KUALA LUMPUR: Signature Alliance Group Bhd (SAG) delivered its highest clean quarterly gross margin since listing and a second consecutive quarter of order book growth, underscoring the resilience of its business model and disciplined execution strategy.
For the six months (1H) ended June 30, 2026 (FY26), SAG recorded revenue of RM147.8 million and a profit before tax (PBT) of RM16.7 million.
For Q2, revenue stood at RM58.9 million with PBT at RM5.5 million.
The lower year-on-year revenue reflects the completion of several sizeable projects in preceding periods, coupled with extended project award and procurement timelines across the industry.
Revenue was also affected by a strategic shift toward independent commercial projects, reducing the contribution from related-party progress billings compared to the corresponding period last year.
Furthermore, the top-line adjustment also reflected changes in project mix during the period, with revenue contributions spread across a broader base of ongoing projects.
Despite lower aggregate revenue earned, operating profitability strengthened considerably.
Gross profit margin for Q2 FY26 expanded by 6.6% to 24.7% from 18.1% in the same quarter last year.
For 1H FY26, gross margin stood at 23.7% compared to 19.0% previously.
At the same time, the group further strengthened the quality and diversification of its earnings base, with revenue concentration from its two largest projects declining to 22.8% of 1H FY26 revenue, compared to 35.2% in 1H FY25.
Executive director and group CEO Datuk Chang Chung Fei said the 1H of FY26 demonstrates the strength of the group’s disciplined operating model.
“While revenue moderated as major projects reached completion and procurement timelines extended, we continued to improve profitability, delivering our highest clean quarterly gross margin since listing and achieving a second consecutive quarter of order book growth.
“Our focus remains on securing quality projects, executing efficiently, and growing sustainability.
“With RM22.6 million in outstanding orders across 93 projects and a strong cash position, we are well-positioned to convert opportunities into earnings while creating long-term value for shareholders,” he said.
Forward visibility remains encouraging. As at June 30, 2026, SAG’s unbilled order book increased for a second consecutive quarter to RM228.6 million across 93 active projects, compared with RM227.6 million and 87 projects at the end of March 2026.
The order book provides earnings visibility over the next one to two financial years.
The group also maintained a strong balance sheet, with cash and cash equivalents of RM122.5 million as at 30 June 2026.
Total equity increased to RM249.5 million from RM237.3 million as of Dec 31, 2025, while net assets per share improved to RM0.25 from RM0.24.
Reflecting its confidence in the group’s financial position and future prospects, SAG declared and paid an interim single-tier dividend of 1.0 sen per share (RM10.0 million) on July 30, 2026, bringing cumulative dividends distributed since listing to 3.0 sen per share.
Looking ahead, SAG remains focused on selectively pursuing quality project opportunities, replenishing its order book, and maintaining disciplined execution and prudent cost management.
Supported by a strong balance sheet, a growing order book, and an improving project mix, the group is well-positioned to navigate a more measured project award environment while driving sustainable long-term growth.
