Ekuinas posts 30.2% consolidated revenue growth in FY22

Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir

KUALA LUMPUR: Ekuiti Nasional Bhd’s (Ekuinas) portfolio companies posted a 30.2 per cent consolidated revenue growth for the financial year 2022 (FY2022) versus 12.3 per cent in the previous year.

Chief executive officer Syed Yasir Arafat Syed Abd Kadir said that its earnings before interest, tax, depreciation and amortisation (Ebitda) for the fiscal year grew 31.3 per cent, well above FY2021’s 27.2 per cent.

On fund performance, he said the Ekuinas Direct (Tranche II) Fund recorded a higher gross portfolio return (GPR) of RM716.6 million from RM654 million in the previous year.

"Ekuinas Direct (Tranche III) Fund delivered a GPR of RM133.5 million and a gross internal rate of return (IRR) of 3.1 per cent.

"The Tranche III fund showed continuous improvement in recent years, owing to Ekuinas’ efforts to strengthen its portfolio companies led by Al-Ikhsan Sports Sdn Bhd and in the oil and gas sector,” he said during Ekuinas’ results announcement event, here today.

Meanwhile, Syed Yasir Arafat said that Ekuinas Direct (Tranche IV) Fund registered a GPR of 91.1 million and an IRR of 77.2 per cent.

"In terms of outsourced investments, Ekinas Outsourced (Tranche I) Fund saw improvements with an IRR of 4.1 per cent as compared to 3.3 per cent in 2021.

"On the other hand, Outsourced (Tranche II) Fund performance remained subdued with a negative IRR of 2.7 per cent, down from a negative IRR of 0.8 per cent in 2021,” he said, adding that Ekuinas’ total cumulative funds received stood at RM4.0 billion.

He said that the company continued to support the economy with a total committed investment of RM4.4 billion and a total economic deployment of RM5.1 billion.

At the end of 2022, its total cumulative investment portfolio comprised 42 companies, 24 via direct investments and 18 through its outsourced fund managers, he said.

"Whilst the company is cautiously optimistic for 2023, it foresees a challenging but busy year ahead in the leadup to the planned divestment of some assets in its portfolio and ongoing deployment of capital for funds, including the Dana ASAS fund.

"With a strong pipeline of potential deals, ample dry powder (cash or marketable securities that are low-risk and highly liquid and convertible to cash) and confidence in our ability to source and convert deal opportunities, we anticipate the closure of more deals at realistic valuation,” he added.

Syed Yasir Arafat noted that both Ekuinas’ direct and outsourced funds had increased Bumiputera equity ownership to the tune of RM6.5 billion, the equivalent of 1.6 times the capital invested.

"There was also an increase of 21.9 per cent in Bumiputera management across its portfolio companies since Ekuinas’ entry, while total shareholders’ value increased to RM8.2 billion or 2.1 times the capital invested,” he said.

Syed Yasir Arafat said that in FY2022, Ekuinas acquired a controlling stake in Xenergi Sdn Bhd, as a bolt-on investment for portfolio company Davex (M) Sdn Bhd.

"It also incorporated the RM100 million Dana ASAS fund with a deal ticket size of RM10 million to RM30 million, aimed at high-potential mid-market Bumiputera companies.

"The fund saw the completion of its maiden investment in the first quarter of 2023 with Eagle Cliffe (M) Sdn Bhd, which owns the network of Kaisar Pharmacy outlets,” he added. - Bernama

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