Fibromat: More than just a niche player, with clearer earnings visibility from order book and project wins

Fibromat (M) Berhad may not be one of the most talked-about names on Bursa, but from a fundamental perspective, the company is starting to look more interesting than many investors may realise. The group is mainly involved in erosion control solutions, geotechnical-related installation works, and the manufacturing and sale of in-house erosion control products. In simple terms, Fibromat is not just a materials supplier. It has exposure across engineering execution, product supply, and technical solutions, which gives it a more complete business model than a plain trading company.

What makes the story more compelling now is that Fibromat’s order book visibility has become much clearer. According to reporting in late March 2026, the company had around RM368 million in orders in hand, and management was targeting an order book of RM500 million this year. For a project-driven engineering business, this matters because a stronger order book usually translates into better revenue visibility over the next few financial periods. The same report said the current order book provides earnings visibility through 2027, which gives the market a more concrete base to work with.

Recent project wins also help support that growth narrative. One of the most notable contracts secured by Fibromat was a RM283.5 million subcontract announced in May 2025 for geotechnical and erosion control works under the Kelantan Central Spine Road (CSR) project. This is meaningful because it shows Fibromat is not just securing smaller specialised jobs, but is also participating in large infrastructure-related works where slope protection and ground stabilisation are critical.

Beyond Peninsular Malaysia, Fibromat also appears to be expanding its presence in East Malaysia. Earlier coverage by The Edge noted that the company had secured half of the packages in the Sabah Pan Borneo Highway project and was also looking to participate in the RM7.4 billion Sarawak-Sabah Link Road (SSLR) project. This is an important angle because terrain-heavy road and infrastructure projects are exactly the type of environment where erosion control and geotechnical solutions become essential. That gives Fibromat a logical route to benefit from future infrastructure spending in these regions.

The financial side has also started to reflect this stronger activity level. Public market data shows Fibromat delivered FY2025 EPS of RM0.069, compared with RM0.046 in FY2024, indicating a clear year-on-year improvement in earnings. MarketScreener also showed that for 4Q2025, the group recorded RM42.76 million in revenue and RM5.96 million in net profit. This is important because it suggests the company is not just winning jobs on paper, but is already converting project activity into actual earnings growth.

From an investment perspective, Fibromat’s appeal lies in the fact that several pieces are starting to come together at the same time. It operates in a specialised niche that is not easily replaceable, its project scale has grown meaningfully, its order book is becoming more visible, and its earnings are already trending upward. In other words, this is no longer just a “potential” story. The business is beginning to show real operating traction across projects, order book, and profitability.

Overall, Fibromat now looks more like a specialised engineering company entering a stronger growth phase rather than a quiet underfollowed stock with limited visibility. The key thing for investors to watch next is whether the company can continue growing its current RM368 million order book toward the RM500 million target, while sustaining the earnings momentum already visible in FY2025. If it does, Fibromat may gradually attract more attention as a focused infrastructure-support and geotechnical solutions name with clearer upside from project execution.