Kuala Lumpur News

Kuala Lumpur’s bustling business scene has witnessed significant developments this week, with major announcements from leading corporations Magma Group Berhad and Bintai Kinden Corporation Berhad. Magma Group reported a remarkable turnaround in their Q1 FY2024 financial results, highlighting robust growth in their hotel operations segment.
Meanwhile, Bintai Kinden celebrated their second consecutive profitable quarter despite a decline in revenue, attributing their success to strategic cost management and new project acquisitions.
These updates underscore a dynamic period of financial resilience and strategic advancements for key players in Kuala Lumpur’s corporate landscape.
For more details, read more below.

Tex Cycle Profits Surge

Tex Cycle Technology (M) Berhad (“Tex Cycle” or the “Group”) reports a robust first quarter, with profits before taxation (“PBT”) soaring to RM 7.4 million, a 178 per cent increase from RM 2.7 million in Q1 FY2023.
This significant growth is driven by enhanced operational efficiencies and strategic asset disposals.
Despite a slight revenue decrease to RM8.0 million from RM9.1 million in Q1 FY2023 due to lower demand in recovery, recycling, and trading divisions, the renewable energy division’s revenue increased by RM0.3 million. This boost is attributed to new solar Feed-in-Tariff (“FiT”) and Corporate Renewable Energy Power Purchase Agreement (“CREPPA”) projects.
Gary Dass Anthony Francis, Group CEO, remarked, “Our positive performance this quarter reflects our dedication to environmental sustainability and operational excellence. The strategic adjustments and innovations we have implemented are not only enhancing our financial performance but are also solidifying our leadership in the waste management sector.”
Recently, Tex Cycle launched Sabah’s first integrated scheduled waste management facility in partnership with Evolusi Bersatu, furthering their commitment to sustainability and local community engagement. Tex Cycle is poised to support Malaysia’s sustainability goals, anticipating continued growth and excellence in future quarters.

Leon Fuat Profits Rise

Leon Fuat Berhad (“Leon Fuat” or the “Group”), a manufacturer and trader of steel products specializing in rolled long and flat steel, announced its financial performance for the first quarter ended 31 March 2024 (“Q1FY2024”), demonstrating a keen focus on maintaining profitability despite a slight decline in revenue compared to the corresponding quarter of the preceding financial year (“Q1FY2023”).
For Q1FY2024, Leon Fuat recorded a revenue of RM225.26 million, representing a decrease of 3.6 per cent from RM233.70 million in Q1FY2023. This decrease was primarily due to reduced revenue from both the trading and processing segments of steel products, which saw declines of 4.1 per cent and 3.6 per cent respectively.
Despite the revenue dip, Leon Fuat’s gross profit stood at RM27.52 million, a slight decrease of 3.6 per cent from RM28.54 million in the corresponding quarter last year. The gross profit margin remained stable at 12.2 per cent for the current quarter, contributing to a profit before tax (“PBT”) of RM10.85 million for Q1FY2024, compared to RM12.87 million in Q1FY2023.
Compared with the immediate preceding quarter (“Q4FY2023”), Leon Fuat’s revenue in Q1FY2024 decreased by 6.4 per cent from RM240.57 million. However, the Group’s gross profit improved by 18.3 per cent to RM27.52 million from RM23.26 million in Q4FY2023, driven by a higher overall gross profit margin of 12.2 per cent, up from 10.7 per cent. The absence of inventories written down of RM2.43 million, which was recorded in Q4FY2023, also contributed to this improvement. This period saw a significant rise in PBT by 59.2 per cent to RM10.85 million from RM6.81 million in Q4FY2023, highlighting the Group’s effective strategies in enhancing profitability.
Calvin Ooi Shang How, Executive Director of Leon Fuat, commented, “Our financial results for Q1FY2024 reflect Leon Fuat’s strategic adaptability and operational resilience in a challenging market environment. The consistent profit margins and improved gross profit compared with the immediate preceding quarter underscore our commitment to efficiency and financial discipline. As we continue to navigate the market dynamics, our focus remains on enhancing shareholder value and expanding our market footprint through strategic initiatives and capabilities. We are optimistic about our long-term prospects and remain dedicated to sustainable and strategic business practices.”
As of 28 May 2024, the share price of Leon Fuat stands at RM0.58, representing a market capitalization of RM197.8 million.

Synergy House Profits Surge

Synergy House Berhad (“Synergy House” or the “Group”), a cross-border e-commerce seller and furniture exporter of ready-to-assemble (“RTA”) home furniture, announced its financial results for the first quarter ended 31 March 2024 (“Q1 FY2024”), showing impressive growth. The Group achieved a revenue of RM83.7 million, marking a significant 62.22 per cent increase compared to RM51.6 million in Q1 FY2023.
In Q1 FY2024, Synergy House reported a profit before tax (“PBT”) of RM12.3 million, a substantial 245.25 per cent increase from RM3.6 million in Q1 FY2023. This performance is attributed to successful marketing efforts in existing markets and expansion into new business platforms.
The Group’s revenue growth was driven by strong sales in both its business-to-business (“B2B”) and business-to-consumer (“B2C”) segments. The B2B segment recorded revenue of RM40.0 million, a 46.10 per cent increase from RM27.4 million in Q1 FY2023, mainly due to strong sales from a major retailer in the United Kingdom (“UK”) market. Meanwhile, the B2C segment posted revenue of RM43.7 million, an 80.47 per cent increase from RM24.2 million in Q1 FY2023, driven by strong sales mainly from e-commerce platforms in the United States of America (“USA”) and the UK.
Geographically, the United States continues to be the Group’s largest market, contributing RM41.9 million or 50.11 per cent of the total revenue for Q1 FY2024. This is followed by the United Kingdom, which accounted for RM29.1 million or 34.80 per cent, and the United Arab Emirates with RM8.9 million or 10.58 per cent. The Group also saw contributions from Malaysia and other regions, indicating a well-diversified revenue base.
Comparing Q1 FY2024 to the immediate preceding quarter Q4 FY2023, Synergy House reported a slight decline in revenue, amounting to RM83.7 million compared to RM90.8 million, marking a decrease of approximately 7.82 per cent. This dip was primarily due to reduced revenue contribution from both the B2C and B2B segments in the USA. Despite the typical first-quarter slowdown post-year-end promotions, the company’s B2C revenue remained robust and considerably strong, declining only marginally by 2.01 per cent as compared to the traditional peak towards year end, affirming the strength of Synergy House’s consumer engagement and market strategies. The company’s profit before tax also reflected this trend, decreasing by 13.38 per cent to RM12.3 million due to the lower sales volumes, but was partially offset by net foreign exchange gains of approximately RM1.6 million.
Executive Director of Synergy House, Tan Eu Tah, commented, “We are very proud of our financial achievements in Q1 FY2024. The significant revenue growth and profit margins compared to Q1 FY2023 highlight our strong market position and the effectiveness of our strategic initiatives. Our ongoing efforts to expand our B2C segment, enhance our online presence, and enter new markets are yielding positive results. We are committed to leveraging our strengths to capitalize on the vast opportunities within the global furniture e-commerce market.”
Executive Director of Synergy House, Teh Yee Luen, added, “Our performance in Q1 FY2024 reflects the success of our strategic initiatives, particularly in the B2C segment. We are excited about the future and our ongoing efforts to expand our product range and enhance customer engagement. Utilizing information technology and artificial intelligence to analyze market trends and customer behaviors has increased our efficiency and accuracy in operating in the B2C segment.”
The Group remains cautiously optimistic about the potential of the global furniture e-commerce market. With strategies to grow the B2C segment, including expanding customer reach through additional e-commerce platforms, enhancing revenue through advertisements and promotions, and leveraging technology and artificial intelligence (“AI”), Synergy House is well-positioned for continued growth. Despite global economic challenges, the Group’s affordably priced home furniture products and strong presence on third-party e-commerce platforms in key markets are expected to drive further expansion.
As of 28 May 2024, Synergy House’s share price stands at RM1.61, reflecting a market capitalization of RM805.0 million. This aligns with the ‘BUY’ coverage initiated by RHB Investment Bank on 29 April 2024, which set a target price of RM1.61.

Magma’s Q1 Surge

Magma Group Berhad (“Magma”), a hospitality and investment holding group, announced a revenue of RM6.922 million for Q1 FY2024, a substantial improvement from the negative revenue of RM2.457 million in Q4 FY2023.
The hotel operations segment, led by WOLO Kuala Lumpur, saw significant growth with RM6.286 million in revenue.
Despite a Loss After Tax (LAT) of RM4.268 million, the company is optimistic about future profitability due to rising occupancy rates and strategic initiatives.|
“Our first quarter results highlight the significant strides we are making in the hotel operations segment,” said Datuk Sri Thomas Liang Chee Fong, Group Managing Director of Magma.
“The strategic inclusion of WOLO Kuala Lumpur and improving occupancy rates, particularly boosted by the special travel visas issued for Chinese travellers, have been pivotal. We remain focused on leveraging these strengths to drive sustainable growth and are optimistic about the future.”
Magma remains committed to improving occupancy rates and increasing the Average Room Rate (ARR) through effective management of its Impiana hotels and WOLO Kuala Lumpur.

Bintai’s Profit Streak

Bintai Kinden Corporation Berhad (“BKCB”), a specialist in M&E engineering services, medical device manufacturing, and facilities operation, reported RM7.65 million in revenue for 4Q FY2024, a 65.7 per cent decrease from RM22.30 million in 4Q FY2023. Despite the revenue drop, the Company achieved a profit before tax (PBT) of RM10.73 million, a substantial turnaround from a loss before tax (LBT) of RM114.40 million in the same period last year.
The revenue decline was due to the completion of several projects and a lack of new large-scale projects. However, cost-cutting measures and strategic financial moves, including gains from the reversal of impairment loss on contract assets and RCPS, contributed to the positive PBT.
For FY2024, Bintai Kinden recorded a revenue of RM36.81 million, down 68.3 per cent from RM116.10 million in FY2023. The Company posted a PBT of RM5.05 million, significantly improved from an LBT of RM116.62 million in FY2023. The financial turnaround is attributed to efficient cost management and strategic financial decisions.
In January 2024, Bintai Kinden secured a RM58.6 million debt settlement plan with Kolej Teknologi Islam Melaka Bhd (KTIMB) and raised RM16.6 million through a private placement to reduce bank borrowings and support working capital.
Datuk Tay Chor Han, Managing Director cum CEO of BKCB, commented, “We are pleased to report a second consecutive profitable quarter. This positive outcome is primarily due to the successful completion of several M&E projects and efficient cost management measures. While the overall revenue has decreased, the Company has managed to achieve significant cost savings and operational efficiencies, while phasing out legacy projects.”
Datuk Tay added, “Looking ahead, we anticipate improved revenue from our new projects. In the month of May itself, we have been awarded 2 M&E projects from Malaysia Airports Holdings Berhad and Taghill Projects Sdn Bhd respectively. There were also several M&E tenders which we had participated and are still awaiting the outcome. Concurrently, we are also actively pursuing opportunities to diversify our business by tendering for civil and structural (C&S) jobs and are expecting some job awards in the near future.”