Business

BERMAZ Auto Bhd posted a weaker set of full-year results for the financial year ended April 30, 2026, even as its fourth-quarter performance strengthened significantly on higher Mazda sales and improved margins.

For the 12-month period, net profit fell to RM104.73 million from RM153.6 million a year earlier, while revenue declined to RM2.28 billion from RM2.62 billion previously.

The weaker performance was mainly due to lower first-half sales as Mazda and Kia models neared the end of their product life cycles, along with the cessation of its Kia distributorship in November 2025.

The group also recorded a share of losses from associated companies, compared with gains in the previous year.

For the fourth quarter ended April 30, 2026 (4Q26), Bermaz Auto posted a profit before tax of RM67.4 million, up 94.6% from RM34.6 million a year earlier and higher than RM59.6 million in the preceding quarter.

Revenue rose 3% year-on-year to RM544.7 million from RM528.6 million.

The stronger quarterly performance was driven by higher Mazda domestic sales, particularly strong demand for the Mazda3, as well as improved margins from a better sales mix.

This was partly offset by lower Kia volumes following the distributorship’s termination.

The group also recorded lower employee share scheme expenses of RM0.7 million versus RM1.2 million previously.

The board declared a fourth interim dividend of 1.75 sen per share and a special dividend of 1.75 sen per share for the quarter, unchanged from its earlier announcement.

This brings total dividends for FY26 to 7.25 sen per share, lower than 16.75 sen in FY25, with payment scheduled for Aug 5, 2026 and entitlement date fixed on July 22, 2026.

Looking ahead, Bermaz Auto said the automotive sector is expected to face slower growth amid inflationary pressures, geopolitical uncertainty, higher energy costs and supply chain disruptions linked to the Middle East.

It also flagged ongoing competition from Chinese marques, which continues to pressure traditional brands in Malaysia.

The group said demand remains highly sensitive to market sentiment and model launches, but it remains cautiously optimistic of sustaining its competitive position and profitability for the financial year ending April 30, 2027. — TMR

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KERJAYA Prospek Group Bhd said its 55%-owned subsidiary Rivanis Ventures Sdn Bhd has entered into a development agreement with Perbadanan Aset Keretapi (Railway Assets Corporation, RAC) for the proposed acquisition and mixed-use development of about 34.84 acres of land in Prai, Penang, with a total estimated consideration of RM156.49 million.

In a Bursa Malaysia filing today, the group said the project involves a phased development over approximately seven years comprising at least 338 units of affordable housing under Penang’s Rumah Mampu Milik (RMM C3) scheme, relocation of existing occupiers, and additional residential and commercial components.

Under the agreement, RAC will receive RM54.1 million in cash payments in stages, alongside the delivery of the 338 affordable housing units valued at about RM102.39 million.

Additional payments may apply if the project’s plot ratio exceeds 1:4.

In return, Rivanis Ventures will have rights to all remaining developed units (excluding the affordable housing units) and a first right of refusal over adjacent land of about 19.55 acres if it becomes available for development.

Kerjaya Prospek and Aspen Vision Development will jointly provide corporate guarantees for the obligations under the agreement.

The project is subject to several conditions precedent, including planning approvals, zoning conversion, and shareholder approvals of the joint venture partners, to be fulfilled within 12 months.

The group said the development is expected to be funded via shareholder contributions and external borrowings, and is not expected to have a material impact on earnings or net assets for the financial year ending Dec 31, 2026.

Kerjaya Prospek said the Prai project is strategically located within the Northern Corridor Economic Region and is expected to benefit from improving connectivity infrastructure, including proximity to Penang Sentral and the upcoming LRT line.

The group added that the proposal is expected to contribute positively to long-term earnings and reflects its focus on sustainable, community-centric property development. — TMR

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COASTAL Contracts Bhd has secured a contract from Petroleos Mexicanos (Pemex), via a consortium arrangement, to deliver engineering, procurement, construction and commissioning (EPCC) works for a gas sweetening plant at the Ixachi field in Mexico.

In a Bursa Malaysia filing today, the group said the contract was formalised on June 10, 2026 (Mexico time), following earlier Emergency Work Instructions issued by Pemex under its emergency exception process.

The scope covers procurement, transportation, installation, interconnection, commissioning, testing, start-up, as well as operations and maintenance (O&M) for the second Perdiz Plant.

The EPC portion of the contract is valued at US$157.5 million (about RM641.9 million), while the O&M component is estimated at US$47.3 million (about RM192.8 million).

The O&M tenure runs for three years from May 20, 2026 to May 19, 2029.

Coastal said the contract is revenue in nature and in the ordinary course of business, and is expected to contribute positively to earnings and net assets over the contract period. It will not affect the group’s issued share capital.

The group flagged typical execution risks, including cost and schedule pressures arising from global energy market volatility, foreign exchange fluctuations, supply chain disruptions, and geopolitical tensions, including recent US tariff measures on industrial inputs.

Coastal said it would mitigate these risks through diversified sourcing, long-term supply arrangements, advance procurement of key equipment, tighter project controls, and enhanced coordination with Pemex and project partners. — TMR

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PN17 contractor Zelan Bhd has taken another step in its restructuring efforts after its wholly-owned subsidiary, Zelan Holdings (M) Sdn Bhd (ZHSB), formally resolved to enter creditors’ voluntary liquidation.

In a Bursa Malaysia filing today, Zelan said concurrent meetings of ZHSB’s members and creditors approved the winding-up of the subsidiary under Section 439(1)(b) of the Companies Act 2016, citing its inability to continue operations due to heavy liabilities.

Lim Sin Han and Leoh Hin Han of Sin Han & Co. PLT were appointed joint and several liquidators.

Zelan noted that ZHSB had already ceased to be a subsidiary from May 15, 2026, when the liquidation process commenced, resulting in its deconsolidation from the group’s financial statements.

The subsidiary, previously involved in engineering and turnkey construction activities, had ceased operations by end-2025, while Zelan had fully impaired its investment in the unit.

The liquidation forms part of Zelan’s broader restructuring and regularisation plan following its PN17 classification in May 2023.

The group’s financial distress stemmed largely from issues related to overseas projects, including difficulties in recovering a RM241.76 million receivable linked to a project in Abu Dhabi, which contributed to a disclaimer of opinion on its FY2022 financial statements.

Zelan said the liquidation is expected to have a positive impact on its consolidated net assets per share and gearing position, as the group no longer has enforceable guarantees or claims arising from ZHSB’s creditors.

The development comes after Bursa Malaysia Securities granted Zelan a three-month extension until July 31, 2026, to submit its regularisation plan aimed at exiting PN17 status. — TMR

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by AKMAR ANNUAR

SD Guthrie Bhd’s Indonesian exports remain business as usual for now, although the plantation group is seeking greater clarity on the republic’s proposed move to tighten oversight of palm oil exports.

President and group CEO Mohd Haris Mohd Arshad said there had been no disruption to the group’s exports from Indonesia at this stage, but noted that any future move to centralise exports through a single body would need to take into account certification, traceability and existing supply chain requirements.

“Today, it is still business as usual and it is still flowing. I do not think we have come to a point where exports will stop. That will not be good for us and for the country,” he told reporters after SD Guthrie Bhd’s annual general meeting today.

He said the group exports about 600,000 to 700,000 tonnes of processed products and crude palm oil from Indonesia annually, alongside its domestic sales in the country.

The issue has emerged as Indonesia looks at ways to monitor and address leakages in its palm oil export system, including concerns over under-invoicing by some exporters.

Mohd Haris said SD Guthrie understands the intent behind the proposed measures, but added that the implementation details remain unclear.

“What we know is that they want to monitor. They want to go a step further and channel everything into a single body,” he said.

He said the concern was whether a single body could effectively manage large volumes of exports involving numerous buyers, while also preserving the traceability requirements demanded by customers.

Some buyers, he said, require clear provenance and certification, including Indonesian Sustainable Palm Oil-certified supply, which means every party in the value chain must be able to meet the relevant requirements.

Mohd Haris said there were still many technical issues that needed to be resolved before such an arrangement could be implemented without disrupting the certified palm oil supply chain.

He also said companies were prepared to engage with authorities to ensure the system could address leakages while protecting legitimate trade flows.

“There are many things that are still not clear, and I think this has to be thought through. The crux of the matter is, they must stop under-invoicing,” he said.

When asked whether SD Guthrie’s operations could be affected if the new arrangement proceeds, Mohd Haris said there could be an impact if the changes were implemented without proper consideration of how palm oil supply chains operate.

Separately, Haris said about 2,800ha, or around 2% of SD Guthrie’s landbank in Indonesia, had been identified under the country’s ongoing land-related review process.

However, he said the group had not received any decree or summons, and the matter remains a contingent liability that is not yet quantifiable.

SD Guthrie, formerly Sime Darby Plantation Bhd, posted a record net profit of RM2.5 billion for the financial year ended Dec 31, 2025, up 16% from the previous year.

The group operates 232 plantation estates across Malaysia, Indonesia, Papua New Guinea and the Solomon Islands, supported by 10 refineries with a combined annual capacity of four million metric tonnes.

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KUALA LUMPUR — A former Chief Financial Officer of Karex Berhad pleaded not guilty in the Sessions Court here today to a charge of acquiring 150,000 shares in the company while in possession of undisclosed inside information six years ago.

According to the charge, Goh Chok Siang, 55, allegedly acquired 150,000 units of Karex Berhad shares through a Central Depository System (CDS) account while having information that was not generally available to the public.

The information concerned Karex Berhad’s intention to venture into the manufacturing and sale of gloves, which, if disclosed publicly, a reasonable person would expect to have a material effect on the price or value of the company’s shares.

The offence was allegedly committed at Bursa Malaysia Securities Berhad, Exchange Square, Bukit Kewangan, on July 22, 2020.

The charge was framed under Section 188(2)(a) of the Capital Markets and Services Act 2007 (Act 671), punishable under Section 188(4) of the same Act, which provides for a maximum prison sentence of 10 years and a fine of up to RM1 million upon conviction.

Judge Izralizam Sanusi allowed the accused bail of RM90,000 with one surety and fixed July 10 for further mention of the case.

The prosecution was conducted by Securities Commission Deputy Public Prosecutors Ng Chian Huey and Muhammad Izzat Fauzan, together with Prosecuting Officer Mark Rohan Mahadevan, while the accused was represented by lawyer Wong Chiang Kiat. — BERNAMA

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TANCO Holdings Bhd has entered into a memorandum of understanding (MoU) with China Mobile International Limited (CMI) to jointly explore the development of a 50MW IT load data centre in Port Dickson, Negeri Sembilan.

In a filing, Tanco said the agreement was signed via its indirect wholly owned subsidiary, Tanco Dot Com Sdn Bhd, on 9 June 2026.

CMI, a wholly owned subsidiary of China Mobile Limited and headquartered in Hong Kong, is responsible for managing the Chinese telecom giant’s international operations.

Under the MoU, both parties will explore collaboration opportunities to develop and build the proposed data centre project.

The agreement is non-binding, except for confidentiality obligations, and is governed by Hong Kong law.

The MoU will remain in effect for one year and may be renewed automatically unless terminated by either party with at least one month’s notice, upon execution of a definitive agreement, or if no definitive agreement is reached within two years.

Tanco said the collaboration is part of its strategy to strengthen partnerships with global players and expand into new growth sectors, including data centre development.

The announcement comes amid heightened volatility in the stock, with Tanco Holdings’ share price plunging 55% over the past four trading sessions, erasing nearly RM5.8 billion in market capitalisation, with the counter hitting an intraday low of 78.5 sen before closing 28.6% lower at 80 sen on heavy trading.

The sharp sell-off, which reduced its market value from about RM10.6 billion to as low as RM4.81 billion, also triggered another suspension of intraday short selling activities, which is set to resume tomorrow. –TMR

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