Press Releases

• Revenue Supported by Aqua-Flo’s Consistent Performance
• Higher Contributions from Toyoplas’ Consumer Electronics and CPI’s Communications and Electronics Segments

Shah Alam, Malaysia, 28 February 2025 – Kumpulan Perangsang Selangor Berhad (“KPS Berhad” or “the Group”) (KPS, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) announced today a higher revenue of RM1,064.8 million for the fiscal year ended 31 December 2024, compared with RM1,046.1 million recorded in the same period last year (“FY2023”). The operating profit rose from RM38.8 million to RM121.0 million, mainly because of the gains from the divestment of 50% of its equity stake in Kaiserkorp Corporation Sdn Bhd (“Kaiserkorp”) in March 2024. Consequently, the Group’s profit after tax and zakat (“PAT”) leapt to RM73.1 million from RM1.4 million in the corresponding period last year.

HIGHLIGHT FOR THE QUARTER ENDED 31 DECEMBER 2024

KPS Berhad registered RM274.6 million in revenue for the quarter ended 31 December 2024, slightly higher than the RM273.5 million it recorded in the corresponding quarter last year (“Q4’23”), reflecting a more sanguine segmental performance across its subsidiaries despite challenging market conditions.

Contributing 84.6% to the Group revenue, the manufacturing business, which comprises Toyoplas Manufacturing (Malaysia) Sdn Bhd (“Toyoplas”), CPI (Penang) Sdn Bhd (“CPI”), MDS Advance Sdn Bhd (“MDS Advance”), and Century Bond Bhd (“CBB”), posted RM232.2 million, compared with RM230.8 million reported in Q4’23.

Toyoplas remained the highest contributor to the Group; its revenue increased by RM13.4 million to RM119.1 million compared with the corresponding quarter last year. This was mainly attributed to improved sales from its consumer electronics segment, supported by the new assembly project it secured in 2024. CPI’s revenue also improved by RM4.9 million to RM55.4 million due to improved sales across all business segments except communications and information technology and automotive segments.

Meanwhile, CBB’s contribution came in lower by RM15.8 million YoY to RM53.0 million on reduced order volume, which resulted from the competition in the packaging market and nearshoring activities by its customers in the previous quarters. Similarly, due to persistent weaker demand in certain healthcare sectors, which resulted from customer overstocking and cautious inventory control measures, MDS Advance's contribution also came in lower by RM0.8 million YoY to RM4.9 million this quarter.

The trading business, represented by Aqua-Flo Sdn Bhd (“Aqua-Flo”), contributed RM42.3 million to the Group revenue, reflecting a 5% YoY increase driven by higher sales of water chemicals. The infrastructure business contributed the remaining RM0.1 million in revenue.

For the quarter, other income rose to RM22.4 million from RM18.9 million, mainly due to foreign exchange gain from the strengthening US dollar during the quarter. Other expenses eased to RM44.2 million from RM54.2 million, largely due to the absence of restructuring expenses incurred by Toyoplas in FY2023. Consequently, operating profit increased significantly to RM27.4 million from RM2.9 million previously. With the repayment of borrowing ongoing, the Group reduced its finance costs by RM4.1 million.

As a result, PAT turned around to RM10.7 million from a loss position of RM5.9 million previously. Having adjusted for Tax and Zakat and non-controlling interests, the Group’s Profit Attributable to Owners of the Parent (“PATAMI”) surged to RM12.2 million, compared with the RM5.9 million losses it recorded in Q4’23.

HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2024

The momentum of KPS Berhad’s business activity varied across countries and sectors, due to elevated inflationary pressure, which slowed economic activities. Weaker consumer sentiment from industrially dependent countries dampened demand in the packaging and metal machining business. In addition, customer overstocking in certain healthcare sectors led to lower revenue traction. Reflecting these challenges that were prevalent during the year, the Group reported only a marginal 1.8% increase in revenue to RM1,064.8 million from RM1,046.1 million recorded in the previous year.

The manufacturing business anchored the Group revenue with RM882.5 million, or 82.9%, to the total revenue, with an RM4.9 million increase compared with FY2023’s RM877.6 million. Meanwhile, the trading sector business contributed RM178.3 million, or 16.7% of the Group revenue, an increase of RM18.2 million compared to the previous year’s RM160.1 million. The remaining revenue contribution was from the infrastructure and property investment businesses, amounting to RM4.0 million.

For the year, other income increased to RM163.0 million from RM73.0 million registered in the previous year, driven by the gain from the disposal of a 50% equity stake in Kaiserkorp. Other expenses increased to RM233.4 million from RM203.5 million in FY2023, primarily due to the implementation of a long-term incentive plan. Consequently, the Group's operating profit rose to RM121.0 million compared to RM38.8 million in FY2023. KPS Berhad reduced finance costs by RM8.1 million for the year with the repayment of Sukuk by utilising the proceeds from the divestment of a 50% equity stake in Kaiserkorp and the disposal of Plaza Perangsang. Finally, the share of profit from the associates was higher by RM1.0 million, mainly due to higher contributions from NGC Energy Sdn Bhd following additional traction from the launch of its new product.

Correspondingly, the Group reported a higher PAT of RM73.1 million, a significant increase from RM1.4 million recorded in the previous year. Similarly, PATAMI turned around significantly to RM71.9 million from the previous year's loss of RM1.6 million.

MANAGING DIRECTOR/GROUP CEO’S PERSPECTIVE

“Our results this year reflect a strong focus on optimising our business operations and a disciplined approach to capital management. While we are pleased with the boost to our bottom line from the strategic sale, we recognise the need to strengthen core operational performance, realign our businesses with evolving market demands and position KPS Berhad for sustained competitiveness. We remain committed to navigating the current environment with resilient aspirations and long-term strategy in place, positioning us well to capture opportunities as business dynamics stabilise.

Operationally, we undertook further consolidation exercises and business rationalisation activities to streamline production planning. We continued to execute our value creation plan, with our subsidiary companies strengthening product offerings, with a heightened emphasis on higher-margin products, rigorous operational improvements and prudent cost management. Additionally, we broadened the customer base in new industries, securing new clients in more robust and non-cyclical sectors.”

GROUP PROSPECT

Notwithstanding the macroeconomic challenges that could define the year – some that might stem from recent shifts in the US foreign policy which introduce a range of risks, from input costs and supply chain stability to inflation and, ultimately, growth - KPS Berhad remains steadfast in ensuring strategic and operational agility and the Group’s financial stability. Its aim at enhancing shareholders' value remains resolute, with measures continually being taken to foster the fundamentals to position the Group for stronger business prospects in anticipation of gradual economic recovery and revival in consumer sentiment over the long term.

“Improving core profitability is a top priority. To address the operational challenges, we are focusing on several key initiatives: enhancing operational efficiencies and capabilities, streamlining processes, and driving cost discipline across all subsidiaries. We are also actively reviewing our product mix to prioritise higher-margin offerings and exploring price adjustments where market conditions allow. We shall continue to strengthen our customer base, at the same time investing in incremental innovation, automation, and technology to improve productivity and reduce reliance on volatile inputs. These actions will be essential to building a more resilient and profitable business, as well as shaping long-term growth opportunities,” Ahmad Fariz commented on the Company’s strategic execution in 2025.

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

Incorporated on 11 August 1975, Kumpulan Perangsang Selangor Berhad (“KPS Berhad” or “the Group”) is a global 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 toward sustainable economic, environmental, and social development.

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