Small Cap Value Stock Pick Edition 2025
Amidst ongoing market turbulence and heightened volatility, small-cap counters with strong fundamentals and forward-looking strategies continue to draw investor attention. In this landscape, three Bursa-listed names; Oppstar Berhad, Avaland Berhad, and Kucingko Berhad, have emerged as compelling value picks for 2025.
Oppstar Berhad: Positioning for Long-Term Design Demand
Oppstar Berhad operates within the semiconductor space, specializing in integrated circuit (IC) design services. Its core business spans front-end to back-end IC design, serving clients globally from Malaysia, with a focus on R&D-driven innovation.
Despite industry-wide softness, the company achieved a cumulative revenue of RM57.7 million for the nine months ended 31 December 2024, a healthy increase from RM44.9 million in the previous year. However, profitability was impacted by higher cost of sales and impairment charges, leading to a net loss of RM5.0 million compared to a RM14.0 million profit a year earlier. The company remains well-capitalised, with RM78.4 million in cash and minimal debt, offering long-term resilience and growth potential.
Avaland Berhad: Property Development with Positive Trajectory
Avaland Berhad, a subsidiary of AyalaLand, focuses on residential and mixed-use developments in Malaysia. Its business model emphasizes value-oriented projects that appeal to the mid-market and affluent segment, with strong branding and delivery track records.
In FY2024, Avaland posted a record revenue of RM893.6 million, up 47% from RM607.1 million in FY2023. Net profit also surged 50% year-on-year to RM98.9 million. Backed by robust sales from its flagship developments and a healthy balance sheet, Avaland’s fundamentals reflect disciplined execution and strong buyer interest in a recovering property sector.
Kucingko Berhad: Yield and Growth in Animation
Kucingko Berhad is a pure-play digital content creator specializing in 2D animation for global clients across North America, Europe, and Asia-Pacific. While detailed financials were not released, the stock currently offers a dividend yield of 5.86%, making it attractive from a value-income perspective. Looking ahead, the company is expected to stage a recovery in 2H 2025 as international project pipelines resume post-studio bottlenecks. More notably, Kucingko is expanding into the high-growth 3D animation space, positioning itself to capture new demand in digital entertainment and streaming content.
$KUCINGKO / 0315 (KUCINGKO BERHAD)
$MCT / 5182 (MCT BERHAD)
$OPPSTAR / 0275 (OPPSTAR BERHAD)