17. TAN SRI NGAU BOON KEAT
Flagship: Dialog Group
Net worth: RM3.51bil
NGAU’S fortunes rose by nearly 22% last year amid challenging times faced by the oil and gas sector.
His net worth was higher at RM3.51bil last year from RM2.88bil a year earlier. With that he becomes the 17th richest Malaysian from the 21st spot earlier.At 70, he is still actively steering Dialog Group, a company which he co-founded and is now the executive chairman.
He has a 20% stake in Dialog.
Dialog Group is an oil and gas services provider that specialises in storage-tank terminals, engineering services and crude refining. It also is a top pick among the oil and gas sector companies of some research houses. Of the 15 analysts covering this stock as compiled by Bloomberg, ten have a “buy” call.
They like the “recurring income business model and earnings visibility. It has a strong track record of taking calculated and rewarding risks.’’
“Dialog remains a secular growth story with the ability to scale up its terminal operations via its Pengerang/Langsat and potentially overseas ventures while still managing its financials well,’’ according to an analyst.
For the full year ended June 30, 2018, Dialog’s net profit grew to RM510.3mil from RM370.64mil a year earlier. Revenue dipped to RM3.11bil from RM3.39bil a year earlier.
Dialog has a market capitalisation of RM17.94bil and its share price is trading at RM3.18 a share.
Over the next two years, maintenance activities in the oil and gas space are expected to rise, so is cost pressure, reports have said.With that background, Dialog will focus on diversifying across the value chain with regard to its oil and gas business to reduce earnings volatility. It will continue to work towards integrating the upstream-midstream-downstream aspects of its oil and gas businesses, said a report.
The underlying rationale for that is to reduce earnings cyclicality in the context of pursuing structural growth, as a cyclical upswing in one sector can offset a cyclical downswing elsewhere, says an analyst report.
Ngau, an engineer by profession, is very much the face of Dialog.
He was also one of those who negotiated the first production sharing contract (PSC) way back in 1974. A report said the sealing of that contract helped change the course of the oil and gas industry in Malaysia.
Ngau is also said to be a philanthropist at heart. He set up MyKasih Foundation, a non-profit organisation, which helps less-fortunate Malaysians in terms of food aid, health awareness, financial literacy programmes, children’s education and even skills training programs, a report says.
18. TAN SRI TONY FERNANDES & DATUK KAMARUDIN MERANUN
Flagship: AIRASIA Group
Net worth: RM3.43bil
RIDING on the fintech revolution, Fernandes and his buddy, Kamarudin recently launched BigPay, an e-wallet and a accompanying prepaid card service.
The flamboyant Fernandes is hoping this new business will be worth more than his airline, AirAsia.
Nearly two decades ago, this inseparable duo bought over the then troubled AirAsia for RM1. They turned it around and revolutionised air travel in Asia. Today the carrier is Asia’s biggest low-cost carrier.
Riding on the low-cost model of being lean, simple and efficient, AirAsia caters to the growing affluent in Asia. It has the depth in network and frequency, flies 293 routes of which 90 are unique routes.
It continues to innovate to boost its ancillary income. The Malaysian operations continues to be its star contributor and for 2018 the ancillary income just from this operations reached RM1.49bil.
Last year the airline went on a massive cash raising exercise by offering sale and leaseback arrangements for its 104 planes in a US$1.9bi deal. This helped turned the airline from a net debt position to net cash of RM2.11bil as at end September, 2018.
Apart from that, the airline group sold other non-core assets in the year. It raised huge cash and rewarded shareholders with dividends, including a special dividend totalling 52 sen a share for the full year. AirAsia reported RM1.98bil in net profit for full year 2018 from RM1.63bil a year earlier.
The sale and leaseback arrangements will continue into this year.
AirAsia has airline operations in Malaysia, Thailand, Indonesia, the Philippines and India. It plans to begin services from Vietnam in August this year. China remains on its radar as it hopes to set up an airline there.
Both Fernandes (group CEO of AirAsia Group) and Kamarudin (non-executive chairman) control three listed companies – AirAsia, its sister airline AirAsia X Bhd (AAX) and insurer Tune Protect Bhd on Bursa Malaysia.
The market capitalisation of AirAsia is at RM9.2bil, AAX (RM1.06bil), and Tune Protect (RM522mil).
Both Fernandes and Kamarudin hold a 32.2% stake in AirAsia, which is their flagship airline. This is held via Tune Air (15.5%) and Tune Live (16.7%).
Fernandes and Kamaurdin hold a 48.8% and 40.2% stake in Tune Air. They have an equal stake in Tune Live and Tune Group.
In AAX, Tune Group has a 17.8% stake, Kamarudin (11.1%) and AirAsia (13.8%). As for Tune Protect, Tune Group has 15.8%, AirAsia (13.7%).
Both the airline chiefs fell a spot lower to the 18th place from 17th as the richest Malaysians amid challenging times faced by the air sector and volatile fuel prices. Their net worth was nearly 14% lower to RM3.43bil from RM3.95bil a year earlier.
19. TAN SRI SYED MOKHTAR ALBUKHARY
Flagship: MMC Corp Bhd
Net Worth: RM3.15bil
YET another tycoon to see a dip in his fortunes is Syed Mokhtar, known for having his hands in many businesses. These range from logistics to utilities to engineering and construction. Syed Mokhtar’s net worth stood at RM5.25bil in 2017. Notably, 2017 was also the year in which the reclusive tycoon dropped out of the top-10 richest list, even as his net worth strengthened by nearly 7% year-on-year.
Though his flagship MMC, Syed Mokhtar has a vast exposure to ports, logistics, construction and engineering. He also controls DRB-HICOM BHD, which made headlines in 2017 when it sold a 49.9% stake in Malaysian car-maker Proton to Chinese auto group Zhejiang Geely.
Through MMC, Syed Mokhtar also has significant stakes in power producer Malakoff, energy firm Gas Malaysia and Pos Malaysia.
Touted as the most successful Bumiputera entrepreneur, considering his vast business empire, Syed Mokhtar faces challenges as most of his businesses are affected by the general business slowdown.
Generally, shares of Syed Mokhtar’s infrastructure-linked firms fell amidst an ongoing review of Malaysia’s mega-infrastructure projects.
The group’s main construction business is run through the MMC-Gamuda joint venture. However, all is not lost as late last year, the Ministry of Finance said that MMC-Gamuda would continue the Mass Rail Transit Sungai Buloh-Serdang-Putrajaya Line (MRT2) project with cost reductions for the underground works.
The decision was made after the final round negotiations which resulted in MMC-Gamuda agreeing to increase the cost reductions of the underground works to RM3.6bil from RM2.13bil.
Notably also, MMC posted full year FY2018 profits which exceeded consensus estimates. Its construction revenue surged 56% due to higher work progress for the Klang Valley MRT Sungai Buloh-Serdang-Putrajaya (KVMRT-SSP) Line.
RHB Research which has a buy call on the stock, expects a better FY2019, with earnings visibility for its construction division secured for the next three years, while a full year contribution from Penang Port, acquired in May 2018, will boost the ports and logistics division.
The research house also reckons MMC to be an undervalued stock with strong earnings growth. For example, it pointed out that MMC’s ownership in Malakoff and Gas Malaysia combined is already worth RM2.84bil or 85 sen per MMC share. Combined with Senai Airport’s value – estimated at RM836mil or 27 sen per MMC share – these three assets are already worth RM1.12 per share. Hence it notes that effectively, the current market price of RM1.05 is pricing zero value for all other MMC assets, with the most obvious mispricing is for MMC’s ports operations, which have been generating steady earnings historically. Meanwhile for Proton, Geely was selected as DRBHicom’s strategic partner following an intensive vetting process which included 23 global automotive players. Geely now says that it has raised its 10-year projection for the sale of Proton cars by over 100% to one million units.
20. DATUK MOHD ABDUL KARIM ABDULLAH, ABDUL KADIER SAHIB AND DATUK AWANG DAUD AWANG PUTERA
Flagship: Serba Dinamik Holdings Bhd
Net worth: RM2.96bil
SERBA Dinamik Holdings Bhd has been one of the darlings of the listed oil and gas services companies since its listing in 2017. The listing had thrust Serba Dinamik’s three largest shareholders into the limelight and into Malaysia’s top-40 richest list. Recall that Datuk Mohd Abdul Karim Abdullah, Abdul Kadier Sahib and Datuk Awang Daud Awang Putera gained a net worth of RM2.499bil as at Dec 31, 2017, following the listing of the company that year.
That wealth has grown by almost 20% to hit RM3bil nudging them up by three spots.
Analysts continue to favor the stock, with Bloomberg data showing nine buy calls of the total 10 researchers covering it.
The company provides engineering solutions to the oil and gas (O&G), power generation and utilities industries in Malaysia, Indonesia, the Middle East and the UK.
Just this week, Karim, the CEO, told the media that the company is targeting to hit a revenue of RM4bil for FY19.
For FY18, the company recorded an impressive 20.6% increase year-on-year in revenue to RM3.28bil.
The company has continuously managed to win new jobs. Its order book now stands at RM8.3bil, with a target of hitting RM10bil this year. The company is currently bidding for almost RM20bil worth of contracts globally, such as in Africa, the Middle East, Europe and Malaysia.
While O&G still remains Serba Dinamik’s largest revenue contributor at 80% to 85%, the company aims to reduce its dependency on the sector and is looking at increasing its contribution from the power generation industry.
In reiterating its buy call on Serba Dinamik, RHB Research recently noted that the company’s operations and maintenance business is expected to maintain its performance this year, with Middle East demand for its services remaining robust, even as it continues to penetrate into the Africa and Central Asia markets.
The EPCC division, on the other hand, is expected to record a stronger performance this year, with the construction of multiple projects set to be ramped up, totaling RM1bil.
21. TAN SRI LIM KUANG SIA
Flagship: Kossan Rubber Industries Bhd
Net worth: RM2.9bil
FOR the full year ended Dec 31, 2018 (FY18), glove maker Kossan recorded its highest-ever revenue, surpassing the RM2bil-mark to RM2.14bil, an increase of 9.5% from the previous year.
The performance, the group noted, was achieved despite the increase in natural gas and nitrile prices, as well as the less-than-favourable US dollar/ringgit exchange rate.
Backed by this, Kossan founder Tan Sri Lim Kuang Sia, 67, marched up one rung to secure the position of 21st richest man in Malaysia in 2018.
In 2017, he was ranked 22nd with a net worth of RM2.66bil.
In 2016, Kuang Sia was ranked as the 25th richest person in the country with a net worth of RM2bil.
His family members – Kuang Wang, Kuang Yong, Kwan Hwa and Leng Bung – are major shareholders of the group via Kossan Holdings (M) Sdn Bhd, which has a 51.1% stake in Kossan.
Kossan’s recent acquisition of 800 acres in Bidor, Perak, will be its new base and incorporate modern facilities. This project is anticipated to take up to eight years to finish at a cost of about RM1.5bil.
The group is one of the world’s largest glove manufacturers with its products being sold in over 160 countries.
In the disposal latex glove market, it is known to be the world’s second-largest manufacturer producing over 25 billion pairs of disposable gloves every year.
Over the medium term,the company aims to boost its manufacturing capacity by a further 18 billion gloves per year, which is a five-year compounded annual growth rate of 10% from 2019 to 2023.
It told shareholders recently that with the group’s expansion plans and new capacity coming on-stream, continued demand for its gloves, a clear focus on cost savings, product quality and innovation, as well as improvement in production technology and operating efficiency, it is confident that FY19 would be a “growth year” for the group.
22. TAN SRI AZMAN HASHIM
Flagship: Amcorp Group
Net worth: RM2.58bil
SYNONYMOUS with the Arab Malaysian Group, Azman saw his fortunes increase by some 5% in 2018.
A chartered accountant-turned-banker, the 80-year-old who is fondly known as the “singing banker” within corporate circles due largely to his love for singing, moved up three rungs from his 25th position as Malaysia’s richest person in 2017.
Back in 1982, Azman bought a 40% stake in Taiping Textiles, which later became ArabMalaysian Development Bhd.
In that same year, Azman bought Arab-Malaysian Development Bank, which later morphed into Arab-Malaysian Merchant Bank Bhd or AMMB.
Azman holds the entire stake in Amcorp group, which is into financial services, property and engineering, information technology, and consumer goods and services.
Within the financial services sector, Azman is the second-largest shareholder with an effective 13% stake in AMMB, which controls AmBank, AmInvestment Bank, AmIslamic Bank, AmSecurities and AMMB Nominees. Azman, via Amcorp group, has a 58% stake in RCE Capital Bhd and a 6.1% stake in AMFirst REITS, while AMMB has 26.7% in AmFirst Reits.
Within the property and engineering sector, Azman through the Amcorp group has a 69% stake in AMCORP PROPERTIES BHD and a 72.4% stake in Amcorp Properties-PA.
In the IT sector, Azman owns 100% of MCM Technologies.
In the consumer and services space, he has 100% interests in Harpers Travel and Restoran Seri Melayu and a 90% interest in Amcorp Auto.
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