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Point 1:
Edelteq owns 24% of Solid Point Precision Manufacturing. Solid Point operates upstream in the semiconductor supply chain. The business is already profitable. Solid Point recorded a strong profit increase, with net profit rising more than 3.5 times to RM10.19 million in 2024. This allows Solid Point’s profit to be consolidated as the share of results of an associate. Over time, this can increase Edelteq’s reported net profit. Edelteq can also source precision parts from Solid Point. This can help lower costs and improve margins in Edelteq’s electronics, assembly, and consumables businesses. Solid Point also shows strong revenue and profit growth. The company has traits commonly seen in IPO-ready businesses.
Point 2:
Edelteq has a market capitalisation of RM249 million and trades at about RM0.43 per share. In its latest quarter, Edelteq recorded RM83.7 million in revenue and RM3.4 million in profit. This shows strong revenue scale for a small-cap company. THMY has a much larger market capitalisation of RM817 million and trades at about RM0.92 per share. THMY reported RM14.1 million in quarterly revenue and RM3.8 million in profit. This places Edelteq lower on the market-cap map but much higher on the revenue scale.
Point 3:
Edelteq plans to issue 292.9 million free warrants on a one-for-two basis. This allows the company to raise future funds only when warrants are exercised. A similar case is Southern Cable Group Berhad, which issued bonus warrants on a one-for-two basis in 2022. After the exercise, both the mother share and warrant performed strongly. Southern Cable now trades at about RM2.09 for the mother share and RM1.92 for the warrant. This shows how bonus warrants can increase market interest and liquidity when the business continues to perform.
Edelteq is no longer an ordinary ACE Market company. It is a company that is changing its structure in a big way. It shows strong growth in its latest financial results. The company recorded RM83.7 million in revenue for the recent quarter. It only recorded RM4.88 million in the same quarter last year. The jump shows one of the fastest growth rates on Bursa Malaysia. The company also reported RM3.43 million in net profit. It reported RM614,000 in the same quarter last year. The numbers show rapid expansion and better efficiency.
Edelteq is also building a stronger base for its business. The company plans to buy 24% of Solid Point Precision Manufacturing. Solid Point produces precision parts for the semiconductor industry. AER, an independent valuer, estimated Solid Point’s equity value at RM81.49 million to RM87.75 million. The valuation supports the importance of the acquisition. The move helps Edelteq control its supply chain. It improves product quality. It creates more income opportunities for the future.
Edelteq is also gaining more recognition in the technology sector. Halovision System Sdn. Bhd., a joint venture owned by Edelteq, secured an investment of up to RM3.2 million. The investor is Kumpulan Modal Perdana (KMP). KMP is a government-linked venture capital firm. It is 99.99% owned by the Ministry of Finance, Incorporated. It operates under MOSTI. The investment shows strong confidence in Edelteq’s technology plans. The funds will support the development of Halovision’s Raptor and i-Falke inspection systems. The systems target substrate panel and wafer-level semiconductor inspection. The project moves Edelteq toward higher-value research and manufacturing. It also places the company within Malaysia’s national plan for semiconductor growth and Industry 4.0.
Edelteq also proposes a bonus issue of free warrants. The plan includes 292.9 million warrants on a 1-for-2 basis. The exercise price will be set at a discount of up to 20% to the 5-day VWAP. The structure gives shareholders more exposure to future gains.
