Greetings, fellow investors and market watchers! We’re diving deep into the latest financial pulse of Crest Builder Holdings Berhad (CBHB) as they unveil their unaudited interim financial report for the first quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s operational health and strategic trajectory in what continues to be a dynamic market.
The headline? CBHB has delivered a remarkable surge in profit before tax for Q1 2025, demonstrating strong year-on-year growth. However, a closer look also reveals a dip in revenue compared to the immediate preceding quarter, signaling the ongoing ebb and flow within the construction and property sectors. Let’s unpack the numbers and understand what’s driving these trends and what lies ahead for this Malaysian stalwart.
Core Financial Highlights: A Robust Q1 Performance
Crest Builder Holdings Berhad has reported a significant improvement in its profitability for the first quarter of 2025 compared to the same period last year. This indicates a positive shift in operational efficiency and project margins.
Revenue Performance: Steady Growth Year-on-Year
The Group’s revenue for the first quarter of 2025 saw a healthy increase when compared to the first quarter of the previous year, reflecting a consistent project pipeline and operational activity.
Q1 2025 Revenue
RM114.3 million
Q1 2024 Revenue
RM107.9 million
This represents a 6.09% increase, showing a stable top-line growth. However, when compared to the immediate preceding quarter (Q4 2024), revenue experienced a 33% decrease from RM170.7 million. This sequential decline was primarily due to lower progress recognition for construction projects in the current quarter.
Profitability Soars: A Remarkable Turnaround
The most striking highlight from this report is the substantial jump in profitability. Profit before tax witnessed an impressive surge, underscoring improved project execution and cost management.
Q1 2025 Profit Before Tax
RM2.8 million
Q1 2024 Profit Before Tax
RM0.7 million
This translates to a staggering 313.21% growth in profit before tax compared to the same period last year. Similarly, profit for the financial period grew by 204.64%, reaching RM2.2 million from RM0.7 million. This significant improvement is a testament to the Group’s efforts in enhancing project margins, particularly within its construction division.
Earnings Per Share: Reflecting Enhanced Profitability
The improved profitability directly translated into higher earnings per share for shareholders.
Q1 2025 Basic Profit Per Share
1.4 sen
Q1 2024 Basic Profit Per Share
0.5 sen
This represents a substantial 180% increase, indicating greater value generation for each share.
Diving Deeper: Segmental Performance Breakdown
Understanding the contribution of each business segment provides a clearer picture of CBHB’s overall performance. Here’s how each division fared:
| Business Segment | Q1 2025 Revenue (RM’000) | Q1 2024 Revenue (RM’000) | Q1 2025 Segment Result (RM’000) | Q1 2024 Segment Result (RM’000) | Remarks |
|---|---|---|---|---|---|
| Construction | 83,431 | 86,775 | 2,495 | (752) | Revenue slightly decreased, but a significant turnaround from loss to profit due to higher margins on certain projects. |
| Concession Arrangement | 9,566 | 10,029 | 7,030 | 7,850 | Slight decrease in both revenue and segment result, mainly due to lower finance income recognized. Continues to contribute positively. |
| Investment | 2,566 | 2,383 | 2,250 | 1,642 | Increased revenue primarily from higher car park income. However, increased administrative and finance costs led to a higher loss before tax (RM2.3 million vs RM1.3 million). |
| Property Development | 18,736 | 8,739 | 2,533 | 1,163 | Significant increase in both revenue and profit, largely driven by the current development project, Interpoint at Bukit Tinggi, Klang. |
The Property Development division stands out with its impressive growth, more than doubling its revenue and segment result year-on-year, thanks to the Interpoint project. The Construction division also demonstrated a strong recovery in profitability despite a slight revenue dip, highlighting improved project management and margin control.
Financial Health Check: Balance Sheet and Cash Flow
As of 31 March 2025, CBHB’s total assets stood at RM1.343 billion, a slight increase from RM1.334 billion at the end of 2024. Total equity also saw a marginal rise to RM295.5 million from RM293.3 million, leading to a net asset per share of RM1.82 (up from RM1.81).
A notable shift in current assets is the increase in fixed deposits placed with licensed banks (RM56.4 million from RM31.1 million), while cash and bank balances decreased (RM33.1 million from RM40.5 million). This suggests a strategic reallocation of liquid funds. Total borrowings increased to RM602.4 million from RM572.0 million at the end of 2024, reflecting ongoing financing needs for projects and operations.
Navigating the Future: Risks and Prospects for 2025
CBHB remains committed to its core strategies for 2025. The Group plans to aggressively bid for new construction projects to bolster its order book, while current projects continue to progress efficiently. The concession division is expected to maintain its positive contributions until 2034, providing a stable income stream.
The property development segment, particularly with the successful launch of Interpoint at Bukit Tinggi Klang, is anticipated to be a significant earnings driver for the current and upcoming financial years. The company will also focus on liquidating its remaining completed properties.
However, the macroeconomic environment presents its own set of challenges. Bank Negara Malaysia’s projection for 2025 indicates a slightly moderated economic growth. The construction industry, in particular, is expected to face headwinds from factors such as:
- Imposition of minimum wages.
- Mandatory pension contributions for foreign workers.
- Potentially higher utility tariffs.
- Price fluctuations in building materials.
In response, CBHB is intensifying its focus on strengthening its financial position, implementing cost optimization measures, and ensuring effective resource planning. The Board maintains a cautiously optimistic outlook for the Group’s overall business and financial performance in 2025, buoyed by a larger order book and strong contributions from its property development arm.
Summary and
Crest Builder Holdings Berhad’s Q1 2025 report paints a picture of resilient profitability amidst a challenging operating landscape. The significant year-on-year increase in profit before tax and earnings per share is a strong indicator of improved operational efficiency and strategic project execution, especially within the property development and construction segments.
While the sequential decline in revenue from the immediate preceding quarter suggests project phasing impacts, the underlying profitability trends are encouraging. The Group’s strategic focus on replenishing its construction order book, leveraging the stable income from its concession division, and capitalizing on the success of its property development projects positions it for continued growth.
However, potential investors should be mindful of the broader industry challenges, including rising operational costs and material price volatility. The company’s emphasis on financial strengthening and cost optimization will be critical in mitigating these risks.
Key points to consider for the future include:
- The Group’s ability to secure new construction projects to maintain and expand its order book.
- Continued sales momentum for the Interpoint development and other completed properties.
- Effectiveness of cost optimization measures in countering rising operational expenses.
- The impact of macroeconomic factors and government policies on the Malaysian construction sector.
As a seasoned observer of the Malaysian market, I find CBHB’s strategic responses to industry headwinds to be pragmatic. Their focus on high-margin projects and stable concession income, coupled with an active property development pipeline, offers a balanced approach to growth.
What are your thoughts on Crest Builder Holdings Berhad’s performance this quarter? Do you believe their strategies will be sufficient to navigate the challenging economic landscape ahead? Share your insights in the comments below!
For more in-depth analysis of Malaysian companies, stay tuned to our blog for future updates and reports.
