- Performance Supported by Operational Resilience at Toyoplas, Better Product Mix at MDS Advance, Improved Cost Structure at CBB
- PAT Rises 28% YoY on Lower Finance Costs Following Sukuk Repayment in the Previous Year
SHAH ALAM, Malaysia, Aug 29 (Bernama) -- Kumpulan Perangsang Selangor Berhad (“KPS Berhad” or “the Group”) (KPS, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) yesterday announced its financial results for the second quarter ended 30 June 2025 (“2Q25”). KPS Berhad reported a lower revenue of RM268.8 million for the quarter, compared to RM280.7 million in the corresponding quarter last year (“2Q24”), reflecting mixed performance across its subsidiary companies. In line with the moderating lower topline momentum, operating profit trailed lower year-on-year (“YoY”) to RM19.8 million from RM20.6 million, despite a more favourable product mix and an optimised cost structure. The Group posted a higher profit after tax and zakat (“PAT”) of RM13.0 million, up from RM10.1 million in 2Q24, driven by lower finance costs.
HIGHLIGHTS FOR THE QUARTER ENDED 30 JUNE 2025 The operating environment and consumer sentiment remained affected by ongoing uncertainties surrounding US trade policies, disrupting the supply chain with increased volatility across various industries. While demand improved in sectors such as consumer electronics, semiconductors and selected areas of healthcare, growth in automotive, communications, and IT remained subdued. Additionally, the packaging sector continued to face challenges from oversupply, leading to heightened price competition as companies sought to maintain market share. As a result, KPS Berhad recorded a lower revenue of RM268.8 million for the second quarter of 2025, posting a 4% decline compared to RM280.7 million in the same quarter last year.
The
manufacturing business remained the backbone of the Group’s performance, contributing RM227.4 million or 85% of total revenue, up from RM225.4 million in 2Q24. Toyoplas Manufacturing (Malaysia) Sdn Bhd (“Toyoplas”) led the charge with an RM11.5 million increase in revenue YoY to RM120.3 million, with improved performance across all its plants in Malaysia, China, Indonesia, and Vietnam, further supported by sustained demand in consumer electronics. MDS Advance Sdn Bhd (“MDS Advance”) posted a RM2.5 million revenue uplift YoY to RM5.8 million, driven by improvements in its medical and semiconductor divisions, signalling a gradual recovery from the key customer’s overstocking status.
Meanwhile, CPI (Penang) Sdn Bhd (“CPI”) reported a flat revenue of RM54.8 million with weaker sales across most segments, albeit the electronics consumer segment demonstrated continued resilience. Century Bond Bhd (“CBB”) faced ongoing challenges in an oversupplied market, which took a toll on the revenue, seeing the traction pruned by RM10.1 million YoY to RM46.5 million due to subdued performance across all divisions.
The remaining revenue was derived from the
trading business, represented by Aqua-Flo Sdn Bhd (“Aqua-Flo”). The company reported revenue of RM41.5 million this quarter, down from RM53.4 million in 2Q24. This decline was mainly due to lower contributions from the water meter division following the full utilisation of its contract with Pengurusan Air Selangor Sdn Bhd in 2024, along with reduced sales of water chemicals owing to the dry season.
This quarter saw stronger contributions from Toyoplas, driven by stable demand and improved operational efficiency, and from MDS Advance, which was supported by a more favourable product mix, altogether supporting higher gross profit margins. Furthermore, environmental savings from solar energy adoption at Toyoplas and CPI helped cushion electricity costs, while the improved cost structure following business streamlining efforts at the carton and offset divisions reduced administrative expenses at CBB. While operational achievements were evident, the Group recorded a YoY net foreign exchange loss and inventory impairment. This resulted in the operating profit reflecting a more moderate level of RM19.8 million.
Despite recording an RM0.2 million loss from associates this quarter, stemming from reduced contributions across their business segments, KPS Berhad saw its PAT rise to RM13.0 million, up from RM10.1 million in the same period last year. This increase was primarily attributed to a RM4.2 million reduction in finance costs YoY, following the full settlement of Sukuk in the second half of 2024.
HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2025 In the first half of 2025, the Group reported revenue of RM512.4 million, reflecting a marginal decrease of RM2.2 million compared to the corresponding period in 2024 (“1H24”). This was attributable to lower contributions from CBB and Aqua-Flo, partially offset by stronger performances from Toyoplas and MDS Advance. Despite this slight decline in revenue, the Group’s operating profit rose to RM33.5 million from RM28.6 million in 1H24, driven by Toyoplas outperformance, enhanced operational efficiency and improved cost structure. As a result, PAT increased significantly to RM21.2 million from RM4.1 million in the prior year period, further supported by reduced finance costs of RM8.2 million following the full settlement of the Sukuk.
MANAGING DIRECTOR/GROUP CEO’S REVIEW OF PERFORMANCE "The Group’s topline this quarter showcased the strength of our diversified portfolio, with stronger contributions from certain subsidiaries demonstrating resilience and growth, even as others navigated more challenging market conditions. This performance reflects the varied dynamics across our operating segments. Despite the uneven operational momentum, the Group recorded a stronger bottom line, supported by the marked reduction in finance costs following last year’s debt-paring exercise. This improvement underscores the robustness of our financial structure and affirms the effectiveness of our capital management strategy in enhancing profitability.
Operationally, our manufacturing subsidiaries have secured multiple projects with both existing and new clients, domestically and within the region. While the Group continues to face market challenges arising from uncertainties in US trade policies, escalating labour and electricity costs, as well as customer-driven cost-down requests, KPS Berhad’s high-performing businesses have demonstrated resilience, particularly through a more favourable product mix that has contributed to higher margins. At the same time, the Group is actively addressing underperforming units, for example, by streamlining operations at CBB, which are aimed at restoring efficiency and mitigating the impact of oversupply in the packaging sector.
We shall continue to prioritise strengthening the Group's fundamentals. Our focus will be on operational efficiency, resource consolidation, and disciplined execution to sustain competitiveness. Supported by improved financial flexibility, the Group is well-positioned to navigate sectoral challenges while advancing sustainable value creation for shareholders and stakeholders.”
GROUP PROSPECT While market demand remains uncertain, externally influenced by shifting US trade policies, broader geopolitical tensions, and domestically shaped by ad hoc customer requirements, pricing pressures, and intense industry competition, KPS Berhad continues to navigate volatility through targeted strategic initiatives across its subsidiaries. Also, to further enhance resilience, KPS Berhad continues to optimise cost structures through leaner operations, resource efficiency initiatives, and the adoption of renewable energy solutions that reduce overheads while supporting its ESG commitments. Collectively, these efforts are designed to safeguard earnings stability, reinforce competitiveness, and deliver long-term sustainable value to shareholders.
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: Chng Geik Ling
Investor Relations, Sustainability &
Communications
Tel: +603 5524 8444
Email: chng@kps.com.my
Akil Mansiz
Investor Relations, Sustainability &
Communications
Tel: +603 5524 8444
Email: akilmansiz@kps.com.my
--BERNAMA
