Bertam Alliance’s Latest Quarter: Construction Shines Amidst Profit Dip
Bertam Alliance Berhad has just released its financial results for the second quarter ended June 30, 2025. While the company saw a healthy jump in revenue, a closer look reveals a mixed performance with its construction arm carrying the weight. Let’s dive into the numbers and see what they tell us about the company’s current standing and future direction.
Core Financial Highlights: A Tale of Two Segments
At a glance, Bertam Alliance’s top-line growth is encouraging. However, the bottom line tells a different story, with pre-tax profit seeing a significant decline compared to the same period last year. This contrast is key to understanding the company’s performance this quarter.
Q2 2025 Financial Snapshot (vs Q2 2024)
A quick overview of the key performance indicators for the quarter.
Q2 2025 Results
Revenue: RM 5.63 million
Profit Before Tax: RM 0.09 million
Net Profit: RM 0.09 million
Earnings Per Share (EPS): 0.02 sen
Q2 2024 Results
Revenue: RM 4.69 million
Profit Before Tax: RM 0.26 million
Net Profit: RM 0.26 million
Earnings Per Share (EPS): 0.08 sen
Segment Performance Breakdown
The group’s results were primarily driven by its two main business divisions: Construction and Property Development. The construction segment was the star performer, while the property development arm faced headwinds.
| Segment | Q2 2025 Pre-Tax Profit/(Loss) (RM’000) | Q2 2024 Pre-Tax Profit/(Loss) (RM’000) | Change (%) |
|---|---|---|---|
| Construction | 576 | 566 | +2% |
| Property Development | (120) | (36) | -233% |
| Corporate and Others | (364) | (271) | -34% |
As the table shows, the construction segment’s revenue grew by a solid 20% to RM5.63 million, fueling the Group’s overall top-line growth. Its pre-tax profit also saw a slight increase. In contrast, the Property Development segment recorded no revenue and saw its losses widen significantly. This divergence highlights the Group’s current reliance on its construction activities.
Risks and Prospects: Navigating a Challenging Market
The management has provided a clear view of the path ahead, acknowledging both the challenges and opportunities on the horizon.
Market Outlook and Strategy
The Board anticipates that the property market will remain challenging due to rising interest rates and inflationary pressures that weaken consumer purchasing power. In response, the Group is taking a cautious yet strategic approach:
- Property Development: The company is actively seeking suitable joint venture partners with the right expertise and financial strength to revitalise its property development projects, particularly in Sabah. This indicates a move towards de-risking its development activities through strategic partnerships.
- Construction: This segment is positioned as the Group’s primary income driver for the next two years. The company is actively tendering for new projects to bolster its order book, which currently stands at a healthy RM41.40 million as of 30 June 2025.
Summary and Outlook
Bertam Alliance’s Q2 2025 results paint a picture of a company in transition. The strong performance of its construction division provides a stable foundation, delivering revenue growth and consistent profits. However, the dormancy and increased losses in the property development segment, coupled with higher corporate costs, have pulled down overall profitability. The company’s future success will likely hinge on its ability to execute its dual-pronged strategy: aggressively growing its construction order book while cautiously revitalising its property arm through smart partnerships.
Key points for investors to keep an eye on:
- Property Market Conditions: The impact of interest rates and inflation on the broader property sector will be a critical factor for the Group’s development segment.
- Construction Contract Wins: Future announcements on new project tenders will be a key indicator of the construction segment’s growth trajectory and its ability to build on the current RM41.40 million order book.
- Joint Venture Progress: Any news regarding partnerships for its Sabah property developments could be a significant catalyst for the Group’s long-term growth.
A Professional’s Perspective
From my viewpoint, Bertam Alliance is making a pragmatic pivot. By leaning on the strength of its construction arm during a tough cycle for property development, the company is ensuring short-to-medium term stability. The current challenge is to manage costs effectively to translate revenue growth into improved bottom-line results. The strategy to seek partners for its property assets is a sensible way to mitigate risk and unlock value without over-extending its own capital. The execution of this strategy will be the true test in the coming quarters.
What are your thoughts on Bertam Alliance’s latest results? Do you think focusing on construction is the right move in the current economic climate? Share your views in the comments below!
