KUALA LUMPUR: AMS Advanced Material Bhd expects margins to remain resilient with room for gradual improvement, supported by strong demand from semiconductor and electronics supply chain industries, even as parts of its construction segment face pricing pressure.
Managing director Keh Teng Yang said the group’s margins are sustainable given its first-quarter performance and the current operating environment, noting that tighter material supply and rising activity in the semiconductor and ESI (equipment, systems and integration) segments could lift profitability.
“We do see a gradual improvement of margins,” he told reporters after the company’s listing, adding that AMS is increasingly prioritising higher-value industries over lower-margin construction-related work.
AMS made a flat debut on the ACE Market today, opening at 29 sen a share, the same as its initial public offering price, with a volume of 14.8 million shares.
Keh downplayed concerns about the company’s performance on its market debut, stressing that management’s priority remains delivering operational results and long-term value.
“As management, we focus on the business. By delivering value and results, the share price will reflect that,” Keh said in response to the opening price.
AMS ended the day at 30.5 sen, 1.5 sen or 5.17% above the offer price on volume of 105.834 million shares.
The aluminium products specialist reported a net profit of RM2.66 million for the first quarter of its financial year 2026, with management signalling confidence of a stronger showing for the full year.
Keh said AMS is well-positioned to benefit from ongoing global supply chain shifts, particularly as manufacturers in the US and Europe reallocate programmes and investments to Asia.
“We are very optimistic about the prospects of the semiconductor industry and ESI segments. We are at a sweet spot right now,” he said, pointing to increased investments from original equipment manufacturers and a steady pipeline of orders.
To capitalise on growth, AMS is expanding its processing capacity with a new licensed manufacturing warehouse in Penang that will effectively mirror its existing plant.
Currently operating seven machines with an output of about nine to 10 tonnes per day over 23 working days a month, the new facility is expected to double capacity and enable the group to meet rising demand.
“We are currently running at full capacity. The reason we expand is that we foresee growth. The momentum is very consistent,” Keh said, adding that the group has already seen strong incoming orders supporting its expansion plans.
The company adopts an asset-light model, leasing its facilities rather than owning them, which allows for faster scaling while managing capital expenditure.
Beyond capacity expansion, AMS is exploring new growth avenues, including setting up a scrap aluminium processing segment, although this remains subject to regulatory approvals.
Keh highlighted that the licensed manufacturing warehouse and the scrap processing initiative are two key areas that could drive the group’s next phase of growth.
On sector exposure, AMS is shifting its focus towards higher-margin industries such as semiconductor and ESI, aerospace, and transportation, while becoming more selective in construction-related projects where pricing pressures have intensified.
“Construction is facing a lot of pressure on pricing, so we are more selective. We have the flexibility to choose which industries to focus on,” Keh said.
Despite ongoing geopolitical tensions, particularly in the Middle East, AMS said its operations remain largely insulated as it operates in the midstream segment of the aluminium value chain.
Keh noted that supply disruptions are more pronounced at the upstream smelting stage, particularly in regions such as the Gulf, but added that the group has not experienced any material supply issues to date. “We are not so much affected. The supply has no issue right now.”
