Graphjet partners with Malaysian university for advanced heat sink development

KUALA LUMPUR - Graphjet Technology (NASDAQ:GTI), a micro-cap company with a market capitalization of $13.65 million, has agreed to collaborate with the Centre for Materials Engineering and Smart Manufacturing at Universiti Kebangsaan Malaysia (UKM) to develop advanced heat sinks using graphite and graphene in additive manufacturing technology, the company announced Monday. InvestingPro data shows the stock has experienced significant volatility this year, with a YTD decline of nearly 90%.

The collaboration follows a letter of intent from UKM for the Consortium of Research Excellence 2025 under the Malaysian Ministry of Higher Education.

Graphjet also completed a new laboratory that will enhance its capability to perform quality tests on graphite and graphene products and conduct research on improvements to these materials. The facility will reduce reliance on third-party testing services and support the UKM collaboration.

"This development will benefit from the surging demand for specialized chips, especially AI chips which will demand more efficient and effective cooling solutions," said Chris Lai, CEO of Graphjet, in the press release statement. With an EBITDA of -$4.25 million in the last twelve months, the company’s investment in new capabilities comes at a crucial time for its growth strategy.

The company noted that data centers are expanding across Malaysia and Southeast Asia, with major companies including Amazon Web Services, Microsoft, Google Cloud, Alibaba Cloud, Equinix, and NTT committed to developing facilities in the region.

Graphjet also reported filing its Form 10-Q for the second quarter ended March 31, 2025, bringing its financial reporting up to date.

Founded in 2019, Graphjet Technology claims to have developed technology to recycle palm kernel shells, a waste product from palm seed oil production, to produce single-layer graphene and artificial graphite.

In other recent news, Graphjet Technology announced the implementation of a 1-for-60 share consolidation, effective August 25, 2025, following shareholder approval at an extraordinary general meeting. This move will also reduce the par value of the company’s ordinary shares. Additionally, Graphjet has received new machinery at its Malaysian factory, with installation and testing expected to ensure operational efficiency. The company has also secured a conditional extension from the Nasdaq Hearings Panel to meet listing requirements, including compliance with the minimum bid price by August 29, 2025. Graphjet must also update its fundraising plans by the end of September 2025.

In another development, Graphjet hosted a Japanese trading firm to discuss sustainable graphite supply, highlighting interest in Graphjet’s use of renewable feedstock. The visiting firm is known for its significant presence across various regions and its clientele, including major corporations like Toshiba and Hitachi. These events mark important milestones for Graphjet as it navigates its strategic and operational goals.

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