KUALA LUMPUR (Oct 3): ACE Market-listed Plytec Holding Bhd (KL:PLYTEC) has aborted its plan to transfer its listing to the Main Market of Bursa Malaysia.

In a filing with the stock exchange on Friday, the construction engineering services firm said it had withdrawn its application for the proposed transfer, which was submitted to the Securities Commission Malaysia (SC) on June 30 this year.

“The decision was made after due and careful consideration of the group’s current financial and operational position, as well as the strategic timing of the proposed transfer,” the company said.

Plytec added that the withdrawal was a prudent move for now, but noted it intends to revisit the plan at a more suitable time.

“The board will reassess the feasibility of re-submitting the application for the proposed transfer in the future,” the company, which made its ACE Market debut two years ago, elaborated.

Under the SC’s equity guidelines, a company seeking to transfer to the Main Market must record uninterrupted profits for three to five full financial years, with an aggregate profit after tax (PAT) of at least RM20 million. It must also achieve at least RM6 million PAT in the most recent year.

According to Plytec’s filing on April 30, the company posted an aggregate consolidated PAT of RM35.81 million over the past three financial years between 2022 and 2024. For 2024 alone, it reported an adjusted PAT of RM12.87 million.

The group also recorded positive net cash flow over the past three years and had sufficient working capital for at least 12 months. Net cash generated from operating activities stood at RM21.44 million in 2024.

Nevertheless, for the cumulative six-month period ended June 30, 2025 (1HFY2025), the company’s net profit fell more than 42% year-on-year to RM4.29 million from RM7.5 million, despite revenue rising 5% to RM96.9 million from RM92.3 million.

The company attributed the weaker earnings to higher administrative expenses and finance costs from capital expenditure in its construction method engineering (CME) rental business, one-off impairment losses on trade receivables, and start-up costs from its new polymer material compounding and product (PMCP) segment.

Looking ahead, the group said it plans to expand its CME segment by growing its rental asset portfolio and investing in safer, compliant systems. Meanwhile, in-house production for its PMCP segment is scheduled to commence once the Olak Lempit factory is completed.

Shares in Plytec closed unchanged at 24 sen on Friday, giving it a market capitalisation of RM145.5 million.

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Plytec Holding formally applies to transfer listing to Main Market