PETALING JAYA: KHPT Holdings Bhd (KHPT) has proposed a series of corporate exercises, including the acquisition of a metal stamping company, a long-term lease arrangement, business diversification and a variation in the utilisation of its initial public offering (IPO) proceeds, as part of efforts to expand its operations and revenue base.
The group plans to acquire 100% equity interest in Ngai Cheong Metal Industries Sdn Bhd (NCMI) for RM19.5mil in cash. NCMI is principally involved in the manufacturing and supplying of metal stamping parts and design and development of tooling, jigs, moulds, and dies, serving both the electrical and electronics (E&E) as well as automotive sectors.
For the financial year ended December 2025, NCMI recorded a profit after tax of RM2.48mil, on a revenue of RM65.41mil.
KHPT’s acquisition of NCMI is supported by a profit guarantee of RM7.5mil over three years, which the board views as “reasonable and realistic” based on the latter’s performance and secured contracts.
In tandem, NCMI will lease a factory in Puchong, Selangor, for 10 years at an initial annual rental of RM1.3mil, with revisions every three years. In a bourse filing, KHPT said the lease supports an asset-light strategy, enabling the group to preserve capital for high-yield investment and working capital needs.
The acquisition also underpins KHPT’s proposed diversification into non-automotive metal stamping services, allowing it to extend its metal stamping capabilities to new industries while continuing to focus on its core automotive business.
To partly fund the acquisition, KHPT proposes to reallocate RM16.37mil, or about 75% of its IPO proceeds, originally earmarked for capital expenditure.
The move is intended to accelerate expansion by acquiring an established, income-generating business rather than building new capacity.
KHPT said the proposals are “in the best interest of the company,” and are expected to enhance market positioning, diversify revenue streams and support long-term growth.
