Winstar Capital Berhad Q1 2026 Financial Results: Revenue, Profit, and Future Business Outlook

Winstar Capital Berhad Q1 2026 Interim Financial Report: Key Highlights and Investment Insights

Financial Performance Overview

Winstar Capital Berhad (“Winstar” or “the Group”) has released its unaudited interim financial report for the first quarter ended 31 March 2026. The company reported steady revenue growth, robust profit margins, and significant operational updates that could influence its share value.

Revenue: RM59.61 million, up 3.5% from RM57.59 million in Q1 2025.
Gross Profit: RM11.23 million, up 11.8% year-on-year.
Profit Before Tax: RM3.64 million, up from RM3.38 million (+7.5%).
Profit After Tax: RM2.65 million, up from RM2.49 million (+6.6%).
Gross Profit Margin: 18.83%.
Profit Before Tax Margin: 6.10%.
Profit After Tax Margin: 4.45%.
Basic/Diluted Earnings Per Share (EPS): 0.85 sen (Q1 2025: 0.86 sen, number of shares increased to 312.13 million).

Segmental Revenue Breakdown

Winstar’s revenue is derived from three principal business segments:

Aluminium extrusion: RM29.01 million
Trading and distribution of building materials: RM28.10 million
Solar photovoltaic (PV) system installation services: RM2.50 million

The core aluminium extrusion and building materials trading segments accounted for over 96% of total revenue, with solar PV services contributing the remainder.

Comparison with Immediate Preceding Quarter

Revenue: Decreased 4.21% to RM59.61 million (Q4 2025: RM62.23 million), attributed to fewer customer orders during the festive season.
Profit Before Tax: Increased significantly by 62.32% (from RM2.24 million to RM3.64 million) due to lower operating expenses, as the previous quarter included year-end staff bonuses of RM1.61 million.
Profit After Tax: Rose 62.52% to RM2.65 million from RM1.63 million in the preceding quarter.

Despite lower revenue, profitability improved due to effective cost management.

Balance Sheet & Cash Flow Highlights

Total Assets: RM315.33 million (31 March 2026)
Total Equity: RM122.61 million
Net assets per share: 39.28 sen
Total Borrowings: RM149.15 million (up from RM131.86 million at end-2025), driven by increased use of bankers’ acceptance and bank overdrafts.
Cash and Cash Equivalents: Negative RM7.40 million, mainly due to a high level of bank overdrafts and fixed deposits pledged to banks.
Net cash from financing activities: RM12.62 million (mainly from bankers’ acceptance).
Net cash used in operating activities: RM18.89 million (mainly due to an increase in trade receivables and a decrease in payables).
Capital Commitments: RM8.73 million (factory construction and new aluminium press machines), with the factory construction funded by bank borrowings and internal funds, and machines funded by IPO proceeds.

Expansion Plans and Strategic Initiatives

Capacity Expansion: The Group is ramping up its manufacturing capabilities. Construction of the new Lot 903 Facility is completed and pending compliance certification. One aluminium extrusion line has been installed in Q1 2026, and another is planned for Q2 2026. This will increase production capacity, improve efficiency and quality control, and allow the Group to shift more trading activities in-house, with an eye to overseas market expansion.

Renewable Energy Focus: Winstar is also targeting growth in aluminium solar PV mounting structures and related accessories, capitalising on national policies like the National Energy Transition Roadmap and the Accelerated Tariff Adjustment Programme (ATAP). The Group’s partnership with SolaX Power Network Technology Co Ltd enables it to offer hybrid inverters and solar batteries, strengthening its renewable energy market position.

IPO Proceeds Utilisation

Total Proceeds Raised: RM19.79 million (IPO listed 19 December 2024)
Utilisation as of Q1 2026:
- Capital Expenditure (new machinery): RM2.55 million used, RM7.0 million remaining
- Working Capital: Fully utilised (RM6.24 million)
- Listing Expenses: Fully utilised (RM4.0 million)

The remaining RM7.0 million for capital expenditure is expected to be utilised within 24 months, supporting ongoing capacity expansion.

Other Noteworthy Points

No dividend declared for the quarter.
No new debt or equity issuances, buybacks, or repayments in the quarter.
No material changes in estimates, valuations, or composition of the Group.
No contingent liabilities or assets.
No material litigation or derivative financial instruments outstanding.
No profit forecast or guarantee issued.
Effective tax rate for Q1 2026 is 27.0%, slightly above the statutory rate due to non-deductible expenses.
All related party transactions in the quarter were limited (RM201,000 in sales).

Potential Share Price Sensitivities and Investor Considerations

Expansion-driven growth potential: The commissioning of new manufacturing lines and the shift towards in-house production could drive future revenue and margin expansion.
Renewable energy sector exposure: Increased focus on solar PV mounting solutions and strategic partnerships position Winstar to benefit from government energy transition initiatives.
Rising borrowings: Increased short-term borrowings and negative cash balance should be monitored for potential liquidity or interest expense impact.
IPO proceeds: The pace and outcome of capital deployment from IPO funds may affect future earnings and investor sentiment.
Industry tailwinds: Policy changes in China (removal of export tax rebates on aluminium) may benefit local manufacturers like Winstar, possibly increasing demand and pricing power in export markets.

Conclusion

Winstar Capital Berhad delivered solid quarterly results with improved profitability despite lower revenue, driven by disciplined cost management. The Group’s strategic expansion, focus on the renewable energy segment, and favourable industry dynamics suggest a positive outlook. However, investors should monitor the Group’s rising borrowings and negative cash position as the expansion progresses.

Disclaimer

This article is for informational purposes only and should not be construed as investment advice. Investors are advised to conduct their own research and consult with professional advisors before making investment decisions.

Laporan Kewangan Interim Suku Pertama 2026 Winstar Capital Berhad: Sorotan Utama dan Analisis Pelabur

Prestasi Kewangan

Hasil: RM59.61 juta, meningkat 3.5% berbanding RM57.59 juta (S1 2025).
Keuntungan Kasar: RM11.23 juta, naik 11.8% tahun ke tahun.
Keuntungan Sebelum Cukai: RM3.64 juta, naik 7.5%.
Keuntungan Selepas Cukai: RM2.65 juta, naik 6.6%.
Margin Keuntungan Kasar: 18.83%.
Margin Keuntungan Sebelum Cukai: 6.10%.
Margin Keuntungan Selepas Cukai: 4.45%.
Pendapatan sesaham (EPS): 0.85 sen.

Pecahan Hasil Mengikut Segmen

Pengekstrakan aluminium: RM29.01 juta
Perniagaan bahan binaan: RM28.10 juta
Perkhidmatan pemasangan solar PV: RM2.50 juta

Perbandingan Dengan Suku Sebelumnya

Hasil: Turun 4.21% berbanding suku sebelumnya, terkesan oleh musim perayaan.
Keuntungan Sebelum Cukai: Melonjak 62.32% kerana penurunan perbelanjaan operasi (bonus tahunan diambil kira pada suku sebelumnya).
Keuntungan Selepas Cukai: Naik 62.52% kepada RM2.65 juta.

Kunci Kira-kira & Aliran Tunai

Aset Keseluruhan: RM315.33 juta
Ekuiti Keseluruhan: RM122.61 juta
Aset bersih sesaham: 39.28 sen
Pinjaman Keseluruhan: RM149.15 juta (peningkatan pinjaman jangka pendek)
Tunai dan setara tunai: Negatif RM7.40 juta
Komitmen modal: RM8.73 juta (kilang baru & mesin aluminium)

Pelan Pengembangan & Inisiatif Strategik

Kapasiti pengeluaran ditingkatkan dengan pemasangan dua barisan ekstrusi aluminium baharu pada 2026.
Fokus kepada struktur pelekap solar PV aluminium dan aksesori berkaitan, memanfaatkan dasar kerajaan serta kerjasama dengan SolaX Power untuk menawarkan produk tenaga boleh baharu.

Penggunaan Hasil IPO

RM19.79 juta dikumpul; RM7 juta baki untuk perbelanjaan modal (mesin baru).

Perkara Penting Lain

Tiada dividen diisytiharkan.
Tiada perubahan ketara dalam liabiliti luar jangka, litigasi, atau instrumen derivatif.
Kadar cukai efektif: 27%.

Faktor Sensitiviti Harga Saham

Peluang pertumbuhan hasil pengembangan kapasiti dan pelaksanaan dana IPO.
Fokus kepada tenaga boleh baharu dan dasar kerajaan yang memihak industri aluminium tempatan.
Peningkatan pinjaman dan kedudukan tunai negatif perlu dipantau.

Kesimpulan

Winstar Capital Berhad menunjukkan prestasi kukuh dengan margin keuntungan lebih baik walaupun hasil sedikit menurun. Fokus kepada pengembangan dan sektor tenaga boleh baharu menyokong prospek jangka panjang, namun pelabur perlu mencermati risiko kecairan dan hutang yang meningkat.

Penafian

Artikel ini hanya untuk tujuan maklumat dan bukan nasihat pelaburan. Pelabur dinasihatkan membuat penilaian sendiri dan mendapatkan nasihat profesional sebelum membuat keputusan pelaburan.