KUALA LUMPUR: Winstar Capital Bhd is targeting RM1 billion in revenue within five years, a fivefold increase from about RM200 million in 2024, with growth driven by expansion of manufacturing facilities and increased production capacity to meet rising demand, CEO Vincent Chua Boon Hong said.
“We expect the annual growth to accelerate from 40% prelisting to 50-60% post-listing fuelled by strong market demand. Our listing has enhanced transparency and trust that positions us to secure more market opportunities,“ he told SunBiz in an interview.
For the first nine months of the financial year 2024, Winstar’s total revenue was RM147.92 million. If extrapolated for 12 months, the full-year 2024 revenue will be RM197.23 million.
Chua said its solar photovoltaic (PV) segment, currently contributing 7% to revenue, is poised for substantial growth.
“With government renewable energy initiatives and higher electricity tariffs driving demand, I think the solar PV mounting structure and installation will grow significantly. Overall, for our business, this will account for at least 20% to 30% of revenue going forward,“ he said.
Chua explained that the low base effect will amplify growth, alongside the growing demand driven by government renewable energy initiatives, such as Fifth Large Scale Solar (LSS5) projects, increased adoption of low-carbon scoring among factories, higher electricity tariffs prompting greater interest in solar energy.
“In terms of the solar industry, this year looks promising with several projects, such as LSS5, on the horizon.”
Also, the construction sector is bouncing back, with many developments under way, including residential and industrial projects, as well as data centres, Chua said. “These building materials will indirectly benefit us, as we are consistently supplying materials for these types of projects.”
Chua said both the solar and building material industries are key focus areas for Winstar this year. “With our confidence in these two sectors, we expect our year-to-year growth to surpass last year’s results.”
Winstar Capital, listed on the ACE Market on Nov 26, 2024, specialises in aluminium extrusion, building materials trading, and solar PV system installation. The company aims to complete the installation of two new aluminium extrusion lines by the second quarter of 2025, with two additional lines operational by mid-2026.
In 2023, Winstar acquired an additional three acres of leasehold land in Ijok, Selangor (Lot 904), adjacent to Lot 903, for future expansion. However, for the moment, Winstar is focusing on Lot 903 for expansion. Construction works for a new manufacturing facility on Lot 903 commenced last year.
Chua said the development of Lot 903, which can accommodate up to eight extrusion lines, is progressing on schedule. “Around 60% completed now. We’ve completed the groundwork and are now preparing to assemble the steel structure. By the first quarter of 2025, we expect the site to be ready.”
Going forward, Chua said, managing working capital will be a challenge as Winstar accelerates its growth. He highlighted the company will need additional funds to sustain its cash cycle and support expansion.
“Working capital is quite challenging, especially as we look ahead. For example, last year we achieved RM200 million in revenue. This year, with a 50% growth, we’re expecting around RM300 million, which represents a RM100 million increase.
“Dividing that by 12 months, we’re looking at roughly RM8 million in sales per month. With a cash cycle of 155 days (around five months), this means we need RM40 million to sustain just one cash cycle.”
Despite these challenges, Chua is optimistic about the company’s future. “With over 3,000 customers now (up from 1,000 prelisting), we have established a strong presence.”
