06/03/2026

FRIDAY | MAR 6, 2026

15

BIZ & FINANCE

AMS Advanced Material on way to IPO

The firms said that although macroeconomic uncertainties and cautious industry sentiment continue to cloud the near-term outlook, stable shipment volumes of automotive LED products and the progressive ramp up of new design wins, together with improving operational efficiency, should support a gradual recovery in 2026 earnings, Berjaya Research noted. On earnings, the research firm said D&O Greentech’s 2025 revenue was broadly in line with Berjaya Research’s expectations, accounting for 102.9% of its full-year forecast. However, core earnings of RM26.2 million exceeded expectations at 116.6%, supported by better-than-expected margins. Revenue declined by 5.3% to RM248.1 million in Q4’25, from RM261.9 million in the same quarter last year, as the strengthening ringgit A total of 30.6 million shares will be open to the Malaysian public through balloting. Another 2.15 million shares are reserved for eligible persons. In addition, 76.5 million shares will be placed out privately to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti). The remaining 3.74 million shares will be allocated via private placement to selected investors. Separately, the offer for sale involves 47 million shares, representing about 7.68% of AMS Advanced Material’s enlarged issued share capital. These shares will also be placed privately with selected investors. Under the underwriting agreement, M&A Securities will underwrite 32.75 million shares. This covers the portion made available to the Malaysian public through balloting, as well as the shares reserved for eligible persons. M&A Securities Sdn Bhd head of

o ACE Market-bound aluminium specialist signs underwriting deal with M&A Securities

KUALA LUMPUR: AMS Advanced Material Bhd, an aluminium specialist supplying and processing a variety of aluminium products, signed a retail underwriting agreement with M&A Securities Sdn Bhd for the initial public offering (IPO) for its upcoming listing on the ACE Market of Bursa Malaysia. Managing director Keith Keh Teng Yang said the signing of the underwriting agreement represents an important milestone in the group’s corporate journey as it takes a step closer to listing on the ACE Market. “Our group is strategically positioned at the heart of an industry on a clear structural growth path,” he said. According to the Independent Market Research report, the Malaysian aluminium industry is

projected to grow at a CAGR of 6.39%, reaching RM10.74 billion by 2029. “We are encouraged by growth prospects in high-value end-markets such as aerospace, semiconductor and engineering support industry (ESI), automotive and transportation, construction and building material, and consumer. “The listing will enable us to further strengthen our operational capabilities, enhance efficiency across our processing segment and support our long-term growth plans,” Keh said. AMS Advanced Material’s IPO consists of a public issue of 113 million shares and an offer for sale of 47 million shares. The shares make up about 18.46% of AMS Advanced Material’s enlarged issued share capital upon listing.

From left: AMS Advanced Material Bhd independent non-executive chairman Fazrin Azwar Md Nor, Keh, Ting, and M&A Securities Sdn Bhd deputy head of corporate finance Danny Wong.

“We cut our 2026 earnings forecast by 10.8% after scaling down our revenue assumptions to reflect a softer order outlook amid weaker automotive demand. “We also introduce our 2027 projected earnings of RM34.3 million, reflecting a 16.6% YoY growth,“ Berjaya Research said. The firm maintains its Neutral recommendation on D&O Greentech with the lower target price of RM0.52. The lower target price-to-earnings ratio (PER) reflects softer industry growth prospects and more moderate earnings visibility. “Nevertheless, we continue to like D&O Greentech for its positioning as an EV-themed player, exposure to the growing adoption of smart LEDs, and strong customer base with leading global automakers. “Key downside risks include lower demand for global automobiles and the depreciation of the ringgit against the US dollar,“ Berjaya Research said. The proceeds from the IPO have been earmarked for setting up a new licensed manufacturing warehouse and office in Penang, expanding into the manufacturing of aluminium architectural products, setting up a new distribution point in Kuantan, and repayment of borrowings, amongst others. M&A Securities is the principal adviser, sponsor, underwriter, and placement agent for this IPO exercise.

corporate finance Gary Ting said over the years, AMS Advanced Material has built extensive industry experience and plays an important role in supporting customers across various sectors. “We are honoured to be part of AMS Advanced Material’s IPO journey and look forward to continuing our collaboration as the group embarks on its next phase of growth,” he said.

D&O Greentech’s 2026 outlook trimmed on soft auto demand KUALA LUMPUR: The operating environment remains challenging for D&O Green Technologies Bhd heading into 2026, with China’s automotive and EV markets expected to expand at a more moderate pace amid persistent pricing competition and cautious consumer sentiment. Berjaya Research Sdn Bhd reduce financing costs and improve operational efficiency by avoiding incremental capacity additions that previously pressured gross profit margins. “The group is better positioned to achieve a more sustainable and disciplined margin kitchen-sinking exercises dragged the group to an annual net loss of RM228.2 million. resulted in lower translated revenue, despite stable shipment volumes. The group recorded a second consecutive quarterly loss of RM60.1 million, compared to a PATAMI of RM2.2 million a year ago, largely due to a weaker gross profit margin of 15.9% on a lower production utilisation rate, coupled with another one-off non-cash inventory

recovery going forward,“ the research firm said in a note. D&O Greentech, through its operating subsidiary Dominant

adjustment of RM47.2 million arising from a reassessment of standard costing. Excluding foreign exchange movements and other exceptional items, core earnings stood at RM12 million, down 11.8% YoY from RM13.6 million in Q4’24. Similarly, for quarter-on-quarter (QoQ), revenue edged down 3.3% in Q4 compared to Q3, while the group remained in the red for a second straight quarter, albeit with a narrower loss, primarily due to the one-off inventory impairment recognised during the quarter.

said nevertheless, structural growth in EV adoption and rising LED density in new car designs should provide underlying demand support, alongside the ramp-up of new design-win programmes. Meanwhile, D&O Greentech has shelved its planned new plant construction and will redirect most of its private placement proceeds toward debt repayment and technological upgrades. “We believe this initiative should reinforce the group’s balance sheet,

Opto Technologies Sdn Bhd, is a leading automotive surface-mount technology (SMT) light-emitting diode (LED) manufacturer for the global automotive industry. Berjaya Research further said that 2025 proved to be a challenging year for D&O Greentech as revenue contracted 8% YoY to RM989.7 million amid the sluggish automotive market, while two consecutive quarters of