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The Sun
7 days ago
- Business
- The Sun
Winstar Capital to expand production capacity with 4 lines at new RM14.5m plant
KUALA LUMPUR: Winstar Capital Bhd's new facility, currently under construction in Ijok, Selangor, will boost annual manufacturing capacity to 15,285 tonnes from 6,705 tonnes. The target will be achieved through the acquisition of four additional aluminium extrusion lines. 'The new facility and the acquisition of four additional aluminium extrusion lines are part of our growth strategy, which will significantly boost our production capacity. This expansion is a key step in meeting rising demand and strengthening our market position,' Winstar Capital CEO Chua Boon Hong told reporters after the company's annual general meeting today. Winstar Capital has commenced construction of a manufacturing facility adjacent to its existing plant in Ijok, aiming to support its growth ambitions and meet rising demand. Known as the Lot 903 Facility, the new site, with an estimated cost of RM14.50 million, spans some 80,000 square feet and is designed to accommodate four aluminium extrusion lines along with expanded storage space. Chua said the expansion is progressing well under the original schedule, despite the current tariff episode created by the US government, which has disrupted the global supply chain. 'We anticipate stronger demand coming from our customers towards the end of 2025. We are likely to bring forward the installation of another two new aluminium extrusion lines by the first quarter of 2026, instead of only installing them in the second quarter of 2026,' he added. The new facility is financed through a combination of bank borrowings and internally generated funds, of which RM11.6 million in loans have been secured. In its presentation, Winstar Capital noted that the strategic expansion will boost the group's operational efficiency. Construction began in April 2024 with operations expected to commence by the third quarter of this year. The estimated cost of acquiring the new extrusion lines is RM9.55 million, which will be funded primarily with the proceeds from its public issue. Should there be any shortfall, the group intends to cover the additional costs using bank borrowings and internally generated funds. Chua said, 'With this expansion, we will be able to offer a broader range of extruded aluminium profiles to meet the diverse needs of our customers. As of Dec 31, 2024, we had a total of approximately 5,954 stock-keeping units for our aluminium extrusion segment and the trading and distribution of building materials segment.' He said that with higher tariffs imposed on Chinese aluminium product manufacturers by the US government, Winstar Capital has received a growing number of inquiries from potential European and US customers considering purchasing aluminium products from Malaysian manufacturers. 'Many of them are actively looking for alternative suppliers in Southeast Asia to reduce their overreliance on Chinese manufacturers. This shift in global sourcing is creating new opportunities for us,' Chua stated. Winstar Capital recorded revenue of RM203.39 million for FY24, marking an increase of RM49.7 million or 32.3% compared to RM153.69 million in FY23. The increase was mainly attributable to higher revenue from the aluminium extrusion segment, which rose by RM32.84 million, mainly due to greater demand from customers in the construction and property development industries. In tandem with the revenue growth, the group's gross profit increased by RM6 million, or 19.8%, from RM30.35 million in FY23 to RM36.35 million in FY24. Despite the increase in gross profit, Winstar Capital reported a decrease in profit before tax (PBT) by RM2.09 million, or 17.8%, from RM11.72 million in FY23 to RM9.63 million in FY24. The PBT margin decreased from 7.6% in FY23 to 4.7% in FY24.
The Sun
24-04-2025
- Business
- The Sun
AME REIT Q4 rental income rises to RM13m
JOHOR BHARU: Industrial REIT AME Real Estate Investment Trust (AME REIT) delivered a 4.6% growth in rental income to RM13.1 million for the fourth quarter ended March 31, 2025 (Q4'25) from RM12.5 million in the previous corresponding quarter. The higher rental income supported a 1.6% increase in net property income (NPI) to RM11.6 million compared to RM11.4 million previously. The improved performance was mainly driven by income contributions from the acquisitions of two fully-leased industrial properties during Q4'25. For the 12 months ended March 31, 2025 (FY25), AME REIT generated total rental income of RM50.9 million, a 6% increase from RM48 million in the previous year, and NPI of RM46.4 million, rising 4.5% from RM44.4 million previously. AME REIT, in a statement said it will distribute RM9.7 million in distributable income for Q4'25, equivalent to a distribution per unit (DPU) of 1.83 sen. The distributable income is adjusted for gain in fair value of investment properties less deferred tax expenses, unbilled lease income receivables, management fees payable in units, and amortisation of capitalised financing costs. The Q4'25 income distribution is payable on May 30, 2025 to unitholders whose names appear in the Record of Depositors of AME REIT at the close of business on May 9, 2025. Total income distribution for FY25 will amount to RM39.2 million, representing 99.99% of distributable income for the year and resulting in a DPU of 7.43 sen. I REIT Managers Sdn Bhd CEO and executive director Chan Wai Leo said: 'AME REIT's Q4'25 performance reflects the positive impact of our accretive acquisitions, supporting stable rental income growth and consistent returns to unitholders. Our growth will be further fuelled by the ongoing purchase of five more fully-leased industrial properties in Iskandar Malaysia for a total purchase consideration of RM147.8 million from our sponsor AME Elite Consortium Bhd. The acquisitions, comprising 460,267 sq ft of ALA, are expected to be completed in phases between the third quarter of 2025 and the first quarter of 2026.' Going forward, he added they are focused on continued expansion in the Malaysian industrial property market to optimise sustainable long-term returns. AME REIT's portfolio includes 39 properties — 36 industrial units with 2.1 million sq ft of lettable space, and 3 industrial-related assets. Most are located in AME Group's industrial parks in Iskandar Malaysia. As at March 31, 2025, AME REIT's properties under management are valued at RM773.5 million.
New Straits Times
24-04-2025
- Business
- New Straits Times
Malaysia risks RM11.6bil loss without swift trade action, economists warn
KUALA LUMPUR: Malaysia must take bold and strategic action to safeguard its economic future by deepening trade ties and reinforcing economic resilience, economists said. In response to the International Monetary Fund's (IMF) downward revision of Malaysia's economic growth forecast, economist Dr Geoffrey Williams warned that without timely and effective policy responses, the country risks losing as much as RM11.6 billion in economic value. "The downgrade is the cost of not getting a deal with the US through positive negotiations to reduce the trade barriers," he told Business Times. "To mitigate this loss, Malaysia must focus on getting a deal to reduce or remove the 24 per cent reciprocal tariff and hopefully globally reduce the 10 per cent baseline tariff along with other countries," he added. Williams said while the decision to rule out retaliatory tariffs is a positive step, adopting a stance that denies the existence of trade barriers, delays efforts to address US concerns, or defends domestic industries by maintaining those barriers could prove costly, potentially resulting in billions in lost economic value. He added that diversifying markets and exploring new export products is a solid long-term strategy but will take too long to mitigate the economic costs this year and next year. "So the strategy must be to negotiate positively in the remainder of the 90 days pause. This means cutting trade barriers into the Malaysian market. "It is most likely that other countries will cut trade barriers and get a deal so Malaysia must follow that route. This will boost global free trade and may deliver positive outcomes for everyone," he said. The IMF revised its outlook for Malaysia's economic growth, lowering its real gross domestic product (GDP) forecast for 2025 to 4.1 per cent from the earlier estimate of 4.7 per cent. This was part of a wider downgrade across the region. For 2026, Malaysia's growth is now projected at 3.8 per cent. Globally, the IMF trimmed its 2025 growth forecast to 2.8 per cent, a 0.5 percentage point decline from its January estimate. According to the IMF, major shifts in policy are reshaping global trade and reigniting uncertainty, posing fresh challenges to the global economy. "Since February, the US has introduced several rounds of tariffs targeting key trading partners, prompting retaliatory measures in some cases," IMF said in its April 2025 World Economic Outlook titled "A Critical Juncture amid Policy Shifts". "Markets initially responded calmly, but the sweeping tariff imposition on April 2 led to sharp declines in major stock indices and a surge in bond yields. A partial market recovery followed after pauses and policy carve-outs were introduced from April 9." The IMF emphasised that the global economy remains at a pivotal point. Although signs of stabilisation emerged throughout 2024 following years of volatility and disruption, challenges persist. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said Malaysia should expand trade with emerging markets in the Middle East, Africa, Latin America and the European Union to reduce reliance on traditional partners like China and the US. He pointed out that the Middle East and North Africa (Mena) region is projected to grow 3.4 per cent in 2025 and 4.1 per cent in 2026, offering opportunities for Malaysia's electronics and palm oil exports. Similarly, Latin America's growth is expected to rise to 2.5 per cent in 2025, supported by robust domestic demand, making it a viable market for Malaysia's manufactured goods. "Countries to export goods leveraging their abundant resources, such as Malaysia's electronics and commodities, to diverse markets, thus spreading risk and boosting resilience," he added. To enhance export competitiveness, Sedek said the country must shift toward high-value-added products, particularly in electronics, green technology and digital industries. The nation also should strengthen diplomatic ties within Asean and with Middle Eastern partners as global trade increasingly shifts toward friendshoring, favoring trade with allied nations. Asean's growth is projected at 4.6 per cent in 2024 and 4.4 per cent in 2025, contributing significantly to global growth. Sedek said Malaysia's strategic position within Asean and initiatives like the Indonesia-Malaysia-Thailand Growth Triangle enhance regional trade integration. "Diplomatically, Malaysia's balanced approach in navigating US-China trade tensions has bolstered its trade relationships, with exports to both nations rising despite global tensions. "By deepening Asean integration and pursuing trade agreements with Gulf Cooperation Council countries, Malaysia can secure stable markets, mitigating risks from geoeconomic fragmentation," he said. Sedek also suggested that the country should focus on boosting domestic demand and reducing its reliance on foreign investment and trade to better cushion against external shocks. He said Madani Economy framework and 2025 Budget prioritise fiscal consolidation, with the fiscal deficit reduced to 4.3 per cent of GDP in 2024, freeing up resources for social spending and infrastructure. "Adopting Keynesian economic principles, Malaysia should continue with targeted fiscal stimulus, such as subsidies for vulnerable communities and investments in digital infrastructure, to boost domestic consumption. "While complete self-sufficiency may be impractical, reducing dependence on foreign capital can be achieved through policies like the National Energy Transition Roadmap, which aims to attract domestic and regional investment in sustainable industries," Sedek added.
