Winstar Capital Bhd announced that the company plans to expand its aluminium extrusion capacity to 15,285 tonnes per annum, from the current 6,705 tonnes per annum, marking a growth rate of 127.96%, according to a press release dated Dec 19 coinciding with Winstar's ACE market debut.
According to the press statement, four additional aluminium extrusion lines with a combined capacity of 8,580 tonnes per annum will be installed. The company targets to install the first two new aluminium extrusion lines by the second quarter of 2025, with the remaining two new aluminium extrusion lines a year later, by the second quarter of 2026.
The expansion is expected to enable Winstar and its subsidiaries to market a higher quantity of extruded aluminium products to its diversified portfolio of customers including construction companies, property developers, aluminium product manufacturers and wholesalers of solar photovoltaic parts to engineering, procurement, construction and commissioning (EPCC) companies in Malaysia.
Winstar is principally an investment holding company, while its four subsidiaries are involved in the extrusion of aluminium profiles and fabrication of aluminium ladders as well as aluminium solar PV mounting structures and related accessories; trading and distribution of building materials; and provision of solar PV system installation services.
Sunview Group Bhd is a major shareholder of Winstar.
On 16 December 2024, the group reported revenue of RM58.759 million in the third quarter ended 30 September 2024 and revenue of
RM147.927 million for the cumulative nine-month financial period ended 30 September 2024. Profit after tax for the third quarter amounted to RM3.307 million (5.63% margin), and the nine-month profit after tax totalled at RM6.991 million (4.73% margin).
Winstar targets to distribute 30% of its annual audited consolidated profit after tax attributable to shareholders as dividends, subject to business performance and cash flow requirements of the group.
As at 12:30pm, Winstar traded up 16 sen to RM0.51 at midday, up 45.71% from its listing price of RM0.35, on a turnover of 72,457,500 shares/units. The stock opened at RM0.49 this morning and at one point surged to the high of RM0.565. Winstar was also the most actively traded counter during the half-day session.
From the proceeds of RM19.79 million raised from the IPO exercise, Winstar plans to utilise RM9.55 million (48.25%) for the purchase of new aluminium extrusion press machines and equipment for its new manufacturing plant, RM6.24 million (31.54%) for general working capital and RM4.00 million (20.21%) to pay off listing expenses.
