TSiC Berhad FY2025 Analysis: Revenue Soars, but Listing Costs Bite Into Profits
TSiC Berhad, a key player in the electrical and electronics (E&E) support sector for the semiconductor industry, has just released its financial results for the full year ended June 30, 2025. The report reveals a compelling story of strong top-line growth, but a bottom line impacted by significant one-off expenses related to its recent listing.
For investors keeping an eye on this LEAP Market company, the headline figures might seem contradictory. While revenue saw a healthy double-digit jump, pre-tax profit took a considerable hit. Let’s dive into the numbers to understand what’s really driving TSiC’s performance and what lies ahead.
The key takeaway from this report is the company’s solid 14.79% increase in full-year revenue, demonstrating underlying business momentum. However, this was overshadowed by RM0.880 million in one-off listing expenses, which significantly skewed the profitability figures for the year.
Core Financial Performance: A Tale of Two Metrics
When we look at the full-year performance, the contrast between revenue growth and profit decline is stark. The company’s operational strength is evident in its sales figures, but strategic one-off costs have temporarily impacted its profitability.
Full Year Ended 30 June 2025
Revenue: RM 14.85 million
Gross Profit: RM 5.37 million
Profit Before Tax (PBT): RM 0.91 million
Profit After Tax (PAT): RM 0.06 million
Earnings Per Share (EPS): 0.02 sen
Full Year Ended 30 June 2024
Revenue: RM 12.94 million
Gross Profit: RM 3.11 million
Profit Before Tax (PBT): RM 2.39 million
Profit After Tax (PAT): RM 1.46 million
Earnings Per Share (EPS): 0.42 sen
The 14.79% increase in revenue was primarily driven by a RM1.646 million rise in the service contract activities. This indicates healthy demand for TSiC’s core offerings. However, the Profit Before Tax (PBT) decreased by 61.90%. The report clarifies this was “mainly due to one-off listing expenses of RM0.880 million.” Factoring this out, the underlying operational profit shows more resilience than the headline number suggests.
Dissecting the Revenue Streams
TSiC’s business is divided into two main segments: Services and Trading. The Services segment remains the powerhouse, contributing over 93% of total revenue. It encompasses service contracts, project-based work, and troubleshooting & repair.
| Segment | FY 2025 Revenue (RM) | FY 2025 (%) | FY 2024 Revenue (RM) | FY 2024 (%) |
|---|---|---|---|---|
| Services | 13,944,132 | 93.88% | 12,701,129 | 98.16% |
| Trading | 908,682 | 6.12% | 237,896 | 1.84% |
| Total | 14,852,814 | 100.00% | 12,939,025 | 100.00% |
While the Services segment is the main engine, the Trading segment showed impressive growth, more than tripling its revenue contribution. Geographically, Malaysia remains the core market, accounting for over 90% of revenue, with growing contributions from Singapore and the USA.
A Fortified Financial Position
Despite the dip in profits, TSiC’s balance sheet has strengthened considerably, thanks to the proceeds from its recent listing. This provides a solid foundation for its future growth plans.
Key balance sheet improvements include a surge in Total Equity to RM8.67 million (from RM4.94 million) and a robust cash and bank balance of RM3.92 million (up from RM0.97 million). Consequently, the Net Assets per share increased to 2.23 sen from 1.41 sen in the previous year.
Risks and Future Prospects
The Board expresses optimism about the Group’s future, outlining clear strategies for expansion. The company is not just resting on its laurels but actively investing for the next phase of growth.
Strategic Growth Initiatives
TSiC’s forward-looking plans are ambitious and well-funded by its recent public issue. The company intends to construct its own production facility to expand its in-house repair, assembly, and testing capabilities. A significant portion of the listing proceeds, RM2 million, has been allocated for this purpose. Additionally, the company aims to expand its contactor sales in local markets and continue strengthening its test-related services and product offerings.
Potential Headwinds
While the outlook is positive, investors should remain aware of potential risks. The company’s fortunes are closely tied to the semiconductor industry, which is known for its cyclical nature. Furthermore, executing large-scale capital projects like building a new factory carries inherent risks, including potential delays and cost overruns.
Summary and Investment Recommendations
Disclaimer: The following is a summary of the financial report and should not be construed as investment advice. Investors should conduct their own due diligence.
In summary, TSiC Berhad’s FY2025 results present a picture of a company in transition. The strong revenue growth confirms the underlying health of its core business. The sharp decline in profit, while concerning on the surface, is largely attributable to non-recurring listing costs. With a significantly stronger balance sheet and clear, funded expansion plans, the company is positioning itself for sustainable long-term growth.
- Strong Top-Line Growth: Revenue increased by a healthy 14.79%, showcasing continued demand for its services.
- Profitability Masked by One-Offs: The reported profit was heavily impacted by listing expenses, which are not expected to recur.
- Solid Financial Footing: A successful listing has fortified the company’s balance sheet, increasing its cash reserves and net assets per share.
- Clear Path for Growth: Management has outlined a clear strategy focused on expanding production capacity and service offerings.
Final Thoughts
As a blogger, my take is that this report requires looking beyond the headline profit numbers. The context of the one-off listing expenses is crucial. The true test for TSiC will be its ability to execute its strategic plans, particularly the construction of its new facility, and translate its stronger financial position into sustained profitability in the coming years. The underlying revenue growth is a very positive signal that the business fundamentals remain strong.
With the one-off listing costs now in the rearview mirror, do you believe TSiC’s expansion plans will fuel a strong profit recovery in FY2026?
Share your perspective in the comments section below!
