This article first appeared in The Edge Malaysia Weekly on April 20, 2026 - April 26, 2026

Astro Malaysia Holdings Bhd ­(KL:ASTRO) has been a dominant force in Malaysia’s media and entertainment industry for years. The country’s leading pay-TV operator has, however, come under intense pressure amid brutal structural shifts in the industry.

The rise of global streaming giants such as Netflix and Disney+ has fundamentally disrupted traditional subscription-based television models. At the same time, rampant digital piracy — the widespread use of illicit Android streaming boxes — has severely eaten away at Astro’s traditional customer base.

The simultaneous disruption has caused Astro’s market value to erode significantly over the past decade, sending it plummeting from RM14.37 billion at end-2015 to RM4.95 billion by end-2021 — that is over RM10 billion lost in five years — as its share price plunged. But that was not the floor; its market value further collapsed to a mere RM365.8 million as at April 14, 2026, representing a wealth wipeout of RM14 billion in 10 years.

A major reason for the stock plunge was institutional sell-off, which was prompted by Astro’s decision to slash — and eventually halt — its once-generous dividend payouts.

From its peak of RM3.70 in 2014, the stock that was once a component stock of the FBM KLCI and a dividend darling to boot, is now a penny stock of just seven sen. That is a staggering 98% collapse in its share price.

At its current price point, Astro is trading at a price-to-book ratio of roughly 0.28 times, indicating the stock is valued at a huge discount to its net assets, which stood at 24.6 sen per share as at Jan 31, 2026.

Despite concerted efforts to pivot towards digital offerings and aggregate third-party streaming services onto its own platform, Astro’s revenue declined for eight consecutive years up to FY2026 in an increasingly competitive and fragmented media landscape.

The group is also weighed down financially by having to maintain expensive broadcasting rights for live sports events, particularly the English Premier League, even as revenue continues to shrink.

For the financial year ended Jan 31, 2026 (FY2026), Astro’s net profit halved to RM63.13 million from RM129.15 million a year earlier, due to higher staff-related costs, broadband costs and marketing and distribution expenses. Annual revenue fell 9.4% to RM2.79 billion from RM3.08 billion, as subscription and advertising revenues shrank, while rental income and sales of programming rights also declined.

At its current valuation, the group may attract attention from value investors or potentially be privatised, although any meaningful turnaround would depend on its ability to adapt to changing consumer preferences to stabilise its earnings base.

Speculation that Astro might be taken private emerged following the passing of its founder, T Ananda Krishnan, in late November 2024. He held an estimated 41.25% stake in the company, valued at about RM150 million at current market prices. How his vast estate will be managed and the strategic direction chosen by his successors at Usaha Tegas Sdn Bhd — the late tycoon’s private investment holding company — will dictate Astro’s ultimate fate on Bursa Malaysia.

If it is indeed taken private, it wouldn’t be the first time. Astro was previously listed on the local bourse in October 2003 as Astro All Asia Networks, before being taken private in June 2010 via Astro Holdings Sdn Bhd — a vehicle backed by Usaha Tegas and Khazanah Nasional Bhd — at RM4.30 per share for a total of RM8.5 billion cash.

Astro relisted at RM3 per share on Oct 18, 2012, raising about RM4.5 billion and achieving a market valuation of about RM15 billion. At the time, it operated as a near-monopoly in the country’s residential pay-TV market, capturing nearly 3.1 million of the roughly 6.6 million total TV households. — By Intan Farhana Zainul

FLOATING production storage offloading (FPSO) vessel operator Bumi Armada Bhd(KL:ARMADA) has remained undervalued despite having transformed into a strong cash-flow generator, following a successful turnaround after the oil price crash of the last decade.

It operates FPSOs used in offshore oil and gas (O&G) production, serving exploration and production companies through long-term charters that can span more than a decade.

Once among the world’s largest FPSO players, with a market value of more than RM13 billion, the group and its shareholders suffered when its capital-intensive operations — which included the chartering of offshore support vessels — were hit by the 2015-to-2018 oil price slump, which severely hurt its earnings and prospects.

Technical issues at existing projects also weighed on its performance, prompting a restructuring to slash debt and stabilise operations. In the process, Bumi Armada’s share price plunged to sub-20 sen and the group’s market capitalisation skidded to a record low of RM676 million in 2020.

Nonetheless, Bumi Armada weathered the storm with the support of its 34.5% shareholder Usaha Tegas Sdn Bhd, which provided a US$75 million loan in 2019. Usaha Tegas is the flagship company of the late T Ananda Krishnan.

The group, which operates nine floating assets, has been in the black for seven years. It now has the balance sheet to take on new FPSO projects at a time when O&G supply security has become the top priority of governments across the world, driven by the US-Iran conflict that has taken out one-fifth of global supply.

Bumi Armada had cash of RM1.32 billion at the end of last year, against borrowings of RM2.38 billion. This gave it a net gearing of just 0.2 times, a significant improvement from 2.4 times at end-2020. Net cash flow from operations stood at RM1.04 billion for the financial year ended Dec 31, 2025 (FY2025).

It is now reported to be in a two-horse race with Yinson Holdings Bhd (KL:YINSON) for an FPSO contract at the Tangkulo gas field offshore Indonesia for Mubadala Energy, and is also said to be eyeing several other FPSO jobs in the country.

Bumi Armada is also exploring the opportunity to operate three upstream assets in Indonesia. The first could be the Akia block, where a final investment decision is expected in the next two years. The plan is to retain minority interest in these fields, with the group either operating the asset or taking ownership of the FPSO required for the project.

The group recently resumed paying dividends after an eight-year lull, at one sen per share, or a total payout of RM59 million for a yield of 2.6%, starting from FY2024, and is preparing its balance sheet for future share buy-backs. In FY2025, its net profit came in at RM439.05 million, or 7.4 sen per share, on the back of RM1.59 billion in revenue.

However, the stock’s valuation has remained undemanding. Its price-to-book value ratio stood at 0.4 times, while its price-earnings ratio hovered at about 5 times, a stark contrast to its pre-pandemic average of more than 20 times and the current industry average of 19 times.

In November 2024, Bumi Armada explored a proposal to merge with the offshore unit of Petroliam Nasional Bhd-linked MISC Bhd (KL:MISC), but it was called off last August. At the time of writing, Bumi Armada’s shares were trading at 39 sen apiece, giving the company a market capitalisation of RM2.31 billion. — By Adam Aziz

SAID to be one of the leading automotive surface mount technology light emitting diode manufacturers for the global automotive industry, D&O Green Technologies Bhd (KL:D&O) has seen its share price collapse from its 52-week high of RM1.60 on Sept 23, 2025, to a low of 39 sen on March 2 this year. The drop wiped out RM1.21 billion in market capitalisation.

Compared to end-2021, its market capitalisation is down a staggering 91.6% from  RM7.3 billion. D&O shares have since rebounded from the low to close at 49.5 sen last Tuesday, valuing the group at RM613.5 million.

The reason for the loss of confidence is likely the impairment on inventories amounting to RM320.9 million for its financial year ended Dec 31, 2025 (FY2025), undertaken to “strengthen the alignment between inventory valuation, actual operating conditions and customer demand trends”, the group disclosed in its latest financial report.

For the full year, D&O fell into the red, reporting a net loss of RM228.15 million compared with a net profit of RM39.5 million the year before.

Throughout FY2025, it had reported inventory impairment and for the last two quarters of the year, D&O was bleeding losses.

Will things get better this year?

In its notes to the latest financial statements, the group says: “Following the comprehensive review of inventory impairment policy and costing methodologies undertaken during 2025, the group enters the new financial year with improved cost visibility and enhanced alignment between standard costing and actual operating conditions.”

PublicInvest Research, in a March 18 report following an analyst briefing, writes that D&O’s management had reaffirmed that the inventory impairment had reached its tail end.

“Going forward, there will be a one-off recognition of safety stock sales and a gradual write-back of impairment, which could take up to five years to complete. It is a sigh of relief for investors, as we believe the worst may be over for the group,” analyst Chong Hoe Leong says.

He has, however, maintained his “neutral” call on D&O with an unchanged target price of 54 sen, based on 22 times forecast earnings per share for FY2026.

A check on Bloomberg shows the other five analysts covering the stock having a similar view on D&O, with “hold” calls on the counter, and a consensus target price of 47 sen.

Based on its net asset per share of 54.72 sen as at Dec 31, its stock was trading at a price-to-book ratio of 0.90 times.

Given the sell-down and what may be considered as an attractive valuation, could it be a target for mergers and acquisitions?

Notably, the Pilgrims’ Fund Board or Lembaga Tabung Haji ceased to be a substantial shareholder in D&O in April while other institutional shareholders such as the Employees Provident Fund and Retirement Fund Inc (KWAP) have been actively trading its shares.

D&O’s major shareholder, with 30.3%, is businessman Goh Nan Kioh, who is also the controlling shareholder of Mega First Corp Bhd (KL:MFCB). — By Jenny Ng

AS Malaysia’s largest refined sugar producer, MSM Malaysia Holdings Bhd (KL:MSM) has long been a prime M&A target.

Low-profile tycoon Tan Sri Syed Mokhtar Albukhary is said to have made several unsuccessful attempts to acquire the company. MSM’s major shareholder, FGV Holdings Bhd, which owns a 51% stake, has firmly resisted parting with its sugar refining arm.

An acquisition of MSM by Syed Mokhtar would effectively create a monopoly in the sugar refining sector and trigger scrutiny from the Malaysia Competition Commission. The sector is currently dominated by MSM and Central Sugars Refinery Sdn Bhd (CSR). Syed Mokhtar already controls CSR through his private vehicle, Perspective Lane (M) Sdn Bhd, which also owns Padiberas Nasional Bhd (Bernas) — the country’s sole rice distributor.

When FGV refused to sell, Syed Mokhtar proposed to swap Bernas for the former’s controlling stake in MSM, The Edge reported in September 2023, citing sources. FGV was delisted from the Main Market of Bursa Malaysia in August 2025, following a second privatisation attempt by the Federal Land Development Authority or Felda.

Despite its market dominance, MSM has been plagued by operational challenges. These issues appear to stem from its Johor refinery — held under MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor) — which has suffered boiler breakdowns, underutilisation and gas supply disruptions.

While the group has recorded consistent revenue growth over the past decade, profitability has remained elusive. MSM posted net profits in only three of the last 10 years — 2016, 2018 and 2024 — while being in the red for the rest.

For the financial year ended Dec 31, 2025 (FY2025), MSM reported its steepest net loss since its listing 15 years ago, dragged down by a huge non-cash impairment in the fourth quarter. During the quarter under review, the group posted a net loss of RM366.63 million. This pushed its full-year net loss to RM397.25 million — a sharp reversal from the RM31.25 million net profit it made in FY2024.

MSM group CEO Mazatul ‘Aini Shahar ­Abdul Malek Shahar said the group’s non-cash impairment of RM360 million on non-financial assets in 4QFY2025 was made following a reassessment of asset values based on current operating conditions.

The review was triggered by sustained losses at MSM Johor caused by lower than expected capacity utilisation and weakening sales demand. In addition to these operational hurdles, there is a government-imposed ceiling price for retail sugar, which the group has often cited for squeezing its profit margins when global raw sugar prices or freight costs fluctuate. The industry is now anticipating a rationalisation of the pricing framework for price-controlled products.

Following its disappointing financial performance, MSM’s share price has remained under pressure, falling to 83 sen last Tuesday — its lowest level since May 2023. This gives MSM a market capitalisation of RM583.47 million, a stark contrast to its RM3.49 billion valuation at end-2015. This means a massive RM2.9 billion in its market value has been wiped out over the past decade.

Given its severely depressed share price, MSM remains a highly attractive M&A target, as the stock is trading at a steep discount to its net assets per share of RM1.56 (as at end-FY2025), implying a price-to-book ratio of about 0.53 times. — By Intan Farhana Zainul

There has been talk for some time now that DRB-Hicom Bhd (KL:DRBHCOM) is looking to privatise Pos Malaysia Bhd (KL:POS). It would not be surprising if it actually makes the move, given that the national postal service provider’s valuation has been battered down over the last 10 years.

DRB-Hicom, controlled by tycoon Tan Sri Syed Mokhtar Albukhary, holds a 53.49% stake in Pos Malaysia and is its sole substantial shareholder. However, the government holds a golden share in the postal group, which gives Putrajaya the right to overrule any board decisions.

At RM219.18 million, Pos Malaysia’s current market capitalisation (as at April 14) is less than 15% its RM1.49 billion valuation 10 years ago. That’s a loss of RM1.27 billion in market value, or an average decline of RM127 million per year.

While still an important part of Malaysia’s logistics infrastructure, the company that once monopolised the country’s postal services has come under sustained pressure over the years, as it struggled in the face of the intense competition and modernisation that came with the liberalisation of the industry and the gradual decline of snail mail.

It also struggled to capitalise on the e-commerce boom. Shopping platforms built their own logistics capability, further boxing Pos Malaysia in. Its seven consecutive years of losses since FY2019 reflects these challenges. The company is also highly geared, with borrowings totalling RM433.22 million (all short term) as at end-2025, pushing its net gearing to 4.3 times.

Understandably, its share price, which hit a record low of 16.5 sen in March 2025, continues to be weighed down — only recovering modestly to 28 sen last Tuesday. Yet its price-to-book has climbed from below one to 2.55 times, largely because of the group’s rapidly eroding net assets per share, rather than investors’ confidence in a potential turnaround. In fact, its book value had shrunk to 11 sen as at end-December 2025, from 37 sen at end-2024 and 63 sen at end-2023. However, these figures belie the group’s sprawling network of post offices and land around the country, some of which remain pegged to decades-old historical costs.

DRB-Hicom first emerged as the majority shareholder of Pos Malaysia in 2011, after paying RM622.79 million or RM3.60 per share to acquire a 32.21% stake in the company from sovereign fund Khazanah Nasional Bhd. In 2016, DRB-Hicom injected KL Airport Services Sdn Bhd, Hicom Indungan Sdn Bhd and Hicom Engineering Sdn Bhd into Pos Malaysia for RM818.35 million via a pure share deal, bumping up its stake to the current level of 53.49%.

Whether the privatisation talks will actually materialise remains to be seen. — By Intan Farhana Zainul

Tan Chong Motor Holdings Bhd (KL:TCHONG) was once a dominant player in Malaysia’s automotive landscape, leading the non-national car segment with Nissan, a brand long synonymous with the group’s name. It first secured the sole distributorship for the Japanese marque in 1957 — the same year Malaya gained its independence. Nissan was known as Datsun at the time.

In its heyday, Tan Chong was a stalwart of the old stock market benchmark Kuala Lumpur Composite Index (KLCI), which comprised 100 constituents before the number was trimmed and the index was renamed FBM KLCI in 2009. Even as that transition tightened the field to the top 30 most valuable stocks on the bourse, Tan Chong was strong enough to make the cut to become one of the original members of the more selective benchmark, standing alongside elites like Malayan Banking Bhd ­(KL:MAYBANK) and Public Bank Bhd (KL:PBBANK). It would eventually spend 2½ years in that premier league before being removed in December 2011.

The subsequent years were competitive, then challenging and, eventually, downright gruelling. Apart from the expansion of Japanese rivals like Honda and Toyota, Tan Chong also had to contend with the continuous charge of national carmakers Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua), and later, the aggressive arrival of Chinese marques that have been eating up the B-segment territory that Nissan once called its own.

All that has brutally eroded Tan Chong’s market value. From a peak valuation of over RM3 billion in 2013, the group’s market capitalisation sank to RM1.69 billion on Dec 31, 2015. Its decline has particularly been felt in the past decade, with the group spending seven of the past 10 years in the red. This shredded its market value further to just RM319.2 million as at April 14 this year.

Today, the stock that was once trading above RM6 is firmly in the penny stock category, languishing at 47.5 sen on April 14. But while it continues to bleed operationally, Tan Chong remains an asset-heavy company sitting on a goldmine of real estate, chief of which is the prime Segambut assembly plant site in Kuala Lumpur that has been held by the group since the 1970s.

The group’s balance sheet reflects this hidden wealth. As at Dec 31, 2025, Tan Chong’s net assets per share stood at a solid RM4.01. The group recently monetised some of its legacy land bank, selling nine plots of land in Kuala Lumpur for RM148.8 million — that is already nearly half of the group’s market valuation now.

The massive disconnect between Tan Chong’s market valuation and its balance sheet is well known, as the stock now trades at a price-to-book ratio of just 0.12 times. That is a whopping 88% discount to its net asset value, making Tan Chong a classic candidate for M&A or privatisation.

It should be noted, however, that the company also has substantial borrowings. As at end-2025, Tan Chong’s total borrowings stood at about RM1.23 billion, though its net gearing sat at a manageable 0.36 times after accounting for its cash reserves of RM286.67 million — about half the RM545.5 million it had at end-2024. — By Tan Choe Choe

The deeply depressed valuation of ­Tasco Bhd (KL:TASCO), Malaysia’s largest third-party logistics provider by revenue, may be positioning the company as an attractive acquisition target.

A key beneficiary of the supply chain disruptions brought about by the Covid-19 pandemic and the subsequent surge in global demand, like many other freight forwarders, Tasco saw its earnings reach record highs during that period. Its revenue surged past RM1 billion for the first time in its financial year ended March 31, 2022 (FY2022), rising to RM1.48 billion from RM946.61 million in FY2021. Profitability then peaked in FY2023, with a record net profit of RM90.82 million in FY2023.

However, as global freight rates have normalised, earnings have also moderated, although revenue remained above that RM1 billion mark. That pullback coincided with a sharp decline in the group’s valuation.

Tasco’s market capitalisation has fallen to about RM336 million now, from RM928 million at end-2021, reverting to levels last seen about a decade ago. At last Tuesday’s closing price of 42 sen, the shares were trading at a price-to-book value of just 0.51 times, a 49% discount to its net assets per share of 82 sen.

The steep discount, coupled with its diversified business model spanning air and ocean freight forwarding, contract logistics, cold chain solutions and trucking, strengthens its appeal as a takeover candidate. Tasco also generates solid operating cash flows and maintains a healthy balance sheet, with net debt of RM356.7 million and manageable net gearing of 0.54 times.

The company’s shareholder structure reinforces the possibility of corporate action. The group is majority-owned by Japan-based Yusen Logistics Co Ltd with a 55.38% stake, while executive chairman Lee Check Poh, via Real Fortune Portfolio Sdn Bhd, holds 9.89%. Any corporate exercise could involve a strategic consolidation or privatisation exercise by its parent.

Operationally, Tasco continues to invest in capacity expansion. Key projects include a 400,000 sq ft addition to its Shah Alam Logistics Centre and a 300,000 sq ft warehouse in Northport — both expected to be completed by mid-2026 and contribute to the group’s revenue by the second half of FY2027.

Near-term industry dynamics could provide a cyclical uplift. Renewed disruptions to global shipping routes such as geopolitical tensions in the Middle East have reintroduced volatility in freight rates, potentially benefiting forwarders. Analysts expect 2026 to be more supportive for logistics players, driven by recovering container volumes and resilient electrical and electronics exports.

Additionally, Tasco has RM33.4 million in unutilised tax credits under the Malaysian Investment Development Authority’s integrated logistics services scheme, which should support earnings through a lower effective tax rate in the coming years.

Nevertheless, risks remain. Prolonged geopolitical uncertainty, inflationary pressures and trade disruptions could weaken global demand, particularly for its international freight segment. Return on equity has already declined to single digit — 4.1% in FY2025 and 9.8% in FY2024, down from 15.2% in FY2023.

Still, its strategic assets, recurring logistics demand and backing by a global parent suggest that Tasco may not remain undervalued indefinitely. Whether through a market rerating or corporate action, the gap between price and intrinsic value could eventually close, making it a stock to watch. — By Kang Siew Li

Electronic manufacturing services (EMS) providers, which ride on global consumer demand, have spent the past year navigating an increasingly volatile landscape. Unpredictable trade policies and persistent economic uncertainty have weighed heavily on the sector, compressing margins and clouding earnings visibility.

VS Industry Bhd (KL:VS) is no exception. In its latest earnings announcement, the Johor-based contract manufacturer reported a sharp deterioration in profitability for the first half of its financial year ended Jan 31, 2026 (1HFY2026). The group attributed the slump to softer orders from key customers, largely driven by muted global consumer sentiment, which in turn dragged down utilisation rates. Compounding the pressure are ongoing cost optimisation efforts by its clients.

Net profit for the period fell 97.7% to RM1.04 million, from RM45.98 million a year earlier, while revenue declined 8.5% to RM1.85 billion from RM2.02 billion. On an annualised basis, earnings stood at only RM2.08 million — a stark contrast to the RM116.478 million recorded in FY2020, underscoring the severity of the downturn. Net profit peaked at RM246.02 million in FY2024 before sharply retreating to RM36.71 million in FY2025, underscoring the rapid reversal in earnings momentum.

Historically viewed as a bellwether for global electronics demand, VS Industry built its reputation as a key contract manufacturer for multinational brands in consumer electronics and electrical appliances. However, the group’s heavy exposure to US-based clients now leaves it particularly vulnerable to external demand shocks.

The group’s market trajectory tells a similar story of boom and contraction. Its market capitalisation surged from RM1.83 billion at end-2015 to a peak of RM5.23 billion in 2021, buoyed by pandemic-era demand and a broader electronics up cycle. That momentum has since reversed sharply, with its valuation shrinking to RM730.3 million as at April 14, 2026, erasing RM4.5 billion in value over five years.

Institutional investors have taken note. The Employees Provident Fund (EPF), once a significant shareholder, has reduced its stake to 5.48% as at April 9 from 10.26% in late October 2025. The sustained selling pressure has weighed on the share price, which closed at 18.5 sen on April 14 — firmly in penny stock territory.

At current levels, VS Industry is trading at a price-to-book value ratio of 0.34 times, a steep discount to its net asset value, which could sharpen its appeal as a potential acquisition target, although such a valuation also underscores persistent investor concerns about its earnings visibility and margin sustainability.

Despite the challenges, the company retains a measure of financial flexibility. As at Jan 31, the group held RM711.9 million in cash against total debt of RM542.01 million. Trade receivables stood at RM841.77 million, with trade and other payables at RM652.48 million, reflecting the scale of its operations.

Still, the group points to its solid balance sheet, diversified manufacturing base and long-standing customer relationships as key pillars that will help it weather near-term headwinds while positioning for a recovery as global conditions stabilise. — By Intan Farhana Zainul
 

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