This article first appeared in The Edge Malaysia Weekly on December 30, 2024 - January 12, 2025

The year saw entrepreneurs making great strides, winning contracts and charting major milestones. 

With these achievements under their belt, the test ahead is whether they can sustain the momentum.

Executive chairman of Eversendai Corp Bhd

Having underperformed since its debut on Bursa Malaysia in 2011, steel structure expert Eversendai Corp Bhd (KL:SENDAI) is making its way back into the spotlight after winning RM6.5 billion worth of jobs in a single year, led by the ambitious Saudi state-endorsed Trojena Ski Village in the desert highlands.

Its founder, largest shareholder and executive chairman Tan Sri A K Nathan has returned to the driver’s seat to see through the projects and ensure a successful turnaround of the RM472 million company, in which he controls just under 70%.

The successful completion of Trojena — a ski village located up to 2,500m above sea level and built to accommodate the 2029 Asian Winter Games in Saudi — would add another notch to Eversendai’s belt, as its past projects have included Merdeka 118 and Burj Khalifa in Dubai.

The growing order book aside, financial results have disappointed so far this year, with net profit in the nine months ended Sept 30, 2024 (9MFY2024), amounting to a mere RM5.1 million, even though revenue hit RM910.43 million — potentially earmarking it for a record full-year top line in FY2024.

The group’s best performance remains its first two years of listing — FY2011 and FY2012 — with more than RM115 million in net profit on annual revenue in excess of RM1 billion.

Part of the reason for its weak performance was its highly leveraged position: In 9MFY2024, almost 79% of its RM98.76 million operating profit was swallowed up by finance costs.

Net gearing stood at 1.64 times, with cash of RM164.5 million against borrowings of RM602.9 million. Total equity stood at RM294.74 million, after taking into account retained losses of RM444.49 million at end-September.

A K Nathan, in an interview with The Edge in March, described 2024 as “positive”, noting that 2025 would “be on another level altogether”, following the project wins.

Eversendai’s pursuit of an annual top line of RM2 billion in the 2010s led it into the high capex business of oil and gas vessels, which turned sour when oil prices faced a prolonged slump from 2015 to 2020, prompting institutional investors, such as Permodalan Nasional Bhd, the Employees Provident Fund, Retirement Fund Inc (KWAP) and Lembaga Tabung Haji, to eventually pare their stakes in the company.

With projects expected to pick up steam in 2025, only time will tell whether A K Nathan will be able to meet shareholders’ expectations and steer the company towards sustainable profitability.  — By Adam Aziz

Founder and CEO of 99 Speed Mart Retail Holdings Bhd

A most impressive story to emerge from Bursa Malaysia this year has been the IPO of 99 Speed Mart Retail Holdings Bhd (KL:99SMART) and the impact it has had on the market and the company’s founder and CEO Lee Thiam Wah.

Oversubscribed by 3.04 times, the IPO, which was priced at RM1.65 per share, raised about RM2.36 billion, including the RM1.7 billion offer for sale of 1.028 billion shares by Lee and his wife, Ng Lee Tieng. Before the listing, Lee’s net worth was estimated at US$2.8 billion (RM12.1 billion), according to Forbes, with the IPO subsequently boosting his wealth to about RM13 billion.

Investors who believed in Lee’s vision would have made a sizeable sweep from their investment in the IPO, going by the counter’s trajectory. Since the IPO on Sept 9, the counter has soared from the opening day’s close of RM1.88 to RM2.53 on Dec 10, rising 34.6% or giving 34.6 sen for every ringgit invested in the counter. The company was valued at RM21.25 billion at the time of writing.

Coming on the heels of a post-pandemic retail rebound, the flotation exercise attracted investors seeking business models that are resilient even during economic downtimes. More than cementing 99 Speed Mart’s position as a strong player in Malaysia’s retail landscape, it was telling of Lee’s foresight.

Afflicted with a physical disability and raised in a modest family, Lee ventured into business by selling snacks by the roadside and then running a small sundry shop in Klang before transforming the business into a retail empire with thousands of outlets across Malaysia.

By targeting underserved communities and prioritising operational efficiency, 99 Speed Mart has since captured an enviable market share.

Proceeds from the offering are set to fuel further expansion, including digital transformation initiatives and entry into regional markets. Lee has expressed his desire to grow the number of outlets to 3,000 by end-2025, from the current 2,600, and establish a presence in Kelantan, the only Malaysian state in which 99 Speed Mart has yet to set up shop.

Along with Ng, Lee also owns franchising rights for fast-food outlet Burger King in Malaysia and Singapore. Lee is the third-largest shareholder of Alliance Bank Malaysia Bhd (KL:ABMB).  — By Cheryl Poo

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