BCB BERHAD Q4 2025 Latest Quarterly Report Analysis

In the fourth quarter, BCB Berhad’s revenue surged by approximately 20.48% to RM83.73 million from RM69.50 million in the same quarter last year. This is a positive sign of sales activity. However, Profit Before Tax (PBT) saw a sharp decline of 57.77%, dropping to RM6.15 million from RM14.55 million. Consequently, Profit After Tax also fell by 72.37% to RM1.98 million, and Basic Earnings Per Share decreased to 0.56 sen.

For the entire financial year, BCB Berhad reported a revenue of RM208.97 million, a decrease of 6.25% from RM222.89 million in the preceding year. PBT for the year fell by a significant 48.90% to RM15.86 million, and Profit After Tax was almost halved, declining by 50.75% to RM9.61 million. Basic Earnings Per Share also saw a substantial drop of 43.56% to 2.19 sen.

The company’s revenue more than doubled in the fourth quarter compared to the third quarter of the same financial year, jumping by 122.7% from RM37.60 million to RM83.73 million. This robust revenue growth also propelled Profit Before Tax up by 94.86% to RM6.15 million from RM3.15 million, mainly driven by higher contributions from HomeTree and Lumina projects.

Revenue for Property Development increased by 18.56% to RM78.43 million, mainly due to project progress from HomeTree @ Kota Kemuning, Bandar Putera Indah @ Batu Pahat, and Lumina Commercial Park @ Iskandar Puteri, alongside higher sales of completed stocks from Elysia Park Residence @ Medini and Versis @ Medini. Lumina was a significant contributor to this revenue increase.

However, despite the higher revenue, Profit Before Tax for this segment decreased sharply by 75.51% to RM3.09 million. This notable decline was primarily attributed to higher operating expenses and increased finance costs incurred during the quarter.

The segment’s full-year revenue declined by 13.47% to RM184.15 million, largely due to lower sales contributions from HomeTree, Bandar Putera Indah, and Evergreen Heights @ Batu Pahat. Additionally, the preceding financial year benefited from higher sales of completed stocks.

In line with the revenue decrease, the Profit Before Tax for the property development segment also saw a substantial fall of 65.85% to RM9.44 million. This was further exacerbated by higher operating expenses and finance costs throughout the financial year.

The Construction segment delivered robust growth, with revenue soaring by 75.91% to RM4.13 million. This increase was mainly driven by higher contributions from Taman Saujana’s RMMJ project.

Profit Before Tax for the segment increased by 75.40% to RM2.85 million, mirroring the rise in revenue. The report indicates no significant fluctuations in operating income and expenses, suggesting stable operational efficiency.

Construction revenue for the full year surged by an impressive 231.06% to RM19.92 million, predominantly due to the strong performance of Taman Saujana’s RMMJ project.

Profit Before Tax also increased significantly by 79.64% to RM5.41 million. However, it’s noteworthy that the overall profit margin for the segment decreased due to higher impairment losses on receivables incurred during the financial year, indicating some challenges in collections despite higher activity.

The “Others” division, comprising hotel services and leasing, saw its revenue increase by 17.12% to RM1.17 million, primarily from higher room bookings.

Despite the revenue growth, Profit Before Tax for this segment decreased by 34.45% to RM0.22 million, largely due to higher operating expenses in the current quarter.

Full-year revenue for the “Others” segment rose by 20.52% to RM4.90 million, buoyed by increased revenue from room bookings, as well as food and beverages.

Profit Before Tax also saw a substantial increase of 171.16% to RM1.01 million, further aided by a reversal of impairment losses on receivables during the financial year.

Total assets grew by nearly 16% to RM1.29 billion, driven significantly by an increase in inventories, particularly for non-current assets (land held for property development). However, total liabilities increased at an even faster pace of over 30% to RM715.45 million. This was largely due to a substantial increase in total borrowings, which rose by 67.91% to RM353.30 million. Despite the increase in liabilities, Net Assets Per Share saw a modest rise of 1.55% to RM1.31.

From a cash flow perspective, the group experienced a significant shift: net cash *used in* operating activities amounted to RM116.95 million for the financial year, a sharp contrast to the RM52.74 million *generated from* operations in the previous year. This substantial outflow was primarily due to increased investments in “land held for property development” and “property development cost.” The company offset this by a significant increase in cash from financing activities, driven by higher borrowings drawdown, turning the overall net cash flow positive for the year.

Opportunities on the Horizon:

• The Johor Bahru-Singapore Rapid Transit System (RTS) link and the Gemas-Johor Bahru electrified double tracking rail project are anticipated to significantly boost regional connectivity and economic activity.
• The proposed Special Economic Zone (SEZ) between Singapore and Malaysia is expected to attract more investments and stimulate the property market, creating a favorable environment for BCB Berhad’s property development arm.

Navigating the Headwinds:

Despite the optimism, the group remains cautious about the rapidly evolving economic environment. Several factors pose potential challenges:

• Rising construction costs and inflationary pressures could impact project profitability.
• The removal of subsidies may further increase operational costs.
• The implications of US tariffs on Malaysia add an additional layer of market uncertainty.

Strategic Outlook:

To address these dynamics, BCB Berhad is committed to its core strategies:

• Focusing on the timely completion of its ongoing development projects.
• Launching new development products that are specifically tailored to meet current market demand and needs, ensuring relevance and competitiveness.

For the financial period under review, the Board of Directors has not recommended any interim dividend for the current quarter or financial period to-date. However, it’s worth noting that a first interim dividend for the financial year ended 30 June 2024 was approved and declared via treasury shares distribution, which was completed on 23 July 2024.