Deep Roots Key to Survival

08 | FocusM Aug 31-Sept 6, 2013 08 focus list

UNITED MALACCA BHD (103 YEARS) Deep roots key to survival

UNITED Malacca money to send him to university. “He Bhd, the second-oldest applied for a scholarship but missed listed company on Bursa obtaining the scholarship by a few Malaysia, is one of a few points. Consequently, he was forced to which have withstood become a teacher in Raffles Institution the 100-year test. It has survived two in Singapore,” she says. world wars, the Great Depression and “Because he lacked the patience the Malayan Emergency as well as in dealing with small boys, he was a witnessing the birth of a nation. poor teacher. His mother Lee Seck Bin The resilience of the company was realising her son was unhappy, made a also sorely tested when Tun Tan courageous decision – she Siew Sin, who was chairman suggested Cheng Lock leave then, took charge of Sime Darby the security and status that Bhd as a national duty. So as not teaching offered and return to create a conflict of interest, to Melaka and work in a United Malacca suffered a rubber plantation.” period of neglect over the years when Siew Sin was in Sime Good timing Darby. In 1908, rubber was a new “It is the company’s ability crop and therefore a risky to survive the hard times that venture but Cheng Lock makes it distinctive,” says its took his mother’s advice chairman Tan Siok Choo. and returned to Melaka in The company, which had its 1908 to work for a relative roots in rubber, takes pride in who owned a rubber estate. Third generation to run United Malacca... Siok Choo and grandfather Cheng Lock its longevity, endurance and Although rubber plant- (inset top) and father Siew Sin resilience and attributes much of its ing was physically demanding, Cheng success to the Tan family’s philoso- Lock became a successful planter. It asset is the quality of our people. We small number of shares although their phies. was in April 1910 that Cheng Lock, to- make our staff feel as though they are combined stake amounts to between Siok Choo, 61, is the third genera- gether with a few friends, established part of the company and of the family. 15% and 20%. tion and the fourth family member to the United Malacca Rubber Estates That’s why they are willing to stay with Siok Choo seems unperturbed de- run the company after her grandfather with a modest 186ha and a small us. They feel that they are like family.” spite that the company is potentially a Tun Sir Tan Cheng Lock, uncle SK United number of workers. In contrast, the She cited the example of the Great target for a hostile takeover. It could be Chan and father Siew Sin. United Malacca Bhd company now has 24,575ha of total Depression when employees were that the company banks on the strong Malacca has had seven chairmen prior planted area and a workforce of about willing to remain with the company in relationship with its stakeholders, to her. Cheng Lock was MCA founder 3,200. Its first registered office was exchange for just enough money for particularly OCBC. Key director while Siew Sin was ex-finance minister.  Tan Siok Choo 100, First Cross Street (now Lorong food rather than being retrenched. The Tans are of a family steep in (chairman) Hang Jebat), Melaka. “We survived the Japanese Oc- Succession plan righteous values and a believer of United Malacca has a long history cupation. We survived the Malayan The corporation is unusual in that philosopher Kong Qiu, better known Major with Oversea-Chinese Banking Corpo- Emergency when the communists there is an unwritten rule that rep- to the world as Confucius. It is upon shareholders ration Ltd (OCBC), a major stakeholder targeted my grandfather and father. resentation on the board can only be Confucius’ set of ideals that the com-  Oversea- and business associate even in those In 1949, a grenade was aimed at my held by one family member at a time pany runs its business. Chinese Banking early years. That relationship has grandfather after he helped form the and that it will only hire family based “My grandfather was not a rich man Corporation Ltd lasted through good and bad times and MCA. While he was injured, thankfully on merit. when he started this business. His 14.43% until today, the bank is still a substan- he survived,” says Siok Choo. “My father believed that they will parents – Tan Keong Ann and Lee Seck  Aberdeen tial shareholder. Siok Choo was even She says it was not all smooth sailing be hired if they are capable. He did Bin – were quite poor,” Siok Choo tells Asset appointed to the bank’s board in 2000, for the company despite its longevity. not want United Malacca to be seen FocusM in an exclusive interview. Management a position which she still holds. “When my father took charge of Sime as practising nepotism,” says Siok This was despite the fact that her 14.07% Cheng Lock’s entry into the rubber Darby, United Malacca suffered for 15 Choo. “In fact, he discourages family great-great-grandfather Tan Choon  Great Eastern industry was timely. Henry Ford years because he did not want it to be members from joining the company.” Bock was a wealthy man. But he cre- Life Assurance introduced the T-Ford car – the first seen that what he did was benefiting There is currently no new generated a sensation when he placed all his 13.74% affordable car manufactured through his own company.” ation of the Tan family slated for the assets in a trust, effectively disinher- mass production – in 1908. “The growth period came only board. iting his four sons and one grandson Market The beginning of the car boom in during Choi Siew Hong’s tenure from “It all depends on whether the next (Cheng Lock’s father). capitalisation the US caused rubber prices to rise. 1988 to 2011,” she says. Choi increased generation is keen to be a part of the

But he did not totally cut off his RM1.48 bil United Malacca’s strategy has the hectarage of the company by more business and how capable they are,” descendants. Under the terms of always been a prudent one despite than four times from about 5,600ha to she says. “My nephews and nieces are Share price as at Choon Bock’s will, Cheng Lock’s father Aug 29, 2013 its immediate successes. “One of the 24,100ha. still young.” received the ancestral home in Melaka reasons the company has always been But unlike other plantation corpo- However, Siok Choo is not worried and a small annual allowance. RM7.03 able to ride through the tough times rations, United Malacca has remained as the board has many capable direc- The trust ended only 84 years was because it has high cash reserves,” solely in plantations. Even the oldest tors. later in 1964, when the sum was 52-week high says Siok Choo. listed company The Ayer Hitam Plant- “They say the typical Chinese family equally divided among the sons of his RM7.81 ing Syndicate Ltd (now TAHPS Group business only lasts three generations. lineage. Surviving the years Bhd), which has the same roots, has “The first generation makes the “My grandfather had the same 52-week low Throughout United Malacca’s 103-year ventured into construction and prop- business, the second spends it and principles as Choon Bock. He believed RM6.80 history, it never borrowed any money, erty development and management. the third loses it. My plan is to ensure that if you did good, you would help never needed to ask shareholders for But United Malacca is likely to United Malacca is able to survive an- yourself. If you did evil to others, you Financial results money and has consistently paid divi- remain firmly rooted in plantations other 100 years.” would only hurt yourself,” she says. for FY13 dends except during a slump in rubber although it will likely diversify, both in And if the company continues to The family believes in working Revenue prices after World War One, the Great terms of geography and crops planted. uphold its values and strives for con- hard, ensuring good governance and RM206.09 mil Depression and during and after the United Malacca is also unusual tinued success, it is headed in the right upholding strong integrity – the same Japanese Occupation, she says. because unlike many of the listed direction of hitting another century. core values that have served United Net profit “We keep a close eye on costs. We do corporations on Bursa, the Tan family’s “I would like to ensure that United Malacca all these years. RM68.7mil not offer the best salaries but we keep shares are highly fragmented. Siok Malacca is a company that all employ- Siok Choo says her grandfather had our employees happy,” she says. Choo herself has direct shares of 1.7%. ees are proud to work for,” says Siok wanted to be a lawyer but there was no “We understand that our greatest Other family members have equally Choo. – JOSEPH WONG Aug 31-Sept 6, 2013 FocusM focus list 09

Companies with rich legacy We feature 56 listed companies which have stood the test of time, picking 25 of them to trace their roots, their growth, the challenges they have overcome and how some have even evolved into different entities

HESE 56 oldest listed Company name Estd Market cap (RM) Original business focus Current core business companies collectively have 3,685 years of 1 TAHPS GROUP 1907 424.4 mil Rubber plantation Rubber, oil palm, property history. Many of them 2 UNITED MALACCA 1910 1.48 bil Rubber plantation Rubber, oil palm, property are a mixture of blue 3 SIME DARBY 1910 56.31 bil Rubber plantation Diversified: plantations, property, automotive 4 ASIAN PAC HOLDINGS 1913 131.7 mil Insurance, stockbroking Property investment, development chips as well as mid-cap 5 PINEHILL PACIFIC 1917 50.9 mil Oil palm, processing Oil palm plantation, property development counters with a com- 6 UNITED PLANTATIONS 1917 5.37 bil Rubber plantation Oil palm plantation Tbined market capitalisation of around 7 TALAM TRANSFORM 1920 203.2 mil Property Property & development, trading RM300 bil as at Aug 26. 8 GUOCOLAND (MALAYSIA) 1920 749.5 mil Property development Property development In conjunction with our 56th 9 ADVANCE SYNERGY 1920 74.5 mil Rubber, oil palm Property development, hospitality, trading Merdeka Day, we thought it would be 10 JOHAN HOLDINGS 1920 96.6 mil Tin mining Ceramic tiles, health supplements, property interesting to feature the 56 oldest 11 PETALING TIN 1920 96.8 mil Tin mining Property development, bricks companies in the country which are 12 LION INDUSTRIES CORP 1924 667.3 mil Tin mining Property, steel bars 13 EASTERN & ORIENTAL 1927 2.2 bil Tin mining Property, hospitality listed. We also thought we’d highlight 14 NEGRI SEMBILAN OIL PALMS 1928 375.6 mil Oil palm plantation Oil palm plantation 25 of the more interesting companies 15 HONG LEONG BANK 1934 24.82 bil Financial services Banking from the various sectors. Many of 16 RIVERVIEW RUBBER ESTATES 1936 261.3 mil Rubber, oil palm Rubber, oil palm them have overcome a myriad of chal- 17 INTEGRATED RUBBER CORP 1937 171.7 mil Tin mining Manufacturing and trading latex glove lenges, seen changes in ownership, a 18 YTL LAND & DEVELOPMENT 1937 820.8 mil Timber Cement manufacturing, property name change and even a total change 19 INCH KEN KAJ RUBBER PLC 1946 364.9 mil Coffee plantation, rubber Oil palm, hospitality in business direction. 20 GOH BAN HUAT 1948 213.6 mil Ceramic products Ceramic products, clay pipe division While Malaysia has moved up the 21 GEORGE KENT (MALAYSIA) 1951 238.8 mil Water infrastructure Water meters, waterworks fittings value chain into a manufacturing and 22 LAFARGE MALAYSIA 1953 8.12 bil Cement and concrete Cement and concrete 23 RCE CAPITAL 1953 310.4 mil Media and advertising Financial services services powerhouse, it started from 24 CIMB GROUP HOLDINGS 1956 56.59 bil Banking Banking an agrarian and tin mining economy. 25 FCW HOLDINGS 1957 160.2 mil Telecommunications Management, trading, telecommunication Hence, it is no coincidence that most 26 SAPURA RESOURCES 1957 136.8 mil Telecommunications Telecommunications, oil & gas, automotive of the oldest companies were initially 27 KIAN JOO CAN FACTORY 1958 1.27 bil Aluminium cans Packaging solutions involved in the rubber and tin indus- 28 CHIN TECK PLANTATIONS 1958 809.5 mil Oil palm Oil palm plantation, property development tries. Eleven companies on our list first 29 SUNGEI BAGAN RUBBER CO 1958 187.5 mil Oil palm plantation Oil palm plantation started as plantation companies while 30 KLUANG RUBBER COMPANY 1959 198.6 mil Oil palm, rubber, investments Oil palm plantation & investments another six began as tin mining con- 31 JAYA TIASA HOLDINGS 1960 2.01 bil Timber Forestry and logging, wood products cerns. With the depletion of our tin re- 32 MALAYAN UNITED INDUSTRIES 1960 483.9 mil Property, trading Property, food services, department stores 33 MALAYAN BANKING 1960 86.51 bil Banking Banking serves, all of the tin mining companies 34 ALUMINIUM CO OF M’SIA 1960 94.0 mil Aluminium production Aluminium production have gravitated to other sectors such as 35 BOUSTEAD HOLDINGS 1960 5.31 bil Trading Petroleum, plantation, property property development, manufacturing 36 BERJAYA ASSETS 1960 957.2 mil Construction, amusement Construction and amusement and even the hospitality sector. 37 SHELL REFINING COMPANY 1960 2.41 bil Oil and gas Oil and gas Of the plantation companies, five 38 DAMANSARA REALTY 1960 133.0 mil Construction Construction, property development had their roots in rubber. Three of the 39 INSAS 1961 348.5 mil Paper products Stockbroking, property, fashion, beverages oldest companies on our list are The 40 GUH HOLDINGS 1961 230.9 mil Textile, trading Printed circuit boards, property, trading Ayer Hitam Planting Syndicate Bhd 41 FRASER & NEAVE HOLDINGS 1961 6.66 bil Beverages Soft drinks, dairy, property 42 MALAYAN FLOUR MILLS 1961 688.9 mil Flour milling Grain and oilseed milling (TAHPS Bhd), United Malacca Bhd and 43 AJINOMOTO (MALAYSIA) 1961 265.7 mil Food seasoning Food seasoning Sime Darby Bhd. They were all estab- 44 BRITISH AMERICAN TOBACCO 1961 17.51 bil Tobacco Tobacco lished during the time when the British 45 COMPUTER FORMS (MALAYSIA) 1961 31.2 mil Printing Printing occupied our land. While the founders 46 SELANGOR DREDGING 1962 385.6 mil Tin mining Accommodation, construction of Sime Darby and TAHPS were British, 47 LPI CAPITAL 1962 3.29 bil Insurance Insurance United Malacca was founded by locals 48 SIN HENG CHAN 1962 87.1 mil Animal feed, poultry Animal feed manufacturing, poultry and remains in local hands. 49 MALAYSIAN PACIFIC IND 1962 487.3 mil Paper products Semiconductor manufacturing The oldest on our list, TAHPS, which 50 SEAL INCORPORATED 1962 105.8 mil Property development Construction, property investment, trading was incorporated in 1907, was a rubber 51 DUTCH LADY MILK INDUSTRIES 1963 3.01 bil Dairy products Dairy product manufacturing 52 FABER GROUP 1963 867.6 mil Hospitality Construction, facilities management plantation company. It was listed on 53 CHEMICAL COMPANY OF M’SIA 1963 472.8 mil Pesticide, fertiliser Pesticide, fertiliser and agricultural chemicals March 28, 1961 on the then Malayan 54 SELANGOR PROPERTIES 1963 1.41 bil Property development Property, educational services, construction Stock Exchange, with counters in both 55 SOUTHERN STEEL 1963 721.4 mil Steel bars, billets, trading Steel bars, billets, wire rods, trading Malaysia and Singapore. 56 ORIENTAL HOLDINGS 1963 5.37 bil Automotive, plantation Diversified: automotive, plantation, property Seven companies started in manu- SOURCE: FOCUS RESEARCH, COMPANY REPORTS facturing and another five as financial services companies, involved in By the fact that they are still around, 1960, it had grown by leaps and bounds Kwong Lee Bank. Hong Leong Bank banking and insurance services. They these 56 companies have shown much through mergers and acquisitions. Ac- absorbs its history back to 1934. include Asian Pac Holdings, which was resilience in their ability to withstand cording to Bloomberg, Maybank is now As we celebrate our nation’s 56th set up in 1913. Today, Asian Pac, which economic turmoil as well as changes in the 13th strongest bank in terms of anniversary, these companies are a is in insurance, is a relatively small external demand and supply. stability. Hong Leong Banking Group, testament of our economic roots and company with a market capitalisation The biggest local bank, Maybank, which acquired MUI Bank in 1994, how they have stood the test of time. – of RM131.7 mil. also has a colourful past. Established in can be traced back to Sarawak-based PRATHAB V FocusM Aug 31-Sept 6, 2013 10 focus list

SIME DARBY BHD (103 YEARS) Plantation behemoth

SIME Darby Bhd, which celebrated its centenary in 2011, was started in 1910 by William Middleton Sime, Henry d’Esterre Darby and Herbert Milford Darby. Beginning with rubber plantations and based in Melaka, Sime Darby had 12,437 acres under rubber across five plantations, before diversifying its Tun Tan Cheng Lock (seated, fourth from left) hosted lunch for Sir Cecil Clementi, then governor of the Straits business by venturing into timber, Settlements and British High Commissioner to the Federated Malay States (third from left). Three ‘future’ Sime Darby chairmen stood behind: FM Edmonds (third from left: twice in 1946 and 1958), Tun Tan Siew Sin (sixth from preservatives and motor insurance in left: 1976-1988) and HS Russell (seventh from left: 1943) 1916. (Tan Cheng Lock is the first of two Chinese directors on the Sime Darby board and father to Tun Tan Siew Sin, the After the 1926 establishment of first Malaysian chairman of Sime Darby.) Shaw, Darby and Co Ltd in London to keep track of its interests in the Middle with a market capi- An example is the acquisition of sustainable palm oil. East and Africa, and the acquisition of talisation of RM59.5 the Bucyrus business and the 40% “Sime Darby is the world’s largest the Sarawak Trading Co in 1929, the bil – nearly 80% more stake in the Battersea Power Station producer of Certified Sustainable Palm company established its first office in than its RM31.6 bil at project – relatively recent additions to Oil (CSPO), with nearly 90% of our to- Kuala Lumpur in 1930 on Jalan Tun Sime Darby’s first the start of the merger the Sime Darby Group portfolio. The tal production certified by the Round- HS Lee. Kuala Lumpur process. Battersea venture is an £8 bil project in table on Sustainable Palm Oil (RSPO). Sime Darby survived the Second branch office on Bakke says the current manage- the UK undertaken in partnership with The demand for sustainably-produced Jalan Tun HS Lee World War and transferred its opera- ment team has identified the five core property developer SP Setia Bhd and palm oil can only continue to increase,” tions to Singapore during the Japanese businesses of Sime today: Plantations; the Employees Provident Fund (EPF). Bakke says. Occupation in 1946. By 1954, it had the distribution of Industrial equip- “The project will see the restoration He notes that the plantation expanded its business, owning 80,000 Sime Darby ment; the assembly, distribution and of the grade II-listed building and the division has become one of the most acres of rubber plantation and having Bhd dealership of motor vehicles; property development of 3,500 homes, offices, efficient players in the industry from 18 offices throughout Malaysia, Singa- development and asset management; shops and a park. To date, 846 homes the operational perspective and is pore and Brunei. Key directors and the energy & utilities sector. worth £685 mil have been sold,” Bakke looking to expand its land bank. It has The next decade saw the company  Tan Sri Mohd “It is on these sectors that we will says. reportedly been looking for land over- delving into oil palm in the Merlimau, Bakke Salleh, continue to focus, as it is what we do In healthcare, he says the Sime seas, including in Papua New Guinea. (president and Pegoh and Tali Ayer estates in 1964, as CEO) best, where our expertise is recognised Darby Group has entered into a 50-50 Meanwhile, Sime Darby Motors well as diversification through the suc-  Datuk Abdul and our leadership position widely joint venture with Ramsay Health Care, has increased the range of marques it cess of its heavy equipment business Wahab Maskan, acknowledged,” Bakke adds. the largest private hospital group in distributes while ensuring industry with the establishment of Tractors (group COO He says, however, that the group will Australia. leadership in its key markets. Malaysia Ltd, with an office on Bukit and managing still pursue mergers and acquisitions, Bakke adds the plantation divi- “In February 2013, we took over director, Timah Road in Singapore. property which are generally opportunistic and sion continues to focus on research the distribution rights of Citroen in The company expanded its plan- division) a “good strategic fit; and there is align- and development, to ensure future Australia and are working to secure tation business in 1972 with the  Tong Poh ment with our core business focus”. competitiveness while promoting new marques and build showrooms in acquisition of Seafield Amalgamated Keow (group countries that we are not yet in. Sime Estates from overseas shareholders; it CFO) Darby Motors is always on the lookout grew to 200,000 acres under oil palm Major to develop partnerships with new and rubber. shareholders marques and expand our presence in In 1980, Sime Darby was listed on  AmanahRaya the Asia-Pacific,” Bakke says. the London Stock Exchange. In 1981, Trustees Bhd The motors division recently added it came under Malaysian ownership fol- 36.53% McLaren to its long list of marques lowing a “dawn raid” on the Exchange, and has even been reported to have engineered by then prime minister Tun  Citigroup sponsored electric taxis in Hong Kong. Dr Mahathir Mohamad, PNB chairman Nominees “In Malaysia, while the necessary (Tempatan) Sdn Dr Ismail Mohamed Ali, finance min- Bhd infrastructure to support electric ister Tengku Razaleigh Hamzah and vehicles is slowly being put in place, Khalid Ibrahim, a PNB investment 11.04% Sime Darby Motors has worked closely manager at the time. with its principals to introduce hybrid In 1985, it ventured into property  Permodalan vehicles such as the Porsche Cayenne Nasional Bhd with the acquisition of United Estates (PNB) and Panamera hybrid models, as Projects Bhd (UEP) and built the well as fuel-efficient cars from BMW, Subang Jaya township. The acquisition 10.04% Ford and Hyundai,” he said. – HAFIDZ of UEP also gave Sime Darby its entrée BAHAROM Closing price into healthcare, through the Subang (as of Aug 29) Jaya Medical Centre. In 2005, Sime Darby merged with RM9.39 Sustaining the plantation business two more plantation giants, Kumpulan Guthrie Bhd and Golden Hope Planta- 52-week high IN MAY 2009, Sime Darby became blood cholesterol and manage include research to create the tions Bhd. RM9.95 the world’s first company to obesity,” he adds. next generation of high-yielding Sime Darby Group president and 52-week low successfully sequence, annotate He says the company is clones, developing strains resistant CEO Tan Sri Mohd Bakke Salleh tells and assemble the oil palm genome. continuing its investment in to pest and disease, as well as RM8.93 FocusM: “PNB recognised the advan- President and CEO Tan Sri Mohd research & development to ensure developing new food formulations Market cap tages of creating the world’s largest Bakke Salleh says there are ongoing its competitiveness. “Around 70% for marketing,” he says. plantation company, that could take its RM56.31 bil efforts aimed at creating superior of Sime Darby’s R&D spend is The company is also looking place as a significant player in the glob- Revenue planting materials with increased invested in maximising profitability to expand its rubber plantations. al edible-oil industry while allowing for FY2012 (ended yields and an improved resistance through the continuous support “We have approximately 10,000 ha significant synergies and cost savings June) to disease, salinity and drought. and improvement of core plantation of rubber planted in Malaysia and as a result of the merger.” RM22.45 bil “Sime Darby R&D has also functions.” Liberia as of June 30, 2013. While Subsequently, a special-purpose ve- Net profit developed a novel patented Bakke adds that around 30% of the planted land bank for rubber hicle called Synergy Drive Sdn Bhd was FY2012 (ended process to produce diacylglycerol R&D spent is for the development is small, we intend to expand our created. In November 2007, Synergy June) (DAG) oil, clinically shown to of new sources of value to ensure rubber-planted areas in the near Drive was renamed Sime Darby Bhd RM2.319 bil reduce body fat and weight, reduce future competitiveness. “These future,” says Bakke. and was relisted on Bursa Malaysia Aug 31-Sept 6, 2013 FocusM | 11 lead 11

COMPILED BY GOH THEAN EU, FARAH SAAD, AHMAD HAFIDZ BAHAROM, LIM WEY WEN, DINESH IMMANUEL AND STEPHANIE TING Running and running strong The Ayer Hitam Planting Syndicate Bhd, 106 years

HE Ayer Hitam Planting March 28, 1961. But it was during plunging Syndicate Bhd (TAHPS), with That TAHPS continues to run, natural rubber prices in the 1970s Tits origins in rubber cultivation, and run well, is testament of its that THAPS, like many local rubber was incorporated when Malaya was endurance, prudence and resilience. companies then, diversified into oil still a British colony. It is one of the Its success is also rooted in the palm. few companies on our list which efforts of its owners – the Lim family. TAHPS has also widened its have not changed ownership in more Lim Yee Teck, Lim Yee Hoh and range of activities to construction than 100 years. Lim Yee Bee were registered as and property development and Founded on March 15, 1907 under major shareholders in 1965, after management. It has also moved on the Companies Enactment of 1897 the company bought the Gali Estate to high-end hotel resorts. with an authorised capital of half a in Raub, Pahang by issuing them These recent forays display million Straits Dollar, its first directors 950,000 shares as payment. another key characteristic of the were RW Harrison, John Gibson, GH At that time, the company’s paid- group – its adaptability in the face of Day and PW Parkinson. up capital was RM2.3 mil. Today, the changing and challenging times. Like other centenarians, the second-generation Lims sit on the With its long history, solid company has also survived two board and oversee a business foundation and formidable world wars and numerous with a market capitalisation of knowledge, the company may well To commemorate its 100th anniversary, TAHPS donated economic downturns. It was listed on RM441.63 mil. see another 100 years. RM100,000 to five charities

Guocoland (Malaysia) Bhd, 93 years Asian Pac ED by one of Malaysia’s richest has interests in oil palm Holdings Bhd, men Tan Sri Quek Leng Chan, the plantations through its stake Lcompany is a now subsidiary of in Vintage Heights Sdn Bhd 100 years Singapore’s Guocoland Ltd following and Continental Estates Sdn an acquisition in 2004. Guocoland Bhd. Guocoland Malaysia is a STABLISHED Malaysia, formerly known as Hong Leong 65% subsidiary of Guocoland Ltd. Rahman Putra, Commerce One and PJ on June 20, Properties Bhd, is a regional property Established on May 5, 1920, City. The company is also involved in the E1913, Asian developer with operations in Malaysia, Guocoland Malaysia is a major hospitality and leisure business Pac Holdings China, Vietnam and Singapore. developer in the residential and through its interest in the Thistle brand Bhd recently Guocoland Malaysia was listed on the commercial sectors, with developments of hotels in Johor Bahru and Port celebrated its main market of Bursa Malaysia in 1961. in Kuala Lumpur and the Klang Dickson. 100th anniversary. In October 2012, it underwent a change Valley. Guocoland Malaysia is also involved The company in management and Tan Lee Koon was Its property projects include the in property investment through its was listed on the main market of appointed managing director. Tan, who Emerald master planned township Tower REIT (real estate investment Bursa Malaysia in 1961. Its main has been with Hong Leong Group since in Rawang and prime residential and trust). Tower REIT’s investment portfolio shareholder is Mah Sau Cheong, 2008, was appointed head of marketing commercial developments in the Klang includes the office buildings of Menara who holds a 17.7% stake. Mah and sales earlier the same year. Valley – the flagship and the soon-to- HLA, HP Towers, and Menara ING, all is also a major stakeholder in The Hong Leong Group also be-launched Damansara City, Bukit located in Kuala Lumpur. another property developer, South Malaysia Industries Bhd. Based in Petaling Jaya, Asian Pac is involved in property investment and development in Kuala Lumpur, Johor and Sabah through its subsidiary Syarikat Kapasi Sdn Bhd. Initially, its projects were based in the Klang Valley, before it took on the KK Times Square project in Kota Kinabalu, Sabah in 2009. The mixed development project, comprising a shopping mall, hotels and residential units, has been slated for completion by the first quarter of 2014, according United Plantations Bhd, 96 years to its chairman Tan Sri Megat Najmuddin Megat Khas. OREIGN-OWNED United Sungei Bernam Estate. 80,000ha after acquiring United Its Dataran Larkin commercial Plantations Bhd was started up United Plantations is famous for International Enterprises (M) Bhd on development project, located Fby Aage Westenholz 107 years its legacy and leadership of the Bek- March 25, 2003, and three Indonesian in the Larkin Commercial Zone, ago through his acquisition of the Nielsen family, starting with the late plantation firms in 2006 and 2007. Johor, was launched early this 809ha Jendarata Rubber Estate in Teluk Tan Sri B Bek-Nielsen who joined the After these acquisitions, United year. Its other developments Intan, Perak. The next four years saw company in 1951 as an assistant engineer. Plantations decided to moderate its include Kepong Industrial Park the establishment of the Corner, Raja Bek-Nielsen’s legacy lives on through expansion in Indonesia and focus on and Fortune Square in Kepong, Una and Westenholz Brothers Coconut his two sons, Datuk Carl and Martin, completing and consolidating the first Kuala Lumpur. Estates on the bank of the Bernam River, with a combined 44% stake in United phase of development, which will have For its 2012 financial year, the opposite Hutan Melintang. Plantations. 10,000ha of oil palm and about 4,000- company posted an impressive In 1917, both the Jendarata Rubber Early this year, Carl, who speaks 5,000ha of permanent conservation growth in turnover of 143% to Co and the coconut plantation were several languages including Tamil, was areas established in accordance with RM88.6 mil from RM36.5 mil, merged into United Plantations Ltd. appointed CEO. Meanwhile, his younger the group’s commitment towards driven primarily by the launch The following year, United Plantations brother, Martin, was appointed the conservation. of the first phase of its KK Times became one of the pioneers – along with commercial director of Unitata Bhd, a The second phase will be a planted Square project. It also completed Kumpulan Guthrie Bhd and Socfin – to subsidiary of United Plantations. area of about 14,000ha to 15,000ha in the disposal of its stockbroking venture into oil palm cultivation at its The company has more than Indonesia. business in 2012. FocusM Aug 31-Sept 6, 2013 12 focus list

business into four core divisions – meters, 12.51% stake held individually and 14.03% Johan Holdings Bhd, 93 years manufacturing, contracts and industrial/ stake held by Tan Kay Hock’s Star Wealth George Kent (M) Bhd, 62 years systems. Many of its projects are multi- Investment Ltd). million government water infrastructure Johan Holdings has operations in projects. Malaysia, Singapore, Brunei, Australia OHAN Holdings and George Ltd. The branch was renamed in 1964 as Johan Holdings is one of the oldest and New Zealand. Its main activities are Kent are related companies. In George Kent (Malaysia) Ltd and mainly Malaysian companies with a 93-year-old ceramic tiles manufacturing, health foods J1981, Johan Holdings acquired a did repair and maintenance of water history, beginning from its tin mining and supplements distribution through its controlling 51% equity interest in George infrastructure such as water meters and days. Johan Holdings started in 1920 as Nature’s Farm chain, Diners Club charge Kent from Brown-Boveri Kent Ltd, steam flow indicators. Johan Tin Dredging Ltd and operated a and credit cards offerings as franchise bringing it under Malaysian control. As the business grew, the company mining lease off Sungei Johan in Kinta, operator, as well as hospitality and George Kent was recently thrust into shifted to Petaling Jaya and successfully Perak. It was listed on Bursa in 1973 and property development. the limelight when it won a RM956 mil listed on Bursa and the Stock Exchange renamed Johan Holdings Bhd in 1979. The company’s subsidiary, Singapore- contract from Syarikat Prasarana Negara of Singapore in 1974. According to In 1980, lawyer Tan Sri Tan Kay Hock listed Jacks International Ltd, is an Bhd to build the Ampang Line LRT George Kent Malaysia’s website, the was appointed chairman and chief investment holding company that extension. company’s turnover for the financial executive of Johan Holdings. His wife provides management services, does George Kent was established in 1951 year ended March 31, 1974 was RM14 mil Puan Sri Tan Swee Bee was appointed metal fabrication work and owns units as a service branch of UK engineering with a pre-tax profit of RM1.2 mil. For managing director in December 1984. trading in health foods and supplements. company George Kent Ltd in Penang. It FY13 ended Jan 31, revenue had grown The husband-and-wife team still holds Johan Group’s revenue for FY13 ended was incorporated in the Federation of to RM276.81 mil while pre-tax profit was the posts till today and also controls Jan 31 was RM305.6 mil while George Malaya as George Kent (Malaya) Ltd, a RM35.58 mil. George Kent as non-executive chairman Kent’s revenue for the same period was wholly-owned subsidiary of George Kent George Kent has streamlined its and director respectively (with their RM276.8 mil.

Lion Industries Eastern & Oriental Corporation Bhd, Bhd, 86 years 89 years ASTERN & Oriental Bhd (E&O) is helmed by a well-known corporate ION Industries is Epersonality Datuk Terry Tham Ka Hon. part of the Lion In 2011, Sime Darby took up a majority stake LGroup headed in E&O and now holds a 32% stake. by chairman and CEO The company traces its roots back to Tan Sri William Cheng. Cheng’s the British colonial days in Malaya. It was grandfather founded Lion Industries as incorporated on June 8, 1927 under its a small trading company in Singapore original name, Pungah Tin Dredging Ltd. after leaving China in the 1920s. The At the time of its listing in 1970, it was still group hit the jackpot after it was involved in tin mining. awarded a steel manufacturing licence Following the takeover of Jack Chia by the Malaysian government in 1978. Enterprise in 1994, the company found Lion Group’s core assets are steel itself with the historic landmark Eastern & manufacturing mills and a timber Oriental Hotel in Penang. The hotel had gone concession in Sabah. The group is also Hong Leong Bank Bhd, 79 years through a lengthy period of decline after the involved in the retail sector through Second World Parkson Holdings Bhd, operating a NOTHER listed entity Today, Hong Leong Bank is the War, and was chain of Parkson department stores. controlled by Tan Sri Quek fourth-largest lender in Malaysia closed down Its story began with the ALeng Chan, Hong Leong with more than RM145 bil in assets in 1996. Tham establishment of Lion Industries Corp Bank traces its roots to Kwong and 320 branches nationwide. It then decided Bhd almost 90 years ago. Incorporated Lee Mortgage and Remittance has also expanded into Singapore, to restore the on March 17, 1924 as Sungei Way Company, which was founded Hong Kong and Vietnam, and is hotel, which Dredging Ltd, the company changed in 1905 in Kuching, Sarawak. currently enlarging its regional was built in its name to Sungei Way Dredging Bhd Kwong Lee was incorporated as footprint. 1885 by the on April 15, 1966. Later its name was Kwong Lee Bank Ltd in 1934 and In January, Hong Leong Sarkies brothers changed to Supreme Corp on Oct 1, renamed MUI Bank in 1989 when Financial Group attempted to from Persia 1976. it was acquired by the MUI Group, take Hong Leong Capital Bhd (present-day The company was listed on Bursa controlled by business tycoon Tan private – a move analysts say Iran), who were on Dec 29, 1973 under Lion Land Bhd Sri Khoo Kay Peng. could complement Hong Leong known for their and adopted its current name on Feb In January 1994, Hong Leong Bank’s existing commercial and hotels across 18, 2003. Group acquired MUI Bank through corporate banking offerings to Southeast Asia. Seeing potential in the Lion Industries is involved in its financial services unit Hong make the bank a universal bank. venture, Tham changed the name of the manufacturing long steel products Leong Credit Bhd (now Hong The plan however fell through in company to reflect its most well-known through Amsteel Mills Sdn Bhd and Leong Financial Group) and February as minority shareholders branding. In 2001, the hotel reopened its Antara Steel Mills Sdn Bhd. It is also renamed Hong Leong Bank. rejected the offer. doors following a major restoration and is involved in property management and The group subsequently listed The bank has grown its annual recognised today as a luxury hotel, with a residential property development. Hong Leong Bank on Bursa in net profit from RM580 mil in 2003 touch of British empire romance. Some of its projects include Taman October 1994 and integrated the to RM1.65 bil last year. Its share E&O has made a name restoring colonial- Malim Jaya in Melaka, Taman Soga finance company business of price climbed from RM4.11 on Jan era hotels, having also recently restored in Batu Pahat, Johor, and Pelangi Hong Leong Finance Bhd with the 2, 2003 to hit an all-time high of the Lone Pine Hotel on Ferringhi Beach in Promenade in Klang, Selangor which is bank. RM14.98 on Jan 11 this year. Penang, which was originally built in 1948. a joint venture with Eastern & Oriental Hong Leong Although having been around for more Group. The company also has a smaller Bank also acquired than 80 years, the company ventured into petroleum, lubricants and automotive Credit Corporation high-end property development only in the products business. (Malaysia) Bhd last 10 years. Its key markets are the Klang After an extended period of losses and Wah Tat Bank Valley, Johor and Penang island. from its steel business, the increase in Bhd in 2000. In The most recent additions to the group’s steel prices led to a turnaround of the 2011, it merged portfolio include St Mary’s Residences in company earlier this year. For Q3FY13 with EON Bank Kuala Lumpur, and the Straits Quay marina ended June 30, Lion Industries posted Group, resulting in Penang. a net profit of RM40.72 mil, compared in its market In 2007, E&O ventured into the food and with a profit of just RM1.73 mil in the capitalisation beverage business through the acquisition previous corresponding period. For its ballooning to of a substantial stake in the Delicious Group, 2012 financial year, it posted a net loss RM21.05 bil for which owns and operates the Delicious chain of RM38.46 mil. FY2011. of restaurants. Aug 31-Sept 6, 2013 FocusM focus list 13

Lafarge Malaysia YTL Land & Development Bhd, 60 years Bhd, 76 years

AFARGE has had presence in Malaysia TL Land & Development since pre-Merdeka days and has played a Bhd (YTL Land) was Lrole in the infrastructure development of Yformerly known as Taiping the country for the last three decades, being a Consolidated Bhd, a financial, leading cement and concrete manufacturer. treasury and secretarial services The company was recently in the news, company with subsidiaries announcing plans to set up a construction primarily engaged in property development laboratory by the end of this year. development and investment. This would assist Lafarge in producing better Taiping Consolidated was building solutions as the company aspires to incorporated on April 27, 1937 and grow alongside increasing local demand. It hopes listed on Bursa in 1973. During to develop building solutions that would help its golden era in the late 1980s acquired Taiping Consolidated’s reduce construction costs. and early 1990s, it owned prime subsidiary Sentul Raya Sdn Bhd, Lafarge posted a revenue of RM2.74 bil properties in Kuala Lumpur’s which was to redevelop Sentul in 2012 with net profit of RM349.5 mil. The Golden Triangle such as Lot 10, into a modern town. company’s revenue has grown at an average was listed on Bursa Malaysia in 1961 under the Starhill and JW Marriott Hotel. Today, YTL Land’s landmark 8.7% yearly over the last three years, riding same name. However, the company was projects include high-end on demand from key construction projects In 1967, Malayan Cement merged its cement affected by the Asian financial residential and commercial in and around the Klang Valley as well as the operations with Pan Malaysia Cement Works crisis in 1997 and sold the three areas called Sentul East and many infrastructure projects planned under the Bhd, forming Associated Pan Malaysia Cement properties to YTL Land, a West, premium housing area Economic Transformation Programme and the Sdn Bhd. subsidiary of YTL Corporation Pantai Hillpark in Bangsar, 10th Malaysia Plan. Today, Lafarge Malaysia Bhd manages Lafarge Bhd, in 1998. Kuala Lumpur and the lakeside In 2001, the Lafarge Group acquired Blue SA’s – its French parent – business in Malaysia YTL Corp emerged as the gated residential Lake Edge in Circle Plc, and thus entered the Malaysian and Singapore. The company manufactures and controlling shareholder and Puchong, Selangor. The company market. Malayan Cement changed its name to distributes cement, ready-mixed concrete and took over the company in 2001 is also known for its luxury Lafarge Malayan Cement Bhd in 2003 and again other building materials and as such has not via a reverse takeover. Taiping residential projects in Singapore to Lafarge Malaysia Bhd in May 2013. swayed from its core business for the past 60 Consolidated was renamed YTL – the Sandy Island waterfront Malayan Cement was established in Malaysia years. Land & Development. villas and Kasara, the Lake luxury in 1950 as a subsidiary of Blue Circle Industries Latest 2012 filings show Lafarge Malaysia has The largest shareholder of villas in Sentosa Cove. Plc of the UK. Its first cement plant was total assets of RM4 bil and total cash of RM354 Taiping Consolidated before the The company’s current commissioned in Rawang, Selangor in 1953 and mil. Bradley Mulroney is the president and CEO. takeover was Datuk Suleiman landbank in Malaysia is about Abdul Manan who is still chairman 810ha, valued at RM12 bil. of the company. YTL Land’s largest shareholder Goh Ban Huat With the takeover, YTL also is YTL Corp with 57.89% stake. Bhd, 65 years Sapura OH Ban Huat (GBH) cup was its sole product until and ceramic-based the 1920s. Later, GBH started Resources Gbathroom fittings making ceramic flower pots. are part of the Malaysian Goh’s son Goh Siang Kow supplying flexible jointed clay Bhd, 56 years lifestyle. Unlike traditional took over the family business pipes to modernise Kuala Chinese businesses, the in the 1930s and diversified Lumpur city’s sewerage APURA is one of the oldest 1975, its roots can be traced to as company is only partially its products to include system. A decade later, GBH home-grown bumiputera early as 1957 as Sapura Resources named after its late founder hand-formed and later started to manufacture Scompanies in the country. was formerly known as Uniphone Goh Leng Soon. The phrase machine-made clay sewage ceramic moulds, used to make Its main business is providing Telecommunications Bhd which was “Ban Huat” that is attached pipes. rubber gloves. telecommunications infrastructure incorporated on Dec 19, 1957. to Goh’s surname means In the 1960s, Siang Kow GBH was listed in 1989 and and services, before it ventured into The Sapura Group has “prosperity 10,000 times sent his eldest son, former most of its early products are auto parts manufacturing, oil and evolved into more than just a over”. GBH executive chairman still being produced on a large gas, and education. telecommunications company. It has Interestingly, the company Alex Goh, to England to scale today. The company Its founder Tan Sri Shamsuddin interests in technology, automotive started out by supplying obtain the skills of making now has four divisions – Abdul Kadir was a British-trained parts manufacturing and education. ceramic brown rubber cups sanitary ware. Together tableware by Crown Lynn, electrical engineer. He began his Today, Shamsuddin’s sons Shahril to rubber plantations, when with his son, Siang Kow GBH clay pipe, GBH ceramic career in 1959 in the public sector’s and Shahriman are running the show rubber was the main export succeeded in manufacturing and GBH bathroom. telecommunications department, for most of Sapura Group’s business. commodity during the sanitary ware for the export Unfortunately, GBH did not where he spent some 12 years. In 1971, Shahril is also president and group British era in 1899. market. survive three generations in he left the public utility to head the CEO of SapuraKencana Petroleum It was incorporated as Soon, GBH’s business the Goh family when low- UMW Group. Bhd. Goh Ban Huat Pottery Works grew by leaps and bounds as profile tycoon Tan Sri Robert In 1975, Shamsuddin incorporated SapuraKencana, in which Sapura Sdn Bhd in 1948 but changed it seized new opportunities Tan Hua Choon acquired Sapura Holdings, using it as a vehicle Holdings owns a 16.71% stake, its name to Goh Ban Huat and diversified its ceramic a controlling stake in the to buy UMW’s Uniphone Works is a RM11.9 bil merger between Bhd in 1988. product offering. company in August 2009. Tan, Sdn Bhd. Although it is known that SapuraCrest Petroleum and Kencana The rubber tree ceramic In the 1970s, GBH started 72, is now GBH’s chairman. the Sapura group was founded in Petroleum. 14 | FocusM Aug 31-Sept 6, 2013 14 lead

Malayan United Industries Bhd, 53 years

alayan United Industries Bhd (MUI), which was incorporated Min Malaya on May 28, 1960, is the flagship of Tan Sri Khoo Kay Peng. He is the single-largest shareholder with a 47% stake. Khoo, a low-profile businessman, was born in 1940. He was appointed MUI director in 1971 and became its chairman in 1987. MUI owns UK fashion and home- furnishing store Laura Ashley. It has over 212 stores in the UK and franchises Last year, the group embarked on 266 stores in 28 countries. It also owns streamlining its portfolio of assets seven Metrojaya department stores and businesses. By focusing on core in Malaysia, an MJ concept store and competencies, it disposed of a number 75 speciality stores under the names of non-core assets to reduce debt and Reject Shop, East India Company, to fund future investment. Somerset Bay and others. Among the deals the group has Its retail business is the company’s done are the disposal of a piece of land biggest revenue contributor. For the in Penang for RM32.4 mil, a parcel of financial year ended Dec 31, 2012, MUI’s leasehold land with a warehouse and retail business contributed over RM800 office in Singapore for S$15.4 mil, and mil or almost two-thirds of its total a piece of land in Port Dickson, Negeri turnover. Sembilan for RM11.6 mil. MUI’s hotel division owns and The biggest deal it embarked on last Malayan Banking Bhd, 53 years operates nine hotels in the UK and two year was the sale of MUI Continental in Malaysia, mostly under the Corus Insurance Bhd’s assets and liabilities to aybank is the country’s largest brand. It also has a stockbroking arm, Tokio Marine Insurans (Malaysia) Bhd bank by assets. It was founded PM Securities Sdn Bhd. for over RM180 mil. Mby the late Tan Sri Khoo Teck Puat with a few partners in 1960. Within three years, Maybank expanded to more In 2011, a Maybank deal made than 150 branches. In 1963, it bought headlines when it acquired a 44.6% Boustead Holdings Bhd, 53 years Goodwood Park Hotel (Singapore) for stake in Singapore brokerage Kim Eng almost US$5 mil. Holdings Ltd for US$1.5 bil. rom its origins in Britain, Boustead In 1965, the bank grabbed headlines Maybank has also been expanding Holdings is today a Malaysian-owned after Khoo was ousted from Maybank by aggressively in the region. In 2008 the Fcompany. Its controlling shareholder the government. In 1968, Maybank sold bank completed one of its biggest deals is the Lembaga Tabung Angkatan Tentera its properties in Singapore, including with the acquisition of a 55.6% stake in (LTAT), which holds more than a 60% stake Goodwood Park Hotel and Central Bank Internasional Indonesia (BII) for in the property, trading and plantations Properties, to Khoo for S$50 mil. over US$1.2 bil. company. Tan Sri Lodin Wok Kamaruddin is and insurance. The company expanded to Between 1968 and 2003, the The deal, which initially received a its group managing director. Penang and grew to become the Boustead bank went through a series of negative response from investors, has For FY2012, the group posted revenue Group. developments, including the setting been showing fruitful results. of RM10.2 bil – up 19% from 2011 – and a Boustead Holdings has evolved up of Aseambankers Malaysia Bhd and For the financial year ended Dec 31, RM518 mil net profit. into a leading diversified home-grown Mayban Discount Bhd (then known 2012, the bank’s business in Indonesia As if in a reflection of the company’s conglomerate, with interests including as Kota Discount Bhd), the launch of contributed 7% to the group’s total roots, Boustead’s trading business plantations, property development, heavy Maybank General Assurance Bhd, the pretax profit, making it the third-largest contributed the largest segmental industry, pharmaceuticals and trading. setting up of a subsidiary in Papua for the group after Malaysia and revenue; the trading of petroleum The group, listed on Bursa in 1976, New Guinea, partnering the Philippine Singapore. and pharmaceutical products jointly attributes its success to remaining versatile National Bank to acquire a 60% stake Though these developments have contributed some RM6.5 bil. to market conditions and seeking out the in the former Republic Savings Bank been significant to the group’s success The group traces its roots to 1828 when best opportunities in profitable sectors, as (1997), a merger with Pacific Bank and today, many industry observers believe Englishman Edward Boustead founded evident when it diversified into plantations PhileoAllied Bank (2000), the launch of its biggest game-changing decisions a small trading company in Singapore in the early 1900s and subsequently into Mayban Takaful Bhd, and others. happened over the past 10 years. involved in import and export, shipping heavy industry. Shell Refining Company Fraser & Neave Holdings Bhd, 52 years (FOM) Bhd, 53 years raser & Neave is another well-known brand that will immediately conjure up images hell Refining Company, Fof oldies hits and the simple suburban established on Sept household filled with F&N products during the S19, 1960, is part of the Merdeka era. Dutch-based oil and gas Established in 1883 as the Singapore Straits multinational company Shell. Aerated Water Company by John Fraser and Shell Overseas Holdings Ltd David Chalmers Neave, the company today is the controlling shareholder produces soft drinks, fruit juices and a host of with a 51% stake, while the dairy products. Fraser & Neave established its Employees Provident Fund presence in Malaya as Fraser & Neave Holdings holds 16.87%. Rozano Saad is Bhd (F&N) in 1961. its managing director. Throughout its 130-year history, the company Thailand and Malaysia in 2007. For 2012, Shell Refining rarely strayed from its drink and dairy business In February, Thai billionaire Charoen Company posted losses of RM94.6 mil – despite a revenue of RM15 and many of its milestones and successes fall Sirivadhanabhakdi gained control of Fraser and bil – against RM125.7 mil in losses in 2011. It posted profits in 2009 within these two product categories. In 1973, F&N Neave Ltd (Singapore) – the parent company of and 2010. pioneered sweetened condensed filled milk and F&N – in a deal worth some RM35 bil. Its modern complex refinery in Port Dickson, Negeri Sembilan launched a full range of ice-cream products in Charoen is also the owner of Thai Beverage has a processing capacity of up to 125 thousand barrels per day. 1974. It introduced its successful product, the 100 – Thailand’s largest beverage company. He For its downstream retail business, Shell is estimated to have a 33% Plus isotonic drink, in 1984. controls some 90% of Fraser and Neave Ltd, market share in Peninsular Malaysia, with a 50% market share in Riding on its local successes, F&N expanded further establishing himself as South East Asia’s Sabah and Sarawak. and acquired Nestlé’s tinned milk business in “beverage king”. Aug 31-Sept 6, 2013 FocusM focus list 15

Ajinomoto (M) Bhd, 52 years

APAN’S Ajinomoto Co Inc, restaurants and homes. incorporated in 1917, has a 50% Hiroshi Amano, who joined Jstake in Malaysia’s Ajinomoto Ajinomoto Co Inc Japan in 1983, (M) Bhd (AMB), incorporated on July is AMB’s CEO and managing 14, 1961. director, with Tan Sri Dr The literal translation of AJI- Mohamed Hashim as chairman. NO-MOTO is “Essence of Taste”. Despite various health AMB manufactures and sells mainly controversies surrounding monosodium glutamate (MSG), the use of MSG, AMB won aspartame and glutamine for the the “Top Ten Most Admired purposes of seasoning, cooking oil, Brands Award” and the sweeteners and pharmaceuticals. “Brand Personality Award” Malayan AMB was one of the first Japanese for 2011 and 2012. AMB has Flour Mills joint-venture companies in Malaysia. stayed profitable, with its Now sold in more than 100 countries, revenue and shareholder fund Bhd, 52 years Ajinomoto has grown into a recording exponential growth household name and is widely used in in the past five years. ALAYAN Flour Mills Bhd (MFM) was established in MJune 1961 by the late Datuk David LF Sung, a Hong Kong banker Selangor Dredging Bhd, 51 years and industrialist. Sung’s passion for flour milling came from his family ELANGOR Dredging Bhd (SDB) which founded China’s first machine- is one of the oldest companies operated flour mill in Shanghai in Sin the country with its roots 1890. MFM is the first flour miller in in tin mining. It was founded by Teh Malaysia. In 1966, it commissioned Kien Toh and Chan Keong Hon as Faber Group its first RM40 mil modern flour mill Selangor Dredging Ltd in 1962. Kien based in Lumut, Perak. Toh’s daughter Lip Kim is its managing Bhd, 50 years In May 1976, the late Teh Liang director. diversifying into hardware and the retail Teik took over MFM from the Sung The company made history as the manufacture of tyre rims for national ABER Group Bhd (Faber), a member family and served as managing first Malaysian company to construct cars Proton and Perodua. It also of the UEM Group, was incorporated director until 2002. It was under his and operate a dredge. To facilitate a ventured into property development. In Fas Merlin Hotels Malaysia Bhd on May leadership that MFM diversified and 24-hour tin dredge, a village known as 1985, SDB completed its first property, 31, 1963, and trademarked under the Merlin expanded into poultry and feeds. In Kampung Selangor Dredging was built Wisma Selangor Dredging and, in 1997, hotel brand. The group was listed on Jan 2, 1983, Teh expanded the facilities of around the first tin dredge. The village its first hotel – Hotel Maya in Kuala 1964 and in 1972 it merged with property the Lumut flour mill to include a feed still stands today in Dengkil, Selangor. Lumpur, the first Malaysian-owned and developer Faber Union Sdn Bhd to form mill, breeder farm, broiler farm and a SDB’s second dredge, completed in managed boutique urban resort. Faber Merlin Malaysia Bhd. It was not until poultry-processing plant. 1971, became the largest and most By 1992, SDB had completely exited Nov 22, 1990 that the group adopted its This expansion led to MFM advanced in the world. The site is today the tin-mining business. Faced with current name, Faber Group Bhd. establishing the Dindings range of a tourist attraction known as the Paya difficulties, SDB switched to property The group’s first international initiative ready-to-cook processed chicken Indah Wetlands. in 2004 with a focus on hotels, started with a tie-up with Starwood meat and the setting-up of a second When the tin-mining industry slowed property management and leasing, and International and a rebranding of some poultry-breeder plant in Johor. in the early ’80s, SDB reacted by eventually property development. of its hotels to the Sheraton brand. Faber has since expanded its operations internationally. On Oct 28, 1996, the group got its first break with a 15-year concession Oriental Holdings Bhd, 50 years to provide hospital support services to 71 government hospitals in places including RIENTAL Holdings Bhd, Lim Su Tong and Datuk Robert Wong Perak, Penang, Kedah, Perlis, Sabah and established on Dec 24, 1963 and Lum Kong. Sarawak. The concession win marked Olisted in March 1964, is part of the Oriental Holdings, with operations its entry into the integrated facilities empire of the late Tan Sri Loh Boon Siew spanning the Asia-Pacific, has combined management sector. (pic). assets of over RM6 bil and a cash and Faber was declared a PN4 company It is involved in many sectors such cash-equivalents position touching RM2.6 on Nov 18, 2003 with mounting debts of as automotive, hotels and resorts, bil as of Dec 31, 2012. over RM1.6 bil. Fortunately, the company plastic products, plantation, investment In August, Oriental Holdings disposed undertook debt restructuring and eventually holdings and financial services, property of its 100% stake in Oriental Kyowa came out of its financial doldrums in development and healthcare. At one Plastic Industries Co Ltd to Shanghai Hui November 2004. In 2008, Faber exited the time, Oriental’s name was synonymous Yang Industry Co Ltd for 144.23 mil yuan hotel sector with the sale of the Sheraton with Honda’s as it distributed its cars and (RM76.4 mil). Loh Kian Chong, son of Loh Hanoi in Vietnam. motorcycles in Malaysia. Kar Bee, Boon Siew’s oldest surviving son, Today, Faber has grown into one of In 1995, Datuk Seri Loh Cheng Yean, has been accumulating Oriental Holdings the nation’s largest companies providing Boon Siew’s second daughter, was shares since February. A succession plan integrated facilities management. It is appointed group executive chairman. Its for the Loh family from the second to the headed by managing director Adnan joint managing directors are Datuk Seri third generation looks to be in place. Mohammad. FocusM July 27-Aug 2, 2013 18

Sprinting ahead of the pack Finance and consumer products sectors do better than others in terms of pace of growth

BY PRATHAB V by 37.25% with the second-highest Notable mentions ROWTH gets in- CAGR of 67.16%. In contrast, Maybank A notable mention on our list is Job- vestors’ attention, occupies 12th spot with its revenue Street Corporation Bhd, which occu- but rapid growth and net profit having grown 24.9% and pies 16th spot. The online recruitment excites the investor 29.09%, respectively. CIMB and Public company posted a net profit of RM58.4 community, at- Bank are far behind it at 28th and 35th mil in 2012, growing 34.8% compared tracting buzz on the places. to the previous year. JobStreet’s net market floor. As for the insurance sector, only profit is higher than even Hua Yang’s, GThis month, we list Bursa Malay- two insurance companies made it to an impressive performance indeed. sia’s 50 fastest-growing companies. our list – Allianz Malaysia Bhd and LPI Fashion and accessory players Forty are from the main market with Capital Bhd. Padini Holdings Bhd and Bonia Corp a market capitalisation of more than are in sixth and 10th spots. However, RM500 mil each. The other 10 have a Construction Padini’s net profit is more than double market capitalisation of below RM500 Among the 44 construction companies Bonia’s. “The group’s [Padini’s] track mil each, including ACE market com- on Bursa Malaysia, only three made it record since listing has been solid with panies. to our list. They are Kimlun Corp Bhd, uninterrupted revenue growth, up- Our criteria are rigid. The companies Mudajaya Group Bhd and YTL Corp ward-trending net profits and margins must have charted positive revenue Bhd. Kimlun is ranked third but in and consistent dividend payments,” and profit growth, and they must have terms of profit growth it is way below say an MIDF Research report. How- done so consistently. Companies that at 22nd spot. ever, with the entry of Sweden-based have had growth spurts but suffered Although Kimlun has a higher pace Hennes & Mauritz AB (H&M), the losses have been eliminated from the of profit growth compared with YTL world’s second-largest fashion retailer, list. and Mudajaya, the latter two posted Padini and Bonia may face increased The companies listed belong mostly higher profits than Kimlun. margin pressure. to the billion-ringgit club – those with average revenue growth of 17.41% on Kimlun’s core business is in con- We also feature 10 of the fast- a market capitalisation exceeding RM1 How we our list. Hua Yang, the only property struction, industrial building systems est-growing companies with a market bil. The top 40 have a collective market benchmarked company among the top 15, scored an and property development. It under- capitalisation of under RM500 mil. capitalisation of RM471.9 bil with the companies impressive compound annual growth takes construction projects for other In this category, Federal Furniture an average revenue growth spurt of  The data for the rate (CAGR) of 32.29% between 2009 well-known property developers such Holdings Bhd came out tops, leading about 17.5%. Of the top 40 from the listed companies and 2012. Its net profit also more than as UEM, SP Setia, Boustead Holdings with a blistering net profit gain of 83% main market, 15 do not belong to the were gathered doubled in 2012 from the previous and MRCB, to name a few. Kimlun’s in 2012. However, its net profit was billion-ringgit revenue club. from Bloomberg year. construction division contributed 90% just RM4.5 mil in 2012 compared with and company As expected, the finance and con- annual reports. of its total revenue in 2012. RM2.4 mil in 2011. Also in this cate- sumer-products sectors do better than Finance companies growing YTL Corp’s net profit in 2012 was gory is goldsmith Poh Kong Holdings others in terms of pace of growth.  Ranking was at steady pace 23 times Kimlun’s, while Mudajaya had Bhd, which posted the highest profit of Of the 40 companies, 10 are from done according to Despite challenges facing the economy, almost five times Kimlun’s net profit RM51.6 mil. Poh Kong took advantage the finance sector and eight from percentage growth the revenues of the 10 finance compa- for the same period. Although YTL of high gold prices, which reached their in terms of revenue consumer products. The rest are from and net profit. nies on our list grew at an average of Corp’s performance is enviable, it is a highest at US$1,790 per ounce last the property, trading/services, real 16.85%. We were pleasantly surprised diversified company with businesses December. estate investment trust (REIT) and  To standardise to see Malaysia Building Society Bhd beyond construction. These include We also profile the 15 top perform- industrial-products sectors. the financial years (MBSB) emerging second on our list utilities, cement manufacturing, prop- ers. Read more on how these com- of companies, The top performer on our list, Hua we listed only and top among finance companies. It erty development and hospitality. panies grew, driven by the business Yang Bhd – with a market capitali- companies which beat heavyweights such as Malayan In 2012, YTL Corp’s construction acumen of their head honchos and sation of over RM630 mil as of July have completed Banking Bhd, CIMB Group Holdings contracts revenue alone totalled collective wisdom of their board of 23 – has the fastest revenue growth of their full financial Bhd and Public Bank Bhd. RM214.7 mil compared with Kimlun’s directors. Perhaps other companies 62.24%. This is almost four times the year in 2012. MBSB also saw its net profit increase RM809.2 mil. could learn a thing or two.

BY DINESH 15 fastest-growing companies on Bursa IMMANUEL & ADRIAN LIM

Malaysia 1 Hua Yang Bhd 2 Building APITALISING on a 70% spike in its Society Bhd y-o-y property sales in the Klang CValley, Hua Yang came out tops on 60% increase in total our list. In 2012, the company’s property net loans for the 2012 sales in the Klang Valley reached RM377.6 Afinancial year saw the mil, or over 70% of its total property sales. Malaysia Building Society It also came out tops on our list as the Bhd (MBSB) increasing fastest-growing in terms of net profit. its revenue by 44% y-o-y. Hua Yang beat some of its larger The finance house posted property-sector peers such as UEM revenue of RM1.83 bil in 2012 Sunrise Bhd and SP Setia Bhd. UEM and a net profit of RM446.7 Sunrise’s market capitalisation is 21 times mil. But with the clampdown and SP Setia’s is 13 times Hua Yang’s. on personal loans by Bank Hua Yang plans to increase its income Negara, MBSB’s revenue to RM800 mil by 2018. Its scheduled may not grow as strongly as launches are worth over RM1 bil in GDV. in previous years. Its impressive performance is also MBSB is an exempt finance company under the previous Banking and reflected in its share price, which grew Financial Institutions Act (Bafia) 1989. Bafia has been replaced with the Financial 95.7% this year to close at RM3.19 on July Services Act 2013, but MBSB remains an exempt finance company, allowing it 19. to provide financial services without a banking licence, provide personal loans, Ho Wen Yan has been Hua Yang’s CEO housing loans and Islamic financing services. since August 20, 2010. The Ho family Its share price has been on an upward trend since October 2011, peaking at controls Hua Yang with a combined RM3.23 on May 13, 2013 before closing at RM3.08 on July 22. The Employees 32.36% stake. Provident Fund has a 64.95% stake in MBSB. Datuk Ahmad Zaini Othman has been MBSB chief executive officer since 2009. July 27-Aug 2, 2013 FocusM 19

Top 40 fastest-growing Bursa Malaysia companies (market capitalisation above RM500 mil )

Rank Rank Company Sector Revenue Revenue Revenue growth Net profit Net profit Net profit growth Share price Market cap by by net 2011 2012 FY11/12 FY09/12 2011 2012 FY11/12 FY09/12 (RM) as of (RM mil) as revenue profit (RM mil) (RM mil) change CAGR (RM mil) (RM mil) Change CAGR July 23 of July 23 1 1 HUA YANG Property development 188.9 306.4 62.24% 32.29% 25.1 53.0 110.56% 56.91% 3.19 631.6 2 7 M’SIA BUILDING SOCIETY Finance 1,269.4 1,831.6 44.29% 29.24% 325.4 446.7 37.25% 67.16% 3.15 5,469.9 3 20 KIMLUN CORP Construction 652.1 896.6 37.49% 19.77% 42.7 49.4 15.66% 11.94% 2.28 548.2 4 18 DIALOG GROUP Trading/services 1,208.4 1,633.8 35.21% 10.28% 152.3 177.0 16.22% 17.79% 3.03 7,296.2 5 4 AEON CREDIT Finance 269.6 344.3 27.71% 12.67% 63.4 95.6 50.73% 18.33% 17.60 2,534.4 6 12 PADINI HLDGS Consumer products 568.5 723.4 27.25% 11.06% 75.7 96.0 26.83% 17.99% 1.83 1,204.0 7 2 KLCC PROPERTY REIT 926.4 1,178.3 27.20% 7.99% 807.1 1,464.1 81.40% 28.58% 6.54 11,806.9 8 35 HARTALEGA HLDGS Industrial products 734.9 931.1 26.69% 20.39% 190.3 201.4 5.82% 24.24% 6.63 4,896.6 9 15 ZHULIAN CORP Consumer products 357.5 450.4 25.98% 9.33% 95.3 117.1 22.85% 9.31% 3.24 1,490.4 10 39 BONIA CORP Consumer products 461.4 579.8 25.67% 16.49% 39.2 40.9 4.43% 18.68% 2.59 522.1 11 13 GD EXPRESS Trading/services 93.1 116.3 24.98% 11.56% 7.0 8.7 25.34% 43.16% 2.52 659.8 12 10 MALAYAN BANKING Finance 18,297.8 22,854.3 24.90% 9.13% 4,450.3 5,744.7 29.09% 69.75% 10.72 93,410.8 13 40 MUDAJAYA GROUP Construction 1,347.1 1,655.7 22.91% 23.15% 231.0 237.1 2.63% 18.76% 2.66 1,440.8 14 25 CAHYA MATA SARAWAK Industrial products 1,012.6 1,203.3 18.83% 8.68% 120.0 135.7 13.06% 35.66% 5.53 1,873.1 15 8 POWER ROOT Consumer products 184.8 217.0 17.43% 11.96% 12.2 16.7 36.84% 13.71% 2.15 645.0 16 9 JOBSTREET CORP Trading/services 139.9 160.8 14.97% 14.87% 43.4 58.4 34.79% 20.53% 4.10 1,297.6 17 5 UEM SUNRISE Property development 1,703.2 1,939.7 13.89% 47.67% 301.7 448.4 48.60% 40.63% 3.06 13,307.5 18 16 SP SETIA Property development 2,232.5 2,526.6 13.17% 15.73% 322.4 387.6 20.22% 23.15% 3.39 8,335.0 19 6 MAH SING GROUP Property development 1,571.3 1,775.0 12.96% 26.06% 168.6 231.8 37.52% 25.06% 2.41 3,271.5 20 11 ALLIANZ MALAYSIA Finance 2,431.4 2,743.9 12.85% 9.67% 163.6 207.6 26.87% 14.96% 9.78 1,559.5 21 36 RHB CAPITAL Finance 7,153.0 8,023.0 12.16% 10.34% 1,687.9 1,784.7 5.74% 10.40% 8.59 21,425.2 22 3 DKSH HLDGS Trading/services 4,260.7 4,745.5 11.38% 7.45% 44.3 77.8 75.35% 38.25% 5.45 859.2 23 14 AFFIN HLDGS Finance 2,465.7 2,713.6 10.05% 8.91% 508.0 628.9 23.81% 14.04% 4.30 6,426.7 24 22 YTL CORP Construction 18,354.8 20,195.8 10.03% 23.23% 1,034.6 1,181.1 14.17% 9.07% 1.65 17,103.2 25 30 LPI CAPITAL Finance 662.8 727.4 9.74% 9.11% 154.5 166.9 8.05% 7.27% 15.14 3,335.5 26 29 SCIENTEX Industrial products 803.8 880.8 9.58% 14.66% 77.2 83.9 8.64% 22.34% 5.55 1,227.4 27 37 QL RESOURCES Consumer products 1,776.8 1,946.7 9.56% 8.63% 124.6 131.4 5.50% 10.13% 3.48 2,895.4 28 31 CIMB GROUP HLDGS Finance 17,421.8 19,031.8 9.24% 6.49% 4,030.8 4,344.8 7.79% 11.54% 8.52 64,887.0 29 26 HAP SENG CONSOLIDATED Trading/services 3,628.4 3,958.9 9.11% 11.78% 375.6 422.6 12.52% 43.29% 2.02 4,079.1 30 34 AEON CO (M) Trading/services 2,984.6 3,255.7 9.08% 4.33% 198.4 212.3 7.00% 12.29% 15.52 5,447.5 31 21 GUINNESS ANCHOR Consumer products 1,488.7 1,623.7 9.07% 6.01% 181.4 207.4 14.35% 9.94% 18.02 5,443.8 32 24 KUMPULAN FIMA Trading/services 431.9 470.8 9.00% 6.30% 71.0 80.9 13.85% 15.05% 2.10 570.6 33 27 AMMB HLDGS Finance 5,906.0 6,430.9 8.89% 7.91% 1,342.8 1,510.8 12.51% 15.10% 7.99 24,083.3 34 23 DUTCH LADY Consumer products 810.6 882.2 8.82% 6.26% 108.1 123.4 14.15% 19.55% 46.60 2,982.4 35 38 PUBLIC BANK Finance 11,847.1 12,872.9 8.66% 8.12% 3,684.3 3,869.3 5.02% 11.35% 17.10 59,886.3 36 28 AMWAY MALAYSIA Trading/services 735.8 797.5 8.39% 4.69% 90.0 99.7 10.84% 8.28% 12.20 2,005.5 37 33 AXIATA GROUP Trading/services 16,290.4 17,651.6 8.36% 7.31% 2,345.6 2,513.3 7.15% 11.05% 6.83 58,273.0 38 32 BUMI ARMADA Trading/services 1,543.9 1,659.2 7.47% 22.70% 359.7 385.8 7.27% 8.59% 3.87 11,339.6 39 17 NESTLE (MALAYSIA) Consumer products 4,246.7 4,556.4 7.29% 5.03% 427.1 505.4 18.31% 9.48% 68.76 16,124.2 40 19 KIAN JOO CAN FACTORY Industrial products 1,086.0 1,162.8 7.07% 7.35% 104.0 120.7 15.97% 25.41% 3.00 1,332.5

Source: Bloomberg, Bursa Malaysia

Top 10 fastest-growing Bursa Malaysia companies (market capitalisation below RM500 mil)

1 2 FEDERAL FURNITURE Consumer products 42.8 79.9 86.84% 21.70% 2.4 4.5 83.30% 84.98% 0.30 24.4 2 5 SKP RESOURCES Industrial products 256.9 414.8 61.46% 25.48% 26.2 36.8 40.38% 88.29% 0.32 288.0 3 4 OCK GROUP Trading/services 88.3 138.9 57.29% 31.88% 8.5 13.2 54.45% 102.11% 0.55 142.5 4 7 ELSOFT RESEARCH Technology 12.7 18.8 48.25% 33.65% 4.9 6.6 34.06% 43.03% 0.45 80.6 5 1 ASAS DUNIA Property development 106.9 155.2 45.18% 32.37% 19.8 43.5 119.70% 23.68% 1.67 318.6 6 3 SBC CORP Property development 113.1 153.7 35.86% 18.59% 13.2 22.7 72.40% 46.01% 1.86 153.2 7 10 NOTION VTEC Technology 236.8 308.8 30.43% 15.64% 47.5 49.3 3.79% 8.23% 0.82 220.3 8 6 BOILERMECH HLDGS Industrial products 120.2 149.7 24.55% 25.68% 13.9 19.3 38.81% 46.56% 1.61 415.4 9 8 PERAK CORP Trading/services 128.9 157.4 22.09% 13.41% 29.6 38.1 28.58% 33.99% 2.92 292.0 10 9 POH KONG HLDGS Consumer products 692.4 830.1 19.88% 11.26% 41.2 51.6 25.15% 16.04% 0.48 197.0

Source: Bloomberg, Bursa Malaysia

Kimlun Corporation Bhd Dialog Group Bhd IMLUN, a Johor-based 3 4 IALOG Group Bhd edged past its construction and engineering peers to record a 35.2% growth Kplayer, was listed on Bursa Malaysia Din revenue to RM1.63 bil in 2012 in March 2012. From humble beginnings compared with 2011. It is the only oil-and-gas in 1977 through Kimlun Earthworks Sdn services provider in our top 10. Bhd, it has grown to become a RM520 mil Its improved financial performance in 2012 company on the local exchange. is attributed to increased revenue from the In 2012, higher revenue contributions newly-acquired Fitzroy Engineering Group from the manufacturing and construction Ltd of New Zealand and from operations of divisions boosted Kimlun’s revenue by the new Langsat terminals. The company 37.6% y-o-y to RM895.8 mil. is also a big player in the RM60 bil Refinery Kimlun is the only construction company and Petrochemical Integrated Development to appear in the top 10 on our list, beating (Rapid) project in Pengerang, Johor. the likes of Mudajaya Group. Kimlun’s net profit also grew 15.9% to Dialog’s share price has jumped almost RM49.4 mil in 2012. 30% since May 2, to close at RM3.03 on Kimlun’s share price has rallied since May, closing at RM2.26 on July July 23. Ngau Boon Keat, a co-founder of 22. Sim Tian Liang has led the company through much of its recent the company, is its executive chairman. EPF strategic success since he became CEO in 2009. Phin Sdn Bhd is the remains Dialog’s largest shareholder, with a company’s single largest shareholder, with 33.4% direct ownership. 15.2% stake. FocusM July 27-Aug 2, 2013 20

KLCC Property Holdings Bhd 6 Padini Holdings Bhd 7 TS revenue increase was largely contributed by the 15-year lease ESPITE a strong financial Irenewal for the Petronas Twin Towers performance which put it sixth coupled with income contribution Don our list with a 2012 revenue from office-space lease in the recently- growth of 27.3%, Padini Holdings completed Petronas Tower 3. The is reported to be facing stiffer leasing of office space continues to competition from other apparel be a secure revenue pipeline for the retailers in the domestic market. company, whose revenue rose to RM1.18 However, any effect from stiffer bil in 2012, up 27% y-o-y. However, its competition is likely to be mitigated share price has been on a downward by the healthy performance of the trend over the last two months, closing Brands Outlet stores, which will at RM6.50 on July 23. 5 definitely help future earnings. Petronas is the single largest Padini’s share price has been shareholder with a 20.8% direct stake AEON Credit Service (M) Bhd volatile and is on a downward trend. on top of a 31% indirect stake held by its wholly-owned subsidiary KLCC IDING on 40% growth in financing Its founder and managing director (Holdings) Sdn Bhd. Hashim Wahir has activities totalling RM1.66 bil in Yong Pang Chaun remains the single been the CEO of KLCC Property since 2012, AEON Credit saw its revenue largest shareholder with a 44.28% R 2007. jump some 27% y-o-y, up to RM344.3 mil stake. for the 2012 financial year. In 2012, its net profit was RM95.6 mil. AEON Credit hopes to see future financial performance boosted by a Hartalega Holdings Bhd Zhulian Corporation Bhd 9 growth in car-financing and small- HEN Hartalega 8 Y introducing business financing activities but may switched from products such be affected by the recent Bank Negara Wmaking natural Bas kitchenware, ruling on personal loans. rubber gloves to nitrile nutritious beverages The counter is trading at around gloves in 2003, there was and jewellery, multi-level RM17.60 and has lately been one of the an immediate impact on marketing company top gainers. Despite its high share price, its revenue. It is also the Zhulian Corporation Bhd three research houses have issued a first local company to saw big impact to its “hold” call, possibly seeing a further manufacture nitrile gloves. topline. Its revenue grew upside to the share price. Compared to competitors such as Top Glove by 25.98% compared to AEON Credit’s sister company and Corp Bhd and Supermax Corp Bhd, Hartalega Amway (Malaysia) Hldgs Bhd, which charted 10 retail giant AEON Corporation (M) Bhd emerged as the best glovemaker in terms of revenue growth of 8.39% in 2012. Bonia Corporation Bhd is also on our list, at number 29. Its 2012 revenue growth. Its revenue jumped 26.69% Zhulian’s topline and bottomline increased revenue was RM3.25 bil, representing in 2012 compared with the previous year. The to RM450.43 mil and RM117.09 mil in FY12. PPAREL manufacturer a 9% y-o-y growth. Both companies company’s share price has tripled since its IPO It was one of its best-ever revenues and net Bonia Corp Bhd is are controlled by Japan-based AEON price of RM1.80 in 2008. Hartalega is led by profit growths since its listing in 2007. Aone of the major Corporation Ltd. Yasuhiro Kasai has executive chairman and managing director Kuan The company is headed by founder and beneficiaries of consumer headed AEON Credit as its managing Mun Leong, founder Kuan Kam Hon’s second son. chief executive officer Teoh Beng Seng. spending during Malaysia’s director since 2005. mega-sales carnival and year-end sales. The company GD Express Carrier Bhd Malayan Banking Bhd registered RM579.8 mil in turnover for 2012, against HIS is the only ACE-market company ITH more than RM495 bil RM461.4 mil in 2011 – a on our list. In 2011, GD Express’ 11 in total assets, Maybank 12 growth of 25.67%. Its 2012 Tparcel-sorting capacity was a mere Wchalked up an earnings growth was also due to 30,000 an hour but it expanded and increase of 29.09% in 2012 compared with the contribution of RM70.2 doubled capacity. The company’s fleet also 2011. At 12th spot it beat rivals such as CIMB mil from its acquisition of increased to 335 from 331 vehicles. Group Hldgs Bhd, Public Bank Bhd and Singapore’s Jeco Private Ltd In 2012, GD Express net profit increased Ambank Hldgs Bhd. in 2010. 25.34% to RM8.74 mil. Revenue also grew Maybank recorded a higher net interest Bonia is headed by at a CAGR of 11.56% between 2009 and income and better earnings contributions from its international executive chairman Chiang 2012. It is one of the few ACE market business. Its acquisition of Singapore-based investment banker Sang Sem. It is controlled companies with a market capitalisation of Kim Eng Securities Ltd in 2011 also extended its regional footprint. by the Chiang family, which above RM500 mil. It achieved a CAGR of 69.75% for its net profit from 2009 to 2012. holds a 48.21% stake. Its share GD Express is led by managing director Teong Teck Lean, who has Currently without a chief executive, the banking group is being price has risen more than been with the company since 2000. Singapore Telecommunications Ltd run by group chief financial officer Mohd Rafique Merican as 50% since May, closing at has a 27.41% stake in GD Express. officer-in-charge. RM2.59 on July 23.

Mudajaya Group Bhd Cahya Mata Power Root Bhd Sarawak Bhd UDAJAYA Group Bhd’s 26% 14 15 13 ITH the implementation owned coal-fired plant in AHYA Mata Sarawak Bhd of a better distributor- MIndia is giving it good returns. (CMS)’s topline grew 21.55% Wmanagement system in 2010, Mudajaya’s revenue increased 22.91% Cin 2012 to RM1.2 bil compared Power Root Bhd began to enjoy better in 2012, with construction contributing with RM989 mil in 2011 due to better returns. 86%. income from its cement division. The company also entered new markets, Last year it won several sizeable Controlled by Sarawak chief adding variety to its products, which had projects including the Tanjung Bin minister Tan Sri Abdul Taib an impact on its revenue. The company’s coal-fired power plant worth RM1 bil. Mahmud’s family, the company is a leading infrastructure topline grew 17.43% to RM217 mil in 2012, It also won Package V3 of the Mass player in the state. It posted good margins from the compared with RM185 mil in 2011. In tandem Rapid Transit project worth RM816 construction and road-maintenance divisions. It is also with its growth, the company’s share price mil, the North South Expressway involved in the development of the Samalaju Industrial Park soared some 223% to RM2.15 on July 23 from entrance/exit road project worth within the Sarawak Corridor of Renewable Energy (SCORE). 66.5 sen on July 24, 2012. RM30 mil and the klia2 Tune Hotels From 2009 to 2012, the group’s earnings registered a The group is led by managing director project worth RM65 mil. CAGR of 35.66%, bringing the company to 14th spot on our Datuk Low Chee Yen, also a substantial The company is led by managing list. CMS is led by group managing director Datuk Richard shareholder with a 18.63% direct stake in director and CEO Anto Joseph. He is Curtis, while the Sarawak chief minister’s eldest son Datuk the company as of June 2013. Koperasi linked to Dataran Sentral (M) Sdn Bhd, Seri Mahmud Abu Bekir Taib is group deputy chairman. Permodalan Felda Malaysia Bhd also has a which has a 24.63% stake in Mudajaya. 16.19% stake. 14 FOCUSM SEPT 28-OCT 4, 2013 Powering the nation’s economy Local banks are the financial powerhouse of the economy, with higher total asset values and revenues. However, foreign banks chart good returns to shareholders

THE 32 BANKS in the country have a total asset value of over RM2 tril, possibly making banking Malaysia’s the largest corporate sector in Malaysia. There are 10 local banks and 22 foreign banks. The 10 local banks have a total asset value of RM1.69 tril or more than 84% of the total banking sector asset value. Best Though just 10 compared with the 22 foreign banks, local banks are the Banks financial powerhouse of the economy, churning out total revenues of over RM91.23 bil in FY12. In contrast, and Bursa Malaysia filings. As for the foreign banks turned in revenues of foreign banks, we used only figures RM19.53 bil during the same period, from locally-incorporated entities as accounting for just 17% of the total reported by the respective companies. revenue of the entire banking sector Public Bank Bhd (PBB) came out on our list. But in terms of tops in terms of overall ROE return on equity (ROE), five ranking, with a score of of the top 10 are foreign 22.31%, beating other local banks. heavyweights such as Malay- In this Focus List, we an Banking Bhd (Maybank) decided to rank banks and CIMB Group Holdings according to their profita- Bhd (CIMB). PBB also beat bility. ROE is a common as- HSBC Bank Malaysia Bhd by Prathab V sessment used by business in terms of ROE, with the analysts to measure how latter coming second on the efficient a company is in generating overall table, which includes local and profits. It takes into account total net foreign banks. earnings over shareholder equity. Foreign banks do not have the reach In a sense, ROE is a good yardstick to customers in terms of banking to measure how much the business is branches. But this does not prevent generating for its investment by share- success, as seen in their financial holders. In tabulating our list, we took performance. According to Interpac the group figures for all the local banks Securities Sdn Bhd head of research Public Bank has grown in strength over the years as announced in their annual reports Pong Teng Siew, a lack of bank branch- Overall ranking of banks by ROE es also means foreign banks use less cash on branch expenses. RANKING Latest financial year “Less ownership of a branch net- Rank Name of Bank Local/ ROE By profit By asset Revenue Profit/(loss) Total assets Financial work and more reliance on service foreign (%) growth growth (RM’000) (RM’000) (RM’000) year-end charges enhances the bank’s ROE, 1 Public Bank Bhd Local 22.31 23 18 14,058,097 3,911,761 274,624,879 Dec 2012 as less brick and mortar means less 2 HSBC Bank Malaysia Bhd Foreign 21.73 15 25 4,190,880 1,201,347 76,624,559 Dec 2012 capital tied up,” Pong tells FocusM. 3 Standard Chartered Bank (M) Bhd Foreign 18.49 19 21 2,794,915 672,910 51,658,770 Dec 2012 “More reliance on interbank funds 4 United Overseas Bank (M) Bhd Foreign 17.77 17 9 3,935,236 927,033 80,436,270 Dec 2012 means a higher loan/deposit ratio, 5 Hong Leong Bank Bhd Local 17.45 6 20 5,888,650 1,648,156 157,787,262 June 2012 enabling them to rely less on expenses 6 BIMB Holdings Bhd Local 16.84 11 11 2,001,620 497,631 43,907,623 Dec 2012 to maintain branch networks and less 7 OCBC Bank (M) Bhd Foreign 16.43 24 14 3,548,882 811,339 72,871,921 Dec 2012 8 CIMB Group Holdings Bhd Local 15.61 20 16 15,229,948 4,396,807 337,056,884 Dec 2012 needs to be deposited with Bank Nega- 9 Malayan Banking Bhd Local 15.43 12 19 27,532,461 5,917,293 494,866,293 Dec 2012 ra in the form of non-interest-earning 10 Citibank Bhd Foreign 13.94 25 29 2,358,094 578,607 38,452,019 Dec 2012 statutory reserves,” he adds. 11 Alliance Financial Group Bhd Local 13.79 21 17 2,031,897 538,123 43,692,029 March 2013 Foreign banks also undertake inter- 12 AMMB Holdings Bhd Local 13.75 18 15 7,441,206 1,693,200 126,993,290 March 2013 bank funds, whose operational cost is 13 RHB Capital Bhd Local 13.27 22 7 8,022,726 1,789,769 189,077,565 Dec 2012 lower than deposit-taking activity, as 14 Bank Muamalat Malaysia Bhd Local 11.20 4 23 999,339 167,936 21,071,590 March 2013 there is neither a need for tellers to be 15 The Bank of Nova Scotia Bhd Foreign 11.01 14 26 205,421 79,913 4,414,885 Oct 2012 made available for over-the-counter 16 Affin Holdings Bhd Local 10.81 10 22 2,971,723 628,942 53,681,288 Dec 2012 transactions, nor for backroom oper- 17 Bank of Tokyo-Mitsubishi UFJ (M) Bhd Foreign 10.02 13 13 308,443 148,992 10,553,565 Dec 2012 ations for cheque clearances. 18 Bank of China (M) Bhd Foreign 9.60 7 5 198,691 42,113 4,575,386 Dec 2012 Major shareholders in Maybank, 19 JP Morgan Chase Bank Bhd Foreign 4.17 28 30 180,040 31,267 5,826,850 Dec 2012 CIMB, RHB and Affin are govern- 20 Deutsche Bank (M) Bhd Foreign 4.12 9 27 243,045 58,752 10,725,619 Dec 2012 ment-linked agencies and pension 21 Kuwait Finance House (M) Bhd Foreign 4.11 5 28 494,405 60,494 9,096,691 Dec 2012 22 ICBC Malaysia Bhd Foreign 3.26 26 4 98,791 11,518 3,152,167 Dec 2012 funds such as Permodalan Nasional 23 Bangkok Bank Bhd Foreign 2.69 27 8 126,310 14,845 3,232,044 Dec 2012 Bhd (PNB), Khazanah Nasional Bhd, 24 Al Rajhi Banking Investment Corp (M) Bhd Foreign 1.96 2 12 334,524 13,828 6,994,256 Dec 2012 the Employees Provident Fund and 25 Bank of America Malaysia Bhd Foreign 1.60 29 6 67,562 7,934 2,249,176 Dec 2012 Lembaga Tabung Angkatan Tentera. 26 Mizuho Bank (M) Bhd Foreign 1.59 1 3 50,652 5,556 1,095,424 March 2013 Hence the government has received a 27 Sumitomo Mitsui Banking Corp M’sia Bhd Foreign 1.23 3 1 63,779 4,263 1,418,361 March 2012 steady income from the stellar perfor- 28 Asian Finance Bank Bhd Foreign -1.40 16 10 112,470 (6,665) 2,810,525 Dec 2012 mance of these banks. 29 India International Bank (M) Bhd Foreign -1.80 32 32 4,962 (2,943) 354,981 Dec 2012 30 National Bank of Abu Dhabi Malaysia Bhd Foreign -3.50 31 31 5,861 (5,337) 316,977 Dec 2012 Foreign banks giving better 31 BNP Paribas Malaysia Bhd Foreign -3.74 8 2 47,736 (13,778) 1,917,070 Dec 2012 returns to shareholders 32 The Royal Bank of Scotland Bhd Foreign -4.07 30 24 124,538 (24,132) 4,585,659 Dec 2012 Interestingly, the top 10 on our list consists of an equal number of local Source: Annual reports, Bloomberg Research by Stephanie Ting banks and foreign banks. However, SEPT 28-OCT 4, 2013 focus list FOCUSM 15 our top five shows four foreign banks However, AFG performed better than giving better returns to shareholders Affin Holdings Bhd, which came in than local banks. HSBC, based in the last ranked by ROE. AFG reported an UK, came close to PBB with 21.73% in ROE of 13.8% compared with Affin’s terms of ROE. On our list, only PBB 10.81%, despite the latter posting and HSBC scored over 20% in return higher profits. Affin is also growing on shareholder equity. PBB’s net earn- faster in terms of profits compared ings are more than three times greater with AFG, despite having 100 bank than those of HSBC and 5.8 times branches against AFG’s 106. those of Standard Chartered Bank (M) Among local banks, Maybank has Bhd, third on our list. the largest number of branches, at That two UK-based banks have over 400, and Affin has the fewest. taken second and third spots in re- Of the 10 local banks, eight are turning better profits to shareholders commercial banks providing various is something to note. Similarly, two products and services, including Singapore-based banks – United Islamic banking services. Two of Overseas Bank (M) Bhd (UOB) and the local banks are purely Islamic Oversea-Chinese Banking Corp (M) banks – BIMB Holdings Bhd and Bank Bhd (OCBC) – did better than local Muamalat (M) Bhd. BIMB owns 51% banks, occupying fourth and fifth po- of Bank Islam Malaysia Bhd and is in sitions. UOB and OCBC are very active talks to buy the rest of Bank Islam’s in the mortgage segment and do well stake, held by Dubai Financial Group to compete with local banks, despite LLC and Lembaga Tabung Haji. being handicapped with a much lower Despite having posted a mere number of bank branches. RM167.9 mil in profit, Bank Mua- Most other foreign banks operating malat ranked higher than Affin in locally are focused on loans to the terms of ROE. Though profitable and corporate sector. Examples of a de- occupying 16th spot, Affin has to work parture from this trend include HSBC, harder to beat local rivals. Standard Chartered, UOB, OCBC and Al Rajhi, which are geared heavily Leadership change and Islamic banks towards consumer banking services. Maybank is in pole position among Foreign banks focused on the corpo- local banks in terms of size, revenue rate sector have a large global network, and profit. However the recent depar- Maybank leads local banks in terms of size, revenue and profit enabling them to easily provide trade ture of key senior executives to rival financing, foreign exchange and better local banks is bound to be a setback. Local banks’ ranking (by ROE) it incurred losses for its financial year global banking services. Maybank has been occupied with Rank Local bank ROE (%) Market cap ended Dec 31, 2012. Despite better return on sharehold- addressing a leadership vacuum since as at Sept 25 Perhaps as a result of its strategy of er equity, PBB’s earnings record is far the June departure of then-CEO Da- (RM bil) focusing on corporate loans, KFH’s net superior to that of all top four foreign tuk Seri Abdul Wahid Omar – who had 1 Public Bank Bhd 22.31 62.27 earnings are almost 4.4 times those of banks put together. If we were to sum headed the bank since May 2008 – to 2 Hong Leong Bank Bhd 17.45 25.4 Saudi Arabia-based Al Rajhi. To put up the earnings of the top four foreign join the Prime Minister’s Department 3 BIMB Holdings Bhd 16.84 5.01 this into perspective, when compared banks, they still fall short – at RM3.61 as minister in charge of the Economic 4 CIMB Group Holdings Bhd 15.61 59.33 with overall rankings, KFH is still a bil – of PBB’s total net earnings of Planning Unit. 5 Malayan Banking Bhd 15.43 89.94 small Islamic-bank player compared RM3.91 bil in FY12. After spending some months 6 Alliance Financial Group Bhd 13.79 8.14 with Bank Muamalat, controlled by However, despite a better showing searching, Maybank made a Bursa the DRB-Hicom Group. Bank Mua- 7 AMMB Holdings Bhd 13.75 22.43 in terms of ROE, PBB’s two local rivals announcement on Aug 2 appointing malat’s FY12 revenue is more than produced better net earnings. Malayan deputy president and global business 8 RHB Capital Bhd 13.27 19.85 double that of KFH, while its profit is Banking Bhd and CIMB Group Hold- banking head Datuk Abdul Farid Alias 9 Bank Muamalat M Bhd 11.20 (not listed) 2.8 times that of the latter. ings Bhd reported profits of RM5.92 its group president and CEO. Before 10 Affin Holdings Bhd 10.81 6.44 In the investment bank category, bil and RM4.40 bil for FY12. the announcement, two other internal KAF Investment Bank Bhd leads the Positions six to nine are occupied contenders for the top job included Foreign banks’ ranking (by ROE) pack of five by producing a ROE of by four local banks – CIMB, Maybank, Maybank Investment Bank CEO Rank Foreign bank ROE (%) 11.63%. Close behind is MIDF Aman- Hong Leong Bank Bhd (HLBB) Tengku Datuk Zafrul Tengku Abdul 1 HSBC Bank Malaysia Bhd 21.73 ah Investment Bank Bhd with a ROE and AMMB Holdings Bhd. AMMB Aziz and its president and director of 2 Standard Chartered Bank (M) Bhd 18.49 of 10.15%. KAF provides stockbroking Holdings has a 100% effective stake Bank Internasional Indonesia Datuk and fund-management services, and 3 United Overseas Bank (M) Bhd 17.77 in AmBank (M) Bhd, according to its Khairussaleh Ramli. is controlled by Datuk Khatijah Ah- 2013 annual report. Tengku Zafrul resigned from 4 OCBC Bank (M) Bhd 16.43 mad. Maybank on Sept 23 and is headed to 5 Citibank Bhd 13.94 MIDF Amanah Investment Bank, CIMB better on ROE but CIMB. Before that, Khairussaleh had 6 The Bank of Nova Scotia Bhd 11.01 which provides Islamic investment Maybank has higher profit also left Maybank, on Sept 4, and is 7 Bank of Tokyo-Mitsubishi UFJ (M) Bhd 10.02 and advisory as well as corporate Of the local banks, PBB is king of the joining RHB Bank Bhd. 8 Bank of China (M) Bhd 9.60 investment banking services, is con- hill in terms of ROE. CIMB comes in The leadership shakeup in local 9 JP Morgan Chase Bank Bhd 4.17 trolled by PNB. second, holding off rival Maybank by banks is expected to continue, as 10 Deutsche Bank (M) Bhd 4.12 a whisker. CIMB and Maybank report banks are always on the lookout for 11 Kuwait Finance House (M) Bhd 4.11 Local banks thriving 15.61% and 15.43% ROE for FY12. talent to take up key positions in a 12 ICBC Malaysia Bhd 3.26 Banks are the backbone of national CIMB, although having lower revenues demanding and competitive banking 13 Bangkok Bank Bhd 2.69 economic growth. Keeping them and earnings than Maybank, yields environment. 14 Al Rajhi Banking Investment Corp (M) Bhd 1.96 steady and robust is a focus of Bank better value to shareholders. But this Among the foreign Islamic banks, 15 Bank of America Malaysia Bhd 1.60 Negara. Local banks are clearly doing may soon change, as Maybank sets corporate loans-focused Kuwait brisk business here but foreign banks, 16 Mizuho Bank (M) Bhd 1.59 a blistering pace in terms of profit Finance House (M) Bhd (KFH) beat overcoming shortcomings in terms growth. retail-focused Al Rajhi Banking 17 Sumitomo Mitsui Banking Corp M’sia Bhd 1.23 of branches, are not deterred from Compared with the previous Investment Corp (M) Bhd in terms of 18 Asian Finance Bank Bhd -1.40 achieving good results. financial year, Maybank posted a 16% ROE. Though its 4.11% ROE is rather 19 India International Bank (M) Bhd -1.80 While there are no real surprises profit growth while CIMB and PBB modest, it is better than Al Rajhi’s 20 National Bank of Abu Dhabi Malaysia Bhd -3.50 in who leads the pack of local banks, recorded an 8% and 5% profit growth, 1.96. 21 BNP Paribas Malaysia Bhd -3.74 it will be interesting to see how respectively. In terms of total assets, Qatari-owned Asian Finance Bank 22 The Royal Bank of Scotland Bhd -4.07 foreign banks deal with growing com- Maybank is the biggest local bank. Bhd however had a negative ROE as petition. Its total assets are 1.5 times those of CIMB and 1.8 times those of PBB. Investment banks’ ranking (by ROE) Maybank also leads in terms of revenue. At RM27.53 bil, Maybank’s RANKING Latest financial year revenue for FY12 was almost twice Rank Local investment bank ROE (%) By profit By asset Revenue Profit/loss Total assets Financial that of PBB and 1.4 times that of growth growth (RM’000) (RM’000) (RM’000) year end CIMB. 1 KAF Investment Bank Bhd 11.63 2 4 341,851 124,261 7,767,429 May 2012 On our list, excluding the two 2 MIDF Amanah Investment Bank Bhd 10.15 1 3 180,016 80,504 5,172,205 Dec 2012 Islamic banks, the smallest local 3 Hwang-DBS (M) Bhd 8.22 3 2 397,958 75,631 4,468,693 July 2012 bank in terms of revenue is Alliance 4 K&N Kenanga Holdings Bhd 0.03 4 1 302,599 896 5,471,116 Dec 2012 Financial Group Bhd (AFG), which 5 ECM Libra Financial Group Bhd (4.63) 5 5 16,579 (42,131) 923,461 Jan 2013 controls Alliance Bank Malaysia Bhd. 16 FOCUSM focus list SEPT 28-OCT 4, 2013

Best Local Bank With 377 branches and Key directors and top more than 17,600 employ- PUBLIC BANK BHD management: Best Foreign ees, Public Bank caters to  Tan Sri Teh Hong Piow Bank ENVISIONED as “a bank (chairman) the financial needs of over for the public” by founder eight million customers HSBC BANK  Tan Sri Thong Yaw Hong and chairman Tan Sri Teh (co-chairman) in Malaysia and six other MALAYSIA BHD Hong Piow, Public Bank Bhd countries.  Tan Sri Tay Ah Lek (MD) commenced business on It has 122 branches HSBC’S presence in Aug 6, 1966. It was listed on Market cap: overseas – 83 in Hong Malaysia dates back the Kuala Lumpur Stock Ex- RM62.55 bil Kong, three in China, 24 to 1884 when the change (KLSE) the following Share price: in Cambodia, seven in Hongkong and Shanghai year. RM17.88 Vietnam, four in Laos Banking Corporation Ltd The bank has grown into a (as of Sept 24, 2013) and one in Sri Lanka. established its first office in premier banking group with 52-week high: For FY12, total de- Penang, with privileges to a total revenue of RM14.06 RM17.92 posits from customers Public Bank has issue currency notes. bil. of the bank in Malay- 377 branches with Today, it has 68 In terms of ROE, Public 52-week low: sia recorded a growth 17,600 employees branches and 25 ATMs in RM14.26 serving the financial Malaysia and is Focus List’s Bank is Focus List’s top rate of 13%, which is needs of over eight bank, with 22.31%; but it Latest financial results: above the domestic number two bank in terms RM3.91 bil net profit million customers in is ranked 23rd and 18th on banking industry’s Malaysia and other of ROE, with 21.73%. It year-on-year profit growth Major shareholders: pace of 8.4%. countries is the best-performing and asset growth, respec- Tan Sri Teh Hong Piow: foreign bank in Malaysia, tively. 24.08% followed by Standard With total assets of EPF: Chartered Bank Malaysia RM274.63 bil as of its 13.29% Bhd (18.49%) and United financial year ended Dec 31, Overseas Bank (M) Bhd 2012, the bank is the coun- (17.77%). try’s third-largest banking and lending to SMEs. With a total revenue group and is ranked number As of end-2012, Public of RM4.19 bil for the six in Southeast Asia by Bank maintained its leading financial year ended Dec asset size. position in residential 31, 2012, HSBC registered It is a leading retail mortgages (19.1%), pas- a net profit of RM1.2 bil. lender and remains focused senger-vehicle financing It is also ranked 15th and on increasing loans in (26.4%) and commer- 25th in year-on-year profit residential mortgages, cial-property financing growth and asset growth, passenger-vehicle financing (33.7%) in Malaysia. respectively. Its total assets stand at RM76.62 bil. The group’s global Best Investment Bank market segment continues KAF INVESTMENT BANK BHD to take advantage of Top financial its debt capital market PREVIOUSLY known as origins as a discount leadership and expertise in KAF Discounts Bhd, it was house. Given the nature securing key deals. established in 1975 and is of KAF Investment Bank’s It has again asserted its a leading investment bank business model, investor, institutions market leadership position in Malaysia with a strong counterparty and customer among foreign banks in the by Joseph Wong reputation for dealing in confidence are critical to debt capital market industry money market instruments its funding and earnings by maintaining itself as and trading in debt generation, especially in Best Islamic Bank top foreign bookrunner securities. less favourable market BIMB HOLDINGS for ringgit bonds and The investment bank is conditions. Islamic bonds for the sixth majority-owned by founder Historically, the BHD consecutive year. and managing director investment bank’s The group is also Datuk Khatijah Ahmad, restrained appetite for credit ESTABLISHED in 1983, focused on driving through AKKA Sdn Bhd. and market risk as well BIMB, which owns Bank incremental growth in Khatijah, a graduate of as its solid track record in Islam, is Malaysia’s maiden the foreign-exchange the London School of money market operations shariah-based banking flow business among Key directors and top Economics, served as have allowed it to maintain institution. It has emerged management: corporate clients as well assistant economist in Bank and build confidence with as Focus List’s strongest  Datuk Zamani Abdul as strategically positioning Negara Malaysia from 1965 key stakeholders through Islamic bank based on 2012 Ghani (chairman) itself to capture additional to 1970, and is one of the economic cycles. performance. No stranger  Datuk Seri Zukri Samat value in the form of related country’s most influential Lending activities to awards, Bank Islam is when measured against the (MD) trades from its larger debt women. undertaken by KAF Market cap: capital market deals. ranked 53rd position on likes of Malayan Banking RM5.02 bil KAF Investment Bank Investment Bank have been the list of the Asia-Pacific’s Bhd’s RM88.33 bil and Pub- HSBC intends to Share price: tops the Focus List in the mostly to provide bridging increase its share of strongest banks in 2011. lic Bank’s RM62.55 bil. Its RM4.64 investment bank category loans for companies With a total group strength lies in its Islamic (as at Sept 24, 2013) high-quality assets via based on its ROE of pending the completion of revenue of RM2 bil as of financial performance. 52-week high: the relationship-based 11.63%, followed by MIDF fundraising exercises. its financial year ended Dec In 2012, Bank Islam RM4.97 approach, by increasing Amanah Investment Bank The bank’s ability to 31, 2012, BIMB registered a embarked on expansion 52-week low: value-added offerings, Bhd (10.15%) and Hwang- maintain its profitability net profit of RM497.63 mil programmes, notably RM2.81 building on cross-referrals DBS (M) Bhd (7.45%). Of measures will be challenged and has total assets worth transactions in sukuk and Latest financial results: and the cross-selling of the five investment banks as the bank replenishes RM43.91 bil. It is ranked corporate mandates. RM497.63 mil net profit various banking products in Malaysia, it was one of its realised investments sixth on the Focus List in BIMB’s net financing Shareholders: to the group’s existing two companies that saw with relatively lower-yield terms of ROE but 11th in grew by RM5.3 bil to Lembaga Tabung Haji: customers. a positive year-on-year investments, amid the year-on-year profit growth RM19.5 bil, which resulted 51.17% profit growth. It chalked up current low-interest-rate and asset growth. in a 23.7% increase in EPF: 9.73% Key directors and top 13% but MIDF Amanah environment. Bank Islam’s ROE was fund-based income from a management: Investment Bank scored the 20.4% (its holding compa- financing of RM217.5 mil.  Peter Wong Tung highest at 110%. Key directors and top ny’s RoE is 16.84%) against Income from securities, growth of 15.1% or RM4.3 Shun (chairman) management: KAF Investment Bank, the industry average of both held-to-maturity bil, to hit RM32.6 bil at  Mukhtar Hussain however, saw a negative  Tan Sri Ahmad Mohd Don (chairman) 17.5%, and its return on and available-for-sale, end-2012. (deputy chairman/CEO) asset growth of 27%  Datuk Khatijah Ahmad assets was 1.7% against also increased, by RM84 Through a network of  Baldev Singh (CFO) compared with the previous (MD) 1.6% (based on Bank Nega- mil or 19.3%, while non- 131 branches and over Shareholder: year. Its assets as of May Shareholder: ra’s Financial Stability and fund-based income grew 1,000 automated teller ma- HSBC Ltd: 100% 31, 2012 totalled RM7.77 KAF Securities Sdn Bhd: Payment Systems Report by 16.8% or RM38.4 mil, chines, BIMB offers more Latest financial results: bil. 100% 2012). driven by fees, commis- than 70 Islamic banking RM1.2 bil net profit Its focus on low-risk, Latest financial Compared with other sions and foreign-exchange products and services, results: short-term money market Malaysian financial institu- transactions. comparable with those RM124.26 mil net profit activities reflects its tions, its market capitalisa- Customer deposits offered by conventional tion of RM5.02 bil is small recorded a year-on-year counterparts. 10 FOCUSM focus list OCT 26-NOV 1, 2013

UBB is also charting improved results. For its second quarter Punter’s playground ended June 30, the company almost doubled its revenue to RM6.81 mil Penny stocks are back in play. While lacking the strength of bigger from RM3.84 mil a year earlier, stocks, many turn a decent profit but others are purely speculative with a slightly higher net profit of RM144,000 in Q2 from RM97,000 in the same quarter the previous year. WZ Steel Bhd, which made a small profit of RM8,000 for its first quarter ended July 31, is third on our list. Top five performers since July 1 The worst performer on our list is Zecon Bhd, which posted a loss of RM21.4 mil for its latest three months Current price: 63 sen ended June 30. Despite the sharp drop in earnings, Zecon’s share price moved by Prathab V Share price  184% up 39.25% to 74.5 sen in October, from 53.5 sen in July. The share price rise is due mainly to the offer by Daw- PENNY stocks are a la Capital Sdn Bhd (which owns 55% punter’s haven. Since of Zecon) and several shareholders their share price is below Current price: 72 sen including Datuk Zainal Abidin Hassan RM1, they are often a to take the company private. Zecon, a bargain-hunter’s target, Share price  164% construction and infrastructure com- gems in the marketplace. pany, has attracted speculative play on The 50 penny stocks on our list the expectation of a better offer than have a market capitalisation of over the 80 sen per share on the table. RM5.37 bil, or about 0.34% of the Garments and petrochemicals total market capitalisation of Bursa Current price: 84 sen company Yong Tai Bhd saw its share Malaysia equities. The average share price soar 250% to a year-to-date high price of the penny stocks, as of Oct Share price  110% of RM1.20 on July 26 from 37 sen on 16, is about 51 sen. May 8, despite a bigger loss of RM8 The largest company on our list in mil in the fourth quarter ended June terms of market capitalisation is Insas 30 from RM7.1 mil a year earlier. Bhd, followed by Daya Materials Bhd. While loss-making companies have On our list, only these two companies Current price: 34.5 sen been attracting the attention of punt- have a market capitalisation exceed- Share price 109% ers for various reasons, not usually ing RM400 mil, while another 18  based on fundamentals, those making have market capitalisations exceeding profit were also targets. RM100 mil. The smallest company on Property developer Malaysia Pacific our list is timber-based BTM Resourc- Corp Bhd (MPCorp) turned around es Bhd, with a market capitalisation of Current price: 65.5 sen with a tidy profit of RM52.5 mil for its RM8.55 mil. fourth quarter ended June 30 from a In compiling the list, we looked at Share price  95% loss of RM6.4 mil a year earlier. This counters whose share price moved the impressive turnaround is underscored most between July and mid-October. by a litany of problems affecting the We eliminated PN17 companies company. In addition to facing several and ACE-market counters, focusing Pacific Corp, Talam Transform Bhd, and 30-day moving averages. Pen- legal suits, it became a PN1 counter in only on the Main Market companies Hovid Bhd and Pelikan International ny-stock counters sometimes show a March this year, having defaulted on of Bursa Malaysia. Since our main Corp Bhd. high volatility in price, sometimes not its banking facility obligations to RHB criterion is the share price movement Some of these counters constitute based on fundamentals. Bank Bhd. of the stocks, we did not distinguish part of the mid-cap stocks, while the “There are a few isolated, small-cap MPCorp is relatively healthy with a between profitable and non-profitable rest are part of Bursa’s small-cap and stocks that may warrant our attention sizeable land bank, and its share price companies. fledgling company indices. because of a jump in earnings but, rose an impressive 51% to reach a It appears most of the best-per- “The market focus, going forward, on the whole, the rally in small-cap year-to-date high of 56 sen on Sept 23. forming penny stocks are in the man- would likely be centred on small- to stocks is not powered by fundamental Like it or not, penny stocks are ufacturing and consumer products mid-cap stocks. As the KLCI has reasons,” says Alex Lu, a remisier at an interesting feature on the local sectors. Sixteen of the companies are already reached close to an all-time Kenanga Investment Bank Bhd. stock exchange. While the risks are from the industrial products sector, high, upside may be limited. In con- Wong Engineering Corporation high, there are rewards for investing 12 from the consumer products sector trast there is still value in some of Bhd comes out tops on our list. It carefully and cautiously. As always, and another six from the trading and these penny stocks which could offer appears the Kulim-based precision investors should exercise great services sector. The technology and investors further upside, as valuations engineering and components manu- caution, studying the charts and the property sectors have five compa- are relatively cheap,” says an analyst facturer’s fundamentals have had no performance of the counters before nies each, and the rest are from the from a Kuala Lumpur-based Singapore negative impact on its share price, investing. finance, construction and hospitality research house. which moved from 22 sen in July sectors. to 62.5 sen on Oct 16, a growth of Small-cap counters While most of these companies are Daya Materials is Top performers 184.1%. For its third quarter ended outperforming the KLCI one of the more not familiar names, a few well-known familiar names Penny stocks are a playground for July 31, the company reported a The FBM KLCI is the bellwether of names stand out. These include Insas among penny-stock those who seek a quick bargain. narrow loss of RM601,000 from the blue chips and an indicator of na- Bhd, Daya Materials Bhd, GHL Sys- counters on Bursa Punters are usually not long-term RM682,000 a year earlier. tional economic wellbeing. Investors tems Bhd, TAS Offshore Bhd, Malaysia Malaysia shareholders, so they monitor 20-day For the nine-month period, the and economists typically watch the company’s loss widened to RM1.82 performance of the FBM KLCI and mil from RM960,000 in the previous compare it with other regional indices, corresponding period. as an investment barometer. Inter- Second on the list is used heavy estingly, Bursa Malaysia’s FBM Small equipment and machinery distrib- Cap Index (FBMSCAP) and the FBM utor United Bintang Bhd (UBB). Fledgling Index (FBMFLG), the key The company is involved mainly in indices of the penny stock counters, reconditioning used tractors and ma- outperformed the FBM KLCI. Unlike chinery from well-known brands such the KLCI, the small-cap indices are as Caterpillar, Komatsu and Hitachi. typically less affected by national and The company’s shares saw hardly global volatility. any transactions in terms of volume Since March this year, the FBMS- for long periods. Although trade CAP and FBMFLG chalked up impres- volumes were relatively low, its share sive gains of 32% and 39%, compared price hit a year-to-date high of 92 sen with the 12% gain for the FBM KLCI. on Oct 14. UBB is now moving into Mid-cap counters also performed bet- property development, with the pur- ter, with the FBM70 rising 21% since chase of a portion of an office building March. The entire market has rallied, complex in Penang for RM15 mil. with small-cap counters benefiting OCT 26-NOV 1, 2013 focus list FOCUSM 11 the most, since the general election in 10 counters of the FBM KLCI have a May. big impact on the index. However, “After the general election, the price changes of the top 10 counters whole market rallied. These include on the FBMSCAP and FBMFLG have penny stocks (or small-cap stocks) little impact on the two indices. that make up either FBMSCAP or Increased liquidity, with penny FBMFLG. Unlike the blue chips that stocks trading at a huge discount com- make up the FBM KLCI, these small- pared with blue chips, is a key reason cap stocks are less affected by the for the play in these stocks. “I don’t foreign fund withdrawal from the think they [penny stocks] are very emerging market,” Lu tells FocusM. attractive in the fundamental sense,” “With fund managers sitting on Nasional Bhd, Genting Bhd, IOI Corp observes Lu. the sidelines, blue chips are expected Bhd, Petronas Chemicals Group Bhd “They may be attractive as a vehicle to move sideways. Thus, play has and Maxis Bhd. for speculation. Thus the question to shifted to small-cap stocks. At this According to FTSE September 2013 ask is why now? My feeling is that stage, the play among small-caps is statistics, the top 10 KLCI counters there is still a fair bit of liquidity in not worrying.” account for 60.9% of the index’s the market that is looking for return. The FBM KLCI, consisting of 30 market capitalisation. In contrast, the Where would you put the money to Bursa counters, is driven mainly by FBMSCAP and FBMFLG are fairly lev- work? Not in the property market, heavyweights in the banking, finance, el and well-represented, with the top as the prices are too high and those telco and utility sectors. The top 10 10 counters accounting for 19.62% who can afford to buy have already counters on the index include Public and 10.88% of the respective index bought. Thus the stock market is a Bank Bhd, Malayan Banking Bhd, market capitalisation. logical choice. We have seen that in CIMB Group Holdings Bhd, Axiata What this means for the layman is 1994-1995, when speculators piled David Ho, managing director of Hovid, has a 37.6% stake in the Group Bhd, Sime Darby Bhd, Tenaga the share price movements of the top into Second Board counters.” company

Penny stocks: Good for the picking

Share Share Share Px Market Latest Q Revenue Profit PE LQ LQ Rev LQ profit Name price price price growth FY end (FY) cap (LQ) RM’000 RM’000 (Jan 2) (July 1) (Oct 16) (%) (RM) (RM) (RM) EPS ending

1 Wong Engineering 0.21 0.22 0.625 184.09% 10/2012 33,146,932 370,352 67.19 56,087,563 -0.007 07/13 Q3 8,043 (601) 2 Utd Bintang 0.20 0.285 0.755 164.91% 12/2012 18,862,316 588,382 18.35 40,773,773 0.003 06/13 Q2 6,813 144 3 WZ Steel 0.26 0.355 0.745 109.86% 04/2013 86,932,000 2,712,982 11.11 73,643,997 - 07/14 Q1 20,942 8 4 D&O Green Tech 0.14 0.175 0.365 108.57% 12/2012 192,224,992 (3,784,000) - 356,098,907 0.0003 06/13 Q2 72,190 302 5 YLI Holding 0.31 0.32 0.625 95.31% 03/2013 100,514,000 (4,236,000) - 61,524,376 0.009 06/14 Q1 39,627 857 6 GHL Systems 0.26 0.30 0.58 93.33% 12/2012 53,474,856 4,351,752 8.97 105,404,991 0.0108 06/13 Q2 15,434 1,573 7 TAS Offshore 0.43 0.47 0.90 91.49% 05/2013 137,996,000 13,455,618 6.58 158,234,940 0.018 05/13 Q4 48,385 3,080 8 Pan Malaysia Corp 0.10 0.135 0.23 70.37% 12/2012 85,611,000 7,998,000 8.85 162,931,366 - 06/13 Q2 17,869 9 9 Ekowood Intl 0.20 0.195 0.33 69.23% 12/2012 41,890,764 (7,013,842) - 55,440,002 -0.004 06/13 Q2 12,270 (622) 10 Pan Malaysia Hldgs 0.05 0.045 0.075 66.67% 12/2012 11,116,000 (39,325,000) - 69,665,062 - 06/13 Q2 3,096 (73) 11 Menang Corp Malaysia 0.31 0.35 0.565 61.43% 12/2011 214,411,000 15,896,000 138.89 150,915,451 0.012 06/13 Q4 80,897 3,244 12 TPC Plus 0.29 0.30 0.47 56.67% 06/2012 42,627,000 (12,903,823) - 37,599,998 0.007 06/13 Q2 16,929 579 13 Farlim Grp 0.26 0.325 0.505 55.38% 12/2012 31,126,180 (4,630,872) - 70,864,677 -0.006 06/13 Q2 3,888 (816) 14 Formis Resources 0.62 0.475 0.735 54.74% 03/2013 338,633,154 (36,216,152) - 258,856,110 0.002 06/14 Q1 69,312 545 15 Caely Hldgs 0.29 0.28 0.425 51.79% 03/2013 91,522,000 1,640,655 14.29 34,000,000 0.030 06/14 Q1 23,097 2,423 16 Pesona Metro Hldgs 0.25 0.29 0.43 48.28% 06/2012 220,775,354 11,770,650 0.93 199,442,795 0.009 06/13 Q2 80,588 4,336 17 Theta Edge 0.30 0.31 0.45 45.16% 12/2012 75,292,000 (6,972,000) - 48,258,572 -0.015 06/13 Q2 19,390 (1,601) 18 Malaysia Pacific Corp 0.28 0.31 0.445 43.55% 06/2013 14,387,000 (15,536,000) 2.48 128,009,293 0.183 06/13 Q4 4,690 52,543 19 Esthetics Intl Grp 0.50 0.65 0.93 43.08% 03/2013 134,414,000 7,251,000 12.76 171,863,998 0.0201 06/14 Q1 34,002 3,722 20 Astral Supreme 0.19 0.15 0.21 40.00% 12/2012 10,965,794 7,930,464 78.00 60,573,460 - 06/13 Q2 3,027 74 21 Zecon 0.42 0.535 0.745 39.25% 11/2011 152,354,372 1,010,755 54.13 88,734,085 -0.180 06/13 Q2 60,438 (21,408) 22 Stone Master Corp 0.30 0.48 0.665 38.54% 09/2012 105,090,000 (7,971,000) - 27,930,000 -0.030 06/13 Q3 16,723 (1,266) 23 Amtek Hldgs 0.20 0.17 0.235 38.24% 06/2012 49,382,158 343,358 36.23 11,749,706 -0.032 06/13 Q4 8,986 (1,445) 24 Talam Transform 0.05 0.055 0.075 36.36% 01/2013 212,636,000 (19,999,000) - 305,474,976 -0.002 07/14 Q2 19,477 (6,484) 25 Pelikan Intl Corp 0.72 0.45 0.61 35.56% 12/2012 1,601,202,944 (66,084 ,000) - 309,799,530 0.017 06/13 Q2 383,915 8,783 26 Daya Materials 0.19 0.24 0.325 35.42% 12/2012 276,923,296 20,116,201 11.21 406,190,521 0.005 06/13 Q2 131,052 6,744 27 Yong Tai 0.38 0.735 0.98 33.33% 06/2012 218,490,556 (9,239,867) - 39,312,702 -0.200 06/13 Q4 12,713 (8,037) 28 Gunung Capital 0.70 0.68 0.90 32.35% 12/2012 79,000,000 13,672,635 5.52 125,864,441 0.043 06/13 Q2 23,493 4,838 29 Fibon 0.29 0.33 0.43 30.30% 05/2013 16,474,000 4,905,000 6.50 42,139,999 0.010 05/13 Q4 3,352 1,019 30 Minho Malaysia 0.51 0.55 0.715 30.00% 12/2012 271,318,016 17,459,000 4.13 78,543,465 0.014 06/13 Q2 55,215 1,532 31 Niche Capital Emas Hldgs 0.12 0.105 0.135 28.57% 12/2012 35,063,755 (2,695,929) 1.26 15,928,988 -0.007 06/13 Q2 12,344 (774) 32 Tekala Corp 0.14 0.23 0.295 28.26% 03/2013 96,099,000 (13,442,378) - 41,292,713 -0.028 06/13 Q1 18,467 (3,888) 33 Hovid 0.26 0.23 0.295 28.26% 06/2012 164,808,000 15,758,000 8.52 224,813,583 0.008 06/13 Q4 40,615 6,077 34 ETI Tech Corp 0.08 0.055 0.07 27.27% 02/2013 9,024,459 (34,962,168) 20.00 49,439,041 -0.004 05/14 Q1 135 (2,583) 35 BTM Resources 0.25 0.165 0.21 27.27% 12/2012 4,640,452 (2,086,573) - 8,554,181 - 06/13 Q2 1,598 (19) 36 Complete Logistic 0.40 0.535 0.68 27.10% 03/2013 102,395,000 12,081,632 4.10 81,382,874 0.061 06/13 Q1 31,794 7,256 37 Paragon Union 0.21 0.185 0.235 27.03% 12/2012 48,346,488 (564,153) - 15,204,101 0.004 06/13 Q2 12,546 283 38 LEN Cheong Holding 0.16 0.13 0.165 26.92% 12/2012 25,465,360 (452,688) - 9,900,001 -0.001 06/13 Q2 6,148 (76) 39 LCTH Corp 0.14 0.135 0.17 25.93% 12/2012 287,437,504 (23,471,978) - 61,200,001 0.038 06/13 Q2 56,909 13,877 40 Pensonic Hldgs 0.49 0.57 0.715 25.44% 05/2012 348,643,000 (10,987,343) 13.00 66,223,297 -0.020 05/13 Q4 99,626 (1,496) 41 UMS-Neiken Grp 0.37 0.44 0.55 25.00% 12/2012 80,799,000 6,405,000 4.63 43,228,790 0.025 06/13 Q2 19,243 1,944 42 SHH Resources Hldgs 0.29 0.32 0.40 25.00% 06/2012 95,233,000 (2,843,734) - 19,999,001 0.020 06/13 Q4 23,305 1,000 43 Transocean Hldgs 0.21 0.24 0.30 25.00% 12/2012 35,492,336 890,212 9.63 12,299,565 0.004 06/13 Q2 7,011 178 44 Abric 0.21 0.225 0.28 24.44% 12/2012 74,611,008 3,071,725 6.60 27,734,699 0.008 06/13 Q2 19,309 836 45 Teck Guan Perdana 0.64 0.73 0.90 23.29% 01/2013 169,464,437 24,568,953 7.22 36,087,212 0.032 07/14 Q2 40,555 1,263 46 Insas 0.44 0.50 0.615 23.00% 06/2012 235,376,000 10,699,000 5.48 408,486,908 -0.011 06/13 Q4 95,519 (7,577) 47 JMR Conglomeration 0.60 0.72 0.88 22.22% 03/2013 44,276,279 5,414,926 14.19 111,570,267 0.026 06/13 Q1 18,755 3,310 48 Kein Hing Intl 0.39 0.37 0.45 21.62% 04/2013 149,568,000 166,110 4.69 44,549,999 -0.002 07/13 Q1 38,580 (190) 49 Global Oriental 0.48 0.72 0.875 21.53% 03/2013 271,460,000 30,495,000 3.75 198,921,036 0.014 06/13 Q1 74,172 3,240 50 CAM Resources 0.22 0.21 0.255 21.43% 12/2012 123,974,320 648,974 25.29 44,458,332 - 06/13 Q4 1,139 (8,894)

Research by FocusM Research Source: Bloomberg, Bursa Malaysia, annual reports 12 FOCUSM focus list OCT 26-NOV 1, 2013

Snapshot of selected penny stocks By Dinesh Immanuel

ALAYSIA Pacific Corporation M(MPC), a property developer and investor, was incorporated in 1972 as Weld Development Sdn Bhd. MPC is now controlled by Datuk Ch’ng Poh who holds a 61.6% stake. His wife Datin Kong Yuk Chu is vice-chairman. OUNDED in 1982, the company manufactures high precision The PN1 company has had a colourful machining components for various sectors from the aerospace financial history. During the Asian financial Fto medical industries. Its chairman Datuk Wong Kem Woh crisis, it suffered from financial problems and controls the company via a 45.8% stake. was placed under PN17. In 2006, controlling Wong Engineering recently received an unusual market activity shareholder Ch’ng took over MPC in an (UMA) query from Bursa when the counter jumped from 25 sen attempt to turn the company around. on Sept 11 to close at 62 sen just nine days later on Sept 20. In Ch’ng was the original architect who response, it said it is in negotiations with a third party on the supply of helped master-mind the Genting Highlands mechanical and industrial products, as a possible explanation to the casino hill resort in the mid-60s and early 70s. jump in stock price. He is reported to be closely linked to tycoon The company’s latest financials however are not as rosy as its Tan Sri Quek Leng Chan. share price performance. For its latest financial quarter ended July MPC saw its share price jump 43.5% from 2013, the company posted a revenue of RM8 mil and a loss of 31 sen on July 1 to close at 44.5 sen on Oct RM601,000. This is in comparison to its 2012 net profit of RM291,691 16. It posted a net profit of RM52.5 mil for its on the back of revenue of RM33.1 mil. Wong Engineering recorded latest financial quarter ending June 30. one of the highest price-earnings multiples on our Focus List with a The company had earlier this month signed PE of 67.19 times. a memorandum of understanding with China state-owned Black Sea Horizon Investment Holdings Ltd to promote Malaysia as Asia’s “economic corridor”. HILE the Earlier this year, as reported by FocusM, company may MPC’s annual general meeting (AGM) saw a Wshare its name heated debate between shareholders and the with India’s INSAS assault board of directors on matters ranging from its rifle, Insas’ core business is Head office of MPC, previously known as Malaysia financial statements, methods of financing, far from weaponry. Pacific Land Bhd and independence of board members. Incorporated in 1961 as Paper Products (Malaya) Ltd, the company changed INSAS BERHAD its name to Insas Bhd in ESPITE posting a net loss of RM23.4 mil for its 1987. Today, the group’s core business ranges from stockbroking 2012 financial year, LCTH Corp saw its share to investment holding, property development and F&B. Insas owns Dprice jump some 26% in the third quarter of stockbroking firm M&A securities Sdn Bhd, 2013 to close at 17 sen on Oct 16. Bucking the trend Insas is controlled by its CEO Datuk Thong Kok Kee who is from 2012, the company made a net profit of RM13.9 linked to three other listed companies – Inari Amertron Bhd, Formis mil on the back of RM56.9 mil in revenue in its latest Resources Bhd and Ho Hup Construction Company Bhd. Thong has quarter ended June 30. a 23.1% stake in Insas. LCTH was incorporated in 2003 and listed on Insas is the largest company on our Focus List by market Bursa the following year. Based in Johor, its main Vice-chairman Ho Nee Kit (pic) is a Singaporean capitalisation. Its share price jumped 23% between July 1 and Oct business activity is precision plastic injection and controls LCTH with a 70.7% stake via Singapore- 16, rising from 50 sen to 61.5 sen. It posted a revenue of RM235.4 moulding. LCTH has expanded and grown to serve incorporated Fu Yu Investment Pte Ltd. LCTH’s parent mil and a net profit of RM12.6 mil in 2012. This compares with a loss up to nine export markets, but the global economic company, Fu Yu Corporation Ltd, is involved in the of RM7.6 mil for the latest quarter ended June 30. Its price-earnings slowdown has put pressure on its export-generated same core business and is listed on the Singapore multiple for the 2012 financial year was 5.48 times. revenue since last year. Exchange.

NITED Bintang is a long-term importer and Uexporter of used and reconditioned heavy equipment and machinery. On Oct 21, it HE company, which is controlled by Datuk Sdn Bhd, which is also announced its diversification into Syed Abu Hussin Hafiz Syed – with a 19.9% involved in operating mini property development. Interestingly, Soon who is the managing director, Tstake – was formerly known as Taiping hydro plants, for RM9.1 on Oct 23, Datuk Ooi Kee Liang disposed of 10 million shares in the Super Bhd. Gunung Capital was principally mil. was appointed chairman of the company on Oct 16, reducing his involved in the trading of latex concentrates The company posted company. Ooi is also chairman stake to just 10%. He previously until 2010. It then diversified into the chartering a net profit of RM12.5 mil of Ideal Sun City Holdings Bhd, a held a 30% stake. and transport business and ceased its latex and for 2012 on revenue of RM79 mil. It repeated its property developer listed on the Ace United Bintang posted a revenue trading business due to the high price of latex strong financial performance in its latest quarter Market and currently under GN3. of RM6.8 mil for its latest financial which squeezed profit margins. ended June 30, showing a net profit of RM4.8 mil. Ooi emerged as a substantial quarter with profit at RM144,000. Gunung Capital is also involved in building The counter closed at 90 sen on Oct 16, up 32.4% shareholder of United Bintang on Its revenue and net profit for 2012 and operating mini hydropower plants via its since July 1. Oct 16 when he acquired a 31.5% are RM18.9 mil and RM588,382, 70%-owned subsidiary, Gunung Hydropower Sdn Gunung Capital is involved in property stake in the company via ICT respectively. The counter closed Bhd. Gunung Capital was recently in the news development via its wholly-owned subsidiary, Innotech Sdn Bhd, making him the at 75.5 sen on Oct 16, rising 165% when it picked up a 85% stake in Pusaka Hijau Gunung Land Sdn Bhd. single largest shareholder. Tan Kim since July 1.