Here's what we have for the week
Significant Event
- Malaysia government launched the Forest City Special Financial Zone (SFZ), offering the following incentives:
- 1) Special income tax rate of 15 per cent for skilled workers and multiple entry visas.
- 2) Zero per cent tax rate for family wealth offices
- 3) Concessionary corporate tax rate between zero and five per cent to attract global business services, financial technology, and foreign payment system operators to set up there.
- DFI Retail Group, the owner of Cold Storage, Giant, and several other notable brands, has sold its stake in Yonghui Superstore to Miniso for RMB 4.9 billion.
- Gamuda Bhd, a Malaysia construction giant has secured an A$243 million (RM702 million) construction contract to deliver the Boulder Creek Wind Farm in Queensland, Australia.
- AirAsia X Bhd, the long-haul flight operator, has gained shareholders' approval to take over Capital A Bhd's (formerly known as AirAsia) aviation business, primarily consisting of short-haul flight routes, for RM6.8 billion. The deal will bring seven AirAsia-branded airlines under one roof: Malaysia AirAsia, Thai AirAsia, Philippines AirAsia, Indonesia AirAsia, AirAsia Cambodia, Thai AirAsia, and Thai AirAsia X.
- Sarawak becomes the largest shareholder in Affin Bank with a 31.25% stake
- Harn Len Corp, a Johor-based property developer and plantation company, is disposing of a piece of land located at Jalan Ngee Heng, Johor Bahru, within walking distance to the upcoming RTS. The 0.92-acre land is being sold for RM 55 million, or RM 1,371 per square foot, possibly setting a record high for land transactions in Johor Bahru.
- Ascott Ltd, the hospitality arm of CapitaLand, is entering a new market in Malaysia—Kulim, Kedah. Kulim, a lesser-known city neighbouring Penang Tech Park, is home to several semiconductor multinational corporations (MNCs), including Infineon, Intel, Osram, and AT&S. Beaver Properties Group recently signed an agreement with Ascott International Management (Malaysia) Sdn. Bhd. (Ascott) to introduce the first HARRIS-branded hotel in the area.
The blue circle represents the land sold by Harn Len, while the red circle indicates the CIQ and RTS.
Infrastructure/Logistics
- The Sarawak government has approved RM1.083 billion for the replacement and upgrading of 2,743 kilometers of piping systems across the state, a development that could benefit pipe manufacturers.
Cash Call/ Debt restructuring/Restructuring/Proposed Listing
- Talam Transform Bhd, whose founder recently passed away, is seeing some active corporate actions. After disposing of a piece of land to settle its debt, the company has now proposed consolidating every five existing shares held by its shareholders into one share, with the entitlement date to be determined later. It also plans to undertake a capital reduction by canceling RM650 million of its issued share capital to offset accumulated losses of RM624.37 million at the group level, leaving retained earnings of RM24.4 million. Additionally, the company has proposed a private placement of up to 20% of its total issued shares, which could raise RM21.33 million to repay borrowings and fund working capital. Something exciting may be brewing in this company.
- Touch 'n Go Digital, Malaysia's eWallet operator, is considering a potential domestic initial public offering within the next two to three years, which could raise over US$300 million.
Company Expansion Plan/ Capex Plan
- Cogent Holdings Pte. Ltd., a wholly-owned subsidiary of COSCO Shipping, has announced the launch of major expansion plans for Phase 2 of the Cogent Jurong Island Logistics Hub.
- Seal Incorporated Bhd's associate company, MSR Green Energy Sdn Bhd, has partnered with Sungrow, a China-based provider of solar photovoltaic inverters and energy storage systems, to develop a RM645 million battery energy storage system (BESS) project in Sabah. The initiative involves the engineering, procurement, and construction of a BESS with a capacity of 100 megawatts and an energy storage capacity of 400 megawatt-hours in Lahad Datu, Sabah. Seal Incorporated, a boutique property developer behind projects such as Q Avenue, Bandar Sri Permaisuri, and Selayang Mall, may experience a rerating once the market realizes its emerging role in the green energy industry.
- Press Metal Aluminium is building its third refinery in West Kalimantan, Indonesia, spending approximately USD 750 million.
Sungrow's Battery Energy Storage System (BESS)
Insights
- China recently announced a strong stimulus, leading to a significant rally in Chinese stocks. This came at a time when the market was discussing China's worst consumer confidence since 1990. In just four days, the market turned from extreme bearishness to extreme bullishness. Trading activity was so intense that it caused glitches and delays in processing orders.
China Consumer Confidence Index
- Bitcoin, whose position as digital gold remains debatable, hasn’t reached new highs despite gold prices recording new highs, nearing USD 2,700 per ounce. However, when we look at the market cap of USDT, the largest stablecoin (where people convert fiat into crypto, marking the first step for money to enter the crypto industry), the market cap is still rising. This indicates that liquidity for crypto remains ample.
USDT Market Cap
