Fibromat's Poor Debut on ACE Market: Geotechnical Services Firm Opens 16% Below IPO Price

Fibromat, a geotechnical services firm, made a lacklustre debut on Bursa Malaysia's ACE Market, opening at 46 sen, 16% below its IPO price of 55 sen per share. The company plans to use the IPO proceeds to purchase new machines and expand its production capabilities. Fibromat's notable projects include the West Coast Expressway and the Sabah Pan Borneo Highway. The firm aims to build investor confidence by delivering strong performance and raising awareness of its value.

Key Tronic Corporation (KTCC) reported its Q3 2025 financial results, highlighting the impact of global tariff fluctuations and the company's strategic response. CEO Brett Larsen emphasized the challenges posed by tariffs on Chinese components, which have affected production across all facilities. To mitigate these issues, KTCC is expanding production capacity in Arkansas and Vietnam [1].

The Arkansas facility is expected to create over 400 new jobs in the next five years through a $28 million investment, while the Vietnam facility has the potential to more than double its manufacturing capacity. These expansions aim to address customer demand for onshoring and mitigate tariff impacts [1].

Revenue for Q3 fiscal 2025 was $112 million, a decline from $142.4 million in the same quarter of fiscal 2024, largely due to economic disruptions and tariff-related uncertainties. Despite this, the company reported improved gross margins of 7.7%, attributed to cost-cutting and operational efficiencies. Management pointed to significant cost-saving initiatives, including headcount reductions and streamlined Mexico operations, as contributing to improved financial performance [1].

Management also reported five new program wins across telecommunications, pest control, energy storage, medical technology, and consumer products, with potential revenues estimated between $2 million and $12 million per program. These wins include a $12 million telecommunications program and a $6 million pest control program [1].

The company's net loss for Q3 fiscal 2025 was $0.6 million, or $0.06 per share, an improvement from the net loss of $2.2 million, or $0.21 per share, in Q3 fiscal 2024. Operating cash flow for the first nine months of fiscal 2025 reached $10.1 million, up from $6.1 million in the same period of fiscal 2024, reflecting effective working capital management [1].

Key Tronic Corporation is navigating a challenging macroeconomic and geopolitical landscape with a focus on operational efficiency and strategic growth. The company’s investments in Arkansas and Vietnam are positioned to mitigate tariff impacts and align with the growing trend of onshoring. While revenue and profitability remain under pressure, management’s proactive measures and new program wins signal a potential for long-term growth and improved financial performance [1].

References:
[1] https://seekingalpha.com/news/4442785-key-tronic-outlines-strategic-expansions-in-arkansas-and-vietnam-amid-tariff-challenges