Shah Alam, 25 February 2026 – Unitrade Industries Berhad [联营工业集团], one of Malaysia’s largest homegrown building materials wholesalers and distributors by revenue, delivered a sustained earnings recovery for the nine months ended 31 December 2025 (9MFY2026), underpinned by improved margins, better product mix and strengthened credit management.
9MFY2026 Financial Performance
For 9MFY2026, the Group recorded:
- Revenue: RM1.36 billion (versus RM1.35 billion in 9MFY2025)
- Gross Profit (GP): RM100.7 million (up 49.5% YoY)
- PATNCI: RM17.9 million (turnaround from LATNCI of RM9.2 million last year)
Gross profit margin expanded to 7.4%, compared with 5.0% previously, reflecting product mix optimisation towards higher-margin offerings and a RM0.9 million reversal of inventory impairment. The turnaround was further supported by a RM2.8 million reversal of trade receivables impairment.
Segment Contribution (9MFY2026)
- Wholesale Distribution: RM693.3 million (51.1% of revenue; +5.3% YoY)
- Metal Recycling: RM573.9 million (42.3%)
- Renewable Energy: RM53.2 million (3.9%; +38.4% YoY)
- Pipe Manufacturing: 1.4%
- Rental Division: 1.3%
The renewable energy segment continued gaining traction in line with sustainability-driven initiatives, while wholesale distribution remained the core earnings pillar.
3QFY2026 Highlights
For the quarter ended 31 December 2025 (3QFY2026):
- Revenue: RM450.6 million (versus RM458.6 million in 3QFY2025)
- Gross Profit: RM32.3 million (up 28.0% YoY)
- PATNCI: RM6.2 million (up 447.3% YoY from RM1.1 million)
Despite slightly lower revenue due to softer contributions from metal recycling and renewable energy, margins improved to 7.2%, driven by continued product mix optimisation. The quarter also benefited from a RM2.3 million reversal of trade receivables impairment and RM1.7 million in other income from disposal gains and late payment charges.
Strategic Positioning and Outlook
Group Managing Director Nomis Sim Siang Leng (沈翔龙) said the results reflect the Group’s strategic pivot toward sustainable profitability. Over the past two years, Unitrade strengthened inventory management, improved credit risk profile, and broadened its earnings base through renewable energy and metal recycling businesses.
Looking ahead, Unitrade expects supportive industry tailwinds:
Construction Upcycle
Malaysia’s construction sector is projected to remain in an upcycle in 2026, driven by public infrastructure, transportation projects, hyperscale data centres and industrial developments. The wholesale distribution segment is well positioned to benefit from this momentum.
Low-Carbon Steel Transition
The anticipated carbon tax implementation in 2026 and restrictions on blast furnace-basic oxygen furnaces under the Steel Industry Roadmap 2035 (SIR2035) are expected to accelerate demand for recycled and low-emission steel inputs, supporting structural growth in the metal recycling segment.
Renewable Energy Growth
The renewable energy segment continues to collaborate with EPCC contractors to supply solar products upon project awards. Meanwhile, China’s removal of export VAT rebates on solar panels effective 1 April 2026 is expected to firm up panel pricing and support improved average selling prices.
With strengthened margins, improved balance sheet discipline and exposure to sustainability-aligned growth themes, Unitrade appears well positioned to capture opportunities arising from Malaysia’s infrastructure expansion, steel decarbonisation push and renewable energy transition.
