Hello fellow investors and healthcare enthusiasts!
Today, we’re diving deep into the latest financial performance of TMC Life Sciences Berhad, a prominent name in Malaysia’s healthcare sector. The company has just released its Audited Interim Financial Report for the financial year ended 30 June 2025, and it presents a mixed but intriguing picture. While the full financial year has seen the Group navigating through some notable headwinds, the fourth quarter truly shines, demonstrating a significant rebound in profitability and setting a positive tone for the upcoming year.
Let’s break down the key figures and insights to understand where TMC Life Sciences stands and what lies ahead.
Q4 FY2025 Performance: A Strong Rebound
The final quarter of the financial year (3 months ended 30 June 2025) delivered a robust performance, especially when compared to the same period last year and the immediate preceding quarter. This strong finish provides much-needed momentum moving into the new financial year.
Q4 FY2025 (3 Months Ended 30 June 2025)
Revenue: RM93.3 million
Profit Before Taxation (PBT): RM3.1 million
Net Profit: RM2.4 million
Basic Earnings Per Share: 0.14 sen
Q4 FY2024 (3 Months Ended 30 June 2024)
Revenue: RM74.1 million
Profit Before Taxation (PBT): RM0.3 million
Net Profit: RM1.0 million
Basic Earnings Per Share: 0.06 sen
For the quarter ended 30 June 2025, the Group’s revenue surged by approximately 26% to RM93.3 million from RM74.1 million in the corresponding quarter of the previous year. Even more impressive is the Profit Before Taxation (PBT), which saw an astronomical increase of nearly 796%, reaching RM3.1 million compared to just RM0.3 million a year ago. This significant improvement in profitability was primarily driven by higher contributions from their Oncology Centre and a strategic reduction in discounts offered to corporate customers at Thomson Hospital Kota Damansara (THKD).
Comparing against the immediate preceding quarter (Q3 FY2205 ended 31 March 2025), revenue also showed a healthy 4% increase, moving from RM89.9 million to RM93.3 million. Profit Before Taxation truly excelled, jumping from RM0.05 million to a substantial RM3.1 million. This indicates effective cost management and an uplift in business operations within the latest quarter.
Full Year FY2025: Navigating Headwinds
While the final quarter was strong, the full financial year (12 months ended 30 June 2025) tells a different story, reflecting the challenges faced earlier in the year.
FY2025 (12 Months Ended 30 June 2025)
Revenue: RM345.5 million
Profit Before Taxation (PBT): RM7.1 million
Net Profit: RM3.6 million
Basic Earnings Per Share: 0.21 sen
FY2024 (12 Months Ended 30 June 2024)
Revenue: RM346.4 million
Profit Before Taxation (PBT): RM52.6 million
Net Profit: RM40.6 million
Basic Earnings Per Share: 2.33 sen
For the full year, the Group reported a marginal decline in revenue of 0.3% to RM345.5 million from RM346.4 million in the prior year. More significantly, Profit Before Taxation saw a sharp decrease of approximately 87% to RM7.1 million, down from RM52.6 million in the previous financial year. This substantial drop was attributed to several factors including customer contract discounts, higher operating expenses, and increased depreciation charges. Similarly, net profit and basic earnings per share also saw significant declines.
However, the strong performance in the fourth quarter is a positive indicator that the Group is actively addressing these issues and regaining its footing.
Financial Health Check: Balance Sheet & Cash Flow
A look at the balance sheet as at 30 June 2025 shows total assets at RM1.13 billion, a slight decrease from RM1.19 billion last year. Net assets also saw a modest reduction to RM853.0 million from RM888.0 million, leading to a net asset per share of RM0.49 compared to RM0.51 previously. Cash and bank balances experienced a notable decrease to RM109.6 million from RM188.6 million, largely influenced by cash flow activities.
From a cash flow perspective for the full financial year, cash generated from operating activities saw a decrease, moving from RM74.8 million in the preceding year to RM22.5 million. Cash used in financing activities significantly increased to RM64.6 million, primarily due to higher dividend payments (RM38.6 million paid for FY2024) and loan repayments. On the other hand, cash used in investing activities was lower at RM4.6 million, compared to RM54.2 million in the previous year.
Dividend Announcement
TMC Life Sciences Berhad has recommended a first and final single-tier dividend of 0.1863 sen per ordinary share for the financial year ended 30 June 2025, subject to shareholders’ approval. This translates to a total payout of RM3.25 million. This is a considerable reduction from the RM38.6 million paid for FY2024, reflecting the lower profitability experienced during the full financial year.
Risks and Prospects: Charting the Future
The Group acknowledges the prevailing global economic uncertainties, which include rising tariffs, trade restrictions, potential increases in medical supply costs, and supply chain disruptions. These factors could impact the healthcare industry, including TMC Life Sciences.
However, the management remains optimistic about future growth. Key strategies and growth drivers include:
- Increased Capacity: Leveraging the expanded capacity at Thomson Hospital Kota Damansara (THKD).
- Oncology Centre Expansion: Ongoing expansion of their Oncology Centre to cater to growing demand.
- Diversified Revenue Streams: Actively pursuing medical tourism and onboarding new corporate customers.
- Operational Efficiency: Continuing to implement strategic initiatives focused on enhancing operational efficiency and cost optimisation.
- Service Expansion: Exploring new services to further diversify their offerings.
These initiatives are aimed at driving sustainable growth and improving profitability in the face of external challenges.
Summary and Investment Recommendations
TMC Life Sciences Berhad’s latest report presents a narrative of resilience. While the full financial year ended 30 June 2025 was undoubtedly challenging, marked by a significant dip in overall profitability compared to the prior year, the strong performance in the fourth quarter is a clear signal of the Group’s recovery and strategic efforts taking hold. The rebound, driven by the Oncology Centre and improved cost management, offers a positive outlook for the upcoming financial year.
The Group is proactively addressing external headwinds by focusing on capacity expansion, diversifying its customer base, and enhancing operational efficiency. The reduced dividend reflects the prudent financial management in light of the full-year performance.
While we won’t be making any investment recommendations, it’s clear that the Group is positioning itself for future growth, albeit in a challenging economic landscape. Investors should watch closely how their strategic initiatives, especially in capacity expansion and diversification, translate into sustainable profitability.
Key risk points highlighted in the report and worth noting include:
- Global economic uncertainties leading to higher costs of medical supplies.
- Potential supply chain disruptions affecting operational continuity.
- Intense competition within the private healthcare sector in Malaysia.
- Dependence on successful recruitment of healthcare professionals for facility expansion.
It’s an interesting period for TMC Life Sciences Berhad. The company has demonstrated its ability to adapt and achieve a strong quarter-end despite earlier full-year headwinds. Do you think TMC Life Sciences can maintain this growth momentum and successfully navigate the global economic uncertainties in the next few years?
Share your thoughts and insights in the comment section below!
