AJIYA Bhd, a building materials provider specialising in metal roofing systems and safety glass products, has posted a 13.2% quarter-on-quarter (qoq) revenue growth while maintaining a strong balance sheet supported by robust liquidity and operating cash flow generation.
The group recorded revenue of RM64.81 mil for its 2Q FY2026 ended June 30, 2026, up from RM57.25 mil in the preceding quarter following a gradual stabilisation in core trading volumes.
For the six-months period, however, the group’s revenue amounted to RM122.06 mil which is 22.6% lower year-on-year (yoy) from RM157.71 mil a year ago.
The group’s headline profitability for 2Q FY2026 was materially impacted by non-operational items.
This was primarily driven by an unrealised non-cash fair value loss of RM15.7 mil arising from quoted investments alongside an RM1.5 mil write-off of plant, machinery and office equipment.
Despite the weaker operating performance recorded in the second quarter, Ajiya continues to benefit structurally from recurring interest income generated from a RM250 mil loan extended to its holding company, notably integrated builder conglomerate Chin Hin Group Bhd.
This strategic decision provides a stable, high-yield contribution to the group’s earnings by generating RM9.48 mil in interest income for the 1H FY2026 period.
Challenging market conditions
Despite the market volatility, Ajiya remained profitable at the pre-tax level for its 1H FY2026 by recording a pre-tax profit of RM4.25 mil (1H FY2025: RM20.48 mil).
“The sequential improvement in our top-line revenue with a 13.2% qoq increase is an encouraging indicator of strengthening business momentum,” commented Ajiya’s executive director Ng Wai Luen.
“More importantly, our continued focus on cash generation and disciplined working capital management resulted in stronger operating cash flows and further reinforced our balance sheet.”
That said, Ajiya’s results were impacted by unrealised fair value adjustments on quoted investments while challenging market conditions, uneven demand recovery across segments and persistent pricing competition continued to exert pressure on margins.
Against this backdrop, the group remains disciplined in managing costs, optimising production efficiency and preserving liquidity.
Added Ng: “Our priority is to strengthen the performance of our core manufacturing and trading businesses while maintaining a prudent approach to capital allocation that supports sustainable long-term shareholder value creation.”
The group generated RM13.7 mil in net cash from operating activities during its 1H FY2026 which is a jump of 171.7% from RM5.0 miln in the corresponding period last year.
The improvement was largely driven by disciplined working capital managements, including the successful collection of trade and other receivables which declined to RM69.7 mil from RM98.9 mil as of end-December 2025.
All in all, Ajiya maintained a strong financial position as of end-June 2026 with total assets of RM720.7 mil and equity attributable to company owners of RM646.6 mil.
The group further strengthened its balance sheet by reducing short-term loans and borrowings by 67.4% to RM4.2 mil from RM12.8 mil as of end-FY2025.
Supported by cash and bank balances of RM25.6 mil, Ajiya maintained a net cash position of approximately RM21.4 mil with nil net gearing while its current ratio of 7.11 times underscores its strong liquidity and capacity to meet near-term obligations.
At the close of yesterday’s (Aug 21) market trading, Ajiya was unchanged at RM1 with no share traded, thus valuing the company at RM609 mil. – Aug 22, 2026
