KUALA LUMPUR (July 29): Oxford Innotech Bhd (KL:OXB), which specialises in smart factory machinery and systems, expects “significant” demand for its products and services from the modular building systems (MBS), semiconductor, and electrical and electronics (E&E) industries, underpinned by rising orders and new product submissions from clients in these sectors.

Internal targets for 2025 are still on track to be met, despite a “quite challenging” market ahead of US tariffs clarity, said the group, which expects stronger growth next year onwards, as industry conditions stabilise and its new capacity comes in.

Oxford Innotech’s expansion plan with proceeds raised from its listing will more than double its production capacity, said managing director Ng Thean Gin.

The Penang-based precision engineering company, which made its debut on the ACE Market of Bursa Malaysia on Tuesday, raised RM56.1 million from its IPO, of which RM23.1 million is to construct the new factory space, while RM11.2 million will be used to purchase and refinance new machinery.

“We are constructing a new factory called Penang Science Park, Factory 2 Phase 2. Phase 1 has just been completed about two months ago; and [in] Phase 2, we anticipate to continue growth in the order from modular building systems, semiconductor, as well as E&E (electrical and electronics) industries,” Ng told a press conference after the company’s listing on Tuesday.

Construction for Phase 2 is expected to begin in the first quarter of 2026, with operations slated to start in the third quarter of 2027, he said.

“At the moment, we are seeing quite a significant demand for new product sample submission, from semiconductor industries especially,” Ng added. 

Many of these first-article products will convert into mass production over the coming year, and drive revenue growth, said head of corporate strategy Ivan Yap.

“The semiconductor industry is quite promising. Underlying demand is coming from sectors such as autonomous driving, data centres and artificial intelligence. All these are very promising sectors,” Yap said.

“As for the coming year, we expect it to be better because the conclusion of the tariff should stabilise the market. And therefore, I think capital expenditure expansion by our clients will benefit us. So all these will contribute to the coming year’s growth for us.”

Oxford Innotech reported a revenue of RM19.5 million for the first quarter ended March 31, 2025 (1QFY2025). The mechanical assembly solutions segment was the largest contributor, accounting for 65% of total revenue, followed by the precision engineering components solutions segment at 33.4%, and the automation and robotics solutions segment at 1.7%.

Geographically, revenue in 1QFY2025 was predominantly derived from Malaysia, which contributed 96.4%, with the remaining 3.6% coming from other Asian countries, North America, and Europe.

Oxford Innotech opened at 36 sen during its Bursa Malaysia Ace-Market debut on Tuesday, up seven sen or 24.14% over its initial public offering (IPO) price of 29 sen, valuing the group at RM255.6 million.

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