KUALA LUMPUR: Ajiya Bhd, a leading Malaysian building materials provider, reported a 13.2% quarter-on-quarter increase in revenue while maintaining a strong balance sheet, supported by robust liquidity and operating cash flow generation.
For Q2 ended June 30, 2026 (FY26), the group recorded revenue of RM64.8 million, up from RM57.3 million in the preceding quarter, reflecting a gradual stabilisation in core trading volumes.
For the six months (1H) FY26, revenue amounted to RM122.1 million.
The group’s headline profitability for Q2 FY26 was materially impacted by non-operational items.
This was primarily driven by an unrealised non-cash fair value loss of RM15.7 million arising from quoted investments, together with an RM1.5 million write-off of plant, machinery, and office equipment.
Despite the weaker operating performance recorded in Q2, Ajiya continues to benefit structurally from recurring interest income generated from a RM250 million loan extended to its holding company, Chin Hin Group Bhd (CHGB).
This strategic decision provides a stable, high-yield contribution to the group’s earnings, generating RM9.48 million in interest income for 1H FY26.
Despite the market volatility, Ajiya remained profitable at the pre-tax level for the first half of the year, recording 1H FY26 profit before tax (PBT) of RM4.2 million.
Executive director Ng Wai Luen said the sequential improvement in top-line revenue, with a 13.2% quarter-on-quarter increase, is an encouraging indicator of strengthening business momentum.
“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, our 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, we remain disciplined in managing costs, optimising production efficiency, and preserving liquidity. 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,” he said.
The group generated RM13.7 million in net cash from operating activities during H1 FY26, up 171.7% from RM5.0 million in the corresponding period last year.
The improvement was largely driven by disciplined working capital management, including the successful collection of trade and other receivables, which declined to RM69.7 million from RM98.9 million as of Dec 31, 2025.
Ajiya maintained a strong financial position as of June 30, 2026, with total assets of RM720.7 million and equity attributable to owners of the company of RM646.6 million.
The group further strengthened its balance sheet by reducing short-term loans by 67.4% to RM4.2 million, compared with RM12.8 million at the end of FY25.
Supported by cash and bank balances of RM25.6 million, Ajiya maintained a net cash position of approximately RM21.4 million with nil net gearing, while its current ratio of 7.11 times underscores its strong liquidity and capacity to meet near-term obligations.
