KUALA LUMPUR: MARC Ratings has assigned a preliminary AIS/Stable rating to Winstar Capital Bhd’s proposed Islamic Medium-Term Notes (IMTN) Programme of up to RM300mil.
In a statement, the rating agency said the rating reflected Winstar’s track record of more than two decades in aluminium extrusion, ongoing product diversification and broad customer base.
These strengths are moderated by the cyclical nature of the industry and the group’s exposure to aluminium price volatility, which could put pressure on leverage, it said.
Winstar, which began operations in 2002 with a single extrusion line in Klang, currently operates four extrusion lines. Its installed capacity stood at 6,705 tonnes per year as at end-2025, with utilisation rising to 89% from 56% in 2022.
The group is expanding its capacity through a new facility adjacent to its existing plant in Ijok, Selangor. Upon completion, its installed capacity is expected to increase to 15,285 tonnes per year.
MARC Ratings noted that Winstar's revenue had grown to RM235.4mil in 2025 from RM89.8mil in 2021.
Pre-tax profit rose to RM14.1mil in 2025 from RM9.6mil in 2024, while pre-tax profit for the first half of 2026 was RM8.7mil compared with RM8.3mil a year earlier.
Meanwhile, total borrowings increased to RM160.6mil in the first half of 2026, mainly due to higher working capital requirements in line with business growth.
Liquidity was supported by RM67.3mil in unutilised credit facilities and RM16.8mil in cash and bank balances as at end-June 2026.
MARC Ratings said the initial proceeds from the proposed RM300mil programme would be used to refinance existing borrowings and were expected to improve liquidity through the release of previously pledged cash and fixed deposits.
