SHAH ALAM: Homegrown building materials wholesalers and distributors by revenue, Unitrade Industries Bhd, posted a revenue of RM906.3 million for the first half (1H) ended September 30, 2025 (FY26), up from RM887.3 million recorded in the 1H FY25.
The growth was mainly driven by stronger contributions from the wholesale segment, which accounted for 51.1% of total revenue, or RM463.0 million, a 4.9% increase from the previous year, following the continued strategic shift toward higher-margin products to optimise the product mix.
The renewable energy segment also registered strong momentum, registering
RM33.2 million or 3.7% of total revenue, a 166.3% surge from last year, in line with the group’s sustainability-focused initiatives.
The segment comprises the distribution of a comprehensive range of solar products, including solar panels, inverters, batteries, and related components.
The metal recycling segment, on the other hand, accounted for 42.5% or RM384.7
million of total revenue, while the pipe manufacturing and rental divisions contributed the remainder of the group’s turnover.
On profitability, Unitrade’s gross profit (GP) climbed 62.4% year-on-year (YoY) to
RM68.4 million in 1H FY26 from RM42.1 million in 1H FY25, with GP margin improving to 7.5% from 4.7% a year ago.
This was mainly attributable to the improved product mix, along with reversals of inventory impairment and trade receivables amounting to RM1.1 million and RM0.6 million, respectively, in 1H FY26.
Correspondingly, net profit rose to RM11.6 million in 1H FY26, marking a clear turnaround from a net loss of RM10.3 million in 1H FY25.
For the second quarter (Q2) of FY26, the group’s revenue grew 5.7% YoY to RM504.6 million from RM477.5 million in Q2 FY25.
The increase was mainly driven by higher contributions from the wholesale and renewable energy segments, partially offset by a lower contribution from the metal recycling segment.
GP for the quarter rose 64.5% YoY to RM36.0 million from RM21.9 million in Q2 FY25, supported by the pivot away from lower-margin products and the reversal of inventory impairment.
All in all, the group registered a net profit of RM5.2 million in Q2 FY26, compared to a net loss of RM8.5 million in Q2 FY25.
Reaffirming its commitment to shareholder value, the board declared an interim
dividend of 0.1 sen per share in respect of the financial year ended March 31, 2026
(FY26), translating to a dividend payout of RM1.6 million.
Group managing director Nomis Sim Siang Leng said the company’s sustained turnaround this year reflects the effectiveness of the strategic measures in place.
“By refining our wholesale distribution product mix and strengthening the efficiency of our operating model, we have rebuilt our margins while reducing impairment risk through more disciplined inventory and receivables management.
“In addition, our expansions into metal recycling and solar product distribution have created strong avenues for further growth. With close to half of our revenue now coming from these green businesses, we are meeting not only traditional building material demands but also broader environmental goals.
“Still, we are increasingly supporting the industry’s transition towards more sustainable construction. This positions the Group on synergistic,sustainability-aligned growth pillars,” he said in a statement.
Unitrade’s prospects remain promising. The 13th Malaysia Plan (13MP) for 2026–
2030, together with Budget 2026’s development expenditure of RM81 billion, is expected to drive construction activities and support higher demand for building materials.
The recent launch of the Malaysia Steel Industry Roadmap 2035 (SIR2035) is expected to create a more competitive and sustainable steel market, with measures to address overcapacity and improve pricing and supply dynamics, benefiting wholesalers such as Unitrade.
“Beyond steel-based building materials, our metal recycling segment is poised to
support the country’s transition towards low-carbon steel production under SIR2035.
“The government’s consideration of a carbon tax in 2026 for the iron, steel and energy sectors will further accelerate demand for recycled and low-emission steel inputs. As one of the largest metal recyclers in Malaysia with a nationwide presence, we are well-placed to capture the growing demand for recycled metals and to contribute meaningfully to the country’s circular steel economy,” Sim said.
Malaysia’s renewable energy ambitions also present further opportunities for the
group.
The solar product distribution business is set to gain further traction as the country targets a 35% renewable energy mix by 2030 and 70% by 2050.
Achieving this will require a significant expansion of solar installations over the next three decades, with installed solar capacity projected to reach approximately 59 GW by 2050.
