Latest news with #FGVHoldingsBhd
The Star
4 hours ago
- Business
- The Star
Trading ideas: FGV, Paramount ,Zetrix, United Malacaa, Jati Tinggit, Focus Point, Camaroe, Bursa, IGBREIT, Chin Teck, Dufu, DXN, Tasco
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Trading in FGV Holdings Bhd will be suspended on August 15 as the Federal Land Development Authority surpasses the 90% shareholding threshold to privatise the company. Paramount Corp Bhd plans to acquire a 28% stake in the Singapore Exchange-listed Envictus International Holdings Ltd — operator of Texas Chicken and San Francisco Coffee — for SGD38.3mn. Zetrix AI Bhd has confirmed its exit from foreign worker permit renewal services following the expiry of its contract announced in July 2023. United Malacca Bhd is acquiring the remaining 17% effective interest in its Indonesian plantation subsidiary, PT Lifere Agro Kapuas, for USD10mn to streamline regional operations. Jati Tinggi Group Bhd has secured a RM31.6mn subcontract from Pintar Gembira Sdn Bhd for 11kV underground cable works in Selangor and the South Zone. Focus Point Holdings Bhd expects a RM300,000 monthly rental cost increases due to the expanded sales and service tax covering rental. Yoong Onn Corp Bhd has incurred an estimated loss of RM30mn because of the fire that broke out at the Singapore factory and warehouse of its 60%-owned subsidiary, T.C. Homeplus Pte Ltd. Camaroe Bhd, a vertically integrated aquaculture company specialising in farming and processing black tiger prawns, has signed an underwriting agreement with M&A Securities for its upcoming IPO on the ACE Market of Bursa Malaysia. Bursa Malaysia Bhd reported a 29.07% YoY drop in 2QFY25 net profit to RM57.1mn, driven by a 22% decline in securities market revenue. IGB Real Estate Investment Trust reported a 9.5% YoY increase in net property income to RM119.9mn for 2QFY25, supported by higher rental income and a 6.8% rise in revenue to RM160.1mn. Chin Teck Plantations Bhd posted a record net profit of RM34.7mn for 3QFY25, marking a 52.8% YoY increase, driven by higher sales volumes and improved palm product prices. Dufu Technology Corp Bhd 's 2QFY25 net profit plunged 66.8% YoY to RM2.8mn, hit by RM4.6mn in forex losses and rising costs. DXN Holdings Bhd reported a 13.6% drop in 1QFY26 net profit to RM73.9mn, citing foreign exchange losses from a stronger ringgit. Tasco Bhd 's 1QFY26 net profit rose 30.7% YoY to RM9.2mn, driven by stronger contributions from its international business solutions segment.
New Straits Times
10-07-2025
- Business
- New Straits Times
The Sunk Cost Fallacy in Stock Investing
THE closing date for acceptance of the voluntary takeover offer by FGV Holdings Bhd majority shareholders for the shares that are not already owned by the offeror has been extended to Aug 15 from July 7. Under the takeover offer launched on May 26, Felda is offering RM1.30 for each FGV share. FGV conducted one of Malaysia's biggest IPOs and it debuted in 2012 at RM4.55 per share and raised RM10.5 billion. The share price of FGV has declined over the years. It would indeed be hard to stomach the prospect of accepting an offer of RM 1.30 if investors had invested at higher prices or the IPO price RM 4.55. When it comes to making sound investment decisions, one of the most common cognitive pitfalls investors fall into is anchoring their expectations to the original purchase price of a stock. This behaviour is rooted in human psychology but runs counter to rational financial decision-making. In reality, the price you paid for a stock is irrelevant in deciding whether to hold, sell, or buy more. Instead, decisions should be based on future prospects, opportunity costs, and market fundamentals. The Sunk Cost Fallacy The core reason why the purchase price is irrelevant lies in a concept known as the sunk cost fallacy. A sunk cost is any cost that has already been incurred and cannot be recovered. The price you paid for a stock is a sunk cost - whether you paid RM 10 or RM 20 per share, that money is gone. What matters now is what the stock is worth today and what it is likely to be worth in the future. Suppose you bought shares of a company at RM10, and the price has since fallen to RM 6. Many investors would be reluctant to sell at a loss, thinking, "I'll wait until it gets back to RM10 so I can break even." But this thinking is flawed. The fact that you paid RM10 has no bearing on what the stock will do next. If the company's prospects have deteriorated and the fair value is now RM 5, waiting to "break even" could result in even greater losses. Rational Decision-Making: Forward-Looking Analysis Investment decisions should be made with a forward-looking perspective. The central question is: Given what I know today, what is the best use of my capital going forward? Imagine you're holding a stock currently worth RM6. Whether you bought it at RM10 or RM20 is irrelevant. The rational approach is to assess whether this RM6 investment has better return prospects than any other available alternative. If another opportunity offers a higher expected return with similar or lower risk, the logical move is to sell the current stock and reallocate your capital. The goal of investing is to maximize returns, not to recover past losses. Opportunity Cost and Capital Allocation Every ringgit you keep in a stock has an opportunity cost - it could be used to invest elsewhere. If you ignore this because you're fixated on your original purchase price, you may miss better opportunities. For example, holding onto a poorly performing stock because you don't want to "lock in a loss" could prevent you from investing in a high-growth company with superior prospects. Professional investors constantly re-evaluate their portfolios to ensure that every asset earns its place based on future return expectations. Past purchase price never enters the equation. Behavioural Biases and Emotional Investing The inclination to consider the purchase price is a form of anchoring bias, where investors fixate on a reference point (in this case, the buy price) regardless of its relevance. Emotional attachment can also cloud judgment. After all, if you spent hours researching and bought a stock with conviction, admitting it was a mistake can be psychologically difficult. However, good investors are humble and adaptive. Recognising when your thesis was wrong, or when conditions have changed, is a sign of disciplined investing - not failure. Conclusion In investment decision-making, your focus must remain on the present value and future potential of each asset - not its historical cost. The price you paid for a stock is a sunk cost, irrelevant to whether you should buy, hold, or sell. By letting go of anchoring and other behavioural biases, and instead focusing on opportunity costs and forward-looking analysis, you can make more rational, profitable decisions. Remember: the market doesn't care what you paid for a stock, and neither should you.
The Star
02-07-2025
- Business
- The Star
FGV Holdings secures nod for subsidiary buyout
The company said the strategic exercise aims to consolidate FGV's corporate structure. KUALA LUMPUR: FGV Holdings Bhd has secured shareholders' approval to acquire the remaining equity interests in eight subsidiaries from Koperasi Permodalan Felda Malaysia Bhd (KPF) for RM229.8mil to consolidate its corporate structure. The approval was granted during the company's EGM on June 26, following its 17th AGM on the same day. In a statement yesterday, FGV said FGV Palm Industries Sdn Bhd, a 72%-owned indirect subsidiary, will acquire the remaining stakes in three subsidiaries from KPF for RM54.7mil, while Felda Holdings Bhd, a wholly-owned subsidiary, will acquire the remaining interests in five subsidiaries for RM175.1mil. 'This strategic exercise aims to consolidate FGV's corporate structure, enhance decision-making agility, and ensure tighter alignment with the group's strategic priorities. 'With full ownership, FGV will be better equipped to drive performance and accelerate execution across its core businesses,' it said. Meanwhile, FGV said it posted a 14% increase in revenue to RM22.16bil for the financial year ended Dec 31 (FY24), with net profit at RM276mil, supported by operational efficiencies and improved margins. FGV chairman Tan Sri Rastam Mohd Isa said last year was a period of solid operational progress for the group. 'Despite global economic headwinds, geopolitical uncertainty, and environmental challenges, FGV remained resilient and agile, emerging stronger and more focused, turning challenges into opportunities,' he said. Looking ahead, FGV group chief executive officer Fakhrunniam Othman said the group remains cautious as it navigates an unpredictable global marked by trade tensions and market volatility. 'We are sharpening our focus on operational excellence, stakeholder partnerships, high-value products and advanced technologies to ensure FGV remains resilient and future-ready,' Fakhrunniam said. — Bernama
The Star
02-07-2025
- Business
- The Star
FGV secures shareholder nod for RM229.8mil subsidiary buyout
FGV Holdings Bhd chairman Tan Sri Rastam Mohd Isa (fifth from left) holding FGV's Annual Integrated Report 2024 alongside the Board of Directors at its AGM. KUALA LUMPUR: FGV Holdings Bhd has secured shareholders' approval to acquire the remaining equity interests in eight subsidiaries from Koperasi Permodalan FELDA Malaysia Bhd (KPF) for RM229.8 million to consolidate its corporate structure. The approval was granted during the company's extraordinary general meeting on June 26, following its 17th annual general meeting on the same day. In a statement today, FGV said FGV Palm Industries Sdn Bhd, a 72 per cent-owned indirect subsidiary, will acquire the remaining stakes in three subsidiaries from KPF for RM54.7 million, while FELDA Holdings Bhd, a wholly-owned subsidiary, will acquire the remaining interests in five subsidiaries for RM175.1 million. "This strategic exercise aims to consolidate FGV's corporate structure, enhance decision-making agility, and ensure tighter alignment with the group's strategic priorities. "With full ownership, FGV will be better equipped to drive performance and accelerate execution across its core businesses," it said. Meanwhile, FGV said it posted a 14 per cent increase in revenue to RM22.16 billion for the financial year ended Dec 31, 2024 (FY2024), with profit after tax and minority interest (PATAMI) at RM276 million, supported by operational efficiencies and improved margins. FGV chairman Tan Sri Rastam Mohd Isa said 2024 was a year of solid operational progress for the group. "Despite global economic headwinds, geopolitical uncertainties, and environmental challenges, FGV remained resilient and agile, emerging stronger and more focused, turning challenges into opportunities," he said. Looking ahead, FGV group chief executive officer Fakhrunniam Othman said the group remains cautious as it navigates an unpredictable global landscape marked by trade tensions and market volatility. "We are sharpening our focus on operational excellence, stakeholder partnerships, high-value products and advanced technologies to ensure FGV remains resilient and future-ready," he said. - Bernama
New Straits Times
01-07-2025
- Business
- New Straits Times
Ahmad Shabery's contract as Felda chairman expires yesterday
KUALA LUMPUR: Datuk Seri Ahmad Shabery Cheek's contract as Federal Land Development Authority (Felda) Chairman expired yesterday (June 30). Felda, in a statement today, announced that Ahmad Shabery's last task as chairman was presiding over the Felda Supreme Management Meeting held yesterday. "During his two years at the helm of Felda, he has played a major role in strengthening the ecosystem between Felda and its subsidiaries, especially in expediting the delisting of FGV Holdings Bhd, thus restoring the confidence of strategic partners and enhancing Felda's image and prestige. "His approach is translated through the idea of 'Everything Felda', which is now the core of unifying the organisation and the community," read the statement. The Felda management and employees expressed their appreciation for Ahmad Shabery's services, dedication and leadership throughout his tenure as Felda chairman. Ahmad Shabery was appointed as Felda chairman on July 1, 2023. – Bernama
