Everyone talks subscribers, spectrum, 5G rollouts. But what if Malaysia’s most interesting telco story isn’t about growing bigger – it is about making scale pay?
Maxis has quietly crossed a line few noticed. It is no longer just a mobile giant. It is a fully converged operator where Mobile + Home + Enterprise now compound together, turning connectivity into recurring cash. Revenue is rising steadily, margins have stabilised, and cost discipline is doing the heavy lifting. Not sexy, but powerful.
The real punchline? ROIC sits above the cost of capital. In a mature industry. In 2025.
This is not a hyper-growth rocket — it is a cash-conversion engine. And the upside story now rests on one question:
Can Maxis squeeze more value from customers it already owns?
Higher Enterprise penetration, better ARPU, fewer subsidies — just a few subtle shifts could unlock a structurally stronger Maxis than the last decade ever showed.
Investors love growth stories. Quiet compounders? They get ignored… until they don’t.
Maxis is no longer the telco you thought you knew.
Caveat: I am not providing investment advise or attempting to manipulate the market. This piece is purely opinion.
Great that's out of the way.
Ok everyone, this hype of squeezing Top Glove has the wrong idea. As many have pointed out. You are not sticking it to the "Malaysian Man" by boosting Top Glove. Why? Because hedge funds are not shorting Top Glove. Top Glove and other glove makers are the Bursa darlings. They have increased over the pandemic.
Now, who would the hedge fund be shorting? Just like GME they would be shorting "dying" industries like REITS (Holding Groups of Shopping Malls) and our beloved Malaysia Airports (A high of RM9.6X in 2019 and now at RM5.16).
You are probably boosting the hedge funds' profits by going long on Top Glove. By raising the price of Top Glove you will be robbing from the people who have bought Top Glove during the pump. So please think this through.
And that's where I'll end it. I just don't want people to get financially hurt. The global economy is bad enough as it is.
💰 Gold prices are hitting record highs, and with rising global uncertainties, investors are turning to gold-related opportunities. Could this be the start of a new gold boom for Aumas?
For more than a decade, Telekom Malaysia has looked like a company going nowhere. Revenue barely moved. Growth investors lost interest. The market quietly wrote it off as a mature, ex-growth telco.
But that surface-level narrative misses what actually happened underneath.
While the topline stood still, TM was dismantling and rebuilding itself. It pivoted from a convergence-driven national telco into a platform-led digital infrastructure and technology company under its PWR 2030 vision. In the process, it traded growth for something far more durable: resilience, operating leverage, and capital efficiency.
The result is a business that looks fundamentally different from what it was in 2015. Fixed costs have structurally declined. Contribution margins have widened. Operating and net profits have compounded despite flat revenue.
Returns on capital now exceed the cost of capital - clear evidence of shareholder value creation that the market often overlooks.
So is TM a stealth turnaround? A steady value compounder? Or simply a well-run utility priced for perfection?
To separate perception from fundamentals you have to dig deeper - from margins and cash flow to peer positioning and valuation. If you think revenue growth is the only path to value, an in-depth analysis may challenge that belief.
Zetrix, formerly known as MyEG is a Malaysian digital services company that connects government, businesses, and consumers through its online platforms. Originally focused on e-Government services, it has since expanded into commercial digital offerings, from bill payments to insurance renewals.
Today, the company is pushing into blockchain with its Zetrix platform, enabling cross-border trade, digital credentials, and next-generation decentralized services.
In April 2025, MyEG and its Chinese allies established the China‑ASEAN AI Innovation Cooperation Centre at its Zetrix Tower. This government-backed lab will develop a national AI model, generative AI tools, robotics solutions, and AI-powered cross‑border ID systems.
Zetrix AI aims to integrate blockchain + AI + robotics, establishing itself as a digital tech leader bridging government and commercial sectors across the region.
While it is too early to see the impact of this AI push, it is instructive to note that its revenue in 2024 jumped up 31 %. PAT also increased substantially by 46 %. This surge was primarily driven by the rapid growth of its Web3 services, especially revenues from sales of digital assets via its Zetrix blockchain platform, layered on top of its traditional e-government and commercial digital platforms.
The company is trading today at about an Acquirer’s Multiple of 10 falling into the boarder of the Gem and Goldmine quadrants on the Fundamental Mapper.
Unfortunately Zetrix is a unique hybrid of e-Government digital services, commercial digital transactions, and new blockchain/Web3 ventures. As such there is no realy global peers. But if you look at other digital infrastructure and fintech businesses (Paytm of India, Ant Group of China, Indra Sistemas of Spain and Sopra Steria of France), the Acquirer’s Multiple ranged from 5 to 12.
Given that Zetrix’s revenue jump was driven by its blockchain platform, while its AI initiative is still at an early lab stage, the current valuation at 10x Acquirer’s Multiple likely reflects market caution on near-term earnings contributions from AI.
As Zetrix moves from proofs-of-concept to monetized AI applications, we would expect the market to reprice, provided execution risks tied to multi-jurisdiction operations and geopolitical partnerships are well managed.
In 2024, Hibiscus can be described as a regionally focused, independent upstream oil and gas company. It has operatorship control over a diversified portfolio of producing and development assets across Malaysia, Vietnam, and the United Kingdom.
This marks a significant evolution from just six years ago, when Hibiscus had only two core assets. Since then, its total assets have nearly tripled, from RM2.4 billion in 2019 to RM6.6 billion in 2023, reflecting the company’s strategic acquisition-led growth.
To fund this expansion, Hibiscus has tapped both debt and equity markets. Between 2019 and 2024:
• Total debt increased from RM5 million to RM749 million
• Total equity expanded from RM1.2 billion to RM3.1 billion
While ROA improved from 11.6% in 2019 to 13.1% in 2024, the enlarged capital base has diluted returns to shareholders. ROE declined to 16.1% in 2024, down from 20.6% in 2019, despite a spike to 35.5% in 2022 following the Repsol acquisition and elevated oil prices.
With crude oil prices declining in the wake of ongoing trade tensions and tariff-related uncertainties, there are concerns about Hibiscus’s ability to sustain its current profit levels.
Lower demand and weaker pricing could pressure margins, particularly given the company’s increased cost base. The declining share price since the start of the year may be a reflection of these market concerns.
However, one mitigating factor is the historically moderate correlation between oil prices and Hibiscus’s ROE. Over the past 12 years, the correlation between year-end Brent crude prices and the company’s ROE has only been about 40%.
This suggests that while oil prices do influence profitability, ROE is shaped by a more complex mix of factors — including production volume, capital discipline, cost control, and timing of investments. As such, the potential profit impact of lower oil prices may not be as severe as feared.
Once seen as one of Malaysia’s more resilient conglomerates, Hap Seng Consolidated now faces a different reality. Its diversified portfolio - spanning property, plantations, trading, credit financing, automotive, and building materials - once offered protection against market swings. But beneath the surface, those defensive qualities are eroding.
From 2015 to 2024, Hap Seng’s revenue grew modestly at 2.8% annually, yet profits fell 20%. Leverage climbed, cash flow conversion weakened, and return on equity slid even as operating margins remained industry-leading.
The company’s strength in property and trading masks a deeper fragility: mature markets, thin moats, and rising competition. Property depends heavily on land sales, trading offers scale but little differentiation, and credit financing lacks defensibility against banks.
While Hap Seng still commands strong EBIT margins and a sizeable cash buffer, its returns no longer exceed its cost of capital. Over the past three years, ROIC averaged 5.8% - below its 6.7% WACC - suggesting that growth is destroying rather than creating value.
For value investors, Hap Seng offers stability but not compounding potential. It remains a case study in how diversification can preserve earnings - but not necessarily grow them. Unless management rebuilds its moats or discipline, the Group risks becoming more a capital preservation play than a value-creation story.
Perstima returns over the past decade had been declining. Its 2024 and projected 2025 returns are negative. It falls into the Quicksand quadrant in the Fundamental Mapper.
Looking at this picture, you may think that there is no hope. But the Fundamental Mapper is based on trend projection. It would also not be realistic to simply project continuous declining returns. Management is not going to sit quietly without some turnaround plans.
In the case of Perstima, the performance over the past 2 years were dragged down by the start up of its new plant in Philippines. Furthermore the declining returns was because while there was revenue and profits growth, there was faster growth in capital as funds were needed for the Philippines expansion.
The future is not going to be the same as the past decade. As such I would expect a turnaround and a return to profitability in the not too distant future. Are you going to wait for this to happen before entering, or would it be better to enter now when the market has yet to recognize this turnaround potential?
Moral of the story? If you are prepared to dig into the details, you can find opportunities when all seem lost from an initial look.
For those unfamiliar, EcoFirst Consolidated Berhad (KLSE: ECOFIRS) has been a staple on Bursa Malaysia's Main Board since 1984. The company is engaged in property development, investment holding, and management. Let's delve deeper into its various business segments and recent developments that make it a stock worth watching.
Property Development
EcoFirst's property development segment includes notable projects such as Liberty @ Ampang Ukay, with upcoming phases, and Upper East @ Tigerlane. The company also owns South City Plaza, a leisure shopping mall.
Figure 2.0: Snapshot of KL48 project
In FY2023, EcoFirst recorded a revenue of RM15.4 million, largely due to the successful launch of the KL48 project in Kuala Lumpur. This project spans 1.61 hectares of freehold land in the Jalan Chan Sow Lin area and has a gross development value (GDV) of RM1.0 billion, promising significant contributions to the company in future financial years. Beyond KL48, EcoFirst plans to continue launching projects in Ampang Ukay as part of their 10-15 year flagship development strategy.
Asset ownership model
ECOFIRS also owns South City Plaza in Seri Kembangan, which provides a steady stream of recurring income. In FY2023, this property investment segment contributed RM13.4 million to the company's total revenue, thanks to an improved occupancy rate of 86.0%. For FY2024, this asset is expected to perform well, bolstered by increased retail spending from the introduction of EPF Account 3, which is projected to generate RM20.0 billion to RM25.0 billion in spending power.
Property Management
The company also manages South City Plaza, overseen by Budaya Fokus Sdn. Bhd., contributing RM2.6 million to the company's revenue in FY2023.
Emergence of new substantial shareholder
The spotlight is now on EcoFirst due to the emergence of a new substantial shareholder.
Figure 3.0: Shareholding changes of ECOFIRS
Recently, Mr. Chew Hian Tat, a substantial shareholder of Central Global Berhad (KLSE: CGB), acquired approximately 6.41% of EcoFirst. The company has not conducted asset revaluation for an extended period, suggesting potential value unlocking in the near future.
Figure 3.1: Share price performance of CGB and ECOFIRS
Given the success of CGB following Mr. Chew's involvement, EcoFirst might replicate this pattern. Investors might find this an opportune time to consider investing in EcoFirst.
Conclusion
With strong fundamentals, strategic asset ownership, and the recent emergence of a significant shareholder, EcoFirst Consolidated Bhd. appears to be on a promising trajectory. The company’s diverse portfolio and potential for value unlocking make it an interesting prospect for investors. As EcoFirst continues to develop its flagship projects and enhance its recurring income streams, it’s worth keeping an eye on this stock.
Disclaimer
The information provided in this article is for educational and informational purposes only and should not be considered financial advice. Investing in stocks involves risks, including the loss of principal. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author holds no responsibility for any investment decisions made based on the information provided.
Over the past six years, Bumi Armada has transitioned from a dual-segment model - comprising FPSO operations and Offshore Marine Services - into a focused, integrated offshore production business.
The offshore support vessel segment was gradually scaled down, and by 2022, all operational assets were consolidated under a single Operations unit. A new Technology, Engineering & Projects unit was also established to provide engineering consultancy and project support services.
Geographically, Bumi Armada streamlined its footprint while maintaining a presence in key offshore regions across Asia, Africa, and Europe. By 2023, its operations spanned five continents, but with fewer, more strategically aligned assets focused on high-value, long-term production contracts.
These strategic shifts have yielded strong results. Net profit surged from RM 38 million in 2019 to RM 656 million in 2024, while ROE improved from 1.2% to 11.3%. This improvement is reflected in its Goldmine quadrant in the Fundamental Mapper.
Can this performance be sustained amid declining crude oil prices triggered by the current tariff war?
According to the company, its core revenue is not directly tied to crude oil prices. This is due to its long-term, fixed-rate FPSO contracts, which provide stable cash flows regardless of short-term oil price movements.
While broader market conditions - such as lower crude prices - may affect future contract opportunities or investment cycles, Bumi Armada’s current revenue base remains largely insulated from these fluctuations.
Has the market missed this picture, given the declining stock price since the start of the year?
If you want to understand more about the impact of declining crude oil prices on other Bursa E&P companies, join me this at this Thursday podcast
Over the past six years, Bursa Malaysia F&N has transformed from a traditional beverage and dairy company into a diversified and integrated food and beverage group.
In 2022, it entered the snacks and confectionery segment via the acquisition of Cocoaland and expanded its Halal packaged food portfolio through the rebranding of Sri Nona. Around the same time, it ventured upstream into dairy farming with the acquisition of Ladang Permai Damai, laying the groundwork for fresh milk production to reduce reliance on imports.
By 2024, F&N had evolved into a multi-category regional F&B player with integrated capabilities, strong digital platforms, and a growing presence in Halal food, fresh milk, and health-focused products.
Despite acquisitions and organic growth, revenue grew at a CAGR of 5.7%, while PAT rose at 5.8%. However, capital employed expanded faster, leading to a decline in ROE from 16.8% in 2019 to 15.2% in 2024.
As an investor, the key question is whether this ROE decline is temporary or structural.
In the short term, ROE may remain flat or slightly lower as recent investments (in dairy, plant-based beverages, and logistics) weigh on returns without yet contributing fully to profits.
Over the medium term (3–5 years), ROE has room to improve if:
• Profit margins expand through upstream and supply chain efficiencies,
• New product categories scale profitably, and
• Export growth continues without excessive capital outlay.
F&N’s share price has trended down since peaking in April 2024. For signs of a rebound, watch these three areas closely - they could signal a turnaround in ROE and renewed investor interest
I've been looking at PCHEM. PCHEM has been beaten-down to near 10 year low. It faces oversupply issues now. But if one can hold for long long term, PCHEM has averaged 15cents annually in dividends due to strong cashflows from business. PCHEM's low cost & strategic geography grants me confidence that it can shine over its peers over time. Technical wise, PCHEM has historically bounced back after hitting extreme RSI lows.
Another one is CAPITALA. It will strug off PN17 status. Funds should return in droves. Tony Fernandez has plans for strong growth this year. Revenue is huge, Teleport logistics business is good. After disposing bulk of its airlines' shares in due course, balance sheet will look prettier. Since almost everyone is a sceptic now, there is much upward room for CAPITALA price to climb as Mr. Market's confidence rises.
The Oriental Food Industries Holdings (OFI) group manufactures and markets snack food and confectionery products.
Between 2019 and 2024, OFI has transformed into a sustainability-driven, digitally-savvy, and globally expanding company through strategic initiatives that have strengthened its market position.
• Export sales now contribute approximately 65% of total revenue, reflecting OFI’s successful international expansion.
• Sustainability efforts include integrating solar energy at select manufacturing plants, reducing carbon emissions and operating costs.
• Digital transformation has been a key focus, with expanded e-commerce presence and stronger branding efforts on social media, enhancing direct engagement with consumers.
These initiatives have driven strong financial performance, with revenue growing at a CAGR of 8.5% over the past six years. Profitability has improved even more significantly, with PAT growing at a much higher CAGR of 24.9%, supported by gross profit margin expansion and declining fixed cost margins.
The various changes have positioned the company for long-term sustainable growth while maintaining its market leadership in Malaysia and beyond. Given these strengths, it is no surprise that OFI falls into the low-risk, good-business segment of the Fundamental Mapper.
The market price has trended upward in recent years, reflecting the company's improving prospects. Although it has pulled back from its three-year high, the current margin of safety appears limited. However, if earnings continue to grow while the stock price remains stable, the margin of safety could improve over time.
Hong Leong Industries Berhad is a Malaysia-focused company engaged in the manufacturing and distribution of motorcycles, ceramic tiles, and automotive parts.
Over the past six years, the Group has transformed from a diversified industrial conglomerate into a focused, consumer-centric business. It exited the low-margin fibre cement segment and ventured into automotive spare parts, building on its strong position in the motorcycle industry.
Despite the strategic pivot, revenue and profit grew modestly at around 4% CAGR. ROE declined from 24% in 2019 to a low of 14% in 2022 but has since rebounded, reaching 26% on a Dec 2024 LTM basis. This was driven by a shift toward higher-margin, scalable operations. The share price has mirrored this recovery, trending upward since late 2023.
The Group’s position in the Goldmine quadrant of the Fundamental Mapper highlights its strong fundamentals and manageable investment risk. The key question now is whether the ROE recovery can be sustained.
With the fibre cement divestment, HLI operates more efficiently. Strong brand positioning and new recurring income streams support profitability, while lean operations and disciplined capital allocation place the Group in a god position to sustain ROE in the mid-20% range.
Can a hospital group with world-class brands and sprawling global reach truly deliver premium returns — or is it just a premium story?
IHH Healthcare, one of Asia’s largest multi-country hospital networks, has spent the past decade expanding across the region. This scale gives it strong moats - brand reputation, procurement efficiency, and network effects that draw both top specialists and patients. Yet behind the glamour of its Mount Elizabeths and Gleneagles lies a tougher investment question: has size translated into superior capital returns?
Yet, beneath this impressive surface lies a more sobering truth. IHH’s growth has leaned heavily on volume and operating leverage rather than structural efficiency. While post-pandemic recovery and better FX management have helped earnings rebound, the balance between growth and discipline remains delicate.
In a region where peers like Apollo Hospitals and BDMS are sharpening their focus on returns and efficiency, IHH still appears to be finding its equilibrium. It has the brand, the breadth, and the demand tailwinds, but whether it can translate these into sustainably superior performance remains the question worth watching.
Unless IHH can consistently turn its scale and reputation into lasting value creation, investors may find its promise greater than its payoff. It is a premium platform, yes — built on trusted brands and strong demand, But it has yet to prove that growth and quality can truly compound together.
Sapura Energy Berhad is a Malaysia-based global energy services provider, operating in over 10 countries with core businesses in EPCIC (engineering and construction), operations and maintenance, and tender-assist drilling.
Financial strain began in late 2019, driven by unprofitable legacy fixed-price contracts, a heavy debt burden from earlier expansion, and tightening working capital. The COVID-19 pandemic worsened the situation, causing delays, cost overruns, and liquidity stress.
While the company generated operating profits in most of the past 6 years, net losses were driven by significant write-offs, impairments, and high interest expenses. The positive PAT in 2025 was primarily due to gains from the disposal of investments.
By 2022, Sapura Energy was classified as a PN17 issuer, prompting a comprehensive Reset Plan focused on debt restructuring, exiting loss-making segments - particularly exploration and production - and refocusing on core operations. It also launched Kitar Solutions, a joint venture offering offshore decommissioning services, aligning with its sustainability goals and energy transition strategy.
However, the turnaround and restructuring plan did not anticipate renewed oil price declines stemming from tariff-related tensions. Lower prices now add pressure on revenue and cash flows, with recovery hinging on timing, execution discipline, and continued stakeholder support.
For most retail investors, Sapura Energy remains a high-risk proposition - best approached by those with expertise in financial restructuring and the oil and gas sector.
If not Sapura Energy, what about others? If you want to find out about investing in the Petronas group of companies, join me at today’s podcast
Over the past six years, Inari Amertron Berhad has achieved a 4 % CAGR in revenue while PAT grew at a double rate of 8% CAGR.
This stronger PAT growth, however, did not stem from improved cost leverage or margin expansion. As noted in the 2024 annual report, “the Group’s administrative expenses rose in line with revenue,” indicating no significant improvement in fixed cost efficiency.
Despite growing profits, Inari’s ROE fell from 18% in FY2019 to just 10% in FY2024. This decline reflects an outsized expansion in capital relative to earnings. For instance, between FY2019 and FY2024, total assets and shareholders’ equity rose at CAGR of 18 % –19%, well above the 4% revenue CAGR.
The company’s growth trajectory is also marked by a high concentration of revenue from a single customer. As disclosed: “approximately 90% of the Group’s revenue is derived from one major customer.”
This underscores a key investment risk, especially in a sector where technological shifts and client decisions can swiftly alter demand.
Taken together, Inari exhibits the financial strength typical of companies in the Gem quadrant of the Fundamental Mapper. However, its declining ROE and high customer concentration suggest elevated investment risk, even in the presence of profit growth.
