Vicplas International Ltd: Key Takeaways from the 27th Annual General Meeting (AGM)

Executive Summary

Vicplas International Ltd held its Twenty-Seventh AGM on November 28, 2025, at Devan Nair Institute, Singapore. The meeting addressed critical business resolutions, provided operational updates, and responded to shareholder concerns on growth, profitability, and strategic positioning. All resolutions were passed with overwhelming approval, indicating strong shareholder confidence in management and strategic direction.

Key Points from the AGM

1. Adoption of FY2025 Financial Statements

• The company adopted its Directors’ Statement and audited financial statements for FY2025, signalling operational transparency and compliance.
• Shareholder Q&A revealed operational risks, especially concerning the ramp-up of the Medical Devices Segment (MDS) in Mexico, with management noting that full absorption of fixed costs may take several years. Risks include delays in customer qualification and operational challenges typical of global expansion. Notably, management does not foresee significant geopolitical risks for Mexico at present.

2. Directors’ Fees and Re-Elections

• Directors’ fees for FY2025 were approved at S\$280,651.
• Mr. Yeo Wico and Mr. Yeo Kah Chong Mark Andrew were re-elected as Directors, reinforcing board stability.

3. Auditor Reappointment

• Deloitte & Touche LLP was reappointed as the company’s auditor, ensuring continuity in financial oversight.

4. Authority to Issue Shares and Instruments

• Shareholders granted the Board annual authority to issue new shares and convertible instruments, enhancing the company’s flexibility to raise capital for growth initiatives.

5. Renewal of Interested Person Transactions (IPT) Mandate

• Renewal of the IPT mandate was approved; key interested parties (including Venner Capital S.A. and Mrs. Jane Gaines-Cooper) abstained from voting as per regulatory requirements.

6. Share Purchase Mandate Renewal

• The authority to buy back shares was renewed, giving management flexibility in capital management and potentially enhancing shareholder value.

7. Share Option Plan & Scrip Dividend Scheme

• The Board was authorised to grant options and issue shares under the 2021 Share Option Plan, and also to issue shares for the Scrip Dividend Scheme, supporting employee incentives and dividend flexibility.

Operational and Strategic Highlights

Medical Devices Segment (MDS)

• Progress in Mexico is positive but full turnaround may take a couple of years. Risks include project commercialisation delays and operational challenges unique to new geographies.
• Management is focused on commercialising new projects, improving operational performance, and strengthening customer relations. Medical device manufacturing projects are long-term and “sticky” once secured.
• Recent losses in Mexico are attributed to fixed overheads spread over a limited number of active projects. Margins are expected to improve as project volumes increase.
• Customer concentration risk is being actively managed; while the largest customer contributes >40% of Group revenue, MDS manufactures for multiple divisions and is pursuing new customers globally.
• Technical Director resignation cited as a personal decision, with management confident in its technical team’s capability to ensure continuity.
• No significant concerns on the announced share transfer to CTX Treuhand Aktiengesellschaft, as this is a private family matter, with shares to be gradually transferred back.
• MDS is using Master Supply Agreements to manage pricing and costs, with operational metrics closely monitored.

Pipes and Pipe Fittings Segment

• The segment is well-positioned for Singapore’s construction boom, with “4 Green Tick (Leader)” certification from SGBC, making products attractive for Green Mark projects.
• Expansion into uPVC doors, combining wood aesthetics and plastic performance (termite-resistant, low maintenance), leverages local manufacturing for just-in-time delivery and customer confidence.
• Margins in FY2025 were impacted by raw material costs. Management is monitoring raw material and market rates, and has adjusted selling prices accordingly. Margin stabilisation is expected over the next 6-8 months.
• Pandemic-related credit exposure risks in construction sector are being managed through a prudent sales approach focused on collectability.

Financial Position and Outlook

• \$29 million in borrowings under current liabilities are a mix of secured and unsecured loans from financial institutions in Singapore and China. Repayments are expected to occur via operating cash flows, with financing costs expected to decrease amid declining interest rates (barring new borrowings).
• Management is focused on long-term shareholder value versus short-term profitability, with strategic investments in the MDS for global growth. Internal performance is tracked using budgets, sales, quality, and customer satisfaction metrics.

Shareholder Engagement and Investor Relations

• Shareholders urged management to enhance market awareness of the company’s value and potential. Management responded that regular investor presentations and participation in global trade shows are ongoing, but will balance further investor relations activities against resource allocation.
• Pipes segment maintains strong brand presence, with over 30 years in the market and ongoing expansion of its product range.

Potential Price-Sensitive Information

• Medium-term margin recovery expected in Pipes segment as selling prices have been adjusted for raw material cost increases.
• Long-term growth prospects for MDS, with Mexico plant poised for margin improvement as new projects ramp up.
• Active management of customer concentration risk in MDS, with new customers being sought globally.
• Expansion into new product lines (uPVC doors) in Pipes segment, with plans to scale up manufacturing.
• Financing costs expected to decrease in a declining interest rate environment, improving bottom-line performance.
• No material concerns on executive resignation or share transfer announcements.

Conclusion

The AGM reflects strong shareholder support for Vicplas International’s management and strategic direction. Key vote outcomes and operational updates point to a company investing for long-term growth, particularly in the Medical Devices Segment, while maintaining a strong position in domestic infrastructure markets. Margin stabilisation, new product launches, and capital management flexibility all suggest potential for positive share price movements as execution risks are managed and new projects are commercialised.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors are encouraged to conduct their own due diligence and consult professional advisors before making investment decisions. The information presented here is based on public disclosures and AGM minutes as of November 28, 2025, and may be subject to change.

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