Fibromat paves the way for growth

Fibromat (M) Bhd is actively bidding for projects and aims to achieve an order book of RM500mil this year, aided by current unbilled sales.

Managing director and chief executive officer Danny Ng Kian Boon says the geotechnical specialist currently has orders in hand worth RM368mil, which are expected to provide revenue visibility through 2027.

“The RM500mil target includes unbilled sales of RM368mil, so we are confident of achieving it,” he tells StarBiz 7 in an interview.

“From our research, we found that there are over 40 flood mitigation projects that need to be carried out in various locations in Malaysia at the moment.

“We are also actively bidding for port, airport and railway-related projects. These include jobs at the Kuala Linggi International Port, Miri Airport, Penang Airport, Tawau Airport and Jajaran Rel Selangor railway project,” he says.

Fibromat provides geotechnical solutions for erosion control and ground improvement, as well as sediment control, filtration and containment for major infrastructure projects.

For the financial year ended Dec 31, 2025 (FY25), the company posted a net profit of RM16.4mil on revenue of RM113.5mil, compared with a net profit of RM10mil on sales of RM75.5mil in FY24.

Banking on expertise

Ng says Fibromat is banking on its expertise to drive future growth.

‘What we do is highly specialised. Currently, there are no direct local competitors; only a few foreign companies compete with us,” says Ng, who controls over 63% of the ACE Market-listed company.

He says the company has tendered for over RM2bil worth of jobs and, based on its historical success rate, expects to secure 5% to 10% of these contracts.

A majority of its current order book comprises works for the Central Spine Road, an expressway linking Kuala Krai, Kelantan, to Bentong, Pahang, which is targeted for completion this year.

“We will continue to focus on ground improvement-related projects and will also begin work as a subcontractor for part of the Central Spine Road Phase 2.

“We are keen to act as a subcontractor for selected infrastructure projects, especially in road works and highway projects.”

Among the projects the company is keen to participate in are the Kuala Lumpur-Karak Expressway expansion, West Ipoh Span Expressway, East Pantai Expressway 3, Central Spine Road Phases 1 to 4, and the North South Expressway extension.

In Sabah and Sarawak, these include the Sarawak North Coastal Highway, the rural road from Miri to Marudi, the Sabah-Sarawak Link Road Phases 1 and 2, the Pan Borneo Highway Sabah Phase 1B, and the Trans Borneo Highway.

Ng says Fibromat’s strengths lie in its position as a local geotechnical engineering company with both design and installation capabilities.

“We are backed by our own manufacturing plant in Rasa, Selangor, and have an in-house research and development team.

“On top of this, we are able to leverage on the Malaysian government’s initiative to focus on local content, where local contractors or suppliers are given a chance to play a role in infrastructure projects.”

Challenges and risks

Still, Ng says one of the key challenges faced by Fibromat is the influx of Chinese contractors and suppliers, which typically bid at highly competitive prices.

“Also, the overall cost of doing business in Malaysia has increased. The cost of basic construction materials such as cement, sand, aggregates and premix concrete has increased over the years, while the expanded scope of the sale and services tax has also impacted us.

“Very often, inefficiencies within the construction supply chain can also delay project progress, which can lead to cost overruns. These are issues that every contractor needs to overcome, including us.”

Fibromat transferred from the LEAP Market to the ACE Market in May last year, closing its debut at 49.5 sen, below its initial public offering (IPO) price of 55 sen.

However, the stock has rebounded since then. At last look, it was traded at 78.5 sen apiece.

Ng says the company is eyeing a transfer to the Main Market of Bursa Malaysia.

In its IPO note, Malacca Securities says a key strength of the company is its diverse product range, which enables it to meet a wide range of geotechnical project requirements.

It adds that the company aims to deepen its participation in large-scale infrastructure projects, particularly in highways, riverbank protection and slope stabilisation.

This includes expanding its design-and-build capabilities in erosion control and ground improvement works, leveraging its in-house manufacturing of geosynthetic products and on-site engineering expertise.

“We believe Malaysia’s geotechnical solutions industry is expected to benefit from sustained government spending and urbanisation,” it says.

Among the key risks, Malacca Securities notes that the group requires multiple licences and approvals to operate, and any failure to obtain, maintain or renew these could disrupt operations.

Additionally, it says the group’s success is dependent on the leadership and experience of its executive team, whereby loss of key personnel without timely replacement may affect continuity and strategic execution.