SUPERLON HOLDINGS BHD (SUPERLN)

Company Profile: Superlon Holdings Bhd (SUPERLN, 7235)

Superlon Holdings Bhd is a niche Malaysian manufacturer of Nitrile Butadiene Rubber (NBR) thermal insulation foam - the rubber tubing and sheeting used to wrap air-conditioning pipes to prevent condensation and heat loss in HVAC&R (Heating, Ventilation, Air-Conditioning & Refrigeration) systems. Founded in 1992, the company has been operating for over 33 years, making it one of the most experienced players in this specialised industrial niche.

Business Segments

Superlon operates through two main business segments:

• Manufacturing (80% of revenue): Production of NBR insulation foam tubes, sheets, and rolls. This segment commands higher margins due to value-added manufacturing processes.
• Trading (20% of revenue): Distribution of HVAC&R parts and equipment. Lower-margin but complementary to the manufacturing segment.

Geographic Markets

Superlon exports to more than 70 countries, with approximate revenue breakdown as follows:

• Export markets (70%): Asia-Pacific, Middle East, Africa, Americas, and Europe
• Domestic Malaysia (30%): Commercial, industrial, and residential construction projects

The high export exposure means revenue is sensitive to foreign exchange movements, particularly the USD/MYR pair. When the Ringgit strengthens, USD-denominated export revenue translates to lower Ringgit receipts.

Vietnam Operations

Superlon has diversified its manufacturing footprint into Vietnam as a cost-reduction and market-access strategy:

• Vietnam Plant 1 (Binh Duong): Commenced 2018, capacity of 1,500 tonnes/year, currently operating at 75-80% utilisation
• Vietnam Plant 2 (Hung Yen, Northern Vietnam): Commenced around 2022-2023, a newer and more recently established facility

Market Position

Superlon holds a 55-60% domestic market share in rubber thermal insulation in Malaysia - a highly dominant position. Globally, the company has built export relationships across 70+ countries, backed by internationally recognised certifications including FM Approvals, UL GreenGuard Gold, and SIRIM.

Shariah Compliance Status ✅

Superlon Holdings Bhd is a Shariah-compliant stock as certified by the Securities Commission Malaysia Shariah Advisory Council. This makes it eligible for Muslim investors adhering to Islamic investment principles.

Data Center Growth Catalyst 📈

A significant emerging growth catalyst is the data center construction boom in Malaysia. The Malaysian data center cooling market is projected to grow from USD 210 million (2025) to USD 1.07 billion (2031) at a 31% CAGR. All data center cooling systems require extensive HVAC insulation - and Superlon is Malaysia's leading manufacturer of exactly these products. Management confirmed data center demand as a key growth driver at the 2025 Annual General Meeting.

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