Elsoft Research Bhd plans to spend about RM20 million in 2026 to support its new and future business segments.
The Penang-based automated test equipment (ATE) manufacturer invested over RM2 million in 2025 to develop kidney dialysis embedded systems and ultra-slim meta-lens test solutions.
Elsoft Research spent over RM2 million in 2025 to develop kidney dialysis embedded systems and ultra-slim meta-lens test solutions.
Group CEO Tan Cheik Eaik said Elsoft has secured orders for its embedded systems used in peritoneal kidney dialysis machines.
“A local medical company placed an order for 2,000 embedded systems valued at RM10 million to RM12 million. Last year, we received orders for only 1,000 units,” he said.
Elsoft is also developing new test solutions for ultra-slim meta-lenses used in consumer electronics.
“Our traditional LED test solutions business has slowed, with its contribution dropping to 40% in 2025 from 80% in 2024, making diversification necessary,” Tan explained. He added that the meta-lens test solutions are priced at over RM1 million each and that orders are currently being secured.
“The two new business segments will be the primary growth drivers from 2026 onwards,” he said.
The peritoneal kidney dialysis market is expanding rapidly. “The peritoneal segment, estimated at US$6 billion in 2025, is projected to grow to US$11.6 billion by 2032, driven by the demand to decentralise renal care treatment,” Tan noted.
The meta-lens market also shows strong growth potential. “Research projects the market to grow over 28% annually from 2025 to 2033. The market size, estimated at US$185 million in 2024, is expected to reach US$1.78 billion in 2033, driven by the miniaturisation of optical components in consumer electronics and applications in augmented and virtual reality,” he said.
For the nine months ended Sept 30, 2025, Elsoft posted RM2.3 million in pre-tax profit on RM6.6 million in revenue, compared with RM3.5 million and RM10 million, respectively, in the same period of 2024. The lower revenue reflected softer demand across business segments, though the medical devices segment began contributing positively.
The lower pre-tax profit was due to reduced revenue, partially offset by other income and lower administrative expenses.
Looking ahead, Elsoft expects challenges to persist in its semiconductor segment, particularly in automotive, general lighting, and smart device markets due to soft demand and cautious customer spending. Meanwhile, the medical devices segment, which began contributing in Q4 2024, is expected to provide a more stable revenue stream and help offset the semiconductor slowdown.
