In its research note issued on Tuesday, it believes MMC has been shedding excess “weight” in recent years, transforming itself from a conglomerate (of which growth is typically capped by business operations that are too diverse) to predominantly a ports & logistics player (with the ports & logistics division contributing to 60% and 39% of group turnover and net profit in FY18 respectively).
AmInvest Research pointed out the “trimming” came largely from the listing of Gas Malaysia in 2012 (reducing MMC’s effective stake in the sole licensed seller of natural gas in Peninsular Malaysia to 30.9% from 41.8%) and Malakoff Corp in 2015 (paring down its stake in the second largest power producer in Malaysia to 37.7% from 51%).
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