KHPT Holdings Bhd (KHPT) has announced plans for significant corporate restructuring, including the acquisition of Ngai Cheong Metal Industries Sdn Bhd (NCMI) for RM19.5 million. This acquisition will be satisfied in cash and marks a strategic move to diversify KHPT's revenue streams and expand its operational capabilities.
The acquisition of NCMI, a company specializing in metal stamping parts for the automotive and electrical & electronics (E&E) sectors, will allow KHPT to extend its services into non-automotive metal stamping. NCMI has a proven track record, reporting a profit after tax of RM2.48 million on revenue of RM65.41 million for the financial year ended December 2025. The acquisition includes a profit guarantee of RM7.5 million over three years.
In addition to the acquisition, KHPT will lease a factory in Puchong, Selangor, for 10 years at an initial annual rental of RM1.3 million. This lease supports an asset-light strategy, enabling the group to preserve capital for high-yield investment and working capital needs. KHPT believes that these corporate exercises are in the best interest of the company, enhancing market positioning and supporting long-term growth.
The company views the acquisition as a means to accelerate expansion by acquiring an established, income-generating business. KHPT's move aims to strengthen its automotive segment and broaden its presence into higher-value precision metal components, including safety-related automotive applications and selected E&E manufacturing opportunities.
