[RAM] RAM Ratings affirms AA3(s)/Stable and P1(s) ratings of AME Elite's Sukuk Wakalah Programme; outlook stable

RAM Ratings has affirmed the AA₃(s)/Stable for AME Capital Sdn Bhd’s (AME Capital or the Issuer) RM1.5 bil Islamic Medium-Term Notes Programme (2024/2124) and P1(s) rating on its RM300.0 mil Islamic Commercial Papers Programme (2024/2031) (Sukuk Wakalah Programmes). AME Capital, a wholly owned funding conduit of AME Elite Consortium Berhad (AME Group or the Group), benefits from the Group’s Purchase Undertaking to meet principal and profit obligations under the sukuk programmes. As such, the ratings and suffixes reflect AME Group’s credit profile.

Listed on Bursa Malaysia since 2019, AME Group’s credit profile is supported by its established market position as an integrated property and construction group, recognised for its one stop solutions and specialization in industrial park developments. The Group’s disciplined development approach, build-on-demand strategy and prudent financial management supports its strong financial profile, ample liquidity and financial flexibility.

Despite a 15% y-o-y revenue decline in FY Mar 2025 due to project timing and variation in project work stages, AME Group demonstrated resilience, rebounding 94% y-o-y to RM638.44 mil in revenue for the 1H FY Mar 2026. This recovery was driven by major land sale and steady progress at industrial parks; even excluding the land sale, revenue growth was still positive at 30% y-o-y. OPBDIT margins improved from around 17.6% in FY Mar 2024 to 21.6% and 35.5% in FY Mar 2025 and 1H FY Mar 2026, respectively, reflecting strong operational efficiency.

As of September 2025, unbilled property sales and outstanding construction and engineering order book were stable at RM242.1 mil (excluding unbilled sales from joint-ventures) and RM223.7 mil, respectively as of September 2025. The Group’s medium-term project pipeline is supported by approximately 192 acres of undeveloped land (including joint-ventures), with an estimated gross development value exceeding RM2 bil. For 1H fiscal 2026 and fiscal 2025, property sales totalled RM136.7 mil and RM585.2 mil (excluding contribution from Northern TechValley), respectively. Recurring leasing income contributed for around 12% of the Group’s revenue in fiscal 2025, and the favourable industrial sector outlook is expected to sustain profitability at around 20%.

AME Group has historically maintained a near net cash position, with a healthy average debt to OPBDIT ratio of 2.35 times and robust average FFODC at 0.40 times over five years. The targeted RM250 mil land acquisition in FY Mar 2027 may see deterioration in its key financial metrics, though these forecast levels – FFODC around 0.20-0.21 times and debt-to-OPDBIT at above 4.0 times – are anticipated to still commensurate with its current ratings. Furthermore, the Group’s strong liquidity and financial flexibility, further supported by capital market access and the ability to monetise assets via its listed REIT, AME REIT, positions it well to manage market volatility whilst still pursuing its growth strategy.


Analytical contacts
Tan Yan Choong
(603) 2708 8256
yanchoong@ram.com.my

Tan Han Nee
(603) 2708 8322
hannee@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my