CC International Berhad: Navigating Growth in the Professional Services Landscape
Greetings, fellow investors! CC International Berhad (CCIB), a prominent player in Malaysia’s professional business services sector, has just unveiled its unaudited condensed financial statements for the 6-month period ended 30 June 2025. This report provides a valuable glimpse into the company’s operational strength and strategic direction, painting a picture of consistent growth and proactive expansion. For those of us keenly observing the Malaysian LEAP market, there’s certainly plenty to discuss, especially with a positive dividend announcement adding to the good news!
Key Takeaway: CCIB has demonstrated solid financial performance for the first half of 2025, with impressive increases in both revenue and profit. The company’s strategic acquisitions and market positioning appear to be paying off, all while rewarding shareholders with an interim dividend.
Core Data Highlights: A Look at the Numbers
CCIB’s latest financial report showcases a robust performance, reflecting the company’s ability to drive growth in a dynamic market. Let’s dive into the core numbers that caught my eye:
Overall Financial Performance (6-Month Period)
6-Month Period Ended 30 June 2025
Revenue: RM23,950,965
Profit Before Tax: RM4,597,142
Net Profit: RM3,724,775
Basic Earnings Per Share: 0.78 sen
6-Month Period Ended 30 June 2024
Revenue: RM22,470,282
Profit Before Tax: RM4,293,748
Net Profit: RM3,458,400
Basic Earnings Per Share: 0.71 sen
The numbers speak volumes! Revenue for the first half of 2025 climbed by RM1.5 million, representing a healthy 6.6% increase compared to the same period last year. This positive momentum flowed directly to the bottom line, with Profit Before Tax rising by approximately RM0.3 million and Net Profit by about RM0.2 million. Consequently, basic earnings per share also saw a commendable increase from 0.71 sen to 0.78 sen.
Segmental Performance: Where Growth is Brewing
A closer look at CCIB’s business segments reveals the engines driving this growth:
| Segment | Revenue (RM) 30.06.2025 | Revenue (RM) 30.06.2024 | Change (RM) |
|---|---|---|---|
| Corporate Secretarial | 7,030,065 | 5,288,753 | +1,741,312 |
| Taxation | 5,496,464 | 4,841,570 | +654,894 |
| GBS – Accounting and Business Service Outsourcing | 6,520,490 | 6,500,908 | +19,582 |
| Wealth Management | 722,184 | 632,879 | +89,305 |
| Property Management | 3,072,388 | 4,033,685 | -961,297 |
| Business Consultancy | 1,109,374 | 1,172,487 | -63,113 |
The significant uplift in revenue was primarily spearheaded by the corporate secretarial services, which saw an impressive RM1.7 million increase. This growth is attributed to an expanding clientele base, a result of both recent mergers and acquisition exercises and organic market penetration. Taxation services also contributed handsomely, adding RM0.65 million, largely driven by organic client growth.
On the flip side, property management services experienced a decrease of RM0.96 million. The report clarifies this was mainly due to a non-recurring professional and initial equity fee from FT Properties Berhad in 2024, indicating that the dip is not necessarily a sign of underlying weakness but rather a normalisation after a one-off event.
Financial Position and Cash Flow
Beyond the income statement, CCIB’s balance sheet reflects a healthy financial position. As at 30 June 2025, total assets stood at RM95.91 million, a slight increase from RM94.38 million at the end of 2024. Total equity grew from RM82.01 million to RM85.63 million, bolstered by retained profits, while total liabilities saw a favourable reduction from RM12.37 million to RM10.28 million.
Crucially, the company’s operating cash flow saw a substantial improvement, with net cash generated from operating activities soaring to RM4.30 million for the 6-month period, a significant jump from RM1.62 million in the previous corresponding period. This indicates strong operational efficiency and cash generation capabilities. Although cash and bank balances at the end of the period were RM14.27 million, lower than the RM20.78 million recorded at 30 June 2024, this can be largely attributed to the company’s active investment in strategic acquisitions and repayment of lease liabilities, aligning with its growth strategy.
Risk and Prospect Analysis: Charting the Future
The Board of Directors remains optimistic about CCIB’s future, underpinned by several strategic initiatives and favourable industry trends. The company’s core services—accounting, business outsourcing, taxation, and corporate secretarial—are considered essential, ensuring a consistent demand base as clients continue to navigate administrative and statutory compliance.
Strategic Growth Pillars:
- Regulatory Tailwinds: The upcoming implementation of the Malaysian Business Reporting System (MBRS) changes and the audit exemption for Small and Medium-sized Enterprises (SMEs) from financial year 2025 onwards are expected to significantly increase demand for compilation of accounts and expanded service offerings.
- Acquisition-led Expansion: CCIB is actively pursuing a growth-by-acquisition strategy. Recent moves include taking over clientele agreements from Masicon Consulting Group Sdn Bhd and Chengco Plt, as well as the acquisition of Alpadis Trust (Labuan) Ltd. These are aimed at expanding service offerings and client base, and are anticipated to be earnings accretive.
- Funding for Growth: A significant portion of the RM30.0 million proceeds from the July 2023 placement exercise (RM20.7 million) is earmarked for future mergers and acquisitions, with a balance of RM9.8 million available as of August 2025 to fuel further expansion.
While the outlook is positive, it’s important to remember that CCIB is listed on the LEAP Market, which is designed for sophisticated investors and carries a higher investment risk than other markets on Bursa Securities. Companies here often present unique growth opportunities but also come with their own set of challenges, including integration risks associated with rapid expansion through acquisitions and intense competition in the professional services landscape.
Summary and Investment Recommendations
In summary, CC International Berhad has delivered a commendable performance for the first half of 2025, marked by healthy revenue and profit growth. The company’s strategic focus on essential professional services, coupled with proactive acquisition strategies and favourable regulatory changes, positions it well for continued expansion. The declaration of an interim dividend further underscores its commitment to shareholder returns.
However, as with any investment, particularly in a market segment like the LEAP Market, potential risks must be considered. While the company’s growth trajectory is encouraging, investors should remain mindful of the broader market environment and the inherent challenges in scaling professional services through mergers and acquisitions.
- Companies listed on the LEAP Market typically entail higher investment risks, primarily catering to sophisticated investors.
- Successful integration of recent and planned acquisitions will be crucial for realising their earnings-accretive potential.
- Competition within the professional business services sector remains a constant factor.
- Economic shifts or changes in regulatory compliance requirements could impact client demand.
- While the audit exemption for SMEs presents an opportunity, the company’s ability to capture this new market segment effectively will be key.
CCIB’s narrative for the first half of 2025 is one of strategic execution and solid financial footing. The board’s optimism seems well-founded given the current momentum and planned initiatives.
Final Thoughts and Your Perspective
As a senior blogger, my objective assessment of this report is that CCIB is demonstrating a clear path of growth, strategically expanding its footprint and leveraging market opportunities. The improvement in operating cash flow is particularly encouraging, showing that the growth is not just on paper but translating into real cash generation.
What are your thoughts on CCIB’s latest performance? Do you believe the company’s acquisition-led growth strategy, combined with the new regulatory landscape for SMEs, will truly accelerate its trajectory in the coming years? Share your insights and let’s discuss in the comments below!
Stay tuned for more analyses on Malaysian corporate reports!
