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Greetings, fellow investors and market enthusiasts!
Today, we’re diving into the latest financial pulse of YX Precious Metals Bhd, a prominent player in Malaysia’s precious metals industry. The company has just released its interim financial report for the first quarter ended 31 March 2025, and it offers a fascinating look at their performance amidst a dynamic market. While the report highlights some strong operational improvements from the previous quarter, it also underscores the ongoing challenges faced by the industry. Let’s break down the numbers and see what’s truly shining!
Q1 2025: A Mixed Bag of Performance
YX Precious Metals Bhd has navigated the first quarter of 2025 with a nuanced performance. While overall revenue saw a year-on-year decrease, the company demonstrated a significant rebound compared to the immediate preceding quarter, indicating resilience and adaptability.
Overall Financial Snapshot
Q1 2025 (Reporting Period)
Revenue: RM63,011,000
Profit Before Tax: RM3,488,000
Profit for the Period: RM2,630,000
Basic Earnings Per Share: 0.71 sen
Q1 2024 (Comparative Period)
Revenue: RM68,566,000
Profit Before Tax: RM3,610,000
Profit for the Period: RM2,699,000
Basic Earnings Per Share: 0.73 sen
Comparing the first quarter of 2025 to the same period last year, YX Precious Metals Bhd recorded a revenue decrease of RM5.56 million, or 8.10%, settling at RM63.01 million. This dip was primarily attributed to lower gold jewellery sales volume across both their wholesale and design and manufacture segments.
Profit before tax (PBT) also saw a slight decline, decreasing by RM0.12 million, or 3.38%, to RM3.49 million. This was mainly due to the lower revenue combined with higher overall expenses.
Q1 2025 (Reporting Period)
Revenue: RM63,011,000
Profit Before Tax: RM3,488,000
Q4 2024 (Immediate Preceding Quarter)
Revenue: RM51,201,000
Profit Before Tax: RM2,385,000
However, the picture brightens when we look at the quarter-on-quarter performance. Compared to the immediate preceding quarter (Q4 2024), revenue for Q1 2025 surged by RM11.81 million, or 23.07%, reaching RM63.01 million. This impressive rebound was driven by higher gold jewellery selling prices and increased sales volume within Malaysia. Consequently, profit before tax also saw a substantial increase of RM1.10 million, or 46.25%, primarily due to this higher revenue and an improved gross profit margin.
Segmental Performance: A Closer Look
The Group operates through two main segments: Wholesale and Design & Manufacture. Here’s how each contributed to the overall performance:
| Segment | Q1 2025 Revenue (RM’000) | Q1 2024 Revenue (RM’000) | Q1 2025 PBT (RM’000) | Q1 2024 PBT (RM’000) |
|---|---|---|---|---|
| Wholesale | 56,727 | 59,416 | 2,692 | 3,372 |
| Design and Manufacture | 6,284 | 9,150 | 796 | 238 |
| Total External Sales | 63,011 | 68,566 | 3,488 | 3,610 |
The Wholesale segment, while still the largest contributor, saw a decrease in both revenue and profit before tax year-on-year. This aligns with the overall lower sales volume mentioned earlier. In contrast, the Design and Manufacture segment, despite a revenue decline, demonstrated a remarkable increase in profit before tax, jumping from RM238,000 in Q1 2024 to RM796,000 in Q1 2025. This suggests improved efficiency or higher-margin products within this segment.
Financial Health and Cash Flow
As of 31 March 2025, the Group’s total assets stood at RM132.29 million, an increase from RM124.18 million at the end of 2024. This growth was mainly driven by an increase in inventories and trade and other receivables. Total equity also saw a healthy increase to RM110.95 million from RM108.41 million, reflecting the retained earnings from the period’s profit.
From a cash flow perspective, the Group experienced a net decrease in cash and cash equivalents of RM2.14 million for the quarter, ending with RM5.12 million. While operating activities generated a net cash outflow of RM3.23 million (compared to a net inflow of RM261,000 in Q1 2024), largely due to changes in working capital, financing activities provided a net cash inflow of RM1.26 million, primarily from net drawdown of short-term borrowings. Investing activities resulted in a net cash outflow of RM152,000.
Navigating the Headwinds: Risks and Prospects
YX Precious Metals Bhd acknowledges that the path ahead remains challenging. The company anticipates ongoing volatility influenced by several external factors:
- Geo-political risks: Global instability can have far-reaching effects on market sentiment and supply chains.
- Fluctuations in global gold prices: As a precious metals company, their profitability is directly tied to gold price movements.
- Foreign exchange rate volatility: This impacts the cost of raw materials and the value of international transactions.
- Local jewellery demands: Consumer spending on jewellery can be sensitive to economic conditions.
Despite these uncertainties, the Group is committed to remaining vigilant and implementing necessary measures to address these challenges. They are cautiously optimistic, stating that they expect their financial performance for the financial year ending 2025 to be “satisfactory.” This suggests a proactive approach to managing risks and optimizing operations in a complex environment.
It’s also noteworthy that the company recently announced a final single-tier dividend of 0.30 sen per ordinary share for the financial year ended 31 December 2024, payable on 11 June 2025. This commitment to shareholder returns, even in a challenging period, is a positive signal.
Summary and
YX Precious Metals Bhd’s Q1 2025 report paints a picture of a company facing external pressures but demonstrating internal resilience. While year-on-year comparisons show a slight contraction in revenue and profit, the significant quarter-on-quarter improvement highlights their ability to adapt to changing market dynamics, driven by stronger sales volume and better margins in Malaysia. The Design and Manufacture segment’s improved profitability is particularly encouraging, indicating a potential shift towards higher-value activities or better cost management.
The company’s outlook acknowledges the persistent challenges, such as geo-political risks, gold price volatility, and currency fluctuations. Their commitment to vigilance and taking necessary measures suggests a proactive management team. The proposed dividend also reflects a continued focus on shareholder value.
Key risk points to monitor for YX Precious Metals Bhd include:
- The sustained impact of global geo-political events on market stability and consumer confidence.
- Volatility in international gold prices and foreign exchange rates, which directly affect their cost of goods and revenue.
- The resilience of local jewellery demand, which could be sensitive to broader economic conditions in Malaysia.
Overall, YX Precious Metals Bhd appears to be navigating a complex landscape with strategic adjustments. Their ability to bounce back strong quarter-on-quarter is a testament to their operational agility.
What are your thoughts on YX Precious Metals Bhd’s latest performance? Do you believe they can maintain this positive quarter-on-quarter momentum and achieve their “satisfactory” outlook for the full year? Share your insights and questions in the comments below!
