AJIYA Bhd, a building materials provider specialising in metal roofing systems and safety glass products, has delivered a stellar 1Q FY2026 ended March 31, 2026 with its net profit jumping 76% year-on-year (yoy) to RM9.82 mil (1Q FY2025: 5.56 mil).
Likewise, the group’s pre-tax profit spiked 44% yoy to RM116.7 mil which reflected disciplined cost control and a focus on margin optimisation across operations.
Alongside the strong profitability delivered during the quarter, the group operated in a more measured revenue environment.
Revenue for the period under review declined 29% yoy to RM57.25 mil (1Q FY2025: RM80.97 mil) to reflect a deliberate moderation in sales volume across the group’s operating segments.
More broadly, Aijya’s financial position has strengthened further during the quarter, underscored by total equity of RM66.7 mil as at end-March 2026 coupled with a 43.3% reduction in total borrowings to RM7.3 mil.
‘Highly selective operating environment”
Strong working capital management remained a key driver of cash generation during the quarter.
A RM33.3 mil reduction in trade receivables contributed to operating cash flow of RM16.7 mil, thus lifting the group’s net cash position to RM83.5 mil.
The group’s net tangible asset (NTA) per share rose by 9% quarter-on-quarter (qoq) to RM1.20, reflecting both balance sheet strengthening and earnings growth.
“We entered FY2026 with a clear focus on protecting margins, strengthening balance sheet liquidity and maintaining disciplined capital allocation,” commented Ajiya’s executive director Ng Wai Luen.
“The revenue moderation in the quarter reflects a highly selective operating environment. Rather than pursuing volume at the expense of profitability, our priority has been to preserve earnings quality, keep costs tight and ensure our operations remain resilient.”
While near-term operating conditions remain challenging, Ajiya’s strong net cash position and investment portfolio does provide a strong earnings cushion, according to Ng.
“Reducing borrowings to RM7.3 mil and growing NTA to RM1.20/share, places the group in a highly secured position to navigate the year ahead and act decisively when the market conditions improve,” he added.
Looking ahead, Ajiya expects the near-term operating environment to remain challenging amid cautious market sentiment and on-going cost pressures across the construction and building materials sector.
The group will remain focused on prioritising operational efficiency, cost discipline and prudent capital management within its core businesses.
Additionally, the management will also continue to pursue opportunities to enhance structural earnings from its investment activities while maintaining a conservative balance sheet to preserve financial flexibility and resilience.
At the close of today’s (May 18, 2026) market trading, Ajiya was unchanged at 98.5 sen with 205,500 shares traded, thus valuing the company at RM600 mil. – May 18, 2026
