Top-tier mix for Topmix

TOPMIX Bhd, a provider of decorative surface solutions, aims to enhance its profit margins by focusing on higher-value products and optimising its production processes.

The company, which nearly doubled its net profit to RM6.3mil for the third quarter ended Sept 30 compared to the same period last year, is also pursuing a broader customer base as part of its long-term growth strategy.

Managing director Teo Quek Siang highlights that a key driver for the company – whose products are predominantly used as finishes for kitchen and office cabinets – will be the introduction of Topmix Component.

The so-called new value-added handleless door panel series offers customers a comprehensive cabinetry door package.

“This product not only allows us to cross-sell our existing portfolio and secure a larger share of project budgets, but also serves as our key entry product into the Singapore market, where we are seeing strong enquiries from our clients.

“We are targeting a commercial launch by year-end,” he tells StarBiz 7.

Teo says in addition, its newly introduced melamine faced chipboard (MFC), launched in March, has opened a new revenue stream and provides customers with a “cost-effective and durable” alternative to high pressure laminate (HPL).

“The product meets strong demand, especially in the central region, and is produced with low emissions and eco-friendly materials that comply with green standards.”

He says the group’s HPL segment continues to perform steadily, supported by robust innovation capabilities and new design cycles every two to three years, with 50 to 100 new designs per cycle.

“We launched our latest catalogue in August which we hope will drive additional sales while keeping our offerings aligned with customer preferences and market trends.

“The expansion of our product range, growing our market reach among existing and new customers, and strengthening Topmix’s brand presence will continue to support sustained earnings growth in the coming years.”

He reckons beyond product expansion, Topmix has also enhanced its physical footprint to support faster delivery and better customer service.

“We established a new sales office and a 15,262 sq ft warehouse in Pulau Pinang in August 2024, and subsequently expanded our Subang warehouse capacity by 75.9%, from 7,115 sq ft to 12,515 sq ft in March.

“These investments allow our local sales and marketing teams to respond more quickly, maintain higher inventory levels and improve overall delivery efficiency,” he adds.

Outside of Malaysia, it has also widened its regional presence through the establishment of a sales office and warehouse in Thailand via its associate company, Favor Topmix (Thailand) Co Ltd.

According to Teo, the company is already seeing positive traction for its products in Thailand.

For Topmix Component specifically, it has invested in automated machinery to streamline production, enhance efficiency, and reduce labour dependence.

“This allows us to offer customers a more cost-effective and consistent solution, thereby reducing the need for manual labour in door panel production and contributing to healthier margins for us while delivering better solution to customers.”

“At the same time, our customer relationship management system allows us to better understand customer needs, streamline sales processes, and identify cross-selling opportunities, which improves revenue efficiency and supports higher margins,” Teo explains.

Evolving market trends

“Shareholders can look forward to our key initiatives in expanding our product portfolio and regional presence, with the aim of driving stronger sales and profitability.

“Additionally, with an enhanced distribution network and wider market reach, they can expect greater resilience against market fluctuations and improved responsiveness to growing demand, supporting stable and sustainable returns over time,” he says.

Nevertheless, challenges are aplenty for Topmix.

“Some of the key challenges in our industry include managing cost pressures, particularly those arising from foreign-exchange fluctuations,” says Teo.

“Another major challenge is that our products are susceptible to evolving market trends and consumer design preferences, which can shift quickly and are influenced by market demographic profiles beyond our control.”

He believes in order for Topmix to stay relevant and maintain strong market appeal, the company must anticipate these changes and innovate its designs regularly.

“This is why Topmix updates its catalogue every two to three years with 50 to 100 new designs each cycle.

“Continuous innovation, supported by strong marketing, brand visibility, and an efficient supply chain, is essential for us to remain competitive and meet growing customer demand in a fast-moving market,” he adds.

For the nine months to Sept 30, Topmix made a net profit of RM13.3mil on revenue of RM75.8mil, compared to a net profit of RM7.4mil on revenue of RM66.1mil a year ago.

At last look, its shares were trading at 50 sen apiece.

The company was listed on the ACE Market of Bursa Malaysia in August 2024 at an IPO price of 31 sen per share.

The IPO had enjoyed strong demand from investors then, raising over RM31mil from the exercise.