Monday 26/05/2025

• Revenue Anchored by Stronger Performance from Toyoplas as New Projects Provide Traction
• Group Charts Strategic Path to Navigate Operating Uncertainties, Safeguarding Business Prospect

SHAH ALAM, Malaysia, May 26 (Bernama) -- Kumpulan Perangsang Selangor Berhad (“KPS Berhad” or “the Group”) (KPS, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) today announced its financial results for the first quarter ended 31 March 2025 (“1Q25”), reflecting a resilient operational performance amidst a challenging operating environment, posting a higher revenue of RM243.5 million. The operating profit almost doubled to RM13.7 million, supported by stronger contributions from its manufacturing business. The Group registered a profit after tax and zakat (“PAT”) of RM8.2 million, a turnaround from a loss position in the corresponding quarter in the previous year.

HIGHLIGHTS FOR THE QUARTER ENDED 31 MARCH 2025

Characterised by slower demand recovery and elevated input costs, the operating environment remained complex, with shifts in the US trade policies continuing to render the global economic activities languid and consumer sentiment dampened. For the Group, however, it was selectively opportunistic: Strong orders from new projects in consumer electronics and medical divisions had furthered growth at Toyoplas Manufacturing (Malaysia) Sdn Bhd (“Toyoplas”) and MDS Advance Sdn Bhd (“MDS Advance”), respectively. On the contrary, Century Bond Bhd (“CBB”) faced lower offtake, demand volatility, and further price competition.

KPS Berhad registered RM243.5 million in revenue, a steady increase from the corresponding quarter in the previous year (“1Q24”) of RM233.8 million, signalling the Group’s overall operational resilience despite a challenging operating landscape. Contributing 83.8% to the Group, the manufacturing business, which comprises Toyoplas, CPI, MDS Advance, and CBB, posted RM204.1 million in revenue, compared with RM192.6 million reported in 1Q24.

Toyoplas registered 43.1% topline growth, contributing RM100.6 million compared with RM70.3 million in the corresponding quarter last year. This was attributed mainly to stronger sales from the Malaysia and China operations, with most improvement seen in the consumer electronics and multimedia & communication segments as the new assembly projects it had secured last year started generating strong orders. MDS Advance signalled a recovery in the topline momentum, growing its revenue by 23.8% to RM5.2 million on the back of stronger performance by the medical division. At RM52.8 million, CPI delivered a level performance this quarter due to lower contribution by the engineering thermoplastics (“ETP”) as sales traction pressured and product launches delayed due to softer demand across all business segments except electronics. Lastly, CBB felt the brunt of the challenging operating environment, seeing its revenue slide by 29.7% to RM45.5 million due to slower market demand and high competition across all its business divisions.

A further RM39.4 million of the Group revenue was derived from the trading business, represented by Aqua-Flo Sdn Bhd (“Aqua-Flo”), whose revenue was supported by higher equipment sales and steady traction from water chemicals, water meters and miscellaneous sales.

For the quarter, other income eased to RM8.0 million from RM10.7 million, mainly due to lower interest income and foreign exchange gain from the strengthening US dollar during the quarter. Other expenses also eased to RM36.2 million from RM41.8 million, largely due to lower administrative expenses following the restructuring exercise in Toyoplas and a shift in the carton business model in CBB last year. Consequently, operating profit increased significantly to RM13.7 million from RM8.0 million previously. With the repayment of the SUKUK, finance costs were trimmed to RM2.3 million from RM6.3 million in 1Q24.

As a result, PAT turned around this quarter to RM8.2 million from a loss position of RM6.0 million in 1Q24.

MANAGING DIRECTOR/GROUP CEO’S PERSPECTIVE

“Recent shifts in U.S. trade policy have reshaped the global manufacturing landscape - fragmenting supply chains, disrupting long-established value chains, and increasing volatility in sourcing and production – collectively intensifying pressure on growth momentum.

However, the first quarter’s results underscored the resilience and adaptability of the Group business, particularly within the manufacturing segment, where Toyoplas and MDS Advance demonstrated growth momentum, and together with CPI, managed to sustain commendable profit margins. We have also secured new clients, broadening the customer base in key sectors. This validates the strategic decisions to streamline the operations and strengthen business development executed over the past years.

While we acknowledge that the performance across our subsidiaries has been mixed in the past quarters, with some areas facing headwinds, we are proactively implementing measures to address these challenges. Operationally, we have undertaken further consolidation exercises and business rationalisation activities to streamline production planning, as with the case of CBB. These structural changes are aimed at restoring competitiveness and shaping long-term profitability.”

GROUP PROSPECT

KPS Berhad is committed to ensuring the Group’s strategic and operational agility as well as financial stability while navigating the geopolitical and macroeconomic challenges that could continue to define the year.

Looking ahead, KPS Berhad shall remain focused on building a stronger, more resilient business through targeted strategic initiatives across its subsidiaries. This year, it will be stepping up the sales development efforts, aiming to expand its customer base further and diversify revenue streams across key markets. Capital expenditure will be allocated to enhance manufacturing capacity and capabilities to ensure operational readiness to meet evolving customer demands and scale future growth.

“These initiatives collectively reflect KPS Berhad’s commitment to sustainable value creation, operational discipline, and strategic agility in navigating both opportunities and challenges in the quarters ahead. To this effect, we are also actively reviewing our product mix to prioritise higher-margin offerings and exploring price adjustments where practicable. These actions will also be essential to capturing growth opportunities,” Ahmad Fariz commented on the Company’s strategic execution in 2025.

About Kumpulan Perangsang Selangor Berhad (www.kps.com.my)

Incorporated on 11 August 1975, Kumpulan Perangsang Selangor Berhad (“KPS Berhad” or “the Group”) is an investment holding company listed on the Main Market of Bursa Malaysia Securities Berhad under the Industrial Products & Services Sector. KPS Berhad has core investments in the Manufacturing sector. While enhancing shareholder value by optimising returns, KPS Berhad is committed to contributing to sustainable economic, environmental, and social development.

SOURCE: Kumpulan Perangsang Selangor Berhad

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Zul Mawardi
Investor Relations, Sustainability &
Communications
Tel: +603 5524 8444
Email: zul@kps.com.my

Name: Chng Geik Ling
Investor Relations, Sustainability &
Communications
Tel: +603 5524 8444
Email: chng@kps.com.my

--BERNAMA