for oilseed production in the 2026/27 season, with all three major oilseeds projected to reach record highs. Global soybean production is forecast to rise by 14 million tonnes, sunflowers seed by 7 million tonnes and rapeseed by 1.4 million tonnes. Collectively, production of these three oil seeds is expected to increase by 4% or 22.4 million tonnes to a record 600 million tonnes. Looking ahead, MPOC said crude palm oil prices are expected to hold around RM4,400 per tonne in June, as global biofuel policies continue to be the main supportive factor. Vegetable oil prices still have the potential to turn bullish, as the recent price correction was likely driven by funds and speculators taking profits. Supply risks also remain due to unresolved geopolitical tensions and rising El Nino risk, which could add uncertainty to global vegetable oil supply in the upcoming season. El Nino typically brings drier-than-normal weather conditions to Southeast Asia, reducing rainfall and soil moisture and potentially affecting regional agricultural supply. The Malaysian Meteorological Department expects El Nino conditions to develop between June and July, potentially persisting into early 2027.

Tan says Fiamma is driving double-digit revenue growth in trading and services and expanding its market reach.

at April 30 and ongoing strategic initiatives, the group remains confident in its long-term growth trajectory and optimistic on its prospects for FY2026, he added. LAC Med has a dividend policy to distribute at least 30% of its annual net profit to shareholders. Moving forward, Liew said the group remains focused on securing higher-quality earnings through a balanced mix of integrated medical technology projects, recurring consumables supplies, main tenance services, and healthcare digital solutions. venture is a direct continuation of our capital allocation strategy. We are systematically moving towards a capital-light property model, allowing us to unlock the value of our landbanks, minimise greenfield development risks, and maintain the upside through associate contributions.” Looking ahead, Fiamma anticipates cautious but sustained consumer demand, with purchasing behaviours shifting toward mid-range, energy-efficient, and value-for money appliances. The group’s healthcare and medical devices segment is also gaining material traction, supported by increased public healthcare spending allocations, the company said. The board will continue to focus on disciplined margin management, rigorous cost control, and strategic portfolio expansion to drive long-term shareholder value.

for the group’s property development project, Divine KLCC. This denotes ongoing progress within the property development segment, while the Group continues to maintain financial flexibility to support its operating and growth requirements. Group CEO Jimmy Tan Chee Wee said, “Our first-quarter results demonstrate the fundamental operating strength of our core distribution engine. While the reported PBT shows a decline, this is purely a statutory comparison against a major one-off corporate gain recorded last year. Operationally, our core business is expanding. We are driving double-digit revenue growth in trading and services, expanding our market reach, and deliberately deploying our balance sheet to secure inventory ahead of anticipated consumer demand. “Simultaneously, the proposed SUSB joint

LAC Med tender book at new high of RM690.9 million PETALING JAYA: Medical technology solutions provider LAC Med Bhd sees increased tendering activities in the Malaysian healthcare services sector as the group’s tender book stood at a high of RM690.9 million as at April 30. “As the healthcare industry continues to evolve amid an increasingly dynamic global environment, LAC Med remains focused on disciplined execution, operational resilience, and long-term value creation,” he said.

Despite ongoing geopolitical and macroeconomic uncertainties, the group continues to experience healthy demand across its core business segments, supported by its expanding installed base, recurring customer relationships, growing order book, and broadening portfolio of integrated healthcare solutions,” he added. Backed by RM199.0 million order book as

At its first annual general meeting on Monday, group CEO Liew Yoon Poh shared that LAC Med aims to leverage its market leadership to enhance clinical service quality, bolster domestic healthcare capabilities, and support Malaysia’s ambition to achieve RM7 billion in medical tourism revenue by 2030.