30/05/2025

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FRIDAY | MAY 30, 2025

Winstar Capital’s production capacity to more than double

pharmaceuticals reflects our confi dence in resilient, high-growth sectors. We also see potential in highly niche and innovative enter prises such as Mizou, with their proprietary technology supporting the palm oil sector, which is vital to the Malaysian economy,“ he said. The company will remain focused on strategic capital deployment, sector-driven value creation and expanding its offering to include more agile capital solutions. – Bernama Asean Private Markets Association set to be formalised by year-end: Nazir KUALA LUMPUR: The Asean-Business Advisory Council (Asean-BAC) is in the process of establishing the Asean Private Markets Association, expected to be formalised by year-end. Asean-BAC Malaysia chairman Tan Sri Nazir Razak said a pro tem committee comprising members from Malaysia, Singapore, Thailand and Indonesia is working towards the association’s formal establishment. “The idea is to create a platform to advise governments on enhancing policies to develop the private markets industry, including venture capital and private equity across Asean,” he told reporters after delivering his wel coming address at the Asean Business Forum 2025 here yesterday. Nazir said the association could help overcome market fragmentation issues and drive the region’s industry development. “We estimate that up to US$60 billion (RM254.6 billion) in capital should be channelled to Asean private equity and venture funds, but certain reforms are needed to reduce market fragmentation and improve conditions for investment monetisation,” he added. According to Nazir, the council conducted a research report with McKinsey, which shows Asean private markets are underdeveloped, esti mated at only 0.5% of gross domestic product (GDP), compared to the global benchmark average of 1.5% of GDP. “The report shows that the private markets industry is extremely im portant to the economy but remains too small in Asean,” he said. On another note, Nazir said Asean stands at a pivotal moment and hopes the region can move forward with economic integration. “This year at Asean-BAC, our priorities and activities have been carefully designed to capture the essence of the current opportunities and challenges confronting us. “We have strived to facilitate dialogues, forge partnerships and propose actionable recommendations that will empower Asean businesses to capitalise on growing intra-regional collaboration, and to lead in adopting cutting-edge technologies and sus tainable practices,” he added. – Bernama

o Four aluminium extrusion lines will be installed at new RM14.5 million manufacturing plant

Ű BY JOHN GILBERT sunbiz@thesundaily.com

KUALA LUMPUR: Winstar Capital Bhd’s new facility, currently under construction in Ijok, Selangor, will boost annual manufacturing capacity to 15,285 tonnes from 6,705 tonnes. The target will be achieved through the acquisition of four additional aluminium extrusion lines. “The new facility and the acquisition of four additional aluminium extrusion lines are part of our growth strategy, which will significantly boost our production capacity. This expansion is a key step in meeting rising demand and strengthening our market posi tion,” Winstar Capital CEO Chua Boon Hong told reporters after the company’s annual general meeting yesterday. Winstar Capital has started construction of a manufacturing facility adjacent to its existing plant in Ijok, aiming to support its growth ambitions and meet rising demand. Known as the Lot 903 Facility, the new site, with an estimated cost of RM14.5 million, spans some 80,000 square feet and is designed to accommodate four aluminium extrusion lines along with ex panded storage space. Chua said the expansion is progressing well under the original schedule, despite the current tariff episode created by the US government, which has disrupted the global supply chain. “We anticipate stronger demand coming from our customers towards the end of 2025. We are

From left: Winstar Capital chief operating officer Lee Yong Zhi, Chua and chief financial officer Sheng Toi Sei.

Winstar recorded revenue of RM203.39 million for FY24, marking an increase of RM49.7 million or 32.3% compared to RM153.69 million in FY23. The increase was mainly attributable to higher revenue from the aluminium extrusion segment, which rose by RM32.84 million, mainly due to greater demand from customers in the cons truction and property develop ment industries. In tandem with the revenue growth, the group’s gross profit increased by RM6 million, or 19.8%, from RM30.35 million in FY23 to RM36.35 million in FY24. Despite the increase in gross profit, Winstar Capital reported a decrease in profit before tax (PBT) by RM2.09 million, or 17.8%, from RM11.72 million in FY23 to RM9.63 million in FY24. The PBT margin decreased from 7.6% in FY23 to 4.7% in FY24. Capital

generated funds. Chua said, “With this ex pansion, we will be able to offer a broader range of extruded alumi nium profiles to meet the diverse needs of our customers. As of Dec 31, 2024, we had a total of approximately 5,954 stock-keeping units for our aluminium extrusion segment and the trading and distribution of building materials segment.” He said that with higher tariffs imposed on Chinese aluminium product manufacturers by the US government, Winstar Capital has received a growing number of inquiries from potential European and US customers considering purchasing aluminium products from Malaysian manufacturers. “Many of them are actively looking for alternative suppliers in Southeast Asia to reduce their overreliance on Chinese manu facturers. This shift in global sourcing is creating new oppor tunities for us,” Chua stated.

likely to bring forward the installation of another two new aluminium extrusion lines by the first quarter of 2026, instead of only installing them in the second quarter of 2026,” he added. The new facility is financed through a combination of bank borrowings and internally gen erated funds, of which RM11.6 million in loans have been secured. In its presentation, Winstar Capital noted that the strategic expansion will boost the group’s operational efficiency. Construction began in April 2024 with operations expected to begin by the third quarter of this year. The estimated cost of acquiring the new extrusion lines is RM9.55 million, which will be funded primarily with the proceeds from its public issue. Should there be any shortfall, the group intends to cover the additional costs using bank borrowings and internally

Ekuinas committed direct investments rise to RM4.9b in FY24 KUALA LUMPUR: Ekuiti Nasional Bhd’s (Ekuinas) cumulative committed direct investment rose to RM4.9 billion in financial year 2024 (FY24) from RM4.5 billion a year ago, with total economic capital deployed is RM5.6 billion. The government-linked private equity company said the gross internal rate of return (GIRR) for Ekuinas Direct Tranche IV Fund was 38.9% and Tranche II Fund 12%. (Ebitda) of portfolio companies under Ekuinas Direct Funds grew by 3.3%, rebounding from a 7% contraction in 2023. “Another key highlight was the roll-out of Ekuinas’ RM800 million Private Credit Fund in November 2024 to provide syariah-compliant, highly bespoke and innovative financing to underserved mid-market businesses,“ it said.

Unitar Education group recorded a soaring Ebitda of 77.2% while Medispec (M) Sdn Bhd and Exabytes Capital Group achieved 48.7% and 30.9% Ebitda growth, respectively. “Ekuinas’ headline achievement in FY24 was the strategic divestment of a 50.2% stake in Icon Offshore Bhd in March 2024.

“Ekuinas Direct (Tranche III) Fund showed modest improvement with a GIRR of 1.6%. Meanwhile, its outsourced programme reported GIRRs of 3.8% (Tranche I) and -6.9% (Tranche II),“ it said. The earnings before interest, tax, depreciation and amortisation

Chief executive officer Aliff Omar Mohamad Omar said the company sharpened its investment focus and unlocked meaningful value across portfolios. “Our pivot into healthcare and

In a statement yesterday, the government-linked private equity company said funds under manage ment (FuM) increased by 19% to RM5 billion. Its operating expenditure-to FuM ratio remained steady at 1.1%.