Press Releases

• Revenue slid 14% due to softer demand and a stronger Ringgit
• Operating profit rose 17%, while PAT increased 36% 

Shah Alam, Malaysia, 27 August 2026 – Kumpulan Perangsang Selangor Berhad (“KPS Berhad” or “the Group”) (KPS, Bursa: 5843; Bloomberg: KUPS; Reuters: KPSB.KL) today announced its financial results for the second quarter ended 30 June 2026 (“2Q26”).

Amidst continued geopolitical uncertainty, softer consumer sentiment and measured procurement activity across the manufacturing sector, KPS Berhad recorded revenue of RM231.5 million for the quarter, 14% lower than RM268.8 million in the corresponding quarter last year (“2Q25”). Notwithstanding the softer topline, operating profit increased 17% to RM23.1 million, while profit after tax and zakat (“PAT”) rose 36% to RM17.7 million. 

HIGHLIGHTS FOR THE QUARTER ENDED 30 JUNE 2026 

The operating environment remained constrained during the quarter, shaped by uncertainty, softer global demand and ongoing supply chain adjustments. Purchasing behaviour remained tentative as customers managed inventory prudently and delayed product launches, while the stronger Ringgit against the US Dollar weighed on export competitiveness and the translation of USD-denominated sales, affecting the performance of the Group’s manufacturing subsidiary companies. 

Against this operating backdrop, Group revenue moderated 14% to RM231.5 million from RM268.8 million in 2Q25. The manufacturing business remained the Group’s main revenue contributor, generating RM191.4 million compared with RM227.4 million previously. 

Toyoplas Manufacturing (Malaysia) Sdn Bhd (“Toyoplas”) contributed RM83.6 million during the quarter, a 31% decrease from RM120.3 million in 2Q25. The decline was primarily due to softer demand and adjustments in contract manufacturing allocations by key customers in the consumer electronics segment. 

CPI recorded revenue of RM51.9 million, 5% lower than RM54.8 million in 2Q25. Stronger demand in the communications and information technology (“CIT”) segment was insufficient to offset more subdued activity across other segments, with performance further affected by the stronger Ringgit against the US Dollar. 

MDS Advance Sdn Bhd (“MDS Advance”) recorded revenue of RM5.2 million, compared with RM5.8 million in 2Q25, reflecting the continued normalisation of demand in selected medical programmes. This was partly mitigated by growth in the semiconductor segment, supported by higher demand for semiconductor equipment and AI-related infrastructure. 

Bucking the trend, Century Bond Bhd (“CBB”) sustained its positive momentum, recording revenue of RM50.7 million, a 9% increase from RM46.4 million in 2Q25. The improvement was aided mainly by stronger performance in its paper division, supported by higher sales volumes, improved selling prices and contributions from newly acquired food and beverage customers. This partly offset continued pricing pressure in the carton and offset divisions amidst intense competition within the packaging sector. 

The trading business, represented by Aqua-Flo Sdn Bhd (“Aqua-Flo”), recorded revenue of RM40.1 million, RM1.4 million lower YoY. Lower sales of chemicals and water meters were partly cushioned by higher sales of equipment and project-related activities. 

At the Group level, lower revenue weakened fixed-cost absorption, weighing on gross profit during the quarter. The impact was more than offset by a 54% increase in other income to RM13.1 million, mainly supported by an income distribution from Syarikat Pengeluaran Air Selangor Holdings Berhad (“SPLASH”), alongside lower other expenses. Consequently, operating profit increased 17% to RM23.1 million from RM19.8 million in 2Q25. 

Further down the income statement, PAT rose 36% to RM17.7 million from RM13.0 million, supported by a higher share of profit from associate companies, primarily contributed by NGC Energy Sdn Bhd, as well as lower finance costs during the quarter. 

HIGHLIGHTS FOR THE PERIOD ENDED 30 JUNE 2026

For the first half of 2026, the Group reported revenue of RM439.7 million, a 14% decrease from RM512.4 million in the corresponding period last year (“1H25”). The decline reflected lower contributions from all subsidiary companies except CBB, primarily due to softer consumer demand and adjustments in contract manufacturing allocations by Toyoplas’ key customers. 

Lower revenue and operating leverage weighed on profitability, although the impact was partly cushioned by higher other income and lower other expenses. Consequently, operating profit moderated 5% to RM31.7 million from RM33.5 million in 1H25.  Lower finance costs and a higher share of profit from associate companies provided further support to the bottom line. PAT ended the period at RM20.3 million, 4% lower than RM21.2 million in 1H25.  

MANAGING DIRECTOR/GROUP CEO’S REVIEW OF PERFORMANCE

Subdued end-market demand continued to influence customer inventory levels, product launches and supplier allocations during the quarter, particularly at Toyoplas. While these adjustments affected near-term volumes, they have not altered our focus on strengthening the quality and breadth of the Group’s customer base. Toyoplas continues to build its project pipeline across the consumer electronics, multimedia and communications segments, supported by its manufacturing capabilities, operational track record and established customer relationships.

Encouragingly, pockets of growth continued to emerge within the portfolio, including CPI’s CIT segment and MDS Advance’s semiconductor business, supported by new project wins. These provided some countervailing support against softer demand elsewhere in the manufacturing portfolio. Aqua-Flo also benefited from higher project-related activities, helping to mitigate the impact of lower water treatment chemical sales. 

In our packaging business, CBB’s paper division continued to benefit from increased demand arising from local infrastructure projects, alongside higher sales volumes, improved selling prices and contributions from newly acquired customers. This helped offset continued pricing pressure in other parts of the packaging business amidst intense competition within the sector.

While demand conditions remained challenging and costs for selected raw materials, resin-based inputs and logistics services remained elevated, our subsidiary companies continued to respond through customer diversification, new project wins and disciplined cost management. Progress was also made in passing through part of the higher costs to key customers, helping mitigate margin pressures and sustain the Group’s gross profit margin at 19%. 

GROUP PROSPECT

The Group expects market conditions to remain challenging amidst geopolitical developments, evolving trade policies and foreign exchange volatility. Demand visibility is expected to remain measured, particularly within selected manufacturing sectors, while pricing pressures are likely to persist.

Against this backdrop, the Group remains focused on improving operating fundamentals through customer diversification, expansion into higher-value market segments and disciplined cost management. Management will continue to preserve healthy cash flows and allocate capital selectively, while pursuing opportunities that strengthen the Group’s competitive positioning and longer-term earnings potential. 

-End-

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.

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