02 / LEADERSHIP STATEMENT 01 03 04 05 06 07 08 09 17 In parallel, to further expand our digital ecosystem, Kenanga Group has taken steps to enhance its investment in Kinetic DAX Sdn Bhd (formerly known as Tokenize Technology (M) Sdn Bhd) (“KDX”), a fully licensed and regulated digital exchange. We have increased our equity stake in KDX to 81.7%, reflecting our long‑term commitment to the development of digital and tokenised assets in Malaysia. We intend for KDX to form a core part of our digital asset journey, serving as a secondary market for listed tokenised assets. Over time, this is expected to facilitate 24/7 trading and fractional ownership of real‑world assets, broadening investor access and supporting our efforts to expand tokenised investment solutions within Malaysia’s capital markets. Alongside these strategic initiatives, the Group continued to emphasise operational efficiency and cost discipline. Key initiatives included optimisation across technology, selective use of offshore support and the centralisation of operational processes. These measures balanced cost control with operational stability, regulatory compliance and readiness to capitalise on strategic opportunities. SEGMENTAL REVIEW In 2025, the Group’s Stockbroking division navigated a year of softer market activity and heightened competition, particularly in the retail segment. It remained focused on sustaining market presence, deepening client relationships, and strengthening operational discipline, while implementing initiatives to enhance engagement and support long-term competitiveness. Amid these challenging conditions, the business broke-even, delivering a profit before tax of RM0.05 million in FY2025 compared with RM15.4 million in the prior year, reflecting the impact of subdued market activity. Despite the softer environment, the division maintained a retail segment market share of 25.1%, reflecting its leadership among active retail investors. Continued emphasis on cost discipline, recovery initiatives, and diversification of income streams also strengthened underlying financial resilience, helping to cushion market pressures and support operational stability. Furthermore, several initiatives contributed to stronger client engagement. The “Wake Up to Gold” campaign successfully reactivated 2,320 dormant accounts, against 670 in 2024, boosting retail activity across the client base. At the same time, branch rationalisation initiatives consolidated key operational processes at our headquarters, leveraging on digital platforms to streamline workflows. These measures allowed client-facing staff to focus more effectively on service delivery, supported by centralised operational resources, improving both efficiency and service quality. Frontline distribution capabilities were also strengthened through the selective hiring of additional remisiers and dealers, expanding client coverage and reinforcing its on-ground presence across key markets. The Equity Derivatives segment continued to be a key growth driver, retaining its position as Malaysia’s largest issuer of structured warrants. It ranked first in both equity and index warrants by traded value (RM127 billion), representing a market share of 52%. During the year, it launched its first Hang Seng China Enterprises Index structured warrants under its flagship brand, NagaWarrants by Kenanga. This marked a strategic expansion of its East Asia footprint, giving Malaysian investors diversified access to two (2) of Hong Kong’s most influential indices and new opportunities to tap into China’s financial and technology sectors. Following these efforts, the Stockbroking business continued to be recognised for its leadership and product excellence. Building on its multi-category wins at the Bursa Excellence Awards 2024, the division further strengthened its reputation through a series of accolades where it was named Best Retail Equities Participating Organisation: Investment Bank (Champion), Best Structured Warrants Issuer: Equity Warrants (Champion), and Best Structured Warrants Issuer: Index Warrants (Champion). At the FinanceAsia Awards 2025, it received the award for Most Innovative Use of Technology (Banks), reflecting its commitment to technology-enabled client solutions. The Global Banking & Finance Awards 2025 recognised the Stockbroking division across multiple categories, including Best Investment Bank Malaysia, Best Equity Broker Malaysia, Best Institutional Broker Malaysia, Best Market Maker Malaysia, Best Warrants Issuer Malaysia, and Best Research House Malaysia. Rounding off the year’s achievements, it was also honoured at the SRP Asia Pacific Awards 2025 with the award for Best Educational Initiative. GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS Stockbroking
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