PETALING JAYA: KHPT Holdings Bhd is acquiring a 100% stake in Ngai Cheong Metal Industries Sdn Bhd (NCMI) for RM19.5 million cash to expand into higher-value precision engineering and diversify beyond its core automotive segment.
KHPT said it has entered into a conditional share sale and purchase agreement for the proposed acquisition to strengthen its capabilities in precision metal stamping and tool and die fabrication.
The group said the move will also enable entry into safety-related automotive components and selected electrical and electronics (E&E) manufacturing opportunities, while providing access to NCMI’s established base of local and international customers.
KHPT group managing director Eloise See Hui Pvng said the acquisition is a step to strengthen the group’s long-term growth platform.
“By integrating NCMI’s precision engineering capabilities with our existing manufacturing base, we are building a more diversified and resilient business model,” she said in a statement.
She added that the deal is backed by safeguards including a profit guarantee of RM7.5 million over three financial years from FY26 to FY28, a matching retention sum, and a 10-year lease arrangement for NCMI’s production facility to ensure operational continuity.
KHPT said the acquisition comes amid expectations of Malaysia’s automotive total industry volume normalising to about 790,000 units in 2026, alongside continued resilience in the E&E sector driven by global demand in semiconductors, automation and industrial applications.
The group aims to reduce reliance on domestic automotive demand by expanding into export-oriented and multi-industry segments, while focusing on integration, operational efficiency and customer base expansion post-acquisition.
The purchase will be funded mainly through RM16.37 million from the group’s initial public offering proceeds, with the balance from internally generated funds.
The proposal is subject to shareholders’ approval at an EGM to be convened later.