BGMC International Limited Issues Significant Profit Warning for H1 2026

Key Highlights

• BGMC International Limited warns investors of a much larger expected net loss for the six months ended 28 February 2026.
• Estimated net loss: RM24.4 million, compared to RM7.0 million in the same period last year.
• Profit from discontinued operations: None recorded during this reporting period, versus a profit of RM0.5 million last year.

Details and Analysis

BGMC International Limited (“BGMC” or the “Company”) has issued a profit warning for the six months ended 28 February 2026 (“Reporting Period”), announcing an expected unaudited net loss attributable to shareholders of approximately RM24.4 million. This represents a dramatic increase from the net loss of RM7.0 million recorded in the corresponding period of the previous year.

Factors Contributing to Increased Losses

1. Additional Liquidated Ascertained Damages (LAD): The Group incurred extra LAD charges related to its projects, which have significantly impacted the bottom line.
2. Reduced Gross Margins: The Company experienced lower gross margins, particularly from a major Building and Structures project. This was due to additional rectification costs and cost overruns, further eroding profitability.
3. Lower Other Income: There was a notable decrease in other income, mainly attributed to lower interest income. This decline is due to reduced placement of funds with financial institutions versus the prior period.
4. Absence of Profit from Discontinued Operations: The Reporting Period saw no contribution from discontinued operations, while the previous period benefitted from a profit of RM0.5 million from these sources.

Implications for Shareholders

• This profit warning is a material development for investors and could have a significant impact on BGMC’s share price. The substantial increase in net loss and deterioration of operating margins are likely to affect investor sentiment.
• The Company’s financial performance is affected by project execution risks, cost overruns, and the absence of non-recurring gains, all of which are important considerations for shareholders.
• Investors should be aware that the information provided is based on preliminary unaudited management accounts. The final results will be released on 27 April 2026.

Management and Board Statement

The announcement was authorized by the Board of Directors, including Chairman and Independent Non-Executive Director, Datuk Kamalul Arifin Bin Othman. The Board comprises Dato’ Teh Kok Lee (Chief Executive Officer), Datuk Kamalul Arifin Bin Othman (Chairman), Mr. Kua Choh Leang, and Ms. Koong Hui Jiun as independent non-executive Directors.

Investor Advisory

Shareholders and potential investors are strongly advised to exercise caution when dealing in the securities of the Company, as the results are preliminary and subject to finalization.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on preliminary, unaudited figures and is subject to change upon final audit and review. Investors should consult professional advisers before making investment decisions.

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