KUALA LUMPUR (July 8): Bird's nest firm Enest Group Bhd reported a first-quarter net profit of RM2.04 million ahead of its ACE Market listing next Wednesday (July 15).

The net profit for its first quarter ended March 31, 2026, was made on a revenue of RM42.11 million, its bourse filing showed.

No comparative figures were provided as this is the company's first interim financial report.

The company’s bird’s nest revenue segment contributed 98.1% of the total revenue, while its health and personal care as well as rental income business segments made up the remaining 1.9%.

Geographically, China was the group’s largest revenue contributor during the quarter, at 65.1%, while Malaysia contributed 34.8%; Australia made up the remaining 0.1%.

The prospects of the edible bird’s nest industry in Malaysia is expected to remain encouraging, the group said. As most of its revenue come from China, the group also noted that any slowdown or decline in China's economy, edible bird’s nest market, or changes in import tariffs and related duties, can have an adverse impact on its business.  

Based in Kajang, the company processes and trades edible bird’s nest products and is transferring its listing from the LEAP Market, a board designed for early stage and emerging small firms.

As trading on the board is restricted to sophisticated investors, listing transfers to the ACE Market requires companies to provide an exit offer and undertake a public issue of shares.

Enest's initial public offering (IPO) has been oversubscribed by 1.9 times, with the retail tranche attracting applications worth RM11.2 million.

The IPO raised about RM15 million for the company. Former chairman Tan Heng Guan and his son and executive director Tan Teh Sheng will together pocket RM2 million from the sale of existing shares.

The company has earmarked about one third of the proceeds from the public issue of new shares to repay bank borrowings and set aside 42% of the funds as working capital. The rest will be used to cover listing expenses.

M&A Securities is the IPO’s principal adviser, sponsor, underwriter and placement agent.

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