NWE Resources posts first-quarter profit ahead of ACE Market listing

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NWE Resources posts profit & lists

Highlights

NWE Resources recorded first-quarter revenue of RM10.59 million without a YoY comparison, with 40.16% contributed by the distribution of personal care products and health foods.
The company achieved a low effective tax rate of 10.63% due to an overprovision of tax and a 100% tax exemption for NWE Biotech Sdn Bhd until January 2029.
NWE Resources will list on the Bursa Malaysia ACE Market on 21 Oct and plans to raise RM28.6 million for product expansion and R&D.

This article was translated from the original. Read the original version by our correspondent here.

First-quarter performance and revenue drivers

As reported by The Edge Malaysia, the company's first-quarter revenue for 1QFY2027 totalled RM10.59 million, with the distribution of personal care products and health foods contributing RM4.25 million, or 40.16% of total revenue.

Other key contributors included the repackaging, manufacturing and supply segment for personal care products, which generated RM4.05 million, while the health food formulation and supply segment contributed the remaining RM2.29 million. No year-on-year comparison was provided, as this is the company's first quarterly financial report in compliance with the ACE Market Listing Requirements.

The group also recorded a low effective tax rate of 10.63%, compared with the statutory rate of 24%. Its tax performance was strengthened by an overprovision of tax in the previous year and a 100% pioneer status tax exemption granted to its unit, NWE Biotech Sdn Bhd, for contract research and development activities until January 2029.

FY2027 outlook and use of IPO proceeds

NWE Resources expressed cautious optimism for the remainder of the financial year ending 31 March 2027, taking into account resilient domestic economic conditions and Budget 2027 measures aimed at boosting household disposable income.

The company also expects the tourism sector to continue gaining momentum under the Visit Malaysia 2026 campaign, which in turn supports demand for its hospitality amenities. At the same time, rising health and wellness awareness, together with an ageing population, continues to support demand for the group's health food and personal care product offerings.

NWE Resources is scheduled to list on the Bursa Malaysia ACE Market on 21 Oct. The company plans to raise approximately RM28.6 million to fund product development, expanded research and development, and manufacturing upgrades.

In our earlier article, the Sinar Programme by SME Corp Malaysia was described as a support channel for micro, small and medium enterprises (MSMEs) affected by supply chain disruptions and rising operating costs. We also highlighted how Budget 2027 allocates substantial funding for MSME development, focusing on financing, automation, market access and human capital to strengthen resilience and scale up businesses.

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