This article first appeared in The Edge Malaysia Weekly on August 17, 2026 - August 23, 2026

Having listed only in January 2023, Vestland Bhd (KL:VLB) has quickly established itself as a standout small-cap construction player, supported by resilient earnings and strong returns on equity.

This strong track record has earned the company the Highest Return on Equity Over Three Years award in the construction sector at The Edge Malaysia Centurion Club Corporate Awards 2026.

During the three-year assessment period ended Dec 31, 2025 (FY2025), Vestland recorded a weighted return on investment (ROE) of 20% — the highest among its peers with a market capitalisation of under RM1 billion — reflecting its ability to consistently generate double-digit returns for shareholders while expanding its operations in an increasingly competitive construction industry.

A closer look at the numbers shows Vestland’s ROE was at 24.68% in FY2023, before easing to 22.3% in FY2024 and 16.7% in FY2025, as the company increased borrowings to support working capital for its growing construction activities. These borrowings resulted in higher finance costs, causing FY2025 net profit to slip 9.1% to RM35 million from RM38.5 million in FY2024. This was despite revenue jumping 25.1% to a record high of RM783.1 million from the previous year, driven by stronger progress across ongoing design-and-build and civil engineering projects.

At the same time, Vestland grew its net assets to RM227 million from RM192 million, resulting in the moderating ROE. Nevertheless, the company’s weighted ROE over the three-year period spanning FY2023 to FY2025 continued to outpace its peers’.

Overall, despite the dip in FY2025, Vestland’s earnings have largely been on a steady growth trajectory during the assessment period. Net profit rose from RM25.1 million in FY2022 to RM27.8 million in FY2023, to hit a high of RM38.5 million in FY2024. Together with the FY2025 performance, this translates into a three-year compound annual growth rate (CAGR) of 11.75%, based on Centurion Club award methodology.

In tandem with the steady growth, Vestland’s share price trended upwards, rising from 39 sen at end-March 2023 to 54 sen three years later, giving the company a market capitalisation of RM509.9 million as at March 31, 2026 — the cut-off date for the Centurion Club awards this year.

Established as a conventional build contractor, Vestland undertook a strategic expansion into design-and-build works in 2020, followed by civil engineering works a year later. This broadened service offering enabled the group to differentiate itself in a crowded market and secure higher-margin projects.

Today, Vestland undertakes not just residential and commercial projects, but also industrial and infrastructure developments across Selangor, Kuala Lumpur, Penang, Sabah, Pahang and Kelantan. Design-and-build has become its core earnings driver, accounting for 72.5% of its FY2025 revenue, while conventional building contributed 17.3% and civil engineering works made up the remaining 10.2%.

Chairman Datuk Mathialakan Chelliah attributed the company’s performance record to disciplined execution and its ability to capture opportunities across the construction value chain despite a challenging operating environment.

“The group’s technical expertise and structured execution capabilities have enabled the effective delivery of its project portfolio,” he said in the company’s 2025 annual report. “By integrating engineering value optimisation, efficient project planning and digitalised project management tools, Vestland continues to enhance productivity, streamline construction timelines and uphold quality standards across its projects.”

After securing RM218.9 million worth of new contracts in 2025 and successfully completing and handing over 1,900 affordable housing and serviced apartment units, Vestland entered 2026 with an outstanding order book of about RM1.4 billion. In January, it secured RM602 million worth of contracts, comprising an industrial park project in Kajang and the Armani Hallson KLCC project.

This was followed by a RM65 million contract in June for piling and substructure for a 74-storey serviced apartment development in Jalan Pavilion, Kuala Lumpur, and a RM135 million superstructure contract for an industrial development in Bukit Raja, Klang.

Looking ahead, Vestland expects demand to remain buoyant, supported by ongoing infrastructure spending, industrial and data centre investments, and developments surrounding the Johor-Singapore Special Economic Zone.

Backed by its sizeable order book, an expanding design-and-build portfolio, and a disciplined execution track record, the group believes it is well positioned to pursue more opportunities across both private and select public sector projects.

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