FEATURED NEWS
- May 30, 2024Business
UEM EDGENTA DELIVERS Q1 2024 FINANCIAL PERFORMANCE WITH REVENUE GROWTH YOY AND SIGNIFICANT CONTRACTS SECURED TO-DATE
UEM Edgenta Berhad (UEM Edgenta), a leading Asset Management and Infrastructure Solutions company in the region, today announces its unaudited financial results for the first quarter of 2024 ending 31 March 2024 (“Q1 FY2024”). UEM Edgenta achieved a revenue growth of 7.2% in Q1 FY2024, with total revenue reaching RM677.6 million. This marks an increase of RM45.8 million from RM631.8 million in the corresponding quarter of the previous year (“Q1 FY2023”). Revenue growth mainly contributed by commencement of new and renewed projects in Healthcare Malaysia, Singapore and Taiwan, as well as revenue contribution by the newly acquired subsidiaries located in Kingdom of Saudi Arabia and United Arab Emirates. The company recorded an improvement in profit after tax (“PAT”), growing by RM8.6 million to RM10.2 million in Q1 FY2024 compared to Q4 FY2023, attributed to better financial performance and quality service delivery, complemented by diligent cost and resource optimisation measures. Year on year PAT however was 5.4% lower compared to Q1FY2023. UEM Edgenta continued to demonstrate its market leadership by securing new contracts totalling RM1.7 billion within the first four months of the year. This healthy orderbook replenishment is a testament to the company's robust pipeline and its ability to renew and win new contracts, paving way for further growth. As of 31 March 2024, the Company has an outstanding order book of RM9.5 billion, out of which 69% contributed by Infrastructure Services division, followed by 24% from Healthcare Solutions. In Singapore, the company successfully secured 5-year contracts for the provision of hospital support services to various hospitals worth RM934.57 million to RM963.49 million. This underscores UEM Edgenta’s excellent track record, high-quality service delivery, and competitiveness in the healthcare support service market in Singapore, to both public and private hospitals. The operations in the United Arab Emirates and the Kingdom of Saudi Arabia further expanding their footprint in the region with additional contracts from existing and newly acquired clients, while Infrastructure Services successfully secured few road maintenance contracts in Indonesia. On the domestic front, UEM Edgenta is bolstering its presence in the private healthcare sector by extending services to new clients and renewing contracts with existing ones. The company's strategic investments in sustainability and technology are gaining momentum, with OPUS Energy securing a 10-year Energy Performance Contracting (“EPC”) contract from Boustead DCP Sdn Bhd. Additionally, the Infrastructure division's orderbook has been strengthened by the additional state road maintenance contracts in Selangor and Sarawak, reinforcing UEM Edgenta's pivotal role in maintaining critical transportation infrastructure assets in Malaysia. Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta, said, "Our Q1 FY2024 financial performance remains resilient amidst the persistent challenges arising from the competitive business landscape and inflationary pressures. While cost discipline remains the strategic priority, the quality of profits is upheld through the new high-quality contract wins across all our markets, as evidenced by the improvement in profit compared to the previous quarter. This positions us well for continued success throughout the year." "Our focus remains on driving sustainable growth through enhancing operational efficiency, optimizing resources and costs, and delivering value to our stakeholders. With a healthy balance sheet featuring a low gross gearing ratio of 0.33 times and a robust cash and bank position of RM540.6 million, we aim to further improve our growth momentum. We are committed to leveraging our expertise and innovative solutions to capitalize on emerging opportunities in the market," he added.
- May 29, 2024Business
JD.com’s 2024 618 Grand Promotion: Boosting Consumption Through Tech and Service Innovations
JD.com is set to energize the retail landscape with its 2024 JD618 Grand Promotion. Announced at a press conference on May 28th, this year’s shopping festival will officially kick off on May 31 at 8:00 PM. The event will see immediate sales, bypassing the traditional pre-sale phase and starting four hours early to maximize consumer convenience. With the theme “Affordability and Quality,” JD618 aims to provide a seamless shopping experience that save consumers money, time, and hassle. Sandy Xu, CEO of JD.com, emphasized at the press conference that delivering the ultimate user experience is JD’s core mission and a key driver of its growth. As consumer demand becomes increasingly personalized, Xu believes that technology and service innovations will stimulate consumer demand, creating a positive development cycle. Sandy Xu, CEO of JD.com On the topic of customer service quality, Xu highlighted that JD.com has approximately 600 million active users, supported by over 20,000 customer service representatives and hundreds of thousands of JD delivery personnel. JD’s intelligent customer service system can automate 90% of service inquiries across pre-sale, sale, and post-sale scenarios. This unique business model enables JD.com to maintain real-time communication with users throughout the consumption cycle. For this year’s JD618, JD.com is enhancing the consumer experience with several key services, including: Price protection on over 85% of products, allowing consumers to claim the price difference within the protection period. This service saved consumers nearly 3 billion RMB over the past year. Free home pick-up for returns on 97% of JD’s self-operated products and 75% of third-party merchant stores. An upgraded instant retail service, “ JD NOW ,” partnering with over 500,000 physical stores to offer on-demand shopping with delivery as fast as nine minutes. More than 200 basic services addressing common consumer pain points, with over 80 industry-first and unique services. 24/7 customer service from in-house representatives. Xu also noted that JD’s extensive experience in the retail industry has allowed the company to accumulate high-quality interactive data, substantial industry know-how, and technical capabilities. This alignment of JD’s technology with industry needs enables the adoption of AI and other intelligent technologies to provide smarter services and more affordable shopping experiences at this year’s 618 event. One notable innovation is the integration of AI digital avatars. Utilizing JD’s advanced language model, ChatRhino (also known as Yanxi), AI avatars of 18 brand leaders will debut in JD’s livestreams, following the recent introduction of JD’s founder Richard Liu’s avatar . These avatars will offer 50% off and numerous other discounts for viewers. Additional affordability-focused promotions include: Hundreds of brand bosses presenting popular products starting at 1 RMB through JD’s livestream series. JD’s professional procurement and sales managers offering low-priced goods in their livestream channels. Daily 20 RMB subsidies for consumers on JD’s platform. “2 RMB Free Shipping Day,” offering millions of 2 RMB products. Numerous cost-effective goods from various industrial belts are available with free shipping. JD.com’s customer-first commitment focuses on enhancing the shopping experience by providing a “Diverse Selection, Fast Delivery, High-Quality, and Cost-Effective” range of products and services. In the past year, JD launched the “100 Billion Yuan Discount” program to boost cost-effectiveness and product variety, attracting over 100 million users. The company also launched the “ Spring Dawn Initiative ” in 2023, which increased the number of third-party sellers to over one million and doubled the SKU count since early last year. To ensure high quality and fast delivery, JD.com has lowered the free shipping threshold, introduced unlimited free shipping for PLUS members, and expanded free home pick-up and refund-only services to third-party merchants. JD Logistics’ “211” same-day and next-day delivery service now covers hundreds of cities across China. ( vivian.yang@jd.com )
- May 29, 2024Health
JD Health Launches AI-Driven Mental Health Services
JD Health’s Mental Health Service Center unveiled a series of AI-driven service projects during a conference in Beijing on May 25th. The new offerings include “Small Universe for Chatting and Healing (聊愈小宇宙),” an AI-based therapeutic companion designed to support individuals, as well as multimodal diagnostic and digital management tools for doctors. This initiative establishes JD Health as China’s first AI-driven online mental health service platform. The chatbot, “Small Universe for Chatting and Healing,” leverages JD Health’s healthcare-specific large language model (LLM). It features a rich, multi-dimensional personality, demonstrating enhanced empathy, language expression, and logical thinking abilities. This product aims to improve user interaction and provide support through more human-like communication. The Mental Health Service Center currently hosts over 6,000 psychiatrists from renowned hospitals and more than 1,000 professional psychological counselors, offering around-the-clock services. For healthcare professionals, JD Health has introduced a multimodal diagnostic tool to enhance the quality and efficiency of psychological counseling and online diagnosis. Additionally, JD Health’s “Sleep Monitoring Data Processing Software” received the National Class II Medical Device License, enabling comprehensive monitoring of sleep physiological indexes and providing references for medical diagnosis and counseling. Tian Chenghua, Director of the Institute of Mental Health at Peking University, highlighted the impact of AI on psychological testing at the conference. He noted that AI applications could replace over half of manual tasks, significantly boosting the accessibility and efficiency of mental health services. Moreover, AI assists psychiatrists in developing treatment plans, thereby elevating treatment quality. JD Health’s innovative “doctor + medicines + psychological counseling” model integrates the convenience of telemedicine with extensive resource capacity, facilitating seamless links or referrals for mental health treatment and psychological counseling. This model enables targeted psychological assessments and personalized treatments for conditions such as depression and bipolar disorder. During the conference, JD Health also announced the formation of a mental health service quality management committee and released a standardized online mental health diagnosis and treatment pathway to promote industry-standard practices. JD Health aims to leverage its Internet Hospital’s leading position to integrate psychological services with other health resources, creating a cohesive service network. This includes medical checkups, chronic disease management, nutritional counseling, and medicine delivery. JD Health is committed to enhancing service levels, exploring innovative concepts, and developing a comprehensive, multi-level mental health service platform to promote widespread, high-quality mental health care. ( vivian.yang@jd.com )
- May 29, 2024Business
Nippon Express obtains halal certification for Fukuoka Chuo Logistics Center
Nippon Express Co., Ltd. (President: Shinjiro Takezoe; hereinafter "Nippon Express"), a group company of NIPPON EXPRESS HOLDINGS, INC. (President: Satoshi Horikiri), has newly acquired halal logistics certification from the Nippon Asia Halal Association (hereinafter "NAHA") for its Fukuoka Air Service Branch's Fukuoka Chuo Logistics Center, effective April 30. (Exterior view of Fukuoka Chuo Logistics Center) (Project members and certificate) [Background to certification] Kyushu, as a beef producing region, is a major exporter of Wagyu beef to the US, Hong Kong, and elsewhere. Beef exports from Kyushu have been rising year after year, and demand is growing in the United Arab Emirates and among the large Muslim populations of Southeast Asia. The demand for Japanese halal beef is expected to increase further with the establishment this month of an "Export Support Platform" in Malaysia by Japan's Ministry of Agriculture, Forestry and Fisheries. The Fukuoka Air Service Branch completed construction of the Fukuoka Chuo Logistics Center in July 2019, and to date has handled a large number of fresh food products exported from all over Kyushu. The Branch has now acquired halal logistics certification to meet the needs of customers involved in the export of increasingly in-demand halal products by utilizing the knowledge it has cultivated over the years. With the growing popularity of Japanese food products among people of diverse cultural backgrounds around the world, the NX Group is committed to further expanding its halal logistics service network to support customers' supply chains and continue offering safety and reliability to consumers worldwide. [Profile of business location]
- May 29, 2024Business
Axiata reports strong operational start to FY2024 with 1Q24 performance of double-digit growth in revenue, EBITDA and EBIT
Revenue of RM5.7 billion reflecting 13.3% growth compared to same quarter last year. EBITDA and EBIT growth of 25.4% and 49.9% respectively, while reported PATAMI dropped to RM33.6 million due to forex losses and higher net finance cost. On constant currency basis, underlying PATAMI grew by more than 100% to RM141.7 million as a flow through of strong EBITDA and EBIT. Net Debt/EBITDA improved to 3.01x and adjusted operating free cashflow strengthened to RM396.9 million, largely supported by EBITDA growth. Key Highlights for 1Q241 : An encouraging start to FY2024 with double-digit growth in reported revenue, EBITDA and EBIT . Double-digit revenue growth by 13.3% was contributed by strong performance from all OpCos except Link Net. Double-digit EBITDA and EBIT growth of 25.4% and 49.9% respectively was largely contributed by XL and Robi, from data revenue growth and cost optimisation; and EDOTCO due to higher co-location and lower manpower cost. Reported PATAMI lower at RM33.6 million due to forex losses and higher net finance cost. Strong underlying 1Q24 performance 2 with underlying PATAMI 3 growth of 4x YoY . On constant currency basis, revenue growth of 6.6% was contributed by all OpCos, except Link Net and Dialog. EBIT growth of 41.3% contributed largely by XL and Robi from data revenue growth and cost optimisation and EDOTCO due to higher co-location and lower manpower cost. Underlying PATAMI soared by more than 100% to RM141.7 million corresponding to EBITDA and EBIT growth. Improved Net Debt/ EBITDA. Net Debt/EBITDA improved to 3.01x from 3.36x in the previous quarter largely supported by EBITDA growth and strong adjusted operating free cashflow of RM396.9 million. The Group’s cash balance stands at RM4.4 billion. XL doubles profits from ARPU improvements. YoY revenue jumped 11.8% supported by rational pricing environment with ARPU uplift setting an all-time high of IDR44,000 (10.0% YoY) and improved contribution from data and digital services. Coupled with lower direct cost and sales and marketing costs, EBIT grew by 65.2% and PATAMI by more than 100%, respectively. Robi’s data revenue growth and cost optimisation support PATAMI growth. YoY revenue grew by 7.2% driven by strong subscriber growth of 4.5% and ARPU expansion to BDT140 (from BDT138). Cost optimisation measures contributed to double digit growth at EBITDA and EBIT while PATAMI grew by more than 100% to BDT1.1 billion, supported by lower forex losses. Dialog expands EBITDA margin by 5.4ppts. YoY revenue dropped by 13.8% due to lower contribution from hubbing as Dialog pivots away from the low margin business. PATAMI contracted by 68.1% due to lower forex gain of LKR3.7 billion compared to last year and higher interest cost. Smart’s data growth underpins profit uplift. YoY revenue rose by 10.7%, supported by strong data growth. EBITDA grew at a modest 4.7% due to higher regulatory and network cost while EBIT was impacted by higher D&A. PATAMI grew by 14.9% supported by higher interest income. Link Net’s stable customer base and cost optimisation drives improvement in performance. YoY revenue fell by 6.7%, impacted by lower enterprise revenue. Positively, EBITDA improved by 3.4% YoY, attributed to lower direct costs, manpower, marketing and bad debt. As Link Net transitions to FibreCo, home passed rollout for XL lifts D&A and net finance cost and thus PATAMI fell by 86.3%. EDOTCO uplifted by improved contribution from Bangladesh, Cambodia and Philippines. YoY revenue grew by 7.2%, mainly driven by higher contribution from Bangladesh, Cambodia and Philippines on the improved co-location and Build-to-Suit (B2S) towers. EBITDA and EBIT grew 13.4% and 13.7% respectively on the back of lower manpower and site-related costs. PATAMI improved by 21.8% due to a one-off adjustment and lower forex loss. Boost continues growing its fintech ecosystem. YoY revenue grew by 8.9% supported by growth in Boost Credit and Boost Connect. EBIT and PATAMI losses narrowed YoY on the back of lower marketing and staff costs. The ecosystem continues to grow, as Boost Life users grew by 5.7% YoY to cross 11.1 million and Malaysian merchant touchpoints increased by 7.1% YoY to 649,000. Boost is gearing up for its public launch of Boost Bank in June . ADA marks a positive start in 2024. YoY revenue grew by 58.7%, largely supported by growth in e-commerce, customer engagement, data & AI. This translated into EBIT and PATAMI growth exceeding 100%. The Group’s performance in 1Q24 in line with FY2024 Headline. While the operational performance in 1Q24 is encouraging, the Group recognizes that the challenging macro environment persists in frontier markets. On balance, the Group expects revenue and EBIT growth to be broadly in line with headline KPIs. Axiata Group Berhad (“Axiata” or “the Group”) began FY2024 with a positive start, posting Year-on-Year (“YoY”) revenue, Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) and Earnings Before Interest and Tax (“EBIT”) double-digit growth of 13.3%, 25.4% and 49.9% respectively on a reported basis for 1Q24. Strong revenue growth was mainly driven by excellent performance across all Operating Companies (“OpCos”) except for Link Net. Double-digit EBITDA and EBIT growth was largely contributed by XL and Robi due to data revenue growth and cost optimisation and higher co-location and lower manpower cost at EDOTCO. Profit After Tax And Minority Interest (“PATAMI”) dipped to RM33.6 million due to forex losses and higher net finance cost. Underlying performance showed a resilient topline with revenue growth of 6.6% on a constant currency basis contributed by all OpCos except for Link Net and Dialog. Underlying PATAMI soared by more than 100% to RM141.7 million as EBIT growth outpaced the increase in net finance cost. The Group’s Net Debt/EBITDA improved to 3.01x from 3.36x in the previous quarter, largely supported by double digit EBITDA growth and strong adjusted operating free cashflow of RM396.9 million. Axiata’s positive profit trajectory is underpinned by continuous market repair and cost optimisation, in line with Axiata’s strategic direction, guided by five vectors of value creation – synergies delivery of CelcomDigi, structural transformation in Indonesia, building business resilience in frontier markets, creating sustainable value through infrastructure, and illuminating the value of its digital businesses. This strategic framework prioritises sustainable growth while enhancing shareholder value, positioning Axiata as a Sustainable Dividend Company. While the operational performance in 1Q24 is encouraging, the Group recognises that a challenging macro environment persists in frontier markets. On balance, the Group expects revenue and EBIT growth to be broadly in line with headline KPIs. Digital Telcos 4 XL’s 5 revenue YoY was driven by increased contribution from Data and Digital Services Blended ARPU increased to an all-time high of IDR44,000 on the back of positive momentum from a rationale pricing environment. Meanwhile, cost rationalisation measures to lower direct cost and sales and marketing cost have resulted in EBITDA and EBIT margins expansion of 5.3ppts and 5.4ppts respectively. Robi’s 6 YoY revenue increased by 7.2%, supported by data growth of 25.7% on the back of 4.5% in subscriber growth YoY, and ARPU improvement to BDT140 (from BDT138). EBIT grew, supported by margin expansion of 2.8ppts on the back of cost optimisation measures. PATAMI growth of more than 100% was supported by increase in EBIT contribution and lower forex losses. Dialog’s 7 YoY revenue declined by 13.8%, largely due to lower contribution from hubbing as Dialog pivots away from this low-margin business. EBITDA margin grew 5.4ppts as a result. EBIT was impacted by higher depreciation & amortisation (“D&A”), dropping by 3.9% YoY. PATAMI declined 68.1% due to lower forex gain. Smart’s 8 YoY revenue grew by 10.7% attributed to data growth of 14.6% from its prepaid business. EBITDA growth moderated versus its topline due to higher regulatory cost and network cost, Meanwhile, EBIT was impacted by higher D&A. Higher net finance income contributed to the PATAMI growth of 14.9%. Infrastructure Link Net’s 9 YoY revenue declined by 6.7% impacted by lower enterprise contribution. This was cushioned by an ARPU increase to IDR364,000. EBITDA improved by 3.4% contributed by cost savings from lower device cost, marketing, manpower and bad debts; however, EBIT was impacted by the higher D&A from homes passed rollout and Hybrid Fiber Coaxial cable migration. PATAMI declined from lower EBIT and higher net finance cost. EDOTCO’s 10 YoY revenue grew by 7.2% mainly driven by higher contribution from Bangladesh, Cambodia and Philippines on the improved co-location and build-to-suit (BTS) towers. EBITDA and EBIT growth of 13.4% and 13.7% respectively was supported by lower manpower and site-related costs. PATAMI improvement was mainly due to a one-off adjustment and lower forex losses. Digital Businesses Boost’s 11 YoY revenue growth of 8.9% was supported by improved contribution from Boost Credit and Boost Connect. EBIT grew by 13.2% on the back of lower marketing and staff cost. Meanwhile, narrowing PATAMI losses flowed through from EBIT growth. ADA’s 12 YoY growth of 58.7% was largely supported by growth in e-commerce, customer engagement, Data & AI. EBITDA and EBIT growth, both at more than 100%, was supported by topline as operating cost remained relatively stable YoY. PATAMI flowed through from higher EBIT, higher net interest income and forex gains. Commentaries Tan Sri Shahril Ridza Ridzuan, Chairman of Axiata said , "The Group’s strong operational start to the new financial year highlights our commitment to creating value from our portfolio of businesses. Axiata is refining its governance model and portfolio mindset while focusing resources on assets that have a greater potential of creating future value. With sustained operational excellence, solid business fundamentals, and a focus on key growth drivers, Axiata is well-positioned to expand its impact in the ASEAN and South Asian region, achieving its ambition of becoming the Next Generation Digital Champion." Vivek Sood, Group Chief Executive Officer and Managing Director of Axiata said , "Axiata delivered strong first-quarter results. We met our revenue targets and achieved significant improvements in underlying operating profit, thanks to our operational excellence program and an improved business mix." "In recent months, we have demonstrated our commitment to our strategic focus and capital allocation priorities, with the upcoming merger in Sri Lanka between Dialog Axiata and Bharti Airtel as part of our move to strengthen our business resilience in frontier markets. Meanwhile, we are executing on strategic and structural shift in Indonesia to transform Link Net into a FibreCo and XL into a converged ServeCo, along with exploring a proposed merger of XL and Smartfren." "I am confident that our focus on value creation and operational discipline will enable us to capitalise on the significant market opportunities in the ASEAN and South Asian regions, as well as in emerging technologies, to deliver value to our shareholders." "While we remain cautious about the macroeconomic outlook, we are committed to consistently executing our portfolio strategy. We will continue to maintain a long-term view on our business strategies, and on striking a balance between accelerating growth and enhancing profitability.” 1 Discussion of 1Q24 performance is based on Continuing Operations for the Group 2 Underlying performance is based on % growth at constant currency 3 Underlying PATAMI mainly excludes forex related (forex/derivative gains/losses, hedging cost), XL gain on disposal of towers, impairment of material asset/goodwill/material asset write off and PPA amortisation 4 Growth numbers for OpCos are based on results in local currency in respective operating markets 5 PT XL Axiata Tbk 6 Robi Axiata Limited 7 Dialog Axiata PLC 8 Smart Axiata Company Limited 9 PT Link Net Tbk 10 EDOTCO Group Sdn Bhd 11 Boost refers to Boost Holdings Sdn Bhd and its subsidiaries 12 ADA refers to Axiata Digital & Analytics (ADA) and its subsidiaries -END- About Axiata In pursuit of its vision to be The Next Generation Digital Champion, Axiata is a diversified telecommunications and digital conglomerate operating Digital Telcos, Digital Businesses and Infrastructure businesses across a footprint spanning ASEAN and South Asia. The Group has controlling stakes in market-leading mobile and fixed operators in the region including 'XL' and 'Link Net' in Indonesia, 'Dialog' in Sri Lanka, 'Robi' in Bangladesh, 'Smart' in Cambodia and 'Ncell' in Nepal while 'CelcomDigi' in Malaysia is a Key Associate Company. Axiata's regional digital business verticals comprise 'Boost' a fintech company, and 'ADA', a digital analytics and AI company. 'EDOTCO' is among the top 10 independent TowerCos globally, operating in nine countries to deliver telecommunications infrastructure services. As a committed and long-term investor, the Group actively supports and drives young talent development; community outreach; as well as climate change initiatives. Axiata's broader goal of Advancing Asia aims to piece together the best in the region in terms of innovation, connectivity and talent to drive digital inclusion and sustainable progress across our markets. Find out more at www.axiata.com Issued By: Corporate Communications Axiata Group Berhad Axiata Corporate Headquarters, Axiata Tower, 9 Jalan Stesen Sentral 5, Kuala Lumpur Sentral 50470 Kuala Lumpur For further information on Axiata visit www.axiata.com For media enquiries, please contact: Sujartha Kumar Corporate Communications Tel: +6011.10.000.177 Email: sujartha@axiata.com
- May 29, 2024Business
IJM releases financial results for year ended 31 March 2024
Key highlights: Improving outlook across all divisions to drive earnings growth in FY2025: RM3.7 billin new construction projects secured during the financial year, bringing outstanding order book to RM6.0 billion as at 31 March 2024, providing near-term earnings visibility RM2.4 billin in property sales in FY2024, with RM2.6 billion in unbilled sales, underpinning near-term financial performance Recrd performance by Industry Division in FY2024, with balance orders of approximately 900,000 tonnes – encouraging prospects locally and overseas to drive earnings Kuantan Prt cargo throughput rebounded due t improving regional activity and expanding clientele, with sizeable opportunities from growing investments in MCKIP FY2024 interim dividend of 7 sen (FY2023: 6 sen) and special dividend of 1 sen (FY2023: 2 sen) declared, signals confidence of business uptick Brighter prospects going forward IJM Corporation Berhad (“IJM” or “the Group”) today released its financial results for the year ended 31 March 2024, reflecting an encouraging rebound in its business operations and a positive outlook ahead for all business divisions. The Group’s Construction and Industry Divisions are witnessing encouraging prospects for order book replenishment. The Group’s improving outlook is also supported by continued strong property sales in FY2024, increased cargo throughput at its Kuantan Port operations, and the final stages of restructuring its tollway concessions with the government. Mr Lee Chun Fai, Group CEO & Managing Director of IJM Corporation Berhad, explained: “With our robust RM6.0 billion balance order book in the Construction Division, we are confident in our ability to drive further growth. The Malaysian government's new industrial masterplan under the MADANI framework presents additional opportunities for us to leverage. In addition to public infrastructure projects, our strategic focus on sectors such as logistics, warehousing, data centres and electrical and electronics manufacturing positions us to effectively support these developments and enhance our project pipeline. Meanwhile, our emphasis will be on the timely execution and completion of key projects, which will be instrumental in enhancing our performance.” The Property Division achieved RM2.4 billion sales in FY2024, marking its third consecutive year of surpassing the RM2 billion mark. On the Group’s recent investments in industrial property and logistics developments, Mr Lee stated: "Our investments in the Shah Alam International Logistics Hub and the Exio Logistics hubs in Shah Alam are strategic moves to address the increasing demands of the logistics sector, spurred by e-commerce growth and supply chain diversification. These developments expand our industrial property portfolio and integrate advanced technologies, setting new benchmarks in the logistics industry while securing premium assets that generate recurring income." The Group is also positioning its overseas property portfolio as a prime engine for growth. Mr Lee added: “Our expansion into the UK property market, particularly through our partnership with Network Rail Property and the acquisition of the Shredded Wheat factory site in Welwyn Garden City, aim to strengthen IJM Land's international footprint. Through the Innova and Network Rail Property partnership, we have secured eight prime sites across Central London for mixed-use development, with estimated gross development value exceeding £3 billion (RM18 billion), and potentially creating approximately 1,600 new homes. These projects will deliver significant value and contribute to vibrant urban landscapes by focusing on transit-oriented developments that integrate housing and commercial spaces. We are excited about the opportunities these ventures present and are committed to delivering high-quality, sustainable developments." In FY2024, Kuantan Port recorded 26.2 million tonnes of cargo throughput, a marked increase from the previous year. Growth prospects for the Port remain bright from the new foreign direct investments at the Malaysia-China Kuantan Industrial Park (MCKIP). The Government’s commitment to infrastructure development in the area, predominantly through the ECRL project, further positions Kuantan Port as a vital catalyst for the economic development of the East Coast region. On the Group’s commitment to shareholders, Mr Lee added, "The robust dividend signal, supported by our strong financial performance and strategic initiatives, underscores our confidence in IJM's future prospects. As we move forward, we will continue to focus on sustainable growth and creating long-term value for our stakeholders." IJM reports full year PATMI of RM600.3 million, rewards shareholders with interim and special dividend of 7 and 1 sen per share respectively The Group posted operating revenue of RM1,759.2 million for 4Q FY2024 and RM5,918.8 million for FY2024 , representing increases of 32.6% and 29.4% compared to 4Q FY2023 and FY2023, respectively. Furthermore, the Group recorded pre-tax profits of RM366.8 million for 4Q FY2024 and RM964.2 million for FY2024, marking increases of 136.3% and 99.6% compared to 4Q FY2023 and FY2023, respectively. Reflecting on FY2024 performance , Mr Lee said: "Our strong financial performance in FY2024 underscores our resilience and strategic execution across all our business divisions. The Group remains focused on maintaining sustainable earnings and driving growth in the near term,” added Mr. Lee. For the year, the Construction Division reported higher revenue of RM1,675.6 million, mainly due to increased construction activities during the period. The division recorded a lower profit of RM36.8 million for FY2024, mainly due to losses being recognised for three ongoing projects which were impacted by work scope changes, building material price increases and prolongation costs while potential claims are being pursued. Additionally, new projects undertaken are currently at their initial stages of construction, where no profit recognition is reported. The Group’s Property Division reported improved revenue of RM2,029.3 million and PBT of RM391.0 million in FY2024, compared to the previous year. The improvement in results would have been more significant had it not been for the higher profit recorded in FY2023, which resulted from the completion of a major cost finalisation exercise for completed projects at that time. The Industry Division posted its highest-ever revenue and PBT of RM1,192 million and RM181.8 million, respectively, in FY2024. This achievement was attributed to higher selling prices and increased sales volume recorded in the piles business. Revenue of the Group’s Infrastructure – Toll Division for the current year decreased 7.4% to RM519.6 million compared to FY2023, mainly due to the restructuring exercise of its BESRAYA highway, which involved a lower toll rate and a longer concession period. However, pre-tax profit increased significantly by 172.5% to RM128.3 million, primarily due to the absence of the higher resurfacing maintenance costs and RM133 million of expected credit losses related to a financial instrument for the West Coast Expressway in FY2023. Additionally, there was a lower unrealised foreign exchange loss of RM27.0 million on its US Dollar denominated borrowings for its Indian operations, compared to a loss of RM68.7 million in the previous year. The Port operations recorded higher revenue of RM467.0 million in FY2024 compared to the previous year, mainly driven by higher port revenue due to the recovery in cargo throughput, additional cargo from industries near Kemaman, higher ship revenue and the implementation of new tariff rates effective end March 2023. Correspondingly, pre-tax profit for the division increased significantly to RM151.4 million from RM34.2 million in FY2023. Following these results, the Company has declared a single-tier second interim dividend of 5 sen per share, along with a special dividend of 1 sen per share. Combined with the single-tier first interim dividend of 2 sen per share declared in 2Q FY2024, the total dividend declared for FY2024 was to 8 sen per share and amounts to RM280 million this year. - End - About IJM Corporation Berhad IJM Corporation Berhad (“IJM”), formed in 1983, today ranks as one of Malaysia’s leading conglomerates with an international footprint forged by its four core businesses: construction, property development, industry (quarrying and the manufacture of building materials) and infrastructure concessions. IJM holds leading positions across all its business divisions. Its growth is the direct result of strong leadership, dedicated employees, financial prudence and commitment to good governance and quality. The Group presently has a market capitalisation of around RM9.4 billion and as of March 2024, the Group employed around 3,000 employees and had total assets of RM21.4 billion. For more information, visit www.ijm.com For media enquiries, please contact: Ms. Mandy Chen, Corporate Communications, at mandychen@ijm.com or + 60 12 607 6121 Mr. Shane Guha Thakurta, Investor Relations, at shanethakurta@ijm.com or + 60 3 7985 8041
- May 28, 2024APAC
Create the perfect adventure with Cathay Holidays, a one-stop travel hub for premium experiences
Cathay continues to build towards its vision of becoming one of the world’s greatest service brands with the refresh of Cathay Holidays, a premium one-stop travel hub with a new booking site powered by Expedia Group that offers customers a seamless way to plan and book their trip with ease. Cathay Director Customer Lifestyle Paul Smitton said: “At Cathay, we are committed to building deep, engaging relationships with our customers by offering them curated travel lifestyle products and experiences throughout their lifetime. We are extremely excited for the launch of our reimagined Cathay Holidays travel hub, which makes it even easier for our valued customers to book their unforgettable adventure and brings us one step closer to achieving our vision of becoming one of the world’s greatest service brands.” Expedia Group Vice President for Strategic Partnerships Stephen Cheng said: “The strategic collaboration with Cathay Holidays strengthens Expedia Group’s commitment to delivering exceptional experiences for travelers and empowering our airline partners. By utilizing our industry-leading White Label Template technology to power the new Cathay Holidays travel hub, we can augment their offerings, helping travelers unlock a wider range of options and a seamless booking experience.” A brand-new booking experience Cathay Holidays’ partnership with Expedia Group, initially available in Hong Kong, Japan and Singapore, offers customers a streamlined experience for planning and booking their next trip. Customers can explore a vast selection of 900,000 properties and 200,000 travel activities in 250,000 destinations worldwide provided by Expedia Group through the new booking site, enabling them to create their perfect adventure in just a few clicks. Cathay’s Pick – A world of premium experiences awaits Cathay Holidays also offers an exclusive collection of travel experiences curated by our expert travel advisors. From a secluded Michelin-star dining experience in Hong Kong to a soulful stay in the Bukchon Hanok Village in Seoul, Cathay’s Pick ensures every moment in our customers’ journeys is filled with unforgettable delights. A rewarding way to travel Cathay members who book with Cathay Holidays can earn Asia Miles, which can be used to redeem flights, hotels, and more to elevate their next adventure. With Cathay's flexible Miles Plus Cash function available on the booking site in the near future, customers will be able to pay for their hotels and experiences with miles, cash, or a combination of both, giving them more choice and control over how they spend their miles. For more information, visit https://holiday.cathaypacific.com/en_HK.html About Cathay Cathay is a premium travel lifestyle brand that brings together all that we love about travel with everyday lifestyle. The range of products and services includes flights, holidays, shopping, dining, wellness and payment. All our travel lifestyle offerings are designed to bring customers exciting offers, rewards, and experiences with hand-picked partners. Flights are provided by Hong Kong's home carrier Cathay Pacific, a premium full-service airline and a founding member of the oneworld global alliance. Cathay also includes the Group's cargo division Cathay Cargo, and low-cost carrier HK Express. We are a member of the Swire Group and are listed on the Hong Kong Stock Exchange (HKSE) as a public company. For more than seven decades, Cathay Pacific has been connecting our home city of Hong Kong to the world. Now we are bringing that connection to more of our customers’ lives. The new era of Cathay elevates their every bite, tap, step, stay and flight to greater heights. www.cathay.com About Expedia Group Expedia Group, Inc. brands power travel for everyone, everywhere through our global platform. Driven by the core belief that travel is a force for good, we help people experience the world in new ways and build lasting connections. We provide industry-leading technology solutions to fuel partner growth and success, while facilitating memorable experiences for travelers. Our organization is made up of three pillars: Expedia Brands, housing all our consumer brands; Expedia Product & Technology, focused on the group’s product and technical strategy and offerings; and Expedia for Business, consisting of business-to-business solutions and relationships throughout the travel ecosystem. Expedia Group’s three flagship consumer brands includes: Expedia®, Hotels.com®, and Vrbo®. One Key™ is our comprehensive loyalty program that unifies Expedia, Hotels.com and Vrbo into one simple, flexible travel rewards experience. To enroll in One Key, download Expedia, Hotels.com and Vrbo mobile apps for free on iOS and Android devices. One Key is currently available in the U.S. and will become available globally soon. For more information, visit www.expediagroup.com . Follow us on Twitter @expediagroup and check out our LinkedIn www.linkedin.com/company/expedia . © 2024 Expedia, Inc., an Expedia Group company. All rights reserved. Trademarks and logos are the property of their respective owners. CST: 2029030-50
- May 28, 2024Business
PV MAGAZINE: Australia’s largest PV project moves forward
Renewable energy and storage developer Genex has named London-headquartered Arup as owners’ engineer for the 775 MW first stage of the Bulli Creek solar and battery storage project in southeastern Queensland. Genex and its partner, J-Power – one of Japan’s largest energy utilities – are working toward a final investment decision on the project, which is being developed about 150 kilometers southwest of Toowoomba, Queensland, by the second half of 2024. The development rights for Bulli Creek extend to 2 GW of solar capacity, with the project’s planning, environmental and heritage approvals already secured. The original plan was to prioritize the delivery of a standalone battery energy storage system, but the initial stage of the project will now comprise up to 775 MW of solar capacity, as Genex has landed a long-term off-take deal with Fortescue. Genex said the deal with Fortescue could provide the foundation for a minimum 450 MW solar project, and a potential 775 MW first stage solar project, which would make it the biggest in the National Electricity Market. Sydney-based Genex said the initial solar farm stage will be followed by a battery energy storage system of up to 400 MW/1,600 MWh of capacity, with the potential for further solar and/or energy storage stages to follow up to the full 2 GW of capacity at the project site. Canada-based PCL Construction has been awarded the engineering, procurement and construction contract for the first stage of the project with first energy production targeted in 2026.
- May 28, 2024Travel & Leisure
AirAsia announced as Best Low Cost Carrier - Asia 2024 by AirlineRatings.com
The AirAsia Group* including medium haul affiliate airlines AirAsia X and Thai AirAsia X, have been awarded the Top LCC in Asia for 2024 by AirlineRatings.com in its annual Airline Excellence Awards. Launched in 2001 by Datuk Kamarudin Meranun and Tony Fernandes with just two planes, AirAsia has had spectacular growth over the past two decades to become a dominant force in the Asian region. The rise of AirAsia that first started out of Kuala Lumpur is, without doubt, one of the airline industry’s great success stories. It has had to combat one external crisis after another and adjust to diverse regulatory and competitive pressures, navigating policies designed to support national airlines as it democratised access to air travel and redefined the low cost carrier landscape within Asean and beyond. AirAsia now operates as full-fledged airlines with bases in Malaysia, Thailand, Indonesia, the Philippines and Cambodia. AirAsia Group and its affiliate medium haul airlines have re-written the rule book for airlines in Asia and beyond and today have over 255 aircraft flying to over 165 destinations. AirlineRatings.com Editor-in-Chief Geoffrey Thomas said that the win was “richly deserved.” “Renowned Founder Mr Fernandes, and his executive team including Group CEO Bo Lingam as well as AirAsia X CEO Benyamin Ismail have done an outstanding job guiding the airlines to their market dominant position. “These airlines have made travel affordable for nearly 800 million passengers throughout Asia and Asia Pacific and they offer outstanding value and a great experience.” Tony Fernandes, CEO of Capital A and Strategic Advisor to the AirAsia Aviation Group commented, “It has been an incredible journey of recovery, post the worst commercial aviation crisis the world has ever seen. We are thankful and humbled by this award which goes out to all of my airline CEOs and senior team members as well as to the many thousands of ‘Allstars’ who have gone above and beyond to bring us to where we are now. After surviving many odds, we have put in place the right foundations for significant growth and are about to embark on an exciting new journey with plans to fly to the majority of continents which is another pivotal moment in our reincarnation story. “The proposed divestment of the AirAsia Aviation Group of airlines from Capital A to AirAsia X is on track and will be a game changer in the industry to ensure significantly more high quality, low cost air travel for short, medium and long haul flights connecting Asia and Asia Pacific to the world at the very best cost.” Bo Lingam , Group CEO of AirAsia Aviation Group said: “AirAsia continues to push the boundaries on what it means to be a low cost carrier because low cost doesn’t mean low service for our airlines. As travel demand recovers to pre-pandemic levels, we have over 400 new specification aircraft on order to fuel our ambitious growth plans including flying to places we have never flown before, providing our guests with more value and choice, not only to and from Asia, but across the world. “Adding to the momentum building from our turnaround strategy, this award is a wonderful testament to the dedication and resilience of the AirAsia team and we thank the experts at AirlineRatings.com for their acknowledgement of our commitment to operational excellence across all that we do.” Benyamin Ismail, CEO of AirAsia X, agreed “This is a strong recognition of the hard work put in by all of our team, to not only survive the extreme effects of the pandemic but come back stronger than ever before. “We look forward to the great opportunities posed by leveraging strong synergies from Capital A and the AirAsia Aviation Group which will unlock opportunities for our guests to enjoy the value we deliver as they fly smarter in many of our medium to longer haul markets. ”Our ‘one airline strategy’ positions us as a formidable combined force towards being the leading low cost global network carrier connecting Asia to the world.” *AirAsia, Thai AirAsia, Philippines AirAsia, AirAsia X and Thai AirAsia X
- May 27, 2024Business
SP Group partners CapitaLand to deploy distributed district cooling network at Geneo cluster in Singapore Science Park
The three business park properties in the Geneo cluster – 1, 5 and 7 Science Park Drive – will receive a supply of centralised energy-efficient chilled water for air-conditioning from two chiller plants, which are owned, operated, and maintained by SP. SP Group (SP) and CapitaLand Group (CapitaLand) today announced a partnership to deploy a distributed district cooling network at the new life sciences and innovation cluster in Singapore Science Park. SP will provide centralised energy-efficient chilled water for air-conditioning to the Geneo cluster, which comprises three business park properties targeting full completion in 2025 . In line with CapitaLand’s design brief, SP will be operating the distributed district cooling network at an energy efficiency level that is about 14 per cent higher than conventional in-building cooling systems and the National Environment Agency (NEA)’s Minimum Energy Efficiency Standards (MEES) for water-cooled chilled water systems in industrial facilities. This will allow the cluster to abate at least 20,000 tonnes of carbon emissions over the 30-year operating period, akin to removing more than 600 cars from our roads annually. SP will own, operate and maintain two chiller plants, which are interconnected and will supply chilled water to the five buildings across 1, 5 and 7 Science Park Drive through a series of interlinked pipe networks. The distributed district cooling network will thereby enhance supply reliability and resilience for the building cluster. When fully operational in 2025, SP will operate a total cooling capacity of 10,400 refrigeration tons (RT) at Science Park. Mr S. Harsha, SP Group’s Managing Director for Sustainable Energy Solutions, Singapore, said: “District cooling is a pivotal solution to enable a heat-resilient and sustainable future for Singapore. From commercial districts to industrial projects, we are now helping business parks and clusters achieve their sustainability targets through innovative applications of district cooling. We look forward to working closely with CapitaLand to operate greener districts for Singapore.” In addition to district cooling, the Geneo cluster features an accordion-shape facade that helps to block out sunlight, the use of photovoltaic solar panels to generate renewable energy and abundant greenery to reduce the urban heat island effect. These sustainability features have helped the Geneo cluster to achieve top green building certifications, namely Green Mark Platinum Super Low Energy for 7 Science Park Drive and Green Mark Platinum for 1 and 5 Science Park Drive. Mr Tan Yew Chin, Chief Executive Officer, CapitaLand Development (Singapore), said: “Science Park 1, where Geneo is located, is the first business park and one of only two existing districts in Singapore to have received recertification for BCA Green Mark Platinum for Districts conferred by the Building and Construction Authority. Deploying a distributed district cooling network at Geneo is part of our strategy to sustain the green operations of Science Park, in line with our goal of achieving a resource-efficient and climate-resilient portfolio.” Abundant greenery such as the central garden in the Geneo cluster help to reduce the urban heat island effect. “Science Park 1, where Geneo is located, is the first business park and one of only two existing districts in Singapore to have received recertification for BCA Green Mark Platinum for Districts conferred by the Building and Construction Authority. Deploying a distributed district cooling network at Geneo is part of our strategy to sustain the green operations of Science Park, in line with our goal of achieving a resource-efficient and climate-resilient portfolio.” Tan Yew Chin, CEO, CapitaLand Development (Singapore) Mr Tan Yew Chin, CEO of CLD (Singapore) SP is the biggest provider of district cooling solutions in Singapore, with a total cooling capacity of 203,000 RT in operation and secured through its district cooling networks. Besides the collaboration on district cooling, SP has partnered with CapitaLand to install 34 electric vehicle charging points across seven properties at Science Park to drive green mobility adoption.
- May 27, 2024Business
SURIAGROUP DELIVERS STRONG FIRST QUARTER 2024 RESULTS, RECORDS 41% INCREASE IN PBT
Suria Capital Holdings Berhad (“SuriaGroup” or the “Group”) is pleased to announce a strong operational and financial performance for the first quarter period ended 31 March 2024 (“1QFY24”). SuriaGroup recorded a 41% increase in profit before tax for 1QFY24 of RM 19.7 million compared to RM 14.0 million in the previous corresponding quarter. The increase led to a net profit of RM 14.9 million, significantly up from RM 10.6 million recorded in the same quarter last year. The primary driver of this growth was the increased contributions from the port operations segment, the Group's core business, due to higher throughput. The Group’s total revenue for 1QFY24 stood at RM 73.8 million, marking a 15.4% increase from RM 63.9 million in the previous year’s corresponding quarter. In line with this performance, the Group’s earnings per share rose to RM 4.30 compared to RM 3.07 in the previous year’s quarter. For the current quarter, the port operations segment, managed by the subsidiary Sabah Ports Sdn. Bhd., contributed 92% to the Group’s revenue. The ports' overall cargo throughput (excluding containers) increased by 4%, driven by higher volumes of bulk oil, fertilizer, wood products, and general cargo. The total tonnage handled for the current quarter and year-to-date was 4.9 million metric tonnes, compared to 4.7 million metric tonnes in the prior year-to-date. Meanwhile, container volume increased by 19%, rising to 117,804 TEUs from 98,980 TEUs in the corresponding quarter of the previous year. Looking ahead, the Group is optimistic about its prospects, bolstered by strategic collaborations and development projects. The partnership between Sabah Ports and DP World for the long-term management of Sapangar Bay Container Port (SBCP) will enhance container handling capacity, improve the port’s connectivity, and optimize terminal workflows. The goal is to elevate SBCP into a regional hub for the BIMP-EAGA markets. Furthermore, the Group has signed two conditional Joint Venture cum Shareholders Agreements with BEDI Development Sdn. Bhd. (75% owned by EXSIM Development Sdn. Bhd.) to develop two pieces of land in Kota Kinabalu, with a collective net development value of approximately RM 4.2 billion. This development includes the creation of a dedicated international cruise terminal (ICT) at Kota Kinabalu Port land, a key project under the Economic Transformation Programme and the Eleventh Malaysia Plan. The mixed development project, alongside the surrounding waterfront projects, will collectively form an integrated waterfront hub known as ‘Jesselton Waterfront City’. This initiative aims to position Sabah as a premier waterfront destination and support the national vision of establishing Malaysia as a homeport destination for foreign cruise liners to propel cruise tourism. The Group’s solid financial results for 1QFY24, along with its strategic development initiatives and partnerships, are expected to significantly contribute to its growth trajectory in 2024. The successful execution of these projects will not only enhance operational efficiency and expand capacity but also strengthen SuriaGroup’s position in the regional and global markets. By capitalising on emerging opportunities, the Group is well-positioned to drive sustainable growth, deliver long-term value to shareholders, and support the economic development of Sabah. – THE END – For media enquiries, please contact: Group Corporate Affairs and Communications Tel: 088-257788; HP: 010-368 8788 (Kashani) Email: kashani@suriaplc.com.my
- May 27, 2024Business
AirAsia X First Quarter 2024 Financial Results
Revenue up 66% YoY to RM908.9 million in line with 90% increase in number of passengers carried Passenger Load Factor of 83% in 1Q24 driven by peak travel demand Unit cost lowest among peers at 13.93 sen/US¢ 2.95 Ancillary revenue per passenger best-ever at RM251 AirAsia X Berhad (“AirAsia X” or the “Company”) recorded a solid head start in 2024, demonstrating a robust growth trajectory in its financial results for the First Quarter of 2024 (“1Q24”) ended 31 March 2024. The Company reported revenue of RM908.9 million in 1Q24, increasing by 66% year-on-year (“YoY”), attributed to a 90% YoY surge in the number of passengers carried to 959,623, while capacity stood at 1,155,788 seats. Driven by the strong demand arising from key festive seasons and school holidays, the Company posted a solid Passenger Load Factor (“PLF”) of 83%, up three percentage points YoY, with best-performing routes in China, India and Japan recording over 90% PLF, while the Company’s Available Seat Kilometres (“ASK”) increased by 74% YoY in line with solid market demand. In 1Q24, the Company posted RM80.1 million net profit, with over 8% margin against its revenue. In terms of costs, the Cost per Available Seat Kilometre (“CASK”) in 1Q24 is the leanest of comparable airlines in the industry at 13.93 sen/US¢2.95. When compared against the CASK of 15.71 sen/US¢3.35 charted in the previous quarter, CASK has further reduced by about 11%. Primarily, this was driven by lower operating expenses including the easing of jet fuel prices and buoyed by the hike in ASK capacity. In 1Q24, RASK stood at 18 sen, driven by an average fare of RM650 as capacity returned across the industry. Against the preceding quarter, RASK improved by 5%. In 1Q24, ancillary revenue per passenger increased by 3% YoY at record-level RM251, driven by new product offerings optimised for the markets, with personalisation, platform and booking flow enhancements, and further boosted with the introduction of trendy food and beverages (“F&B”) by SANTAN in collaboration with popular F&B businesses. On network, driven by the commitment to accelerate and regain market leadership and following the extension of the visa-exemption policy to China until 2025, the Company increased flight frequencies to its popular routes in the country, namely Chengdu, Beijing and Shanghai, on top of ramping up flight frequency to leisure favourite Bali in Indonesia. Overall, the Company delivered an 85% YoY increase in the number of stages to 3,184, with total weekly flights on average, at 135 flights per week for 1Q24. In terms of associate’s performance, AirAsia X Thailand (“TAAX”) reported revenue of RM543.4 million, surging 52% YoY, and posted a net profit of RM46.4 million due to a foreign exchange loss of RM55.8 million. At a normalised level, TAAX would have posted a net profit of RM102.2 million, up by 11% YoY. Operationally, TAAX’s number of passengers rose by 51% YoY to 437,764 passengers, leading to TAAX delivering a strong PLF of 89%, up by one percentage point YoY. Demonstrating healthy demand in the market, TAAX’s seat capacity and ASK capacity surged by 49% and 37% YoY to 492,497 seats and 2,199 million respectively. AirAsia X’s total fleet size remained at 18 A330s as of the end of March 2024, with 16 aircraft now activated and operational. TAAX’s fleet size stood at seven A330s, with an additional aircraft reactivated during the quarter, bringing its fleet of activated and operational aircraft to six. AirAsia X CEO Benyamin Ismail said, “We expect the two remaining aircraft to rejoin the operational fleet in July and November this year, while we work towards ensuring our fleet requirements for further growth in the future are secured. At present, we welcome the recent announcement of the extension of the visa-exemption policy to China until 2025; since the relaunch of routes to China, PLF in the country has been strong at about mid-90%, while all-new Almaty proved successful in Central Asia with over 90% PLF routinely trending since its launch. “Looking to the future, we are excited about the A321XLR aircraft on our orderbook, which will bring our growth ambitions to fruition, as it unlocks a range of up to nine hours with a reduced cost base compared to our current fleet. With its reduced capacity, the A321XLR gives greater flexibility for network planning and elevates even more second-tier pairing. This aircraft is expected to lower the break-even point for the airlines, ultimately boosting our margin. As it is, for 1Q24, our profit margin is robust at over 8%. “On Fly-Thru, connectivity stands at 22%, led by Australia and India, with synergies leveraged with the broader AirAsia Group more encouraging than ever. This paves the way for the Company’s strong future growth ambitions, ultimately leading to our ongoing engagement with Capital A Berhad ("Capital A") for the proposed acquisition of Capital A’s aviation business, which is envisioned to establish an enlarged group of airlines with the ‘AirAsia’ brand as a global low-cost network carrier group, establishing elevated synergistic benefits through centralised decision-making and coordinated network plans. “In addition, the proposed acquisition provides all-important access to an orderbook with over 400 new specification aircraft deliveries that are currently under Capital A. This gives us unbounded expansion opportunities at a time when growth opportunities world over are limited due to bottlenecks in the supply chain which have, in turn, delayed aircraft delivery for us. “In the next two quarters, we are mindful that the Company is entering a traditionally softer travel period based on historical seasonality. However, we are encouraged by recent fare trends and cost structure, as we step up aircraft utilisation to ensure that efficiency is top-tier.”
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