Business

Eco-Shop Marketing Bhd saw its net profit grew 15.5% to RM61.9 million in the second quarter ended Nov 30, 2025 (2Q26) from a year ago, supported by improved margins.

Its revenue for the quarter rose 2.9% to RM714.8 million, it said in a Bursa filing today.

The company declared a second interim single-tier dividend of 0.5 sen per share, representing a payout ratio of 46%, payable on February 26, 2026.

For the six months ended November 30 2025, Eco-Shop net profit was up 29.5% to RM120.6 million while revenue was at RM1.4 billion, driven primarily by new store additions.

“In 2Q26, we surpassed the milestone of 400 stores, reaching a total of 409 stores nationwide… With a healthy pipeline of new store openings in the second half of the financial year, we are on track to exceed our earlier target of 70 new stores for the year,” its CEO Jessica Ng said.

She added that supply constraints in food and ready-to-drink categories have largely been resolved, and the company is rolling out targeted campaigns and product refresh initiatives to drive footfall, enhance in-store experience, and strengthen its market position in Malaysia’s underpenetrated dollar store segment. — TMR

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T7 Global Bhd said the completion timeline for the baggage handling system project at KLIA Terminal 1 has been extended to the fourth quarter of 2028 following a supplemental agreement signed by its subsidiary T7 Kemuncak Sdn Bhd, consortium partner Vanderlande Logistics Pte Ltd and Malaysia Airports (Sepang) Sdn Bhd.

The group said the supplemental agreement, executed on Nov 25, 2025, formalises the revised timeline to reflect prevailing site conditions and project requirements.

The project was originally awarded to the VL T7 Consortium in October 2022.

T7 Global added that the extension was mutually agreed, does not prejudice the parties’ rights under the original contract, poses no material additional risks, and will not have any material impact on its financials. — TMR

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COASTAL Contracts Bhd has received an emergency work instruction (EWI) from Petróleos Mexicanos (Pemex) for the design, supply, construction, installation and commissioning of a gas sweetening plant at the Ixachi Field in Mexico.

In a filing with Bursa Malaysia today, the company said the EWI was issued on Jan 23, 2026, under Pemex’s emergency exception process, following an emergency situation arising from gas flaring at the Ixachi Field.

The work will be undertaken by a consortium comprising Coastal’s Mexican joint venture company Coastoil Dynamic SA de CV, Sistemas Integrales de Compresión SA de CV and Nuvoil SA de CV.

Under the EWI, the consortium has been instructed to immediately proceed, on an exceptional basis, with the development of a gas sweetening plant with a capacity of up to 200 million standard cubic feet per day near the existing Perdiz plant.

Coastal said the consortium has commenced work on a full-scale basis, although the commercial and contractual terms, including the contract value and contract period, have yet to be finalised and remain subject to negotiation and subsequent regularisation under Pemex’s framework.

The company expects the contract to be finalised and executed by March 2026.

The work is revenue in nature and undertaken in the ordinary course of business.

While it will not affect Coastal’s issued and paid-up capital, the company said the project is expected to contribute positively to its earnings and net assets for the financial year ending Dec 31, 2026, and thereafter for the duration of the work. — TMR

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RHB Banking Group, via its group transaction banking division, has formalised a strategic collaboration with e-procurement solutions provider Tender Pintar Sdn Bhd to enhance access to financing for small and medium enterprises (SMEs) participating in government and business procurement projects.

Tender Pintar, a subsidiary of Bursa Malaysia-listed Censof Holdings Bhd, operates the Tenderwizard platform which has served government agencies and government-linked companies (GLCs) since 2012.

Under the partnership, the Tenderwizard platform acts as a digital enablement gateway connecting SMEs with RHB’s pre-financing and insurance solutions.

The bank is offering financing facilities of up to RM10 million with tenures of up to 10 years, encompassing multi trade line, overdrafts, term loans and bank guarantees.

These products are intended to provide vendors with essential working capital and invoice financing to manage cash flow and execute projects with higher certainty.

Tender Pintar currently manages a network of 26 clients and over 40,000 SME vendors, with plans to scale to over 200 clients including large corporate entities.

This expansion provides RHB with a significant avenue to drive transaction volumes while supporting the digital transformation of the SME sector.

RHB MD for wholesale banking division Nurjesmi Mohd Nashir stated that in line with the bank’s PROGRESS27 corporate strategy, the group is continuously striving to deliver enhanced experiences and digital journeys to its target customers.

He noted that SMEs are the backbone of Malaysia’s digital economy and expressed confidence that this partnership with Tender Pintar will facilitate faster and secure payments, and offer value-added products specifically tailored to the needs of SMEs engaged in government projects.

Censof Group MD Ameer Shaik Mydin highlighted that the collaboration allows Tender Pintar to deliver greater value to the tens of thousands of SMEs on its platform by providing easier access to strategic financing solutions.

He described such access as a critical factor today in ensuring timely and successful project delivery.

He added that the collaboration will further enhance the SME ecosystem’s competitiveness and resilience, while contributing meaningfully to the nation’s digitalisation and inclusive economic growth agenda.

The tie-up aligns with RHB’s role as a responsible financial institution and supports Tender Pintar’s objective of modernising the e-procurement landscape in Malaysia through increased regulatory compliance and digital integration. — TMR

• This article first appeared in The Malaysian Reserve weekly print edition

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ELRIDGE Energy Holdings Bhd is expanding its regional footprint after its wholly owned subsidiary, Bio Eneco Sdn Bhd, signed a memorandum of understanding (MOU) with Thailand’s Berkana Power Co Ltd.

The agreement covers the supply of biomass fuel to the Thai power generation market, marking a strategic move for the group as South-East Asia ramps up its renewable energy (RE) requirements.

Under the terms of the MOU, Bio Eneco is slated to deliver 10 shipments per year, totalling approximately 100,000 metric tonnes of biomass fuel annually.

The initial period is set for one year and includes an automatic renewal option, providing a framework for long-term supply continuity.

Elridge Energy CEO Oliver Yeo noted that the collaboration underscores the group’s capacity to meet high-volume demand in a “structured and repeatable manner.”

“Thailand remains an important market for biomass energy. Beyond the annual volume, the shipment cadence and renewal structure provide operational 

visibility and flexibility for both parties,” Yeo said in a statement following the signing ceremony at Bio Eneco’s factory in Kapar, Selangor.

Yeo added that the deal aligns with the group’s strategy of building a balanced contract portfolio, mixing long-term commitments with shorter-cycle supply arrangements across the region.

The ceremony was attended by Yeo and Berkana Power’s overseas sourcing manager, Ruslee Mamataehah.

As RE policies drive demand across the ASEAN region, Elridge Energy stated it remains focused on scaling its operations and leveraging its established production and logistics network to meet international standards. — TMR

• This article first appeared in The Malaysian Reserve weekly print edition

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The company shifts its focus to profitable non-aviation segments and operational turnaround

by RUPINDER SINGH

CAPITAL A Bhd has secured the High Court of Malaya’s approval for a capital reduction of RM5.51 billion, marking the completion of the final judicial milestone in its multi-year regularisation plan.

The court order, granted on Jan 21, sets the stage for the group to formally apply for the upliftment of its Practice Note 17 (PN17) status, a designation it has carried since the pandemic’s onset.

The capital reduction follows a flurry of end-phase activity, most notably the completion of the aviation business disposal on Jan 16.

The transaction involved the transfer of AirAsia Bhd and AirAsia Aviation Group Ltd to AirAsia X Bhd, effectively consolidating all AirAsia-branded airlines under a single listed platform.

The exercise was settled through the allotment of 2.31 billion new AirAsia X shares to Capital A and its entitled shareholders via a dividend-in-specie. 

Crucially, as part of the transaction, AirAsia X assumed RM3.8 billion in liabilities previously owed by Capital A to AirAsia, a move designed to right-size the balance sheet of the remaining non-aviation entity.

In tandem with this consolidation, the expanded aviation group has seen a significant leadership transition.

Tharumalingam Kanagalingam, better known as Bo Lingam, was appointed as the new Group CEO of AirAsia X on Jan 19.

A veteran of the group who joined in 2001, Bo Lingam is now tasked with steering the unified carrier.

Concurrently, AirAsia X strengthened its own capital base by issuing 606.06 million placement shares to independent investors, raising RM1 billion.

Both the consideration shares and the placement shares were listed on the Main Market on Jan 19.

Benyamin Ismail, who led AirAsia X through its debt restructuring, has been redesignated as GM to oversee day-to-day airline operations.

Group CFO Teh Mun Hui described the court’s decision as the definitive step in the group’s financial recovery.

“This order is the final court step in our PN17 journey. We set out to fix the fundamentals and we followed through on every step — completing the aviation business disposal, distributing AirAsia X shares to our shareholders and securing the approvals needed to clean up the balance sheet. We are now working towards the upliftment of PN17 status,” Teh said.

The group’s remaining portfolio now centres on five core pillars: Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, Santan and AirAsia Next.

According to Capital A, these non-aviation segments have collectively maintained a streak of profitability for four consecutive quarters leading into the third quarter of 2025 (3Q25).

Upon the formal lodgement of the High Court order next week, Capital A’s shareholders’ funds will turn positive, addressing the core PN17 criteria.

The leadership at the holding level remains anchored by Tan Sri Tony Fernandes, who recently committed to a five-year contract extension as CEO of Capital A.

Under his guidance, the group aims to unlock further value by potentially listing its subsidiary units individually as they achieve scale.

While the operational turnaround is evident, the formal removal of the PN17 tag remains subject to the final nod from Bursa Malaysia Securities.

Management expects the streamlined ecosystem to yield significant cost efficiencies.

By separating the capital-intensive airline operations from the high-growth digital and service businesses, Capital A intends to offer investors a clearer valuation of its asset-light components.

The company has indicated it will embark on international roadshows in the coming months to articulate this vision, following an upcoming Investor Day that will provide deeper visibility into its 2025 performance.

• This article first appeared in The Malaysian Reserve weekly print edition

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KENANGA Research has maintained its “Reject” call on the RM11 billion takeover offer for IJM Bhd from Sunway Bhd, even as the stock experienced a volatile week following investigations by the Malaysian Anti-Corruption Commission (MACC) into alleged misconduct and money-laundering activities.

On its part, Sunway has reaffirmed its intention to proceed with the proposed takeover despite the negative news flow surrounding IJM.

In a note dated Jan 26, Kenanga Research said that if the deal materialises, the recent weakness in IJM’s share price has widened the arbitrage gap compared with when the offer was first tabled, with an upside of about 19% to the offer price now emerging.

The research house said its “Reject” call remains unchanged as the implied valuation is still unfavourable. It also reiterated its target price of RM3.40 for IJM, which it said implies relatively greater value for shareholders to continue holding the stock for now.

At 9.50am, IJM shares were up 7 sen to RM2.71.

Recapping recent events, Kenanga Research noted that IJM’s share price turned volatile last week following Sunway’s takeover proposal, amid a spate of negative news flow.

IJM has confirmed that officers from the MACC and the Inland Revenue Board of Malaysia (IRBM) visited its offices to obtain information. The group also disclosed that its chairman, Tan Sri Krishnan Tan, met MACC officers and that at least 10 bank accounts were temporarily restricted to facilitate investigations.

Importantly, IJM said these measures do not affect its day-to-day operations. Separately, the MACC confirmed its cooperation with the Serious Fraud Office in investigating an alleged RM2.5 billion money-laundering scheme involving IJM.

Kenanga Research noted that the MACC-related sell-down has widened the arbitrage gap to about 19% against the RM3.15 offer price, while IJM’s current share price is trading at a 29% discount to its target price of RM3.40.

On outlook, the report said IJM is targeting RM6 billion to RM8 billion in order book replenishment for FY26, supported by several large-scale opportunities, including three data centre projects, two industrial jobs and the RM1 billion Nusantara civil servant housing project. –TMR

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GEORGE TOWN — Hotels in Penang, particularly five-star establishments, consistently follow industry best practices and conduct regular reviews of their Standard Operating Procedures (SOPs) to ensure the highest quality of service, said the Malaysian Association of Hotels (MAH) Penang Chapter chairman, Datuk Tony Goh.

He said that no major complaints about services have been reported at five-star hotels in the state, with records showing strong compliance among operators.

“So far, five-star hotels in Penang are performing very well and have not faced any major service issues. International-standard hotels here take extra care to ensure their service quality remains consistently excellent.

“Other hotels (not five-star properties) also aim to deliver top-quality service, as it is standard practice to ensure both local and international tourists are satisfied. These hotels also represent Malaysia’s name and reputation,” he told Bernama.

He was responding to the Ministry of Tourism, Arts and Culture’s call for all Malaysian hotels, especially four- and five-star properties, to consistently follow industry best practices to protect the nation’s reputation as a top tourist destination. 

Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing said last Saturday that hotels must go beyond star ratings, strengthening service culture, management accountability, and operational standards to meet rising traveller expectations.

Goh added that the association has urged hotel operators to boost staff training to meet industry standards and traveller expectations in service, cleanliness, and efficiency, stressing that inspections and monitoring are carried out closely with authorities, including MOTAC, especially for five-star hotels.

“This includes service, safety, and hygiene, ensuring all hotels meet the required standards, particularly during Visit Malaysia 2026,” he said.

He is confident Penang’s hotel industry will continue to grow, with more four- and five-star hotels set to open this year.

Goh said Penang currently has 111 hotels, including over 20 five-star properties registered with the Penang Hotel Association, offering more than 7,500 rooms. — BERNAMA

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CAPITAL A Bhd’s logistics venture, Teleport Everywhere Pte Ltd, has entered into a subscription agreement with HPS Investment Partners to raise US$50 million (RM205 million) via redeemable convertible perpetual securities (RCPS).

The deal, inked on Jan 22, 2026, values the logistics arm at an impressive USD500 million (RM2.03 billion).

The capital injection comes from HPS, a global alternative investment powerhouse managing US$179 billion in assets.

Under the terms, the RCPS carries no fixed maturity date but allows HPS to request redemption after five years.

Conversely, Teleport retains the flexibility to redeem the instruments starting from the second year of issuance.

Management has earmarked the lion’s share of the proceeds, US$46.1 million, for working capital to be utilised within the next 12 months.

The primary objective is to fuel Teleport’s “scale-up phase,” which includes expanding third-party airline capacity, acquiring future freighter aircraft, and strengthening its presence across key global markets.

Critically for shareholders, Capital A noted that the issuance will not result in any material dilution of its stake.

Teleport will remain a subsidiary of the group even if HPS exercises its rights to convert the RCPS into ordinary shares, a move typically triggered by an initial public offering (IPO) or a trade sale.

The exercise, expected to close by the end of the first quarter of 2026, requires no shareholder or regulatory approvals.

This strategic fundraising underscores Capital A’s ongoing efforts to lean into its non-aviation digital and logistics assets to drive long-term value. — TMR

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DXN Holdings Bhd has signed a non-binding memorandum of understanding (MoU) with Apex-Brasil to explore potential investments of up to US$50 million (RM215.5 million) in Brazil.

The partnership will focus on agriculture-related production, market access, and strategic connections for Ganoderma and mushroom-based products.

The agreement aims to assess Brazil’s market and regulatory landscape, with DXN considering the country as a regional hub for Latin American operations.

While the MoU has no immediate financial impact, it sets a 24-month framework for discussions on investment facilitation, local job creation, and technology transfer. — TMR

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