SFP TECH HOLDINGS BERHAD (SFPTECH)

SFP Tech Holdings Berhad - Company Profile

SFP Tech Holdings Berhad (SFPTECH) is a B2B precision engineering support services and automation equipment company listed on Bursa Malaysia's ACE Market since June 2022. A common misconception among investors is that SFPTECH is a semiconductor manufacturer - in reality, the company provides support services to the semiconductor, EMS (Electronics Manufacturing Services), solar PV, automotive, and hard disk drive industries.

Think of it this way: SFPTECH does not make computer chips. Instead, they manufacture the steel components, CNC-machined parts, and automation equipment used inside the factories that make those chips. This B2B support services model positions them as a critical enabler within Malaysia's technology supply chain.

Two Core Business Segments

• Segment 1 - Engineering Support Services: Sheet metal fabrication, CNC machining, and mechanical assembly. This segment operates as a contract manufacturer for industrial clients. It is the primary revenue contributor and the backbone of SFPTECH's operations.
• Segment 2 - Automation: Automation equipment solutions through subsidiary EST Exhibit Automation, spare parts trading, and integrated factory and automated equipment design and manufacturing. This segment serves the Industry 4.0 transformation needs of manufacturing clients.

Customer Base and Industries Served

SFPTECH's customer base spans companies across the following sectors:

• Semiconductor and EMS (Electronics Manufacturing Services)
• Solar PV energy
• Automotive
• Hard disk drive
• General manufacturing

This diversification provides exposure to multiple industrial cycles, though it also means the company is vulnerable to customer concentration risk within specific sectors - a vulnerability that materialized in Q4 2024.

IPO History and ACE Market Listing

SFPTECH was listed on Bursa Malaysia's ACE Market in June 2022 at an IPO price of RM0.30. The debut was spectacular - shares surged to RM0.60 on the first trading day, doubling the value of IPO investors within a single session. This debut reflected the strong market sentiment toward semiconductor support companies during the post-COVID global chip boom.

The Q4 2024 Credit Loss Event

In Q4 2024, SFPTECH recorded its first net loss since listing - a loss of RM21.3 million - primarily driven by a RM24.1 million Allowance for Credit Losses. This means one or more major customers were unable to pay their outstanding debts. Critically, this was an accounting recognition event rather than an operational failure - the underlying business continued operating.

As a consequence, SFPTECH's planned transfer to the Main Market was shelved in March 2025, though management stated the intention to revisit this in the future when financial performance stabilizes.

FY2025 Recovery Through Portfolio Streamlining

Throughout 2025, the company executed a "portfolio streamlining" strategy - actively removing problematic customers and rebuilding its customer base with higher credit quality. As a result, FY2025 revenue fell to approximately RM97.1 million (down from RM169.5 million in FY2024), but margins began stabilizing by Q4 2025. The short-term pain is management's deliberate trade-off for long-term stability.

Shariah Compliant Status ✅

SFPTECH is a Shariah-compliant stock as verified by the Securities Commission Malaysia's Shariah Advisory Council. This makes it eligible for individual and institutional investors who follow Islamic investment principles.

Key Subsidiary

EST Exhibit Automation is the subsidiary that operates SFPTECH's automation segment. Through EST, the company provides factory automation solutions, custom equipment design, and spare parts trading for the manufacturing industry.

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