Winstar Capital eyes expansion in solar PV & aluminium fabrication at its ACE Market debut

Winstar Capital Bhd, poised to debut on Bursa Malaysia's ACE Market this December, aims to scale up its production of solar photovoltaic (PV) mounting structures. This initiative is bolstered by the company's active engagement in solar panel installation services. Primarily specialising in aluminium profile extrusion and ladder fabrication, Winstar sees its "hands-on solar panel installation services" as a vital element in refining and optimising the design of its PV mounting structures, according to CEO Chua Boon Hong.

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Aims to double its aluminium extrusion capacity

Winstar plans to more than double its aluminium extrusion capacity by utilising proceeds from its IPO to acquire new extrusion press machines and related equipment. This expansion is expected to boost the company's annual production capacity from 6,705 tonnes to 15,285 tonnes, marking an increase of 8,580 tonnes.

“We decided to get involved in installations to improve our products. Those using them first-hand understand the challenges, and this helps us make better designs. Although this is a non-core business, if opportunities arise, we would consider expanding further,” stated Chua Boon Hong, CEO at PV mounting.

Winstar's venture into solar PV system

Winstar ventured into solar PV system installation in 2023, expanding into trading solar-related materials and accessories alongside offering installation services. In the same year, renewable energy company Sunview Group, through its wholly owned subsidiary Vafe System Sdn Bhd, acquired a 20 per cent stake in Winstar. This stake was further increased to 30 per cent in February 2024 following Sunview's acquisition of an additional 10 per cent from Mestron Holdings.

Winstar’s financial review

For the financial year ended December 31, 2023 (FY2023), the company reported a profit after tax (PAT) of RM8.02 million, reflecting a 52 per cent increase from RM5.26 million in FY2022. Revenue also grew by nearly 40 per cent, rising to RM153.69 million from RM109.91 million, driven by improved profit margins and better cost management. In FY2021, Winstar recorded a PAT of RM2.63 million on revenue of RM89.76 million. Winstar plans to allocate nearly half of its IPO proceeds, amounting to RM9.55 million, for capital expenditure, with RM6.24 million set aside for working capital and RM4 million designated for listing-related expenses.