SHAH ALAM, 29 August 2025 – Unitrade Industries Berhad (联营工业集团), one of Malaysia’s largest homegrown wholesalers and distributors of building materials, has staged a strong turnaround in its latest quarter, returning to profitability on the back of strategic business shifts and rising contributions from its green businesses.
For the first quarter of the financial period ending 30 June 2025 (1QFY26), Unitrade posted a net profit of RM6.4 million, a sharp reversal from the RM1.8 million loss recorded in the corresponding period (1QFY25). This recovery was underpinned by a 60% surge in gross profit to RM32.4 million, with margins strengthening to 8.1% from 4.9% a year ago. The improvement reflected the Group’s focus on higher-margin products, stronger contributions from metal recycling, and a RM1.9 million reversal of impairment losses on trade receivables, compared to a net impairment of RM4.1 million last year.
Revenue for the quarter stood at RM401.7 million, slightly lower than RM409.9 million in 1QFY25, as the Group deliberately reduced exposure to high-volume, low-margin products in its wholesale distribution segment. However, this was partially offset by growth from the metal recycling division and higher turnover from the renewable energy segment, particularly solar panels, inverters, batteries, and related components.
Green Businesses at the Core of Growth
Unitrade’s revenue mix has evolved significantly, with nearly half (48.7%) of turnover now coming from green businesses – comprising metal recycling (46.7%) and renewable energy (2.0%) – while conventional building materials accounted for 48.2%. The remainder came from pipe manufacturing and rental services.
Group Managing Director Mr. Nomis Sim Siang Leng (沈翔龙) said the business realignment has positioned the Group at a “strategic inflection point.”
“With approximately half of our revenue now contributed by green businesses, we have successfully differentiated ourselves from a traditional distributor into a company with synergistic growth verticals. By integrating metal recycling and solar distribution, Unitrade is building a future-ready business that continues to serve traditional needs while advancing ESG-aligned construction solutions,” he said.
He added that the Group’s wholesale distribution has benefitted from the pivot away from lower-margin products, while stabilising steel prices also supported performance. Solar distribution, meanwhile, continues to gain traction, buoyed by Malaysia’s National Energy Transition Roadmap (NETR) and large-scale solar (LSS) programmes.
Expansion into East Malaysia and Sector Outlook
In April 2025, Unitrade expanded its recycling footprint into East Malaysia through a 51% equity stake in Kien San Metal Sdn Bhd, via its subsidiary Intergreen Metals Sdn Bhd. This expansion is expected to enhance earnings, broaden national presence, and reinforce its role in advancing the circular economy for metals.
Looking ahead, Malaysia’s construction sector is poised for continued growth, supported by public and private infrastructure projects and the 13th Malaysia Plan (2026–2030). With development expenditure projected at RM430 billion, about 8% higher than under the 12MP, demand for building materials is expected to strengthen.
However, Unitrade remains vigilant against external risks such as global trade tensions and geopolitical uncertainty. The Group intends to strengthen its financial resilience through cost optimisation, improved credit and collection management, and enhanced inventory strategies, ensuring sustainable long-term growth.
