This article first appeared in The Edge Malaysia Weekly on December 15, 2025 - December 21, 2025

MAIN Market-listed security seals specialist Mega Fortris Bhd (KL:MEGAFB) is pressing ahead with its expansion plans to casinos in Macau and the UK, even as a legal claim involving Whatman Capital Pte Ltd and a change in the shareholding structure of its holding company draws market attention.

Mega Fortris group managing director and CEO Datuk Adrian Ng Meng Poh highlights that the group is preparing to enter the premium playing card segment in Macau, positioning it as a natural extension of its long-standing supply of tamper-evident boxes and security solutions to major casino operators in Asia.

“The gaming industry values integrity and trust — and that’s exactly the same foundation we built our brand on. Our entry into the premium playing card market started when we saw a gap for higher-quality, longer-lasting cards suited for high-traffic gaming tables.

“We want to bring in a regional solution — premium cards made in Malaysia, with a total management solution of playing cards in security boxes assembled in Macau — for the Asian markets,” he tells The Edge in an exclusive interview.

According to him, early response from operators in Macau and the Philippines has been encouraging, supported by the high turnover and replacement cycles of casino-grade cards.

“Mega Fortris has already invested in machinery and tooling for the new business. The margins are healthy, and the market size is significant. There’s a lot of potential, especially when you consider the replacement cycle and the volume per casino,” Ng explains.

He adds that most casinos do not recycle their playing cards for security reasons, which means high turnover and consistent demand — a business dynamic that works in Mega Fortris’ favour.

“Macau isn’t new ground for us; we already serve a number of customers there, and the gaming industry is familiar territory.

“Today we supply secure boxes. The next step is a total solutions approach for the premium cards’ ecosystem, covering design, production, tamper-evidence, track-and-trace and compliant packaging; all this while remaining eco-friendly and sustainable,” says Ng.

Shah Alam-based Mega Fortris will be commissioning its premium cards printing line in Malaysia by end-March next year, before expanding into Macau with assembly lines over the next year or so, subject to final set-up and local requirements.

Ng acknowledges that a portion of initial public offering (IPO) proceeds earmarked for Macau has not been utilised yet, as it is currently placed in money market funds pending deployment.

“Our strengths are security and reliability, but we’re evolving into a broader solutions provider. Whether it’s through seals, packaging or now premium playing cards, the focus is on innovation and value creation. Macau is just the beginning — we’re looking at regional play,” says Ng.

To recap, Mega Fortris launched its IPO in October 2024 to raise more than RM198 million — half of which, or RM99.1 million, was fresh money for the company’s expansion efforts.

Priced at 67 sen per share — valued at 29.13 times its historical earnings — the IPO involved a public issue of 147.87 million new shares and an offer-for-sale of up to 147.87 million existing shares.

Mega Fortris intended to set aside RM42.98 million, or 43.38% of the proceeds for expansion, towards setting up the UK factory. Another RM45 million, or 45.42% of the fresh capital, was allocated for the new business venture in Macau to supply playing cards in sealed security boxes.

As at end-June this year, Mega Fortris had deployed roughly RM17.5 million for the new facility in the UK, to mainly serve Europe’s large e-commerce and logistics sectors, including American multinational technology giant Amazon.com Inc.

The plant, which is under construction in Bloxwich, Staffordshire, will have an installed capacity to produce 200 million pieces of security seals every year. Targeted to begin centralised distribution operations by early 2026, it is also aimed at reducing lead times and strengthening the group’s relevance in European tenders.

“We have an important relationship with Amazon, but this is not a single-customer story. Our base is diversified and we intend to keep it that way,” he stresses, adding that Mega Fortris’ UK operations serve a multitude of industry sectors and customers, with low single-customer volatility risk.

Ng points out that the UK has the third largest e-commerce market in the world, and Mega Fortris supplies its products to several key customers within this segment.

“We are setting our sights on not only growth within the UK, but also the broader European context. Although the logistics and transport sectors are a strong component of our current and future plans, our UK manufacturing investment decision was driven by various strategic growth pillars and sectors,” he says.

Ng reiterates that Mega Fortris’ UK presence is about expanding market reach and being closer to European customers, whereas Malaysia remains the group’s core hub for manufacturing and supply.

On Oct 6, Mega Fortris announced via a filing with Bursa Malaysia that it has been sued by Whatman Capital, a Singapore-based consulting firm, over an alleged breach of contract linked to the company’s listing exercise last year. The suit is in relation to a March 2023 contract for the provision of consultancy services covering Mega Fortris’ conversion from a private to a public company and subsequent listing on the local bourse in November last year. Whatman Capital is seeking payment for the sums of RM3.03 million and RM1.93 million together with interest.

When asked, Ng clarified that the Whatman Capital matter is personal and not related to the company. He, however, declined to elaborate further.

As a group, Mega Fortris believes the claim lacks merit and it is being addressed through the proper legal channels by the relevant parties.

“This has no bearing on our day-to-day operations, projects or customer relationships. Mega Fortris will continue to make any required disclosures in line with listing requirements while management remains focused on execution,” he says.

Ng, 60, was appointed to the board of Mega Fortris in 2001. He started his career in 1986 with his family business, Soon Motors in Penang, a sole proprietorship principally involved in operating a car workshop where he assisted in repairing and servicing automobiles.

Today, Mega Fortris operates a manufacturing facility in Kota Kemuning, Selangor. The group serves customers spanning more than 120 countries across Asia-Pacific, Europe, the Americas, the Middle East and Africa.

Ng and his elder brother — non-executive chairman Datuk Ng Meng Kee — own a stake of over 65% in the company, held mainly via Mega Fortris Global Pte Ltd.

However, the siblings are not the only shareholders in Mega Fortris Global, the holding company of the listed firm. Earlier, Oversea-Chinese Banking Corp Ltd — Singapore’s second-largest banking group also known as OCBC — and its affiliate Lion OCBC Capital Asia I Holdings Pte Ltd had a combined 25.99% stake in Mega Fortris Global.

On Oct 30, OCBC and its affiliate sold off their entire stake in Mega Fortris Global to ProWealth Management Holding Ltd, and as a result, ceased to be a substantial shareholder of Mega Fortris. Following the disposal, the little-known investment holding company incorporated in the British Virgin Islands surfaced as the new substantial shareholder of Mega Fortris.

Ng reveals that ProWealth Management is actually a Malaysian-owned firm that has business affiliates in Taiwan with experience in the software and solutions business.

“They’re strategic, not just financial, investors. More importantly, they share our long-term vision to expand the group’s footprint beyond security seals. The new shareholder brings in both network and capability which will be synergistic with our operations. It’s a sign of confidence in our direction,” he says.

Ng further says ProWealth Management has entered as a strategic, long-term investor with a multi-year horizon of about eight to 10 years, aligning with Mega Fortris’ next phase of growth.

“ProWealth Management has business affiliates in Taiwan with core capabilities in the software industry. Beyond capital stability, there is potential for future software-adjacent synergies to complement the group’s end-to-end offering,” he adds.

As at June 30 this year, Mega Fortris’ cash and short-term investments totalled RM92 million against total borrowings of RM78 million, placing the group in a net cash position of around RM14 million.

“With unutilised IPO proceeds currently parked in money market funds, we have ample headroom to execute planned capex while maintaining a prudent balance sheet,” Ng comments.

As of June, Mega Fortris has a total workforce of 576 employees, including 512 for the Malaysian operations and 21 for the UK operations.

“Our UK team currently consists of 21 team members. With our expansions, we will see this number grow to 70 once we are fully operational, as the team will grow phase by phase. There are no operations in Macau to date,” says Ng.

Mega Fortris has posted steady revenue growth, rising from RM158.17 million in the fiscal year ended June 30, 2022 (FY2022) to RM176.44 million in FY2025.

Profit, however, has been more uneven — climbing sharply to RM14.9 million in FY2023 and RM19.14 million in FY2024, before easing to RM14.1 million in FY2025. Net margin peaked at 11.4% in FY2024 before slipping to 7.99% in FY2025 (see chart).

Looking ahead, says Ng, the earnings visibility of Mega Fortris is still underpinned by the organic growth of the existing core operations for FY2026.

“The completion of Phase 1 of our UK expansion exercise, which is targeted to commence the marking, warehousing and centralised distribution operations by early 2026, will add on to the existing earnings.

“This move will bring us closer to European customers, shorten lead times and reduce freight sensitivity. We are also improving the automation initiatives of our local facilities, sustaining our service quality and leading to enhanced cost efficiencies,” he says.

Year to date, shares of Mega Fortris had gained 25% to close at 79 sen last Wednesday, giving it a market capitalisation of RM663.3 million. 

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