Pg-3 – SAM AR2025

FINANCIAL
HIGHLIGHTS

	Financial Year Ended
	2021	2022	2023	2024	2025

REVENUE (RM’ 000)	873,681	1,147,645	1,445,358	1,497,400	1,480,549
PROFIT BEFORE TAX (RM’ 000)	81,848	100,451	114,971	143,809	115,419
PROFIT FOR THE YEAR (RM’ 000)	59,699	75,455	88,849	108,581	91,921
BASIC EARNINGS PER SHARE (Sen)*	11.04	13.94	16.41	19.53	13.58
DILUTED EARNINGS PER SHARE (Sen)*	11.04	13.94	16.41	19.53	13.58

* Adjusted to reflect the bonus issue which was completed on 3 March 2022.

REVENUE

(RM’ 000)

PROFIT BEFORE TAX

(RM’ 000)

PROFIT FOR THE YEAR

(RM’ 000)

BASIC EARNINGS PER SHARE

(Sen)

	Financial Year Ended
	2021	2022	2023	2024	2025

DIVIDEND PER SHARE (Sen)*	2.76	3.50	2.50	3.30	2.80
CASH AND CASH EQUIVALENTS (RM’ 000)	16,107	31,063	21,045	36,244	27,982
NET ASSETS PER SHARE (RM)*	1.16	1.28	1.50	2.12	2.11
RETURN ON EQUITY (%)	9.7	11.4	11.8	9.7	6.4

* Adjusted to reflect the bonus issue which was completed on 3 March 2022.

DIVIDEND PER SHARE

(Sen)

CASH AND CASH EQUIVALENTS

(RM’ 000)

NET ASSETS PER SHARE

(RM)

RETURN ON EQUITY

(%)

MANAGEMENT DISCUSSION
AND ANALYSIS

FINANCIAL PERFORMANCE OVERVIEW

For the financial year ended 31 March 2025 (“FY2025”), the Group recorded total revenue of RM1,480.5 million and Profit Before Tax (“PBT”) of RM115.4 million.

Business Segment Review

Aerospace

The Aerospace business achieved a revenue of RM524.2 million, a 21.5% increase from the previous financial year. This growth was primarily driven by the contribution from the newly acquired subsidiary, Aviatron (M) Sdn. Bhd. (“Aviatron”). However, the increase was partially offset by unfavourable foreign exchange movements, as the United States Dollar (“USD”) weakened against the Malaysian Ringgit (“RM”).

Despite higher revenue, the Aerospace business’s PBT decreased by RM10.2 million to RM3.9 million, mainly due to start up costs in Thailand and lower government grants received during the financial year; these factors were partially mitigated by positive contribution from Aviatron and compensation received for defective materials.

Equipment

The Equipment business generated revenue of RM956.3 million, a 10.3% decrease compared to the previous financial year, largely due to reduced demand from the semiconductor and data storage industries.

PBT for the Equipment segment decreased by 14.0% to RM111.5 million, primarily due to lower sales, partially offset by reduced interest expenses.

Group Performance

The Group’s total revenue of RM1,480.5 million represents a 1.1% decline compared to the previous financial year. PBT decreased by 19.7% to RM115.4 million, while Profit After Tax declined by 15.3% to RM91.9 million.

The Group invested RM70.2 million during FY2025, primarily to support the expansion in Thailand.

As at year-end, the Group’s projected order book stood at RM5.0 billion.

FINANCIAL POSITION

TOTAL ASSETS

As at 31 March 2025, the Group’s total assets stood at RM2,010.3 million, representing a 3.3% decrease from the previous financial year. This decline was mainly due to a reduction in the carrying value of USD-denominated assets following the weaker USD against RM and lower trade receivables driven by higher customer collections, partially offset by an increase in inventories to support the Aerospace business.

CAPITAL EMPLOYED AND SOURCE OF FUNDS

As at 31 March 2025, the Group’s capital employed was RM1,556.8 million, an increase of RM50.4 million compared to RM1,506.4 million as at 31 March 2024. This increase was primarily attributable to increase in retained earnings from current year’s profit and higher long-term borrowings to finance the Thailand expansion, offset by a reduction in translation reserves due to the weaker USD against RM.

CAPITAL EXPENDITURE

The Group invested RM70.2 million in FY2025 to support long-term growth, primarily for the expansion in Thailand.

BANKING FACILITIES

As at 31 March 2025, the Group had utilised RM261.4 million, representing 31.4% of available banking facilities.

DEBT RATIO

Net Gearing and Interest Coverage Ratio

The Group’s net gearing ratio stood at 0.16 times as at 31 March 2025 and interest coverage ratio remained healthy at 10 times.

Total borrowings decreased to RM253.0 million (31 March 2024: RM297.5 million), mainly due to net cash generated from operations.

CASH FLOWS

Operating Activities

The Group generated net cash from operating activities of RM171.4 million in FY2025, lower than the RM238.3 million recorded in the previous financial year. This decline was primarily due to lower PBT.

Investing Activities

Net cash used in investing activities amounted to RM69.5 million, primarily for the purchase of property, plant, and equipment to support the Thailand expansion.

Financing Activities

Net cash used in financing activities was RM89.7 million, mainly due to net repayment of bank borrowings amounting to RM44.5 million, dividend payment of RM22.3 million and interest payments of RM15.9 million.

The Group ended the year with cash and cash equivalents of RM28.0 million, a decrease of RM8.3 million from the previous financial year.

DIVIDEND

An interim single-tier dividend of 2.80 sen per ordinary share was declared in May 2025, representing 20% of the Group’s net profit. Based on the average share price for the month of June 2025 of RM3.95, the dividend per share of 2.80 sen translates to a dividend yield of 0.71%.

*Adjusted to reflect the bonus issue exercise on 3 March 2022

CUSTOMERS AND PROGRAMS

Aerospace

The strategic acquisition of Aviatron (M) Sdn. Bhd. significantly contributed to revenue growth in the aerospace segment, resulting in a 21.5% increase as compared to the previous financial year. Without this acquisition, the segment would have recorded slightly lower revenue in FY2025. The decline was primarily attributed to supply chain constraints and quality issues with supplied components purchased in the first quarter. These operational challenges were resolved by the second quarter of FY2025. Additionally, the revenue was impacted by a customer demand push-out related to the Boeing 737max program. Both the supply chain constraints and the 737max program delays were challenges faced across the global aerospace industry. Despite these headwinds, Airbus and Boeing maintained strong order books and have announced plans to ramp up production rates in 2025 and beyond. The Group continues to maintain reliable Equipment output and remains well-positioned, with sufficient capacity to support future increases in production rates.

Equipment

In FY2025, the Equipment segment generated RM 956.3 million in revenue, representing a 10.3% decline compared to the previous year. The decrease was primarily due to softer global semiconductor demand, as manufacturers delayed capital expenditures amid macroeconomic uncertainties, coupled with a market slowdown in the data storage industry. Despite these short-term industry challenges, the Group secured new projects from key existing customers. While the revenue contribution from these new projects is not yet significant, they are expected to position the Group for long term growth. The Group is optimistic about the longer-term business outlook and has capacity in Thailand ready for the recovery in the semiconductor equipment segment.

OPERATION INITIATIVES

Aerospace

The acquisition of Aviatron (M) Sdn. Bhd. was completed in February 2024. In our post-acquisition efforts in FY2025, we have integrated this new subsidiary and have re-defined some of the manufacturing processes to ensure part movements are seamless amongst our plants. We have also redeployed some of the duplicated resources to eliminate waste within the operations.

We continue to establish our aerospace facility at Ban Bueng, Thailand in FY2025. A significant milestone was achieved with the successful certification from two of our major aerospace customers. New Computer Numerical Control (“CNC”) machines have been installed and commissioned, with additional units scheduled for installation in the next financial year. We have also submitted our application to the Federal Aviation Administration (“FAA”) authority for certification of this new facility for aerospace production. All project timelines remain on track, and the facility is slated to begin volume production in 2026.

In November 2024, we held a groundbreaking ceremony for our second aerospace facility in Ban Bueng. With long term demand for our aerospace engine cases expected to grow, this new facility is strategically positioned to support the expansion. It has also been designed with scalability in mind, allowing for future growth and addition of new programs. This facility is scheduled for completion by the end of 2025.

Equipment

Over the past few years, we have expanded our Equipment business and production capacity through strategic investments in Thailand. Today, we operate two facilities at Rojana Industrial Park and one at Ban Bueng. In FY2025, we reached a significant milestone with all three facilities now fully operational and delivering volume production for semiconductor front-end equipment and data storage systems. Production of several established products has also been transitioned from Malaysia to Thailand, freeing up capacity in Penang to accommodate new customer programs. This is our growth strategy: the expanded capacity in Thailand positions us for growth as the industry recovers, while the Malaysia facilities are focused on securing new project wins, driving the Group’s future business expansion.

In FY2025, we completed the enhancement of our Quality Management System (“QMS”), which serves as the foundation of our commitment to delivering high quality products to our customers. Our Equipment QMS is a standardised platform implemented across all our facilities in Malaysia and Thailand. The digitised QMS now efficiently manages customer Engineering Change Orders and requirements, maintains First Article Inspection (“FAI”) records and ensures that these records are accessible across all Equipment operations.

We continue to invest in advanced manufacturing technologies to strengthen our competitive edge. In the current financial year, we have successfully deployed a Collaborative Robot (“Cobot”) in our manufacturing operations. The Cobot has demonstrated greater efficiency and consistency in production compared to manual processes. Building on this success, we plan to deploy additional Cobots and extend its application to other labour-intensive processes across our manufacturing operations.

OUTLOOK

Aerospace

Air passenger travel has continued its strong recovery trajectory, with global traffic reaching new highs in early 2025. According to the International Air Transport Association (“IATA”)1, total passenger traffic measured by Revenue Passenger Kilometers (“RPKs”) grew by over 7% year-on-year as of Q1 2025. The resurgence of international travel, particularly in Asia Pacific and transatlantic routes, has been a key driver behind the robust growth.

The commercial aerospace sector remains buoyant, supported by long-term fleet renewal programs and sustained demand from low-cost carriers and major airlines alike. Airbus and Boeing reported historically high order backlogs, with a combined total of 15,039 aircraft as of March 2025. These backlogs now represent 10.92 years of future deliveries for Airbus, and 7.82 years for Boeing, reflecting both a healthy demand environment and ongoing supply chain challenges that are constraining near-term output. Airbus continues to lead in new order intake and has reaffirmed its plans to incrementally increase narrow body aircraft production rates through 2026. Boeing, while navigating internal manufacturing and regulatory headwinds, remains focused on stabilising its output and addressing quality assurance reforms.

Geopolitical tensions, including the continuation of regional conflicts and trade restrictions, remain key risks to the aerospace supply chain. Additionally, inflationary pressures and labour shortages in certain regions continue to impact parts availability and lead times across the industry. Despite these headwinds, OEMs and Tier-1 suppliers are actively investing in capacity expansion and digital transformation to enhance operational resilience.

Against this backdrop, we remain closely aligned with our customers to support their evolving needs. We are investing to strengthen our supply chain readiness, workforce capability, and production readiness to ensure we are well positioned to support the planned ramp-up in aircraft build rates. As the industry continues to recover and modernise, our focus remains on operational excellence, customer collaboration and long-term value creation in a dynamic global environment.

¹ International Air Transport Association (“IATA”) represents some 300 airlines comprising 83% of global air traffic.
² 2018 delivery rates were used for the comparison as it best reflects the delivery rates pre-pandemic.

Custome

Equipment

According to Semiconductor Equipment and Materials International (“SEMI”)’s report dated March 25, 2025, global fab front-end equipment spending is projected to grow by 2% year-over-year, reaching USD 110 billion in 2025. This marks the sixth consecutive year of growth since 2020. Fab equipment spending is expected to grow by 18% in 2026, reaching USD 130 billion. This growth is primarily driven by rising demand for high-performance computing (“HPC”), artificial intelligence (“AI”) and memory-intensive applications. The Logic & Micro segment alone is forecasted to reach USD 52 billion in 2025, reflecting an 11% year-over-year increase. Nonetheless, SEMI data indicates that 300mm wafer fab utilisation rates remained below 70% in Q1 2025 – a level considered suboptimal for justifying increased capital investment by wafer fabs.

The industry’s long-term prospects remain strong, driven by ongoing digitalisation, electrification and the proliferation of AI and IoT applications. These trends continue to drive demand for semiconductor devices, supporting sustained growth prospects. Nevertheless, geopolitical tensions, particularly evolving U.S.-China trade policies and macroeconomic uncertainties continue to pose risks to the semiconductor industry. In response, we maintain close coordination with our customers and suppliers to manage disruptions and ensure operational continuity.

We continue to engage customers through structured New Product Introduction (“NPI”) programs, aligning closely with their future technology roadmaps. By collaborating early on design validation, pilot builds and process optimisation, we position ourselves as a strategic partner in scaling next-generation technologies to mass production—ultimately driving the Group’s future business growth.