PETALING JAYA: Integrated industrial space solutions provider AME Elite Consortium Bhd expects the stronger ringgit to deliver medium- to long-term margin benefits through lower imported and globally priced input costs.
AME Elite executive director and group CEO Dylan Tan Teck Eng said the strengthening ringgit’s impact on the company is skewed more towards cost benefits than demand risk.
“Over the medium to longer term, a firmer ringgit should be beneficial, as certain construction and related materials, such as steel, aluminium, copper, etc, and certain mechanical systems and specialised equipment, are either imported or have their prices trending in line with the global markets. A stronger ringgit makes these inputs cheaper,“ he told SunBiz.
Meanwhile, in the near term, the impact of a stronger ringgit on its costs and margins remains minimal because AME Elite’s cost structure is mainly local in nature.
Tan noted that AME Elite’s business is largely driven by foreign direct investment (FDI) in Malaysia, and investors continue to base their decisions on long-term fundamentals.
“From the demand perspective, our business is closely linked to FDIs into Malaysia.
While foreign investors might see a stronger ringgit increasing their costs of business here, they typically make decisions based on long-term fundamentals rather than short-term currency movements,“ he said.
Thus, Tan said, AME Elite has not seen the recent strengthening of the ringgit materially affect demand or investment interest. “Overall, the stronger and hopefully stable ringgit going forward does not change our outlook and is viewed as manageable, with potential longer-term upside.”
AME Elite posted a record net profit of RM143.76 million for the second quarter ending Sept 30, 2025 (Q2’26), a significant jump of 541.4% from RM22.41 million a year prior. Quarterly revenue surged to RM450.98 million from RM187.17 million a year earlier. Earnings per share rose to 22.48 sen from 3.51 sen.
The remarkable growth was primarily driven by the property development segment, which saw revenue rise sharply due to higher stages of work completed, timing of income recognition and the sale of 11 plots of freehold industrial land totalling RM209.84 million in August.
For the first half of FY26, net profit increased 374.3% to RM176.15 million from RM37.13 million a year earlier, while revenue grew 93.7% to RM638.44 million from RM329.55 million in the first half of 2025.
Amid its expansion plans, the group ended September with RM707.46 million in cash and cash equivalents, up 123.8% from RM316.09 million as at March 31, 2025.
To support future landbank acquisitions and development projects, AME Elite has established a Sukuk Wakalah Programme, enabling it to access the debt capital market efficiently while scaling its industrial park model across southern, central, and northern Peninsular Malaysia.
Tan said the group remains focused on ongoing developments at i-TechValley and i-TechHub in Johor, as well as the Northern TechValley @ BKE integrated industrial park in Penang.
Industry prospects remain underpinned by infrastructure catalysts such as the Johor Bahru-Singapore Rapid Transit System, the proposed Kuala Lumpur-Singapore High-Speed Rail revival and the Johor-Singapore Special Economic Zone, which are expected to sustain industrial demand.
