Securemetric Berhad: Navigating Growth in a Dynamic Digital Security Landscape (Q2 FY2025 Review)
Greetings, fellow investors! Today, we’re diving into the latest interim financial report from Securemetric Berhad for the second quarter ended 30 June 2025. This report offers a crucial glimpse into the company’s performance, revealing a story of impressive profit growth amidst a challenging revenue environment. While the digital security solutions provider saw a dip in overall sales, its strategic maneuvers and strong profit rebound certainly caught our attention, making this a report worth dissecting.
Securemetric Berhad, a key player in Malaysia’s digital security space, is working diligently to adapt to an evolving market. This quarter’s results show resilience and strategic focus, particularly in boosting profitability. Let’s unpack the numbers and the forward-looking strategies that define Securemetric’s current trajectory.
Core Data Highlights: A Tale of Profit Growth and Revenue Shifts
Looking at the headline figures, Securemetric Berhad delivered a robust increase in profitability, both for the current financial quarter and the year-to-date, despite a softer top-line performance.
Quarterly Performance (Q2 2025 vs. Q2 2024)
Current Quarter (Q2 2025)
Revenue: RM10.01 million
Profit Before Tax: RM1.19 million
Profit for the Period: RM0.46 million
Basic Earnings Per Share: 0.08 sen
Same Period Last Year (Q2 2024)
Revenue: RM11.36 million
Profit Before Tax: RM0.69 million
Profit for the Period: RM0.20 million
Basic Earnings Per Share: 0.04 sen
For the second quarter ended 30 June 2025, Securemetric Berhad reported a revenue of RM10.01 million, a decrease compared to RM11.36 million in the same period last year. However, the good news is that Profit Before Tax surged by 72.46% to RM1.19 million, up from RM0.69 million previously. This translated to a notable increase in Profit for the Financial Period, reaching RM0.46 million, more than double the RM0.20 million recorded in Q2 2024. Consequently, Basic Earnings Per Share (EPS) also saw a healthy rise to 0.08 sen from 0.04 sen.
Year-to-Date Performance (YTD 2025 vs. YTD 2024)
Current Year-to-Date (YTD 2025)
Revenue: RM24.68 million
Profit Before Tax: RM2.06 million
Profit for the Period: RM1.02 million
Basic Earnings Per Share: 0.18 sen
Preceding Year-to-Date (YTD 2024)
Revenue: RM27.43 million
Profit Before Tax: RM1.16 million
Profit for the Period: RM0.43 million
Basic Earnings Per Share: 0.08 sen
On a year-to-date basis, revenue for YTD 2025 decreased by 10.05% to RM24.68 million from RM27.43 million in YTD 2024. Despite this, the Group recorded a significantly higher Profit Before Tax of RM2.06 million, an increase of 77.13% from RM1.16 million. Profit for the Financial Period saw an even more impressive surge of 138.82% to RM1.02 million, compared to RM0.43 million in the preceding year-to-date. This translates to a Basic EPS of 0.18 sen, more than double the 0.08 sen in YTD 2024.
Quarter-on-Quarter Comparison (Q2 2025 vs. Q1 2025)
Comparing the current quarter to the immediate preceding quarter (Q1 2025), Securemetric’s revenue decreased by 31.81% from RM14.67 million to RM10.01 million. This was mainly due to lower contributions from Public Key Infrastructure (PKI) and electronic identification products. However, the Group managed to increase its Profit Before Tax by 35.89% to RM1.19 million, up from RM0.87 million in Q1 2025. This demonstrates effective cost management and higher-margin project execution in the current quarter.
Revenue Drivers: A Closer Look at Business Segments
The decrease in year-to-date revenue was primarily attributed to a substantial 72.63% reduction in the “Others” segment (comprising other solutions, applications, and products), which fell by RM4.14 million to RM1.56 million. However, this decline was partially mitigated by growth in core digital security areas:
- Digital Security Solutions: Increased by 7.36% to RM14.24 million. This segment remains a cornerstone, with PKI revenue seeing a significant rise year-to-date.
- Electronic Identification Products: Rose by 27.04% to RM0.45 million.
- Maintenance Services: Grew by 3.82% to RM8.43 million, highlighting the stability and recurring nature of this segment.
For the current financial quarter, maintenance services continued to be the largest contributor, accounting for approximately 51.64% of total revenue. Digital security solutions made up about 37.92%, while electronic identification products and the “Others” segment contributed 1.59% and 8.85% respectively.
Geographical Footprint: Shifts in Regional Contributions
Securemetric’s revenue streams also showed shifts across its key geographical regions for the year-to-date period:
| Region | YTD 2025 (RM’000) | YTD 2024 (RM’000) | Change (RM’000) |
|---|---|---|---|
| Philippines | 10,446 | 5,678 | +4,768 |
| Malaysia | 4,278 | 8,359 | -4,081 |
| Indonesia | 3,124 | 4,354 | -1,230 |
| Vietnam | 3,024 | 4,296 | -1,272 |
| Singapore | 1,890 | 2,845 | -955 |
| Others | 1,915 | 1,902 | +13 |
| Total Revenue | 24,677 | 27,434 | -2,757 |
The Philippines emerged as a standout performer, more than doubling its contribution to RM10.45 million in YTD 2025, from RM5.68 million previously. This growth helped offset revenue contractions in Malaysia, Indonesia, Vietnam, and Singapore, indicating a strategic shift or successful project execution in the Philippines market.
Financial Health: A Snapshot of Assets, Liabilities, and Cash Flow
As of 30 June 2025, Securemetric’s total assets grew to RM74.26 million from RM66.27 million at the end of December 2024. This increase was accompanied by a rise in total liabilities to RM30.74 million from RM21.81 million, primarily driven by higher contract liabilities and other payables. Total equity attributable to owners of the Company stood at RM43.36 million. Net Assets Per Share (NAPS) saw a slight dip from 7.67 sen as at 31 December 2024 to 7.51 sen as at 30 June 2025.
The Group’s cash and cash equivalents at the end of the financial period stood at RM21.19 million, a decrease from RM24.64 million at the beginning of the year. This was largely due to net cash used in operating activities, influenced by significant changes in working capital, particularly an increase in receivables, which is typical for project-based businesses. Total borrowings, predominantly lease liabilities, showed a decrease to RM2.56 million from RM2.81 million in the same period last year, indicating healthy debt management.
Risks and Prospects: Navigating Headwinds, Eyeing Long-Term Growth
Securemetric acknowledges that the current global economic climate, particularly the 2025 U.S. tariffs, may indirectly impact the Group. This could lead to broader economic uncertainty, increased cost pressures on clients, and a short-term moderation in sales momentum due to budget tightening and delayed spending. However, the long-term outlook for digital security remains robust.
The persistent global shift towards advanced digital infrastructure is expected to sustain high demand for Securemetric’s solutions. As businesses and governments increasingly rely on IT systems, the imperative for strong cybersecurity measures only grows. Securemetric is well-positioned to capitalize on this enduring trend.
The Group’s strategy is clear and focused:
- Cost Optimisation and Operational Efficiency: Streamlining operations to enhance profitability.
- Aligning Offerings to Evolving Client Needs: Ensuring products and services remain relevant and competitive.
- Expanding Partnerships and Strengthening Business Networks: A particular focus on growth in Southeast Asia.
- Enhancing Sales and Marketing Capabilities: To capture new opportunities effectively.
- Optimising Product Offerings: Continuous improvement and innovation in its digital security portfolio.
- Exploring Automation Initiatives: To further streamline workflows, reduce manual dependencies, and improve efficiency across the board.
- Driving Innovation: Leveraging its core expertise in security technologies and services.
Barring unforeseen circumstances, the Board remains optimistic about Securemetric’s prospects and is committed to refining these strategies to drive growth and ensure long-term sustainability.
Summary and Investment Recommendations
Securemetric Berhad’s latest interim report paints a picture of a company actively managing its operational efficiency and driving profitability, even as it navigates a more challenging revenue landscape. The significant year-on-year and quarter-on-quarter increases in Profit Before Tax and Profit for the Financial Period highlight management’s ability to extract more value from its operations, suggesting a focus on higher-margin projects and cost control. While revenue has seen a dip, particularly in certain segments and regions, the strong performance in the Philippines offers a positive counter-narrative, indicating successful market penetration elsewhere.
The company’s strategic priorities, including cost optimisation, regional expansion, and product innovation, are well-aligned with the long-term demand for robust cybersecurity solutions. However, investors should remain mindful of the potential short-term headwinds stemming from global economic uncertainty and trade tensions.
Key risk points to consider, as highlighted in the report, include:
- Indirect impacts from global economic uncertainty and trade policies (e.g., 2025 U.S. tariffs).
- Potential short-term moderation in sales momentum due to client budget tightening and delayed spending.
- The need for continuous adaptation to rapid technological developments in the digital security industry.
- Fluctuations in foreign currency exchange rates, which can affect international operations.
- The ongoing challenge of securing new projects and customers in a competitive market.
It is important to reiterate that this analysis is purely for informational purposes and should not be construed as a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.
Securemetric Berhad has demonstrated a commendable ability to boost its bottom line in a tough environment. The question now is, can the company sustain this profit growth momentum while reinvigorating its revenue streams in the coming quarters? Will their focus on Southeast Asia and operational efficiency continue to bear fruit?
We’d love to hear your thoughts on Securemetric’s Q2 FY2025 performance. Share your insights in the comments section below! What aspects of the report stood out to you?
