OGX Group Berhad Announces Robust Q3 2026 Financial Performance Ahead of ACE Market Listing

Key Financial Highlights

• Revenue: RM78.75 million for Q3 2026; RM226.36 million for the 9-month period ended 28 February 2026.
• Gross Profit: RM15.64 million for Q3; RM46.64 million for 9 months.
• Profit Before Tax (PBT): RM9.59 million for Q3; RM28.68 million for 9 months.
• Profit After Tax (PAT): RM6.17 million for Q3; RM19.29 million for 9 months.
• Basic and Diluted Earnings Per Share (EPS): 0.83 sen for Q3; 2.59 sen for 9 months, based on 750 million shares.
• Net Assets Per Share: RM0.08 as at 28 February 2026.

Strategic Developments & Corporate Actions

• IPO and ACE Market Listing: OGX Group Berhad was admitted to the ACE Market of Bursa Malaysia Securities Berhad on 12 March 2026. The IPO involved a public issue of 150 million new shares and an offer for sale of 75 million existing shares at RM0.35 each, raising gross proceeds of RM52.5 million.
• Share Capital Restructuring: On 31 December 2025, OGX issued 599,999,000 new shares at RM0.066 per share to acquire OGX Networks Sdn Bhd, resulting in an enlarged share capital of 750 million shares.
• Dividend Declaration: On 27 April 2026, OGX declared a single-tier interim dividend of 0.5 sen per share (RM3.75 million), payable on 3 June 2026 for the financial year ending 31 May 2026.

Business Segment Analysis

• Provision of IT Infrastructure Solutions: Main revenue driver, contributing 74.42% in Q3 (RM58.61 million in Q3, RM171.53 million for 9 months).
• Distribution of IT Infrastructure Products: RM16.62 million in Q3; RM39.84 million for 9 months.
• Product Warranties and Support Services: RM3.53 million in Q3; RM14.99 million for 9 months.
• Geographical Split: Peninsular Malaysia accounted for RM76.76 million revenue in Q3; East Malaysia contributed RM1.99 million.

Financial Position & Capital Structure

• Total Assets: RM169.49 million as at 28 February 2026 (up from RM114.21 million at 31 May 2025).
• Total Equity: RM56.97 million; equity attributable to owners RM56.66 million.
• Borrowings: RM40.19 million (RM35.84 million current, RM4.35 million non-current).
• Cash and Cash Equivalents: RM27.54 million as at 28 February 2026.

IPO Proceeds Utilisation Plan

The RM52.5 million raised from the IPO is earmarked for:

• Acquisition and renovation of a new facility (RM30 million, within 30 months)
• Expanding IT infrastructure brand portfolio (RM2.5 million, within 18 months)
• Geographical expansion, especially East Malaysia (RM2 million, within 24 months)
• Repayment of bank borrowings (RM4.5 million, within 3 months)
• Working capital (RM8.5 million, within 12 months)
• Listing expenses (RM5 million, within 1 month)

Note: Actual utilisation as at 28 February 2026 was not disclosed.

Taxation & Expenses

• Effective Tax Rate: 35.59% in Q3, higher than the statutory rate of 24% due to non-deductible expenses and unrecognised deferred tax assets.
• Major Expenses: Directors’ remuneration RM981,000 in Q3; Staff costs RM4.7 million in Q3; Depreciation RM209,000 in Q3.

Prospects & Outlook

OGX’s management remains optimistic about the IT infrastructure solutions industry’s prospects, citing:

• Accelerated digitalisation across organisations
• Rising demand for cybersecurity solutions
• Regulatory compliance and government digitalisation initiatives

The planned use of IPO proceeds for strategic expansion (new HQ, expanded product portfolio, regional sales offices) is expected to drive growth and improve financial performance in the medium to long term.

Other Noteworthy Points for Investors

• No Material Litigation: As at reporting date, there are no material legal actions pending or threatened.
• No Related Party Transactions, Contingent Assets/Liabilities, or Capital Commitments: None reported for the quarter.
• No Corporate Proposals Pending: All major proposals, including the IPO, have been completed.
• No Revaluation of Property, Plant & Equipment: During the reporting period.
• Audited Statements for FY2025: No audit qualifications.

Potential Share Price Movers & Shareholder Considerations

• Successful ACE Market Listing & IPO: OGX’s transition to a listed entity and the significant capital raised could attract new institutional and retail investors, potentially impacting share liquidity and valuation.
• Dividend Declaration: The interim dividend signals management confidence and commitment to shareholder returns, which may influence investor sentiment.
• Expansion Plans: Timely and effective deployment of IPO proceeds towards business expansion could further strengthen OGX’s market position and financial results, supporting share price appreciation.
• High Effective Tax Rate: Investors should monitor for future improvements in tax efficiency, which could enhance net profitability.
• Strong Cash Position & Working Capital: OGX’s healthy cash reserves and working capital suggest capacity for growth, resilience, and potential for future dividends or investments.

Conclusion

OGX Group Berhad’s latest financial report demonstrates a robust performance and a clear roadmap for expansion and value creation following its ACE Market listing. Investors should closely monitor the company’s execution of its strategic plans, dividend policy, and operational performance in the upcoming quarters for potential share price movements.

Disclaimer: This article is based on the unaudited interim financial report of OGX Group Berhad for Q3 2026 and is intended for informational purposes only. It does not constitute investment advice. Investors are advised to conduct their own research and consult a licensed financial advisor before making any investment decisions.

View OGX GROUP BERHAD Historical chart here