SHAH ALAM: Unitrade Industries Bhd, the country’s largest homegrown building materials wholesaler and distributor by revenue, recorded a revenue of RM1.36 billion for the nine months (9M) ended Dec 31, 2025 (FY26), up from RM1.35 billion in
the same period last year.

The wholesale distribution segment remained the largest revenue contributor, accounting for 51.1%, or RM693.3 million, a 5.3% year-on-year (YoY) increase, driven by product mix optimisation and a strategic shift towards higher-margin products.

This is followed by the metal recycling segment, which accounted for RM573.9 million, or 42.3% of total revenue.

Meanwhile, the renewable energy segment continued to gain traction, contributing RM53.2 million, or 3.9% of total revenue, reflecting 38.4% YoY growth, in line with its sustainability-driven initiatives.

The pipe manufacturing and rental divisions accounted for the balance of the group’s turnover, at 1.4% and 1.3% of total revenue, respectively.

On profitability, gross profit (GP) surged 49.5% YoY to RM100.7 million in 9MFY26
from RM67.4 million in 9M FY25.

A more favourable product mix and a reversal of inventory impairment of RM0.9 million in 9M FY26 primarily contributed to the improvement.

As a result, GP margin expanded by 2.4 percentage points to 7.4% in 9M FY26, compared to 5.0% last year.

In tandem with the higher GP, coupled with a reversal of trade receivables impairment
of RM2.8 million, net profit rose to RM17.9 million in 9M FY26, marking a clear turnaround from a net loss of RM9.2 million in 9M FY25.

For Q3 FY26, Unitrade recorded revenue of RM450.6 million versus RM458.6 million in Q3 FY25, mainly due to lower contributions from the metal recycling and renewable energy segments.

Nonetheless, GP for the quarter rose 28.0% YoY to RM32.3 million from RM25.3 million in Q3 FY25, with GP margin increasing to 7.2% from 5.5% previously.

The improvement was driven by the group’s continued product mix optimisation.

The group’s net profit also rose to RM6.2 million in Q3 FY26, representing a 447.3%
growth from RM1.1 million in Q3 FY25, driven by higher GP and a reversal trade
receivables impairment of RM2.3 million during the quarter.

The group also recorded other income of RM1.7 million in Q3 FY26, primarily from gains on the disposal of property, plant and equipment and late payment charges on overdue trade receivables.

Group managing director Nomis Sim Siang Leng said, over the past two years, the group enhanced inventory management, improved collections and credit risk
profile, and optimised our wholesale distribution product mix towards higher-margin offerings.

At the same time, the group also broadened its earnings base through renewable energy and metal recycling segments, reinforcing its presence in green yet synergistic businesses.

“These initiatives have delivered measurable improvements, translating into stronger margins, improved resilience and greater capacity to capture sustainability-aligned growth opportunities,” he said.

Forging ahead, the operating environment is conducive for Unitrade as a building
materials distributor.

The construction sector outlook remains in an upcycle in 2026, driven by major public infrastructure and transportation projects, as well as private-sector investments, particularly in hyperscale data centres, high-value infrastructure, and industrial developments.

The group’s wholesale distribution segment is well positioned to benefit from this momentum, supported by its continued product mix optimisation to enable a more profitability-focused distribution model.

“Meanwhile, in our metal recycling segment, we expect structural demand to
strengthen as the industry shifts towards low-carbon steel production in line with the Steel Industry Roadmap 2035 (SIR2035).

“The imposition of a carbon tax from 2026 for the iron, steel and energy sectors, together with the prohibition on new licences for blast furnace-basic oxygen furnaces, are expected to further accelerate the adoption of recycled and low-emission steel inputs, boding well with the long-term role of metal recycling in steel decarbonisation,” Sim said.

In the renewable energy segment, the group continues to capture growing demand by collaborating with engineering, procurement, construction and commissioning (EPCC) contractors to supply solar products once projects are secured.

In addition, China’s removal of export value-added tax rebates on solar panels, effective April 1, 2026, aimed at addressing overcapacity, has led to firmer panel pricing and is expected to support higher average selling prices.

 The Sun Malaysia