KUALA LUMPUR: Winstar Capital Bhd is moving towards a strategic expansion to drive the next phase of growth with the development of a new manufacturing plant, targeted for completion in 2027, which will more than double its existing production capacity.
Berjaya Research Sdn Bhd, in a report, said that with current operations already running close to full utilisation, the additional capacity will be timely in supporting the group’s growth ambitions.
“The new facility is expected to enhance Winstar’s ability to capitalise on the ongoing construction sector growth and rising demand for aluminium extrusion products, while also improving operational flexibility and supporting future product diversification,” the research firm said in a report.
Apart from that, the group aims to broaden product offerings to include solar PV–related aluminium components such as brackets, clamps and ancillary accessories. The move is viewed as timely, capitalising on multiple government-led initiatives under the National Energy Transition Roadmap (NETR), which is expected to accelerate solar adoption nationwide.
Berjaya Research noted that the expansion into the provision of solar PV system installation services began with the emergence of Vafe System Sdn Bhd, a subsidiary of Sunview Group Bhd, as a strategic corporate shareholder that holds a 24.2% equity stake in Winstar.
Sunview is engaged in the provision of engineering, procurement, construction and commissioning (EPCC) of solar PV facilities, solar PV construction and installation services, as well as solar power generation and supply.
“This symbiotic relationship allows Winstar to leverage Sunview’s core business. The aforementioned segment generated revenue of RM3.7 million, representing about 1.8% of the group’s total revenue in 2024,” the firm said.
Berjaya Research said that with over two decades of operating in the midstream and downstream segments of the aluminium industry value chain, Winstar commands an estimated 3.5% share of Malaysia’s aluminium extrusion market, based on its 2024 aluminium extrusion segment revenue of RM120.8 million.
The group’s strong operating track record, technical capabilities and diversified customer base underpin its competitive positioning, enabling the group to serve a wide range of customers across construction, industrial, and renewable energy sectors.
Winstar’s aluminium extrusion business focuses on producing extruded aluminium profiles, primarily for the construction and property development industries.
The group’s manufacturing operations are housed at the Ijok Manufacturing Facility located in Ijok, Batang Berjuntai – having a total production capacity of 6,705 tonnes per annum.
Berjaya Research said given that Winstar operates within the midstream and downstream segments of the aluminium industry, fluctuations in aluminium prices generally have a limited impact on the group’s profit margins, and they should remain stable as cost increases are typically passed on to customers.
“Nevertheless, the group’s bottom line could be affected if the cost pass-through mechanism is not implemented in a timely manner,” it said.
On earnings, Berjaya Research said that Winstar has delivered a resilient performance in recent years, recording a 4-year core net profit compounded annual growth rate of 40.8%, reaching RM10.3 million in 2025.
The research firm said the improvement was mainly underpinned by steady gains in contributions from the aluminium extrusion segment and the trading and distribution of building materials segment, driven by an increase in orders from customers in the construction industry.
For 2025, Winstar’s core net profit rose 3.2% YoY to RM10.3 million, underpinned by stronger revenue performance. However, earnings growth was partially constrained by higher finance costs arising from the elevated gearing level, which are mainly channelled towards the group’s ongoing expansion initiatives.
In terms of the balance sheet, Winstar’s 2025 net gearing level remains manageable at 0.9x, as the group relies on external funding for the new manufacturing plant, the Lot 903 Facility, which will more than double its current capacity upon completion, tentatively in 2027.
Going forward, Berjaya Research said Winstar’s core net profit is projected to be RM12.3 million/RM16.1 million in 2026/2027, respectively. The projected growth will be mainly supported by the new planned capacity with new extrusion lines coming on stream gradually, strong demand outlook amid rising infrastructure investment, and riding on the growth prospects within the RE sector through the group’s strategic corporate shareholder, Sunview, albeit we reckon contribution should remain negligible over the foreseeable future.
The research firm also noted that Winstar does not have any formal dividend policy as the group prioritises the abovementioned business development and its expansion plan.
“We initiate coverage on Winstar with a Buy recommendation and a target price of RM0.71.
“We believe the premium is justified, underpinned by the group’s strong historical track record and sizable expansion plans.
“Nevertheless, we favour Winstar for its commendable 3.5% market share in the Malaysia’s aluminium extrusion market, generated revenue of RM120.8 million in 2024, and the group’s expansion plan includes new manufacturing capacity to significantly ramp up production and capture additional demand.
“Winstar is also poised to leverage on rising infrastructure investments that will boost demand, and pivoting towards the RE sector through the group’s strategic corporate shareholder, Sunview,” Berjaya Research said.
The Sun Malaysia
