Category: Manufacturing

Seng Fong Holdings Berhad Signs Underwriting Agreement with Hong Leong Investment Bank

Seng Fong Holdings Berhad, a rubber processor producing and trading Standard Malaysia Rubber (SMR) and premium grade block rubber, is pleased to announce that the Company has entered into an underwriting agreement with Hong Leong Investment Bank Berhad (HLIB) for its upcoming initial public offering (IPO) on the Main Market of Bursa Malaysia Securities Berhad.

Group Managing Director/Chief Executive Officer of HLIB, Ms. Lee Jim Leng; and Managing Director of Seng Fong, Mr. Er Hock Lai [L-R]

According to Seng Fong’s draft prospectus posted on the Securities Commission Malaysia website, the listing exercise involves the IPO of up to 160.87 million ordinary shares or up to 31.0% of the Company’s enlarged number of issued shares comprising a public issue of 90.81 million shares and an offer for sale of up to 70.06 million shares.

Under the agreement, HLIB will underwrite 42.20 million IPO shares made available for application under the retail offering. HLIB is also the Placement Agent for 118.68 million IPO shares allocated to bumiputera investors approved by the Ministry of International Trade and Industry (MITI) as well as other institutional and selected investors.

Managing Director of Seng Fong, Mr. Er Hock Lai said, “We look forward to working with HLIB on our IPO, which we see as crucial for our future growth as the funds raised through the listing exercise will be used for expansion plans. Our plans include the installation of two solar system units to generate electricity in line with the Company’s ESG initiatives to reduce carbon footprint and have more sustainable business operations which will result in savings of approximately RM2.6 million per annum to our Group’s cost of sales.”

“We will also be installing a biomass system to reduce diesel consumption used to generate fuel for our dryer system. This initiative will also help achieve savings of RM3.5 million per year and further our ESG initiatives by making the business more sustainable over the longer term. In addition, we are also planning to increase the total annual capacity of our factories to approximately 166,000 MTS by year 2023 from current total capacity of 142,000 MTS.”

Group Managing Director/Chief Executive Officer of HLIB, Ms. Lee Jim Leng said, “We are pleased to have played a key role in assisting Seng Fong in this IPO exercise. The Company has a solid reputation and a history dating back to 1986. Rubber is a key material in many industries and in particular, the automobile industry where there is steady demand”.

“We have no doubt that Seng Fong will continue to excel and to build upon the foundations set down almost four decades ago. The listing is an effective platform for the Company to move into the next stage of growth”.

Almost all of Seng Fong’s revenue is derived from sales to international customers for FYE2019 to FYE2021.

Seng Fong Holdings Bhd: http://sengfongholdings.com/

Kobe Steel to launch “Kobenable Steel”, Japan’s first low CO2 blast furnace steel

Kobe Steel (KOBELCO) announces today that it will launch Kobenable Steel and become Japan’s first* provider of low CO2 blast furnace steel products with significantly reduced CO2 emissions during the blast furnace ironmaking process. The Company plans to start selling the new products this fiscal year.

Kobenable Steel is based on the KOBELCO Group’s CO2 Reduction Solution for Blast Furnace Ironmaking(1) announced on February 16, 2021. It utilizes a technology that can significantly reduce CO2 emissions from the blast furnace, which was demonstrated at the Company’s Kakogawa Works by charging the blast furnace with a large amount of HBI(2), produced by the MIDREX(R) Process(3) in the engineering business.

Kobe Steel plans to launch Kobenable Steel in two product categories:
– Kobenable Premier – 100% reduction rate of CO2 emissions per ton(4)
– Kobenable Half – 50% reduction rate of CO2 emissions per ton(4)

Kobenable Steel is available for all types of the Company’s steel products (steel sheet, steel plate, wire rod & bar products) manufactured at Kakogawa Works and the Kobe Wire Rod & Bar Plant.

Kobenable Steel maintains the same level of high quality as conventional products. Customers can continue to use blast furnace steel products that require high quality, such as special steel wire rods and ultra-high-tensile strength steel, which are the Company’s strengths.

For commercialization, reduction rates of CO2 emissions are calculated using the mass balance methodology(5) in which CO2 reduction effects are allocated to specific steel products, in accordance with ISO 20915. The calculation method and results are certified by the DNV Business Assurance services UK Ltd., a third-party certification body in the UK. At the time of the sale of the products, Kobe Steel will provide the customer with a third-party certificate issued by DNV and a low-CO2 steel product certificate issued by the Company(6).

Kobe Steel will contribute to the realization of a green society by providing Kobenable Steel low CO2 blast furnace steel as a pioneer in the steel industry.

The Kobe Steel Group (KOBELCO Group) will continue to provide solutions to the needs of society, by making the best use of the talents of its employees and technologies, in order to realize a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure and prosperous lives.

*According to the Company’s survey as of May 17, 2022.

(1) Press release announced on February 16, 2021
Kobelco Group’s CO2 Reduction Solution for Blast Furnace Ironmaking
https://www.kobelco.co.jp/english/releases/1207624_15581.html
(2) Hot briquetted iron (HBI) is direct reduced iron (DRI) in a briquetted form. Since hot DRI is not suitable for long-distance transportation, it is pressed into a compact solid (briquette) upon being discharged from the reduction furnace
(3) The MIDREX(R) Process is the leading direct reduced iron (DRI) making process, which produces approximately 80% of the world’s direct reduced iron with natural gas (approximately 60% of the world’s direct reduced iron at large). The MIDREX Process uses natural gas as the reductant and pellets made of iron ore as the source of iron to make DRI through the reduction process in the shaft furnace. In comparison to the blast furnace method, the MIDREX Process can reduce CO2 emissions by 20 to 40%.
(4) Compared with the fiscal 2018 levels
(5) The mass balance methodology is a method to allocate specific characteristics to a certain portion of products according to the input amount of raw materials with the characteristics when there is a mix of raw materials with and with no such characteristics (e.g., low CO2) in the manufacturing process. This approach has been used for products such as recycled plastics, bioplastics, electricity generated from renewable energy sources, and certified food products like cocoa and palm oil, for which separation of product properties are difficult due to the characteristics of the manufacturing process or the supply chain. In the ironmaking process, it becomes possible to reduce the amount of coke used and thereby reduce CO2 emissions by replacing a portion of iron ore with HBI, a raw material for steel that has already been reduced. Kobe steel employs the mass balance methodology to allocate the reduction effects to specific products and add environmental value to them.
(6) The upper limit on sales volume is set by the certification body. Please ask us about the details of sales quantity.

www.kobelco.co.jp/english/

Yew Lee Pacific Group Berhad Launches Prospectus for ACE Market IPO

Ipoh-based industrial brush manufacturer to raise RM37.27 million from listing

Yew Lee Pacific Group Berhad (YLPG), an established manufacturer principally involved in the manufacturing of industrial brushes as well as the trading of machinery parts and industrial hardware, launched the Company’s prospectus today for an initial public offering (IPO) leading to a listing on the ACE Market of Bursa Malaysia Securities Berhad.

MR. LEE YOKE WAH, Associate Director of Corporate Finance, M&A Securities; MR. GARY TING, Head of Corporate Finance; MS. ANG POH YEE, Chief Operating Officer & Executive Director, YLPG; DATUK BILL TAN, Managing Director of Corporate Finance, M&A Securities; EN. MAHDZIR BIN OTHMAN, Independent Non-Executive Chairman, YLPG; MR. ANG LEE LEONG, Managing Director; MR. DANNY WONG, Deputy Head of Corporate Finance, M&A Securities; MR. KELVIN KHOO, Managing Director, Eco Asia Capital Advisory [L-R]

The Company’s IPO involves the issue of 133.10 million new shares to be issued at RM0.28 sen per share and an offer for sale of 26.62 million existing shares by way of private placement to selected investors. The public issue shares will be made available for application in the following manner:

Public issue

  • 26.62 million new shares made available for application to the Malaysian public
  • 15.97 million new shares allocated for application by eligible directors and employees
  • 23.96 million new shares by way of private placement to selected investors
  • 66.55 million new shares by way of private placement to identified bumiputera investors approved by the Ministry of International Trade and Industry (MITI)

The IPO is expected to raise gross proceeds of RM37.27 million to be utilised in the following manner:
Utilisation of proceeds

  • RM10.90 million for purchase of machinery and equipment
  • RM7.30 million for construction of warehouse facility and office building
  • RM1.80 million for renovation of office building
  • RM8.90 million for repayment of bank borrowings
  • RM4.57 million for working capital
  • RM3.80 million for listing expenses

Managing Director of YLPG, Mr. Ang Lee Leong, said: “The launch of this Prospectus is an important milestone for us as it marks the fruits of our labour from when we first started operations in 2004. As an established producer of industrial brushes, we embarked on this IPO to raise funding for our growth plans and elevate our profile in the industry.”

“To maintain sustainable growth and create long-term shareholder value, we have plans to expand manufacturing capacity and increase automation which the proceeds from the IPO enables us to implement. We are also constructing warehouse and office facilities as the current facilities are needed for the expansion of the Group’s manufacturing activities and also to cater for future business growth.”

YLPG produces industrial and technical brushes for various manufacturing industries including glove, industrial, electrical and electronic, industrial and commercial cleaning providers as well as glass and wood producers. For the financial year ended 31 December 2021 (FY2021), 76.8% of the Group’s total revenue was mainly derived from Malaysia while the remaining 23.2% was derived from the overseas market primarily located in Thailand, Vietnam, Indonesia and Taiwan, representing approximately 7.0%, 5.8%, 3.3% and 5.8% respectively.

Deputy Head of Corporate Finance, M&A Securities Sdn Bhd, Mr. Danny Wong said: “The proceeds from the IPO will allow YLPG to increase its manufacturing capacity in order to support its expansion plans and capitalise on the post Covid demand recovery. As such, we are confident that Yew Lee’s shares will be well received upon IPO.”

M&A Securities is the Principal Adviser, Sponsor, Underwriter and Placement Agent for YLPG’s IPO while Eco Asia Capital Advisory Sdn Bhd is the Financial Adviser.

Yew Lee Pacific Group Bhd: https://yewlee.com.my/

CNERGENZ Berhad IPO Shares Oversubscribed by 40.32 Times

CNERGENZ Berhad (CNERGENZ) is pleased to announce that the share allocation to the Malaysian public from its IPO has been oversubscribed by 40.32 times.

Chief Executive Officer & Executive Director of CNERGENZ Berhad, Mr. Lye Yhin Choy

CNERGENZ’s IPO comprises a public issue of 100,000,000 new ordinary Shares which were made available for application in the following manner:

  • 25,000,000 Issue Shares available for application by the Malaysian Public;
  • 10,000,000 Issue Shares reserved for application by the eligible directors and employees as well as persons who have contributed to the success of the CNERGENZ group (Eligible Persons);
  • 52,750,000 Issue Shares by way of private placement to identified institutional and/or selected investors; and
  • 12,250,000 Issue Shares by way of private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia (MITI); and an offer for sale of 50,000,000 Offer Shares by way of private placement to identified Bumiputera investors approved by the MITI.

A total of 16,186 applications for 1,033,093,200 Issue Shares were received from the Malaysian Public, representing an oversubscription rate of 40.32 times. A total of 9,089 applications for 376,239,100 Issue Shares were received under the Bumiputera category, representing an oversubscription rate of 29.10 times, whilst a total of 7,097 applications for 656,854,100 Issue Shares were received under the other Malaysian Public category, representing an oversubscription rate of 51.55 times.

Meanwhile, the total of 10,000,000 Issue Shares available for application by the Eligible Persons were fully subscribed.

Chief Executive Officer of CNERGENZ Berhad, Mr. Lye Yhin Choy, said, “We would like to thank investors for putting their trust in us. We are extremely pleased with the reception to our IPO as it shows deep investor confidence in our business, our solutions capabilities, and the overall optimism and positive outlook of the electronics and semiconductor industry.”

Chief Executive Officer of UOB Kay Hian Securities (M) Sdn. Bhd., Mr. David Lim said, “The response to CNERGENZ’s IPO is a reflection of investors’ appetite for businesses with fundamentally strong prospects and solid growth plans. The Company is well-positioned to leverage on the continued growth and investment in the electronics and semiconductor industries in Malaysia, Vietnam and Thailand.

UOB Kay Hian, being the Principal Adviser, Sponsor, Underwriter and Placement Agent in conjunction with the IPO, has confirmed that the 52,750,000 Issue Shares by way of private placement to identified institutional and/or selected investors have been fully placed out.

The Company is expected to list on the ACE Market of Bursa Securities on 24 May 2022.

About CNERGENZ Berhad
CNERGENZ Berhad was incorporated in Malaysia on 6 August 2021 as a private limited company under the name CNERGENZ Sdn. Bhd. and assumed its present name upon conversion to public company on 23 September 2021.

The Group is principally an investment holding company. Through its subsidiary, SiP Technology Sdn. Bhd., CNERGENZ is an electronic manufacturing solutions provider, specialising in surface mount technology (SMT) manufacturing solutions for the electronics and semiconductor industries (E&S Industries). The Group’s solutions and services are typically provided to customers who are looking to commission new integrated production lines or automate their production facilities, based on their operational requirements, budget and capital expenditure.

CNERGENZ mainly serves electronics and semiconductor companies that carry out the assembly of the advanced semiconductor packaging products as well as assembly and testing of printed circuit board assembly (PCBAs). For more information, visit cnergenz.com.

For more information, please contact:
Hakim Syed Munif
Swan Consultancy Sdn Bhd
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz

CNERGENZ Berhad launches Prospectus for ACE Market IPO

Aims to raise RM58 million from listing

Cnergenz Berhad (CNERGENZ), an established electronics manufacturing solutions provider based in Penang, has launched the Company’s Prospectus today for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities).

Mr. David Lim, Chief Executive Officer of UOB Kay Hian Securities (M) Sdn Bhd; Mr. Kong Chia Liang, Chief Operating Officer & Executive Director of CNERGENZ Berhad; Dato’ Azman bin Mahmud, Independent Non-Executive Chairman of CNERGENZ Berhad; Mr. Lye Yhin Choy, Chief Executive Officer & Executive Director of CNERGENZ Berhad; Mr. Lye Thim Loong, Chief Corporate Officer & Executive Director of CNERGENZ Berhad [L-R]

Applications for the IPO have opened starting at 10.00 a.m. today following the Prospectus launch and will close on 11 May 2022. The targeted IPO listing date of the Company on the ACE Market is on 24 May 2022. At the IPO price of RM0.58 per share, CNERGENZ will have a market capitalisation of RM288.84 million ahead of its debut.

The IPO involves the public issue of 100.0 million issue shares and an offer for sale of 50.0 million offer shares by way of private placement at the IPO price of RM0.58 per share. From the public issue, 25.0 million issue shares will be made available for application to the Malaysian public, 10.0 million shares will be allocated for application by eligible directors and employees as well as persons who have contributed to the success of CNERGENZ Group, 52.75 million shares will be reserved for private placement to identified investors and 12.25 million shares will be reserved for private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia (MITI).

The IPO is expected to raise gross proceeds of RM58.0 million and shall primarily be channelled towards the Group’s expansion of its operational facility, as well as research and development expenditure and working capital purposes.

CNERGENZ is an established electronics manufacturing solutions provider specialising in surface mount technology (SMT) catering to the electronics and semiconductor industries (E&S Industries) in Malaysia, Thailand and Vietnam. The Group has an established track record in providing integrated solutions that suit the evolving nature and changing technological landscape of the E&S Industries since the commencement of its business in 2004.

Chief Executive Officer of CNERGENZ Berhad, Mr. Lye Yhin Choy, said, “We are elated to have reached a new milestone with the Prospectus launch today, bringing us a step closer towards becoming a listed entity on the ACE Market of Bursa Securities. Having been in the E&S space since 2004, our listing is in line with our growth plans and strategies to scale up our operations, expand our integrated solutions and smart factory solutions offerings and develop our own proprietary range of solutions.”

Chief Executive Officer of UOB Kay Hian Securities (M) Sdn. Bhd. (UOB Kay Hian), Mr. David Lim said, “We are pleased that the interest among institutional and selected investors, as well as MITI Bumiputera institutional and individual investors have been encouraging with many indicating strong interest to subscribe for the IPO.”

UOB Kay Hian is the principal adviser, sponsor, underwriter, and placement agent for CNERGENZ’s IPO.

CNERGENZ Bhd: https://cnergenz.com
CNERGENZ Bhd: [BURSA: CNERGENZ]

Seng Fong Holdings Berhad Obtains SC Approval for Main Market Listing

Rubber processor’s IPO involves up to 160.87 million shares for balloting and private placement

Seng Fong Holdings Berhad, a rubber processor producing and trading Standard Malaysia Rubber (SMR) and premium grade block rubber, via its subsidiaries, is pleased to announce that the Company has, in the month of April 2022, obtained the approval of the Securities Commission Malaysia (SC) to list on the Main Market of Bursa Malaysia Securities Berhad.

Managing Director of Seng Fong, Mr. Er Hock Lai

With history tracing back to 1986, Seng Fong is principally involved in the processing of Standard Malaysia Rubber (SMR) and premium grade block rubber as well as trading in block rubber, where its customers are mainly tyre manufacturers or international rubber traders. The Company also operates a Malaysian Rubber Board-approved laboratory for the testing, grading and certification of the processed block rubbers.

According to Seng Fong’s draft initial public offering (IPO) prospectus posted on the Securities Commission Malaysia website, the listing exercise involves the initial public offering of up to 160.87 million ordinary shares comprising a public issue of 90.81 million shares and an offer for sale of up to 70.06 million shares.

The IPO shares is divided into an institutional offering of up to 118.68 million shares representing 22.9% of the enlarged issued shares and, a retail offering of up to 42.20 million shares representing 8.1% of the enlarged issued shares.

The institutional offering comprises:
1. 64.87 million IPO shares representing 12.5% of the enlarged issued shares to bumiputera investors approved by the Ministry of International Trade and Industry
2. 53.81 million IPO shares representing 10.4% of the enlarged shares to other institutional and selected investors

The retail offering comprises:
1. Malaysian public
– 12.97 million IPO shares representing 2.5% of the enlarged issued shares to bumiputera investors
– 12.97 million IPO shares representing 2.5% of the enlarged issued shares to non-bumiputera investors
2. 16.25 million IPO shares representing 3.1% of the enlarged issued shares to eligible directors and employees of the Company as well as persons who have contributed to the success of the Company and its subsidiaries

Managing Director of Seng Fong, Mr. Er Hock Lai said, “We would like to express our appreciation to the SC for approving our IPO on the Main Market of Bursa Securities. The listing will enhance our reputation and assist us in expanding our customer base globally while allowing us to gain access to the capital markets to raise funds for future growth opportunities.”

“The listing also enables us to raise the funds we need for the installation of a biomass system that will provide a source of fuel for our processing operations while at the same time achieve cost savings by reducing overall fuel costs. We are also installing two solar system units to help us lower electricity cost as well as help us achieve our sustainability goals of reducing greenhouse gas emissions”.

A portion of the proceeds from the listing will also go to working capital needs, which will include increasing production capacity and repaying bank borrowings, which includes a term-loan for the Solar Systems installation.

Group Managing Director/Chief Executive Officer of Hong Leong Investment Bank Berhad (HLIB), Ms. Lee Jim Leng said, “We congratulate Seng Fong for having received the approval of the SC for its listing and look forward to working with its management in preparing for the listing on the Main Market. Seng Fong is a solid business with a history going back to 1986 in an industry where demand continues to grow steadily. We have no doubt that the Company will find favourable reception with investors”.

Almost all of Seng Fong’s revenue is derived from sales to international customers for the financial years ended 31 December 2019 to 2021.

Hong Leong Investment Bank Berhad is the Principal Adviser, Underwriter and Placement Agent.

Seng Fong Holdings Berhad: http://sengfongholdings.com/

Yew Lee Pacific Group Bhd Engages M&A Securities Sdn Bhd to Manage Listing Exercise

Yew Lee Pacific Group Bhd (Yew Lee), an established manufacturer of industrial brushes as well as the trading of machinery parts and industrial hardware is pleased to announce that it has entered into an underwriting agreement with M&A Securities Sdn Bhd (M&A Securities) today for the Company’s upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities).

Chief Operating Officer of Yew Lee, Ms. Amber Ang; Managing Director of Yew Lee, Mr. Ang Lee Leong; Managing Director of Corporate Finance of M&A Securities, Datuk Bill Tan; Deputy Head, Corporate Finance of M&A Securities Mr. Danny Wong [L-R]

The IPO exercise involves the public issue of 133.1 million shares and an offer for sale of 26.62 million shares to selected investors. From the public issue, 26.62 million shares will be made available for application by the Malaysian public via balloting; 15.97 million shares will be allocated to its eligible directors and employees (pink forms); another 23.96 million shares will be reserved for private placement to selected investors and; an allocation of 66.55 million shares will be allocated through private placement to bumiputera investors approved by the Ministry of International Trade and Industry (MITI).

Under the underwriting agreement, M&A Securities will underwrite 42.59 million shares of the total proposed issue of shares allocated to the Malaysian public and through pink forms. M&A Securities will also place out 90.51 million issue shares to selected investors and bumiputera investors approved by MITI.

Managing Director of Yew Lee, Mr. Ang Lee Leong, said: “We are delighted to be working with M&A Securities on our IPO as this underwriting agreement marks the first stage of the path towards our eventual successful listing on the ACE Market of Bursa Securities. This listing will help us to raise the capital needed for our expansion plans while at the same time, boost our brand visibility in the industrial brush industry.”

Managing Director of Corporate Finance of M&A Securities, Datuk Bill Tan said, “We are pleased to be playing a key role in the IPO exercise of Yew Lee. The Company has solid experience and expertise in the production of industrial brushes with a history that goes back to the early 1990s. It has come far but we have no doubt that Yew Lee will build upon this listing to excel even further. We wish the Company well as it enters a new stage in its growth.”

Yew Lee manufactures industrial brushes for a variety of industries, including glove, industrial, electrical and electronic, industrial and commercial cleaning providers as well as glass and wood producers. For the financial year ended 31 December 2020 (FY2020), Malaysia contributed 81.4% of total revenue, with Thailand contributing 6.7% and Vietnam contributing 6.2%. By industry, glove manufacturers contributed 88% to revenue in FY2020.

Yew Lee Pacific Group Bhd: https://yewlee.com.my/

Electronics Manufacturing Solutions Provider Cnergenz Berhad Enlists UOB Kay Hian Securities as Underwriter for Its Listing Exercise

Company inks underwriting agreement for ACE Market IPO

Cnergenz Berhad (Cnergenz or the Company), an electronics manufacturing solutions provider based in Penang, specialising in surface mount technology (SMT) catering to the electronics and semiconductor industries (E&S Industries), is pleased to announce that the Company has entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn. Bhd. (UOB Kay Hian) today for its upcoming initial public offering (IPO) on the ACE Market of Bursa Malaysia Securities Berhad (Bursa Securities).

UOB Kay Hian Securities Sdn. Bhd Chief Executive Officer Mr. David Lim; Cnergenz Berhad Chief Executive Officer Mr. Lye Yhin Choy [L-R]

The Company had obtained approval to list on the ACE Market of Bursa Securities and is targeting to launch its Prospectus in April 2022.

The IPO exercise involves the public issue of 100.0 million issue shares and an offer for sale of 50.0 million offer shares by way of private placement.

From the public issue, 25.0 million issue shares will be made available for application to the Malaysian public, 10.0 million shares will be allocated for application by eligible directors and employees as well as persons who have contributed to the success of Cnergenz Group (“Group”) (“Eligible Persons”), 52.75 million shares will be reserved for private placement to identified investors and 12.25 million shares will be reserved for private placement to identified Bumiputera investors approved by the Ministry of International Trade and Industry (“MITI”).

UOB Kay Hian will underwrite an aggregate of 35.0 million issue shares, comprising 25.0 million shares under the public issue and 10.0 million shares allocated to Eligible Persons as part of the underwriting agreement.

Chief Executive Officer of Cnergenz, Mr. Lye Yhin Choy, said, “This listing will enable us to strengthen our name as a leading electronics manufacturing solutions provider in Malaysia whilst deepening our presence in Thailand and Vietnam, countries which are benefitting from strong investment flows into the E&S Industries.”

Chief Executive Officer of UOB Kay Hian, Mr. David Lim said, “UOB Kay Hian is pleased to be working with Cnergenz on its IPO exercise. The Company has a stellar track record and experience in the E&S Industries that dates back to 2004. We are happy to work with Cnergenz in achieving its listing goals.”

Cnergenz collaborates closely with its network of over 50 suppliers to offer quality solutions for their customers, building a strong network and contributing to Cnergenz’ business development and growth.

Cnergenz caters to domestic and international customers across Malaysia, Vietnam and Thailand. Cnergenz has a customer base of over 100 local and multinational companies operating within the E&S Industries, comprising integrated design manufacturers (IDMs), outsourced semiconductor assembly and test service providers (OSATs) and electronics manufacturing service providers (EMSs), some of which have been customers of Cnergenz for over 15 years.

Cnergenz Berhad: https://cnergenz.com/

Aurelius Technologies Berhad’s Subsidiary Appoints COO as part of Core Management Team

Aurelius Technologies Berhad (“ATech” or the “Company”) is pleased to announce that its wholly-owned subsidiary, BCM Electronics Corporation Sdn. Bhd. (“BCM”), a provider of electronics manufacturing services (“EMS”) for industrial electronic products, has appointed Mr Lee Siang Tat (“Michael”), 47, as the Chief Operating Officer (“COO”) effective today.

Michael has more than 25 years of working experience in the electronics manufacturing industry, and is familiar with the various operational processes including process and product engineering, equipment and maintenance engineering, cost management, production and operational quality.

He first joined BCM in 2005 and progressed quickly to his last role as the Director of Surface Mount Technology (SMT), Maintenance & Facilities. He was subsequently appointed Chief Operating Officer of EG Industries Berhad in 2020 where he played a vital role steering the group’s overall manufacturing operations, including engineering, production planning and operational quality, to enable the group to achieve its strategic goals.

Mr Loh Hock Chiang, Interim Group Chief Executive Officer (“CEO”) and Chief Financial Officer of ATech, said, “We are still grieving the passing of our co-founder and CEO, late Mr Lee Chong Yeow @ Lee Chong Yan (“Mr Lee”) but we know that he would want us to continue with the plans for the business. We started our succession planning several years back looking for individuals with the right experience and fit for the role. We welcome Michael’s return to the BCM and ATech family and we are sure that his vast experience will add strength to the management team while fulfilling a key position in the operations of the business.”

Michael said, “I would like to express my appreciation to Mr Loh and the late Mr Lee for their confidence in me to re-join ATech. I will endeavour to bring ATech in achieving higher operational efficiency by working closely with the management team as ATech plans its next phase of growth and expansion.”

Genetec Delivers Its Best Quarter to Date

Profit after tax jump by 2,350%, quarter on quarter
Key Financial and Performance Highlights (Q3FY2022 vs Q3FY2021):

  • Profit after tax at RM19.6 million, up by 2,350%
  • Revenue at RM65.3 million, up by 98.5%
  • Profit after tax margin at 30.0%, up by 27.6%

Technology leader in providing fully customised, intelligent manufacturing automation solutions, Genetec Technology Berhad announced their best financial quarter to date for their third quarter ended 31 December 2021 (Q3FY2022). The Company recorded a 2,350% growth on their quarter on quarter (QoQ) profit after tax (PAT) performance, with an increase of RM18.8 million for the said quarter to RM19.6 million, compared to RM0.80 million registered for the corresponding quarter (Q3FY2021) due to higher revenues and managed costs.

For the same quarter, Genetec’s profit before tax (PBT) stood at RM21.0 million which is higher by 19.3% than the RM17.6 million posted in their second quarter (Q2FY2022), due to higher sales whilst costs remained stable. Revenue for the quarter stood at RM65.3 million, an increase of 98.5% QoQ, and a 10.1% increase over the preceding quarter Q2FY2022, bringing the annual total to RM164.9 million for the 9 months ending 31 December 2022 (9MFY2022). Earnings per share stood at 34.53 sen (fully diluted) in Q3FY2022 compared to EPS of 2.06 sen in Q3FY2021.

For the nine months of the financial year ended 31 March 2022 (9MFY2022), the Company recorded 2,656% higher PAT of RM44.1 million compared to the corresponding period of the previous financial year of RM1.6 million (9MFY2021). PBT for 9MFY2022 stood at RM47.5 million, which is 2,694% higher than the PBT of RM1.7 million while revenue is 96.3% higher at RM164.9 million compared to RM84.0 million of the corresponding period.

Genetec highlighted in their announcement, “We continue to progress with our plans. Earlier this month we concluded our Bonus Issue exercise announced on 25 October 2021 with the listing of the new issue of securities or 629,503,200 bonus shares (effective 11 January 2022) on the ACE Market of Bursa Malaysia Securities Berhad. In addition to rewarding our existing shareholders and improving share liquidity, we hope to encourage greater local retail participation.

Looking ahead, we continue to build on the electric vehicle (EV) and energy storage division and expect it to remain a significant and growing contributor to our overall performance. This growth will be driven by regional and worldwide demand as countries and businesses step up their efforts towards achieving the zero-emissions target set for 2050. Industries immediately impacting our business are those in transport and energy, both retail and industrial, as everything from day-to-day energy needs for both retail and commercial, heavy industry vehicles and machinery, public transport to e-scooters turn electric.”

Genetec also cited The Economic Intelligence’s ‘Automotive in 2022’ research report outlook for global sales of new vehicles that is expected to rise by 7.5% in 2022, surpassing 2019 levels. Prospects for the global sales of new EVs will continue to soar, rising by 51%, with Asia and North America leading the recovery. Whilst new emission rules will force transport vehicle makers and businesses to make far-reaching decisions about their energy sources and fossil-fuel models, this shift is also well supported by the growing number of policies to incentivise greater efforts towards renewable energy vehicles and generation. On a corresponding topic, Nasdaq expects energy storage to potentially emerge as the hottest market of 2022 as the trends advance over the course of the year.

Building on the momentum gained, Genetec’s 11 January 2022 announcement of their Memorandum of Understanding (MoU) with Thailand-based Asia Precision Public Company Limited (APCS) signals the Company’s efforts to diversify its client base and growth strategy through greater exposure to the Thai and ASEAN markets. Plans are in the works to collaborate and conduct a feasibility study in relation to the potential development of a factory automation facility for energy storage system (ESS) in Thailand. The study will include but will not be limited to the economic, financial, technical, and legal feasibility for the most appropriate structure and details of the project.

Genetec concluded, “We continue to remain cautiously optimistic but vigilant as businesses and economies continue their fragile recovery after being battered down over the two-year pandemic. Adoption of technologies and automation across different industries are expected to continue as businesses seek greener solutions, to greater efficiencies and reliability in their production lines. The knock-on effect of technology adoption is the demand for storage, data, and intelligence, which will drive the potential of the global hard disk drive (HDD) market. Genetec expects growth for the segment to continue by 5.11% for the period of 2021 to 2026 due to data storage requirements, the booming laptop market and digitalisation.”

Please contact the below for more information:
Hakim Juraimi
Tel: +60 12-318 5410
Email: h.juraimi@swanconsultancy.biz