Markets

Cuckoo International (Mal) Bhd, which is scheduled to debut on the Main Market of Bursa Malaysia on June 24, reported a net profit of RM27.86 million for its first quarter ended March 31, 2025 (1Q25).

The company posted a revenue of RM296.38 million for the quarter, according to a filing with Bursa Malaysia today.

This is the company’s first interim financial report ahead of its upcoming initial public offering (IPO).

There are no comparative figures for the preceding quarter. Profit before tax stood at RM38.12 million.

The bulk of revenue – RM237 million or 80% – was contributed by the Cuckoo-branded segment, while the co-created segment brought in RM58.3 million, or 19.7% of the total.

In a statement, its CEO Hoe Kian Choon said the group’s performance reflects the strength of its brand and business model, supported by a well-developed omni-channel distribution network across Malaysia and Singapore.

“Cuckoo Malaysia’s performance in 1Q25 underscores the effectiveness of our business model, the strength of our brand presence, and the success of our omni-channel distribution strategy across both Malaysia and Singapore,” he said.

“We are operating in a highly conducive environment for growth, with the number of households increasing at a faster rate than the population- a trend that directly supports demand for home appliances and wellness solutions. At the same time, rising household debt is driving a shift in consumer preference toward rental options, which aligns strongly with our resilient rental business model.”

According to Frost & Sullivan, Malaysia’s home appliances and household goods rental market is projected to grow at a compound annual growth rate (CAGR) of 9.9% between 2024 and 2029, with penetration currently at just 10–15%.

This leaves room for further adoption of rental-based consumption models.

To capture this demand, the company plans to expand its product range and home care services, strengthen distribution channels including new cash-and-carry Brandshops and e-commerce as well as and scale up logistics and IT infrastructure to support growth.

Hoe added that these investments are part of Cuckoo Malaysia’s strategy for sustainable growth and long-term value creation.

The company’s public issue was oversubscribed by 1.42 times, receiving 7,908 applications for approximately 69.33 million shares. – TMR

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DELEUM Bhd, via its 90%-owned indirect subsidiary Turboservices Sdn Bhd, has secured a contract from Hess Exploration and Production Malaysia BV for the provision of solar gas turbine generator (GTG) maintenance services and materials supply for the North Malay Basin (NMB).

In a Bursa Malaysia filing today, Deleum said Turboservices accepted the letter of award on June 19, with the contract taking effect from June 10, 2025.

The contract will run for five years.

Under the contract, Turboservices will provide a wide range of services, including supply of service parts, field service call-outs, exchange engines, equipment health management, and other maintenance services for solar gas turbines, on a reimbursable basis if requested.

Deleum expects the contract to contribute positively to its revenue, earnings and net assets for the duration of the contract period.

The contract will be funded via internally generated funds, and will not have any effect on Deleum’s share capital or shareholding structure. — TMR

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FLEXIDYNAMIC Holdings Bhd has signed agreements to acquire 100% equity interest in glove former manufacturer Formtech Engineering (M) Sdn Bhd for a total cash consideration of RM10.39 million.

In a filing with Bursa Malaysia, Flexidynamic said it entered into two share sale agreements (SSAs) — one with Harps Investment Asia Pte Ltd for a 69.88% stake worth RM8.39 million, and another with the remaining minority shareholders, Dietmar Trumm and Valluvan A. Peramuthu, for the balance 30.12% stake at RM2 million.

The acquisition, funded via internally generated funds, is in line with Flexidynamic’s strategy to deepen its vertical integration in the glove manufacturing supply chain and diversify its income streams.

Founded in 2010, Formtech manufactures ceramic glove formers used in both surgical and examination glove production.

It also offers energy-efficient and coated glove former types.

Despite losses over the past three years due to the industry-wide overcapacity following the Covid-19 pandemic, Formtech’s revenue recovered strongly in 2024, rising 166% year-on-year to RM8.97 million.

Flexidynamic noted that Formtech’s installed production capacity of 180,000 pieces per month, with current utilisation at just 30%, provides significant headroom for growth.

The group plans to leverage its existing customer base to drive demand for Formtech’s glove formers without having to invest in new manufacturing facilities.

“This acquisition marks a key milestone in Flexidynamic’s long-term strategy to deepen our vertical integration within the glove manufacturing ecosystem,” said its deputy MD Ben Sin

“We believe Formtech’s expertise and established presence in glove former manufacturing complement our existing strengths, and we are excited to explore the potential synergies this could bring to the group,” he added.

Besides its core engineering services for glove manufacturing, Flexidynamic is also expanding into gamma radiation sterilisation services via its 51%-owned Gammatech Sdn Bhd, targeting not only the glove sector but also the pharmaceutical, food processing and packaging industries.

The acquisition is expected to be earnings accretive in the longer term, Flexidynamic said. — TMR

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BURSA MALAYSIA was almost unchanged at the opening today, due to a lack of fresh catalysts after the flat Wall Street performance overnight, analysts said. 

At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) edged up 0.02 points to 1,511.97 from Wednesday’s close of 1,511.95 . The benchmark index opened 0.99 of-a-point higher at 1,512.94.

The broader market was marginally negative, with 98 decliners outnumbering 82 gainers. Another 227 counters were unchanged, while 2,016 were untraded and 11 suspended.

Turnover stood at 52.84 million shares worth RM25.57 million.

Rakuten Trade Sdn Bhd’s equity research vice-president Thong Pak Leng said that the flat Wall Street performance came after the US Federal Reserve (Fed) maintained its interest rate stance, while geopolitical tensions in the Middle East continued to draw worries. The Dow Jones Industrial Average lost 44 points, or 0.1 per cent, the S&P 500 slipped 0.03 per cent, while the Nasdaq Composite gained 0.13 per cent.

Equities in Asia ended broadly lower yesterday as the geopolitical tensions in the Middle East remained unresolved. As a result, Hong Kong’s Hang Seng Index dipped 1.12 per cent. On the local front, the FBM KLCI finished a tad higher on Wednesday after a roller coaster session.

The low trading volume reflected investor caution, with many avoiding long positions due to persistent global risks and volatile market conditions. “We foresee trading will remain muted following the lack of catalysts and heightened market risks. Hence, we anticipate the benchmark index to trend within the range of 1,500-1,520 points today,” Thong told Bernama.

Among heavyweights, Maybank gained 2.0 sen to RM9.64, while Tenaga and CelcomDigi remained flat at RM14.22 and RM3.81, respectively. Public Bank fell 3.0 sen to RM4.21 and CIMB added 3.0 sen to RM6.68. 

Among the most active stocks, HLT Global eased half-a-sen to 5.0 sen, SNS Network Technology ticked up 2.0 sen to 55.5 sen, and Dagang Nexchange added 1.0 sen to 30 sen. Elridge Energy Holdings and Dataprep Holdings were unchanged at 59.5 sen and 11.5 sen, respectively. 

On the index board, the FBM Emas Index grew 2.37 points to 11,304.18, the FBMT 100 Index perked up 2.36 points to 11,082.46, and the FBM Emas Shariah Index improved 0.04 of-a-point to 11,310.38. The FBM 70 Index climbed 12.45 points to 16,213.24, but the FBM ACE Index dropped 7.04 points to 4,434.30.

By sector, the Plantation Index strengthened 12.10 points to 7,250.14, while the Energy Index declined by 2.06 points to 738.55.

The Financial Services Index bagged 12.98 points to 17,434.41, but the Industrial Products and Services Index slid 0.26 of-a-point to 149.80. — BERNAMA

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by AUFA MARDHIAH

ASIA is making strides in building carbon markets, but experts at Energy Asia 2025 said the region must strengthen regulations, improve emissions data and align policies before it can fully participate in global carbon trading.

Bursa Malaysia head of carbon markets Dr Wei-nee Chen said countries such as China, India, Indonesia, Vietnam and Malaysia are introducing carbon pricing systems, including emissions trading schemes and carbon taxes.

“Malaysia will implement its carbon tax by next year, and it is our hope that carbon credits can also be used as an offset,” she said.

While these developments are encouraging, Chen said real growth will likely come from compliance markets under Article 6 of the Paris Agreement, rather than voluntary initiatives. She highlighted that Petroliam Nasional Bhd (Petronas) is among the first oil and gas (O&G) companies in Asia to embrace such goals.

On the other hand, carbon policy expert Peter Zaman from HFW Law Firm cautioned that many countries in the region lack the legal, technical and institutional readiness to build functioning markets.

He pointed out that while about 40 countries worldwide have been doing carbon reporting for decades, more than 130 are now required to do so under the Paris Agreement — many for the first time.

“They’re fumbling in the dark. You can’t build a market if you don’t know the cost of your emissions,” he said.

Zaman also warned against the belief that one piece of legislation could solve the problem, noting that the European Union (EU) had to pass more than 400 laws to adjust its emissions trading scheme to meet its 1.5°C climate target.

Additionally, efforts to establish a regional carbon market in ASEAN are underway through the ASEAN Carbon Framework, which aims to link markets and improve liquidity across member states.

However, Chen said the differences in legal definitions, capital controls and crediting systems between countries pose major challenges.

“When we theoretically come up with a framework, it looks good. But when we operationalise it, it’s not so straightforward,” she said, referring to the failed ASEAN Trading Link project that was abandoned in 2017.

Nevertheless, Chen stressed that voluntary markets alone are not enough and called for stronger public policy to guide market development.

“Carbon markets cannot operate in a vacuum. Good policy must provide certainty, clarity and consistency,” she said.

Meanwhile, Zaman said carbon markets are intrinsically linked to global trade and should be handled by the right institutions.

“Markets aren’t built by environmental people. Markets are built by market people,” he added.

As interest in carbon trading continues to grow across Asia, the panellists agreed that strong institutions, credible data and comprehensive regulation will be key to realising the region’s ambitions.

They also urged governments to take lessons from Europe’s long learning curve and avoid repeating mistakes by investing early in the right legal and technical infrastructure.

Zaman noted that the EU’s emissions trading scheme only began to function effectively after nearly two decades because it was initially led by environmental agencies unfamiliar with how markets operate.

Chen echoed the need for stronger coordination between ministries and sectors, particularly in aligning carbon policy with broader energy reforms. While the carbon market is a useful pricing tool, it should not be seen as the only solution.

“Sometimes in the carbon market we work in silos. But we do recognise that the energy sector is the biggest contributor to emissions today.

“Reform of the energy market is really one of the low-hanging fruits to achieve a reasonable outcome for the transition,” she said.

She further pointed out that Malaysia’s energy market has reached a point of maturity where policy reform may now be appropriate.

They concluded that Asia cannot afford to take shortcuts. Without robust governance, strong public policy and private sector accountability, the promise of a thriving carbon market in the region will remain out of reach.

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BURSA MALAYSIA opened marginally higher but turned lower thereafter, tracking the weaker overnight Wall Street performance. 

At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.28 points to 1,510.36 from Tuesday’s close of 1,511.64.

The benchmark index opened 0.25 of-a-point higher at 1,511.89.

The broader market was negative with 138 decliners outnumbering 106 gainers. Another 206 counters were unchanged, while 1,956 were untraded and 13 suspended.

Turnover stood at 82.81 million shares worth RM37.30 million.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said Wall Street declined amid fading optimism for a quick de-escalation of Israel-Iran tensions.

The Dow Jones Industrial Average (DJIA) lost 0.7 per cent, the S&P 500 slipped 0.84 per cent, while the Nasdaq Composite dropped 0.91 per cent. 

In Asia, key indices ended mixed as investors were concerned about the geopolitical tension in the Middle East.

In Hong Kong, the Hang Seng Index dipped 0.3 per cent due to profit-taking activities following Monday’s rally.

On the local front, the FBM KLCI finished lower on Tuesday as investors were reluctant to take long positions due to the heightened global uncertainties and market volatility.

“Additionally, foreign fund outflows further dampened investor sentiment.

“We foresee the benchmark index remaining range-bound between 1,500 and 1,520 today, reflecting increased market volatility,” Thong told Bernama. 

Among heavyweights, Maybank, Public Bank and IHH Healthcare added 1.0 sen each to RM9.56, RM4.23 and RM6.90, respectively. Tenaga dipped 4.0 sen to RM14.26, and CIMB slid 3.0 sen to RM6.63. 

Among the most active stocks, KHPT Holdings and Velesto Energy remained flat at 13.5 sen and 18.5 sen, respectively, Mpire Global eased 1.0 sen to 10 sen, Alam Maritim Resources shed half-a-sen to 3.0 sen and NexG dropped 1.5 sen to 34.5 sen.

On the index board, the FBM Emas Index reduced 14.46 points to 11,288.82, and the FBMT 100 Index lost 16.96 points to 11,065.58 and the FBM Emas Shariah Index slipped 2.95 points to 11,315.42.

The FBM 70 Index gave up 54.81 points to 16,168.19, but the FBM ACE Index increased 1.85 points to 4,444.82.

By sector, the Plantation Index trimmed 3.91 points to 7,246.83, while the Energy Index rose by 6.81 points to 745.58.

The Financial Services Index lost 42.65 points to 17,353.91, but the Industrial Products and Services Index increased 0.31 of-a-point to 150.46. — BERNAMA

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