KUALA LUMPUR (June 4): Pipe manufacturer YLI Holdings Bhd is disposing of two industrial land parcels in Prai, Penang, for RM28.5 million in cash as part of its efforts to strengthen its financial position and reduce losses.
The disposal will be carried out through YLI’s wholly owned subsidiary, Yew Lean Foundry & Co Sdn Bhd, which has entered into a sale and purchase agreement with Trilight Optics (Malaysia) Sdn Bhd.
The assets being sold comprise two leasehold industrial land parcels located within the Prai Industrial Estate, together with a 33kV electrical system and substation built on the properties. As of March 31, 2025, the combined book value of the assets stood at RM15.9 million.
YLI expects the transaction to generate a net gain of approximately RM6.83 million. The proceeds will primarily be used to support working capital requirements and reduce the group’s bank borrowings.
Based on its latest audited financial statements for the financial year ended March 31, 2025 (FY2025), YLI said the disposal would reduce its loss attributable to shareholders from RM55.17 million to RM48.34 million if the transaction had been completed at the start of the financial year. Net assets per share would also improve from RM1.35 to RM1.42.
The disposal is expected to be completed by the fourth quarter of 2026, subject to approvals from the Penang Development Corporation and relevant state authorities.
YLI shares were last traded at 24 sen, giving the company a market capitalisation of approximately RM27.1 million.
This transaction demonstrates how companies can unlock value from non-core or underutilised assets to improve their financial health. YLI is selling land with a book value of RM15.9 million for RM28.5 million, allowing it to realise a significant gain while generating cash for operational needs and debt reduction.
The disposal is also notable because the sale value exceeds the company’s current market capitalisation, highlighting the hidden value that may exist within some asset-rich industrial companies. By converting land assets into cash, YLI can strengthen its balance sheet, lower financing costs through debt repayment, and improve key financial metrics such as losses and net assets per share.
For investors, the move reflects a proactive capital management strategy, particularly at a time when the group is seeking to improve profitability and financial resilience.
Malaysia