• Mixed subsidiary companies’ contributions tied to operating headwinds
• The Group to maintain operational discipline and margin resilience  

SHAH ALAM, Feb 27 (Bernama) -- Kumpulan Perangsang Selangor Berhad (“KPS Berhad” or “the Company” or “the Group”) (KPS, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) announced on 26 February 2026  its financial results for the fourth quarter ended 31 December 2025 (“4Q25”). KPS Berhad reported a lower revenue of RM262.3 million for the quarter, as a result of mixed performance across its subsidiary companies. Following the normalisation of foreign exchange gains that was recorded in the corresponding quarter last year, other income came in substantially lower, weighing in on the operating profit to RM4.8 million from RM26.7 million in the corresponding quarter last year (“4Q24”). Consequently, the profit after tax and zakat (“PAT”) stood at RM1.1 million for the quarter, compared with RM10.4 million in 4Q24. 

HIGHLIGHTS FOR THE QUARTER ENDED 31 DECEMBER 2025  

The operating environment reflected a period of recalibration across KPS Berhad’s value chains. Global demand remained measured during the quarter amid evolving trade policies, which continued to influence supply chain dynamics and consumer sentiment. Within the consumer electronics segment, demand recovery was uneven, with customers maintaining lean inventory positions at near just-in-time levels while pacing new product introductions in response to market visibility. In the packaging segment, competitive intensity heightened, particularly with increased participation from regional players, including China manufacturers. This resulted in more pronounced price competition and moderated sales traction across key segments.

To this effect, KPS Berhad posted a lower revenue of RM262.3 million for the fourth quarter of 2025, compared to RM274.5 million in the corresponding quarter last year. 

The manufacturing business contributed RM212.1 million to the Group’s revenue, down from RM232.1 million reported in 4Q24. Toyoplas Manufacturing (Malaysia) Sdn Bhd (“Toyoplas”) led revenue contribution this quarter with RM102.2 million. Although it managed to diversify its customer base and secured new projects, revenue slid 15% YoY from RM119.6 million. This was mainly due to its key end customer’s shifting its contract manufacturer selection, slowing down total sales. Thanks to a more diversified customer base and stronger sales in the electronics, communications and information technology segments, CPI (Penang) Sdn Bhd (“CPI”) delivered a steady revenue of RM56.6 million, edging from RM55.4 million previously. But revenue from MDS Advance Sdn Bhd (“MDS”) came in flat at RM4.5 million due to softer traction from the medical segment. 

Due to stiff competition, all segments within Century Bond Bhd (“CBB”) posted lower sales traction, altogether recording 7% lower revenue at RM48.8 million, from RM52.5 million previously. The most hit due to ongoing challenges in the sector were its carton and paper divisions.

The trading business, represented by Aqua-Flo Sdn Bhd (“Aqua-Flo”), contributed RM50.2 million to the Group revenue, reflecting a 19% YoY increase driven by higher traction from the miscellaneous projects and higher sales of water chemicals segments.

For the quarter under review, other income moderated to RM5.7 million, compared with RM25.2 million in the preceding corresponding quarter. This was primarily attributable to lower foreign exchange gains, which only amounted to RM2.0 million, as compared with RM14.6 million in 4Q24.  

The comparative variance in the other income was a result of previous-quarter tailwinds in foreign exchange fluctuation. The preceding period benefited from comparatively favourable exchange rate dynamics, which were not replicated in the quarter. Other income was also lower due to the absence of RM5.0 million profit guarantee recognised in the previous quarter. 

Other expenses correspondingly eased, reflecting lower foreign exchange losses of RM3.6 million. 

Nevertheless, the reduction in other incomes had a more pronounced impact, resulting in operating profit declining to RM4.8 million from RM26.7 million previously. Consequently, `PAT stood at RM1.1 million for the quarter, compared with RM10.4 million in 4Q24. The result largely reflects non-operational income fluctuations rather than a structural shift in the Group’s core business fundamentals. 

HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2025

Performance across KPS Berhad’s subsidiary companies reflected sectoral divergence during the year. The electronics, multimedia and communications segments recorded improved momentum, supported by new project wins from existing customers, underscoring sustained customer engagement and execution capability. The packaging segment, however, continued to operate in an oversupplied and highly competitive market environment, which moderated its contribution. Meanwhile, the trading division experienced softer activity levels, primarily due to lower water meter sales following the deferred commencement of the 2025 contract. 

Against this operating backdrop, the Group recorded revenue of RM1,043.4 million, marginally lower than RM1,064.7 million in FY2024. The manufacturing segment remained the principal revenue driver, contributing RM866.9 million (FY2024: RM882.4 million), while trading revenue moderated to RM176.5 million from RM178.3 million previously.

Other income normalised to RM42.3 million from RM59.2 million in FY2024, primarily due to lower foreign exchange gains and reduced interest income following the full redemption of the Sukuk in the prior year. Other expenses declined to RM164.5 million (FY2024: RM184.0 million), reflecting lower foreign exchange losses supported by strengthened hedging discipline. Consequently, operating profit eased to RM64.0 million, compared with RM66.5 million in FY2024. 

Finance costs declined significantly to RM7.8 million (FY2024: RM18.6 million), reflecting the Group’s strengthened capital structure following the Sukuk redemption. Although operating profit moderated yearon-year, the substantial reduction in financing costs more than offset the variance, translating into a materially stronger bottom-line outcome. Additionally, tax and zakat expenses decreased by RM18.7 million in 2025, mainly due to the absence of one-off withholding tax following the closure of Toyoplas Shanghai and a higher contribution from tax-exempt Toyoplas Vietnam. Consequently, PAT increased to RM43.4 million from RM19.1 million in FY2024. 

MANAGING DIRECTOR/GROUP CEO’S REVIEW OF PERFORMANCE 

During the quarter, customers continued to recalibrate production planning, inventory cycles and supplier allocations amid softer demand visibility. At the same time, pricing competition, with more assertive pricing behaviour shaping market dynamics in certain segments. These conditions were most evident at Toyoplas and CBB.

Toyoplas experienced lower volumes arising from customers’ production and inventory adjustments, alongside selective realignment of contract manufacturing allocations. While this resulted in near-term order moderation, its competitive positioning, manufacturing capabilities and operational track record remain firmly intact, as demonstrated by new customer wins and the onboarding of additional tiered projects despite weaker market sentiment. In packaging, CBB operated within a challenging environment characterised by elevated competitive pressure, particularly from China manufacturers, with the carton and paper divisions most affected. 

Notwithstanding these sector-specific pressures, CPI and MDS sustained steadier order flows, particularly within telecommunication and IT-related segments. Aqua-Flo, our trading business, also registered improved revenue traction from miscellaneous project sales. Our diversified portfolio continues to provide balance, offsetting sustained demand adjustments in certain segments with steadier contributions from others. We remain focused on disciplined execution, tight cost management and deepening customer partnerships, strengthening order visibility as conditions gradually improve. 

GROUP PROSPECT

Operating conditions ahead are expected to remain broadly consistent with the prior year, shaped by evolving trade policies and uneven recovery in global demand. Demand visibility is likely to remain measured, with customers maintaining lean inventory positions and cautious project rollouts. Pricing pressure, particularly within the packaging segment, is expected to persist amid ongoing competitive intensity. Against this backdrop, KPS Berhad shall continue to prioritise earnings resilience through disciplined operational efficiency improvement, prudent cost management, and selective customer acquisition. These efforts are aimed at ensuring margin resilience and reinforcing competitiveness in a still-uncertain operating environment. 

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

Name: Akil Mansiz
Investor Relations, Sustainability & Communications
Tel: +603 5524 8444
Email: akilmansiz@kps.com.my

--BERNAMA