KUALA LUMPUR (Aug 6): After successfully dipping its toes in construction materials trading, ACE Market-listed Harvest Miracle Capital Bhd (KL:HM) is formally diversifying into the segment.

The move comes as the IT and ICT-related product trader's revenue has been on the decline, and the company has ventured into various businesses to offset its core business’s decline in topline, according to the company’s bourse filing on Wednesday.

The company commenced building material trading operations in January this year, under its wholly owned Miracle Nexus Supply Sdn Bhd, and now envisions the division to contribute more than 25% of its net profits or cause a diversion of more than 25% of its net assets going forward.

Accordingly, the company plans to seek shareholders’ approval to formally diversify into the new business segment at an upcoming extraordinary general meeting to be convened later.

Besides building materials trading and IT and ICT divisions, Harvest Miracle’s stable of businesses also comprises, property development, property investment, moneylending, plantation, and clay brick manufacturing.

The building materials division only begun operations in the fourth quarter ended March 31, 2025 (4QFY2025). Harvest Miracle’s filing did not disclose quarter-on-quarter comparisons of its business divisions' results.

Nonetheless, the building materials division contributed a reasonable chunk of the company’s revenue even on a full-year basis.

Its core IT and ICT division provided the bulk of topline at 68.8% for FY2025, followed by clay brick making at 15.9% and building materials at 7.1%. Other divisions contributed the remaining 8.2%.

The IT and ICT division posted a profit after tax (PAT) of RM190,000. Meanwhile, the clay brick manufacturing business logged a loss after tax (LAT) of RM147,000 and the construction materials division at a LAT of RM41,000.

The moneylending division was the biggest PAT contributor with RM7.47 million, making up 95.73% of Harvest Miracle’s RM7.8 million in PAT for FY2025.

The proposed diversification is expected to be completed in the third quarter of 2025.

Shares in Harvest Miracle closed unchanged at 16 sen, valuing the company at RM277.91 million.