MARC Ratings has assigned a preliminary rating of AIS/Stable to Winstar Capital Berhad's (Winstar) proposed Islamic Medium-Term Notes (IMTN) Programme of up to RM300.0 million.

The rating reflects Winstar's established track record of over two decades in aluminium extrusion, supported by ongoing product diversification, and a broad customer base that supports revenue growth. These strengths are moderated by the cyclical nature of the industry and the group's exposure to aluminium price volatility, which could pressure leverage.

Winstar commenced operations in 2002 with a single extrusion line in Klang and currently operates four extrusion lines with varying tonnage and technical capabilities, enabling it to meet diverse customer specifications. As at end-2025, installed capacity stood at 6,705MT per year, with utilisation rising to 89% (2022: 56%), reflecting stronger demand and improved operating scale. The group is expanding its capacity via a new facility adjacent to its existing plant in Ijok, Selangor. Upon completion of the expansion, Winstar's installed capacity would increase to 15,285MT per year.

Winstar's customer base comprises mainly mid-scale construction and property development players, as well as hardware stores, with demand centred on extruded aluminium profiles and related building materials. In 2025, revenue from the top five customers totalled RM32.6 million, or 13.85% of total revenue (2023: RM30.0 million; 19%), indicating limited customer concentration risk. The group's clientele consists largely of small and medium enterprises (SMEs), supporting pricing flexibility as these customers typically place smaller orders and have fewer alternative suppliers. However, the group's focus on SMEs exposes it to higher vulnerability during economic downturns, given the generally weaker credit profiles of such customers.

Winstar has maintained a longstanding relationship of more than 20 years with its key supplier, which accounted for about 34%