SHAH ALAM: Homegrown building materials wholesalers and distributors by revenue, Unitrade Industries Bhd, recorded revenue of RM1.77 billion for the financial year ended March 31, 2026 (FY26), up marginally from RM1.76 billion in FY25.
The increase was mainly driven by stronger contributions from the wholesale and distribution and renewable energy segments.
The wholesale and distribution division remained Unitrade’s largest revenue contributor, accounting for 52.5% of total revenue, or RM926.4 million, representing an 8.5% year-on-year (YoY) increase.
Notably, the renewable energy segment continued to gain traction, registering RM56.5 million or 3.2% of total revenue, representing a 26.7% increase from FY25.
The segment comprises the distribution of a comprehensive range of solar products, including solar panels, inverters, battery storage systems and related components.
The metal recycling segment, which accounted for 41.7% or RM735.4 million of total revenue, registered 10.2% decline in turnover following softer demand and selling prices in FY26.
The pipe manufacturing and rental divisions contributed the balance of the Group’s turnover, accounting for 1.4% and 1.3% of total revenue respectively.
On profitability, gross profit (GP) surged 48.7% YoY to RM133.0 million in FY26 from RM89.4 million in FY25.
The improvement was largely attributable to a more favourable product mix and a reversal of an inventory impairment of RM0.4 million in FY26.
As a result, GP margin expanded by 2.4 percentage points to 7.5% in FY26, compared to 5.1% last year.
In tandem with higher GP, coupled with a reversal of trade and other receivables impairment of RM0.1 million in FY26 compared with an impairment loss of RM23.6 million in FY25, Unitrade delivered a profit after tax and non-controlling interests (PATNCI) of RM19.7 million in FY26.
This marked a clear turnaround from a loss after tax and non-controlling interests (LATNCI) of RM15.1 million in FY25.
Group managing director Nomis Sim Siang Leng said FY26 marks a clear turning point for Unitrade.
He said the improved profitability and margin expansion are the result of deliberate efforts to optimise product mix towards higher-margin offerings.
“Meanwhile, the significant reduction in trade and other receivables impairment underscores our ongoing efforts to strengthen credit management discipline across the group.
“These results reflect the groundwork we have been laying, and we are entering the new financial year with a solid foundation to grow from.
“Moreover, our previous strategic venture into synergistic green businesses has reinforced our long-term vision. Ongoing geopolitical tensions in the Middle East and rising energy costs are driving greater demand for energy security, making solar energy increasingly relevant to both businesses and consumers.
“The recent removal of China’s VAT rebate on solar panels and higher raw material costs has also translated into a more favourable pricing environment for our solar products.
“We believe the energy transition presents a meaningful and growing opportunity for the Group.” “At the same time, we remain prudent in navigating an external environment shaped by geopolitical instability and global supply chain pressures, which have contributed to higher building materials and steel prices that may weigh on construction sector activity levels.
“Nonetheless, the firmer pricing environment is expected to lend support to our average selling prices and provide a cushion against any softening in demand. Importantly, we remain focused on cost management, inventory optimisation and credit control to ensure we stay on solid footing,” he said.
Looking ahead, Unitrade remains confident in the structural demand underpinning the construction sector, which continues to be supported by public infrastructure projects, 2 transportation developments, private-sector investments, hyperscale data centres, and industrial developments.
For Q4 FY26, Unitrade recorded revenue of RM408.5 million versus RM413.8 million in Q4 FY25 due to lower contributions from the metal recycling and renewable energy segments.
Nonetheless, GP for the quarter rose 46.5% YoY to RM32.2 million from RM22.0 million in Q4 FY25, with GP margin increasing to 7.9% from 5.3% previously.
The improvement was underpinned by the group’s continued product mix optimisation and a reversal of inventory impairment of RM0.5 million during the quarter.
The group’s PATNCI rose to RM1.8 million in Q4 FY26, compared to a LATNCI of RM6.0 million in Q4 FY25, driven by higher GP and lower impairment losses on trade and other receivables.
