The Edge Billion Ringgit Club (BRC) annual gala dinner held on Sept 19 saw 42 companies picking up 55 awards for being the best performers on Bursa Malaysia based on their financial performances from FY2015 to FY2018.
This year, based on the March 31, 2019, cut-off date, there were 168 companies with a market capitalisation of RM1.0 billion or more listed on Bursa. This was down from 170 last year. The total market cap of RM1.55 trillion for the 168 companies was also lower compared with RM1.69 trillion last year and RM1.59 trillion in 2017.
However, the members’ combined market cap continued to make up more than 90% of the total market cap of Bursa. This shows that BRC members are truly the strongest among Corporate Malaysia.
The combined revenue of BRC 2018 members was
RM812.97 billion in FY2018, up from RM806.7 billion in FY2017 and RM744.1 billion in FY2016.
Collective pre-tax profit and net profit in FY2018, however, were lower at RM101.32 billion and RM73.37 billion respectively. For FY2017, collective pre-tax profit was RM123.19 billion while collective net profit was RM90.7 billion.
BRC members continued to be major taxpayers, contributing an estimated RM26.04 billion in taxes in FY2018, compared with RM32.5 billion in FY2017 (170 members). This continues to be about half of the government’s annual estimated corporate income tax collection.
Of the nine companies chosen as Company of The Year since the inaugural awards in 2010, eight have outperformed the FBM KLCI in terms of total shareholders’ returns.
We presented sectoral awards based on three financial performance measures:
For the Company of the Year award, we used a matrix of financial performance in the three categories and corporate responsibility initiatives on a weighted basis:
The Company of the Year award went to Press Metal Aluminium Holdings Bhd, whose market cap was RM1.17 billion when it became a BRC member in 2014. By end-2016, its market cap had grown to RM5.9 billion and a year later, it was RM20.7 billion. It is currently more than RM19.4 billion.
The Value Creator: Outstanding CEO of Malaysia award went to QL Resources Bhd executive chairman Dr Chia Song Kun, a true example of how education and ingenuity are key factors in determining an individual and his family’s chances of upward social mobility.
Last but not least, we present the Special Award for Contribution to Nation Building to The Employees Provident Fund, the guardian of retirement savings for all private-sector wage earners.The success of BRC as the benchmark awards for Corporate Malaysia would not have been possible without the support of our partners. I thank OCBC Bank, Jaeger-LeCoultre and Mercedes-Benz for their steadfast support of the BRC. This prestigious annual gathering would not have become Corporate Malaysia’s most-anticipated awards ceremony without these excellent partners.
Congratulations to all the winners.
Datuk Ho Kay Tat
Publisher & Group CEO
The Edge Media Group
Press Metal Aluminium Holdings Bhd won the coveted The Edge Billion Ringgit Club (BRC) Company of the Year award while QL Resources Bhd executive chairman Dr Chia Song Kun was named outstanding CEO and value creator.
Prime Minister Tun Dr Mahathir Mohamad graced the event, which started 10 years ago to honour Corporate Malaysia’s crème de la crème, with the aim of encouraging Malaysian companies to be even better at what they do, to grow, to invest, to create jobs as well as be socially responsible. It is hoped, that, in turn, will inspire others to excel.
“To be recognised and to win awards, companies must grow their profits, be more efficient, invest in technologies, exhibit high returns to shareholders through dividends and stock price,” The Edge Media Group chairman Datuk Tong Kooi Ong said in his welcome address.
A total of 60 awards were presented to
43 companies. A special award for contribution to nation building was presented to the Employees Provident Fund (EPF), whose chairman Tan Sri Samsudin Osman accepted the award from Dr Mahathir.
Chia and Press Metal group CEO Tan Sri Paul Koon Poh Keong also received awards from the prime minister, who was accompanied by Tong and The Edge Media Group publisher and CEO Datuk Ho Kay Tat.
Koon tells The Edge, “We feel very honoured, but this honour goes to all our employees, because they are the ones that contributed and made the company what it is today. So, a big thank you to all of them.
“We also believe that with the award and honour, we will continue to work harder to reward shareholders and the investors,” he adds.
After QL’s winning The Edge Billion Ringgit Club Company of the Year award in 2011, Chia says being made this year’s outstanding CEO and value creator is “out of [his] expectations”.
“I believe, with this award, we have to work harder to deliver and create more value for our stakeholders, especially for our country at this difficult time. We have to pay more tax and create more employment,” he says.
There are 168 The Edge BRC members this year, down from 170 last year. The all-time high was 185 in 2011.
At RM1.55 trillion, the total market capitalisation of the 168 companies was below RM1.69 trillion last year and RM1.59 trillion the year before, even as earnings came off. BRC members made a collective pre-tax profit of RM101.32 billion in financial year 2018 (FY2018), below RM123.19 billion in FY2017 and RM108.6 billion in FY2016. Collective net profit was RM73.37 billion, skidding from RM90.7 billion in FY2017 and RM81.6 billion in FY2016.
“While we will recognise many successful companies tonight, the hard truth is that over the past six years, many companies listed on Bursa Malaysia have not done well. This is evident by the continuous decline in profit margins,” said Tong, who also noted how Malaysian companies have not invested enough to become more efficient by embracing technologies and new opportunities so that profit margins will increase and the companies will be better placed to compete and remain competitive.
That said, BRC members continue to be major taxpayers, paying an estimated RM26.04 billion in taxes in FY2018.
The awards are in its 10th instalment this year. Companies with at least RM1 billion market capitalisation as at March 31 each year are added to the annual BRC membership list automatically and are evaluated on growth in profit, return to shareholders and corporate responsibility (CR) commitments, among others.
“Our awards like BRC are coveted by Corporate Malaysia because the methodology and criteria are transparent and independently audited — [they] cannot be bought,” Tong said. “[Just as The Edge is] trusted by our readers because we are credible and honest.”
Last year, Petronas Dagangan Bhd was named Company of the Year, trailing AirAsia Bhd which received the award in 2017. Nestlé (M) Bhd was the award recipient in 2016 while Tenaga Nasional Bhd won it in 2015. Prior to that, it was Dutch Lady Milk Industries Bhd (2014), Digi.Com Bhd (2013), Genting Bhd (2012), QL Resources Bhd (2011) and Supermax Corp Bhd (2010).
Past winners of the Value Creator: Outstanding CEO of Malaysia award are Public Bank Group chairman Tan Sri Teh Hong Piow, former CIMB group chairman Datuk Seri Nazir Razak, AMMB Holdings Bhd chairman Tan Sri Azman Hashim, AirAsia group CEO Tan Sri Tony Fernandes, former
S P Setia Bhd president and CEO Tan Sri Liew Kee Sin, former Malayan Banking Bhd president and CEO Tan Sri Abdul Wahid Omar, Axiata Group Bhd president and group CEO Tan Sri Jamaludin Ibrahim, Sunway Group chairman Tan Sri Jeffrey Cheah, Khazanah Nasional Bhd former managing director Tan Sri Azman Mokhtar, Westports Holdings Bhd executive chairman Tan Sri G Gnanalingam and Dialog Group Bhd executive chairman and co-founder Tan Sri Ngau Boon Keat.
OCBC Bank (M) Bhd, a key partner since the award’s inauguration in 2010, returns as the main sponsor.
“It’s been a decade now since we first started honouring the best of the best, and the winners have always been worthy of the high honours bestowed on them. Our heartiest congratulations to this year’s winners for going the distance and improving significantly on all counts, including the important area of sustainability. We must all continue to ride the crest of the wave we are on in order to be both viable and meaningful for the future,” OCBC Bank CEO Datuk Ong Eng Bin said, noting how the awards have grown to be recognised as the gold standard for showcasing Corporate Malaysia’s quest to mesh outstanding business acumen with sustainability, inclusiveness and corporate responsibility.
Mercedes-Benz Malaysia is the official car while Swiss luxury watchmaker Jaeger-LeCoultre is the supporting sponsor. The year’s outstanding CEO was presented with the Master Ultra Thin Réserve de Marche timepiece. Present at the dinner were Mercedes-Benz Malaysia president and CEO Dr Claus Weidner and Jaeger-LeCoultre managing director of Southeast Asia & Oceania Iñigo Ohlsson.
“I thank OCBC, Jaeger-LeCoultre and Mercedes-Benz for their steadfast support of the BRC. This prestigious annual gathering would not have become Corporate Malaysia’s most anticipated corporate awards ceremony without these excellent partners,” Ho said.
Details of the BRC members and award winners will be published in a special supplement next week.
Membership of this elite group is automatic and complimentary for all companies listed on Bursa Malaysia as at March 31, 2019, with at least RM1 billion in market capitalisation. There are 168 members in the club this year.
As recognition is the best reward for accomplishments, it is The Edge’s hope that the awards continue to encourage more companies to strive even harder for excellence.
The sectoral awards are:
The 17 categories are:
THE EDGE BRC SECTORAL CORPORATE AWARDS
To be eligible for the corporate awards, a BRC member must have been listed at least four calendar years before the end-March cut-off date in the current year, as companies are evaluated on their financial performance over three years.
The methodology for the corporate awards is both stringent and transparent, with the results audited by Deloitte Malaysia. The data used to determine the companies that qualify for The Edge BRC membership and winners of The Edge BRC Corporate Awards is provided by Asia Analytica Data Sdn Bhd.
Members eligible for the Highest Return on Equity Over Three Years and Highest Growth in Profit After Tax Over Three Years awards must be profitable every year throughout the evaluation period. For this year, the evaluation period is from FY2014 to FY2017. Calculation for PAT growth is also subject to a risk-weight factor component to recognise the importance of consistency in profit delivery throughout the evaluation period.
Winners for The Edge BRC Highest Returns to Shareholders award are judged purely based on total return, consisting of share price gains and dividends over a three-year period. The cut-off date this year was March 29.
The annual end-March cut-off date for BRC membership was unchanged due to the need to source CR information for the judges’ consideration.
Companies with scores within 0.5 point of each other are deemed to be of the same rank in determining the winner. There could, therefore, be cases of joint winners for the awards.
THE EDGE BRC BEST CR INITIATIVES AWARD
Eligible companies are evaluated by a panel of judges on their CR initiatives. The Edge BRC Best CR Initiatives award is presented to companies with the top average scores in three categories: Super Big Cap (companies with over RM40 billion in market capitalisation), Big Cap (companies with RM10 billion to RM40 billion in market capitalisation) and companies with less than RM10 billion market capitalisation. The panel is selected by The Edge and the evaluation criteria are based on the three focal areas spelt out by Bursa Malaysia’s Sustainability Reporting Guide for Public Listed Companies — economic, social and environmental. CR scores account for 30% of the evaluation for The Edge BRC Company of the Year award.
THE EDGE BRC COMPANY OF THE YEAR AWARD
The Edge BRC Company of the Year award recognises the year’s best company based on the following factors:
Evaluation component weightage to overall score
|Returns to shareholders over three years||20%|
|Growth in profit after tax over three years||30%|
|ROE over three years||20%|
|Corporate responsibility initiatives||30%|
VALUE CREATOR: OUTSTANDING CEO OF MALAYSIA
The winner(s) of this award is determined by The Edge based on an assessment of the person’s contribution to value creation for his/her company. Here, value creation is reflected in the company’s market valuation, return to shareholders and stakeholders, revenue and profit growth as well as employment creation. To be chosen, the CEO must have achieved outstanding success in all these areas. Assessment starts from when the person became CEO of the company. The Edge has absolute discretion in deciding on this exclusive award and can choose not to name a winner — as was the case in 2011 and 2015.
In 2010, the award went to Tan Sri Teh Hong Piow and Datuk Seri Nazir Razak for their outstanding contribution to their respective banking groups, Public Bank Bhd and CIMB Group Holdings Bhd.
In 2012, the recipients were AmBank Group founder and chairman Tan Sri Azman Hashim and AirAsia Bhd co-founder and group CEO Tan Sri Tony Fernandes. Azman remains a financier for all seasons, while Fernandes won for his role in transforming Asia’s aviation industry.
In 2013, the award went to Tan Sri Abdul Wahid Omar and Tan Sri Liew Kee Sin, former president and CEO of S P Setia Bhd. Abdul Wahid was recognised for his leadership during his tenure as CEO of Renong Bhd (2001 to 2004), Telekom Malaysia Bhd (2004 to 2008) and Malayan Banking Bhd (2008 to 2013), while Liew won for his contribution at S P Setia, a company he left in April 2015 (after about 18 years) for niche developer Eco World Development Holdings Bhd.
In 2014, the award went to Sunway Group founder and executive chairman Tan Sri Jeffrey Cheah and Axiata Group Bhd president and group CEO Tan Sri Jamaludin Ibrahim for having shown exemplary leadership in building businesses and creating value for all stakeholders.
In 2016, the award went to Khazanah Nasional Bhd managing director Tan Sri Azman Mokhtar, who was instrumental in not only transforming the institution but also the collective transformation of 20 government-linked companies across varied industries.
In 2017, the award went to self-made billionaire Tan Sri G Gnanalingam, executive chairman and co-founder of Westports Holdings Bhd. Regarded as Malaysia’s first home-grown marketing guru, “Tan Sri G” transformed backwater Pulau Indah into a transshipment hub that has also changed the livelihood of the locals.
Last year, the award went to Tan Sri Ngau Boon Keat, executive chairman and co-founder of Dialog Group Bhd. The passionate engineer, who helped negotiated Malaysia’s first production-sharing contract (PSC) with foreign oil companies back in 1974, steered Dialog from strength-to-strength the past decade while most oil and gas companies were ravaged as oil prices fell.