PETALING JAYA: Adnex Group Bhd is seeing a tangible lift in brand visibility and deal flow, positioning the interior fit-out specialist for its next growth phase, with management signalling a measured shift into higher-value sectors and eventual expansion abroad.
Managing director Adrian Kan said its listing on the ACE Market in March has provided the group with a stronger platform to engage with multinational clients and larger projects, translating into increased enquiries within just a month of debut.
“The listing is a big milestone for us. It gives us a bigger platform, and we can already see the impact in terms of branding and market recognition,” he told SunBiz in an exclusive interview.
Kan noted that beyond multinational corporations, Adnex is attracting interest from Malaysian listed companies, reflecting a broadening client base that could support more consistent earnings growth.
While the group’s core interior fit-out segment for corporate offices remains its main earnings driver, contributing about 80% of projects in 2025, Adnex is actively scaling its presence in healthcare and hospitality, which currently account for about 10% each.
Chief operating officer Amber Wong said these segments are undergoing structural shifts that favour higher-quality fit-outs, particularly in healthcare, where patient expectations are rising. “Healthcare environments today are evolving. Hospitals are no longer purely functional spaces, they are designed to feel more like hotels or lifestyle environments.”
This trend is expected to drive demand for premium interior solutions, offering better margins compared to traditional office projects.
The hospitality segment is also gaining traction, supported by a rebound in tourism and refurbishment cycles for ageing hotel assets. Wong noted that consumer preference for newer, well-maintained accommodations is prompting hotel operators to upgrade or reposition properties.
Against the backdrop of Visit Malaysia 2026 and shifting travel patterns amid geopolitical tensions, Adnex is seeing indirect benefits, particularly from increased domestic economic activity.
“We are receiving more enquiries not just from hotels, but also from sectors like food and beverage, where business is improving and operators are expanding outlets,” Wong said.
She added that reduced outbound travel is, in some cases, supporting local tourism and hospitality demand, feeding into Adnex’s pipeline of refurbishment and new build projects.
On profitability, the group is maintaining a cautious but confident stance. Kan said margins, which stood at around 10% profit before tax historically, are sustainable with disciplined execution and a stronger focus on project selection.
“Growth alone is not enough. What matters is how well we control execution, costing and product quality,” he said.
Adnex is also refining its procurement strategy, including sourcing certain materials from China despite higher logistics costs, to balance quality and pricing. The group is increasingly prioritising projects with stronger value propositions to defend margins amid cost pressures.
Supply chain risks and pricing volatility remain key concerns, particularly given ongoing geopolitical uncertainties. However, Wong noted that Adnex’s relatively short project cycle of three to six months allows for quicker pricing adjustments and risk management.
“We closely monitor material supply, timelines and costs. Our turnaround is relatively fast, so we can adapt to changes more quickly,” she said, adding that the group continues to leverage local suppliers and subcontractors to mitigate disruptions.
As at end-January, Adnex’s unbilled order book stood at RM66 million, providing earnings visibility for the near term. While current figures remain undisclosed pending its upcoming quarterly report, management indicated that project inflows remain steady.
Looking ahead, Adnex’s immediate priority is growth, albeit with discipline.
“It’s not just about doing more projects, but doing the right projects at the right margin,” Kan said.
The group has no immediate plans for asset monetisation or acquisitions within the first year post-listing, opting instead to focus on strengthening its core operations and delivering on initial public offering commitments.
That said, Kan did not rule out potential acquisitions beyond the one-year horizon, as part of a longer-term expansion strategy.
A key catalyst for re-rating over the next 12 months would be the securing of larger contracts, which could significantly scale revenue and elevate the company’s market positioning.
At the same time, Adnex is laying the groundwork for international expansion, targeting overseas markets as early as 2027.
“We are looking at expanding internationally as a new growth opportunity. The focus is on building strong, sustainable growth,” Kan said, adding that the group is targeting robust growth in the current financial year.
Despite seasonal fluctuations that typically weigh on first-quarter performance due to festive periods, management remains optimistic.
“We let the results speak for themselves. That is what drives us,” Kan said.
