New management, new game plan for MMAG

MMAG Holdings Bhd has announced several major corporate developments in the past couple of months.

First and foremost, its reclassification from the technology sector to the transportation and logistics sector on Bursa Malaysia, effective this month.

The move is apt, as the company’s main revenue stream these days comes from its logistics-related operations.

Its decision to move into the air cargo business some four years ago is starting to pay off, which must be welcome news for its long-suffering minority shareholders.

After 10 consecutive years of losses, MMAG turned profitable in the past six financial months following its transformation into an air cargo carrier, now operating a fleet of seven aircraft, supported by its third- and fourth-party logistics services.

For its most recent first quarter ended Dec 31, 2024, the company posted a net profit of RM25.4mil, with two thirds of the revenue generated by its air freight services.

Formerly known as Ingenuity Consolidated Bhd, MMAG’s share price has more than doubled in the past six trading months, reaching 54 sen per share at the time of writing.

Another significant development for the company is the emergence of new major shareholders in March.

Tech firm NexG Bhd (formerly Datasonic Group Bhd) acquired a 9.53% stake, or 220 million shares, in MMAG from major shareholder Chan Swee Ying, according to filings with Bursa Malaysia.

The shares were acquired at about 40 sen a piece.

Velocity Capital Partner Bhd also emerged as a shareholder after buying 150 million shares from Chan in March, at 40 sen per share, totalling RM60mil in cash.

In addition, former political aide to Prime Minister Datuk Seri Anwar Ibrahim and Perak PKR chief, Datuk Farhash Wafa Salvador, emerged as a new shareholder in MMAG, acquiring a 20% stake in the company.

He has since been appointed chairman.

With these changes in ownership, the new shareholders have taken control of the company’s management.

Investors in general will be keeping an eye on the company to see how they take the company forward in these trying times, particularly with the headwinds created by US President Donald Trump’s tariffs, which are expected to impact trade and cargo movements for months to come.