PETALING JAYA: Topmix Bhd is anticipated to be a beneficiary of the rise in property renovations and growth of the Johor-Singapore Special Economic Zone (JS-SEZ).
Tradeview Research in a report said the company, a leading Johor-based supplier of high-pressure laminates (HPL), plays a vital role in residential and commercial property sectors.
“We project revenue growth of 13% to 20% in the financial year 2025 (FY25) to FY27, driven by a booming property market that is fuelling demand for high-quality surface material and increased commercial refurbishments and new shop openings, leveraging customers’ expansion.
The research report also said Topmix will benefit from the launch of a melamine-faced chipboard product, which is expected to make a small contribution in FY25.
“Topmix has secured strategic collaborations with fast-growing food and beverage brands like Chagee and Tea Garden, further strengthening its market position.
“In the long run, we see Topmix as a key beneficiary of the JS-SEZ. As businesses expand into this space, Topmix is well-positioned to secure renovation contracts.”
Topmix operates an asset-light model, sourcing HPL mainly from China manufacturer (Rexin) and partly from South Korea.
Tradeview Research said this has enabled the company to maintain a gross profit margin of at least 35% over the past four years, attributed to the strengthening of the ringgit.
“With Malaysia’s solid economic conditions, where unemployment and inflation remain at healthy levels, we do not expect major surprises in monetary policy.
“Furthermore, driven by the China-plus-one strategy adopted by US companies, particularly in the technology sector, we believe demand for the ringgit will remain sustainably strong over the mid-to-long term.”
The research house said it expects the ringgit to remain firm, supporting its forecast of at least a 39% gross profit margin and 16% net profit margin over FY25 to FY27, alongside Topmix’s sustained market leadership and pricing power.
“Topmix’s products are customised to customer specifications of design, size and finish.
“By using machinery with capital expenditure of RM1mil to RM2mil per unit, this creates a barrier to entry for smaller players and enables high-quality, standardised output preferred by corporate customers.
“These competitive strengths support Topmix to penetrate vertically across surface decorative products and accessories market while securing a diverse customer base comprising hardware dealers, stockists, interior designers, contractors and carpenters.”
With top customers engaged for at least six years and mostly more than 10 years, Tradeview Research said this provides Topmix with a resilient delivery pipeline and earnings visibility.
“Topmix remains the market leader with strong pricing power driven by unique designs and customisation capabilities.
“We therefore forecast Topmix to achieve revenue growth of 13% to 20% over FY25 to FY26, reaching RM146.5mil in FY27, representing a 57.6% increase from FY24 revenue of RM92.9mil, while maintaining its Malaysia HPL market leadership.”
Topmix traces its origins to 2006 when the group began importing, trading and marketing generic high pressure laminate products sourced mainly from China.
The business evolved from sourcing ready made HPL laminates to building the Topmix brand as customers demanded newer, trend-driven designs.
