Greetings, fellow investors and market enthusiasts! Today, we’re diving deep into the latest financial performance of EKSONS CORPORATION BERHAD for its 4th financial quarter ended 31 March 2025. This report paints a challenging picture, revealing significant shifts in revenue and profitability, primarily driven by external market pressures and strategic business adjustments. However, it also highlights areas of resilience and future potential. Let’s break down the key figures and insights to understand what’s truly going on with EKSONS.
The core message from this report is clear: EKSONS faced a tough year, culminating in a full-year loss, a stark contrast to the profit recorded in the previous financial year. This downturn is largely attributable to the challenging environment in its plywood business and a significant impairment charge. Despite these headwinds, the company did announce an interim dividend payment for the financial year, a sign of its commitment to shareholder returns amidst difficulties. So, what exactly led to this performance, and what can we expect moving forward?
Financial Performance: A Closer Look at the Numbers
EKSONS’s financial results for the quarter and the full financial year ended 31 March 2025 show a notable contraction across key metrics when compared to the corresponding periods last year. This indicates a challenging operating environment for the Group.
Quarterly Performance (4th Quarter Ended 31 March 2025 vs. 31 March 2024)
Current Quarter (31 March 2025)
Revenue: RM3.09 million
Loss Before Tax: RM(5.72) million
Loss After Tax: RM(5.75) million
Loss Attributable to Owners: RM(5.87) million
Basic Loss Per Share: (3.64) sen
Corresponding Quarter Last Year (31 March 2024)
Revenue: RM5.34 million
Profit Before Tax: RM3.14 million
Profit After Tax: RM3.27 million
Profit Attributable to Owners: RM4.09 million
Basic Earnings Per Share: 2.53 sen
In the current quarter, revenue saw a significant decrease of approximately 42% compared to the same quarter last year. This decline in top-line performance directly impacted profitability, swinging from a profit before tax of RM3.14 million last year to a loss before tax of RM5.72 million this quarter – a substantial deterioration of about 282%.
Full Financial Year Performance (Ended 31 March 2025 vs. 31 March 2024)
Current Year To Date (31 March 2025)
Revenue: RM10.41 million
Loss Before Tax: RM(14.89) million
Loss After Tax: RM(15.12) million
Loss Attributable to Owners: RM(15.38) million
Basic Loss Per Share: (9.52) sen
Corresponding Period Last Year (31 March 2024)
Revenue: RM24.47 million
Profit Before Tax: RM14.28 million
Profit After Tax: RM14.30 million
Profit Attributable to Owners: RM15.20 million
Basic Earnings Per Share: 9.41 sen
For the entire financial year, EKSONS’s revenue dropped by approximately 57%, from RM24.47 million to RM10.41 million. This sharp decline translated into a significant swing from a full-year profit before tax of RM14.28 million in the previous year to a loss of RM14.89 million in the current year, representing a deterioration of over 200%. The loss attributable to ordinary equity holders also mirrored this trend, turning from a profit of RM15.20 million to a loss of RM15.38 million.
Diving into Segmental Performance
The report provides crucial insights into the performance of EKSONS’s main operating divisions:
Plywood Business
The plywood business division recorded a revenue of RM3.1 million and a loss after taxation of RM9.9 million for the twelve months ended 31 March 2025. This is a significant decline from the previous year’s revenue of RM13.2 million and a loss of RM8.8 million. The increased loss for the financial year 2025 includes a notable impairment of inventories amounting to RM4.0 million. The division cited lacklustre demand from export markets as a primary reason for the lower revenue.
Property Development
In contrast, the property development division showed a positive shift. It reported a revenue of RM7.3 million and a profit after taxation of RM0.6 million for the twelve months ended 31 March 2025. This is an improvement from the previous year’s revenue of RM11.2 million and a loss after taxation of RM3.0 million. The revenue for the period was mainly from the sale of the Affiniti Residence project, for which vacant possession was delivered in January 2023.
Financial Health: Balance Sheet and Cash Flow
While the income statement reflects a challenging period, the balance sheet provides a snapshot of the company’s financial health:
| Financial Position (RM’000) | As at 31 March 2025 | As at 31 March 2024 |
|---|---|---|
| Total Assets | 396,391 | 418,324 |
| Total Equity | 373,302 | 392,454 |
| Total Liabilities | 23,089 | 25,870 |
| Net Asset Per Share (RM) | 2.31 | 2.43 |
Total assets saw a slight decrease, consistent with the challenging period. However, the company continues to maintain a strong equity base relative to its liabilities, indicating a solid financial structure. Net asset per share saw a slight decline from RM2.43 to RM2.31.
From a cash flow perspective, net cash generated from operating activities significantly decreased to RM2.60 million for the full year, down from RM17.16 million in the previous year. This reflects the impact of the lower profitability. The company also saw increased cash used in investing activities, reaching RM10.41 million, and used RM4.04 million in financing activities, primarily for dividend payments.
Risks and Prospects: Navigating the Future
EKSONS acknowledges the headwinds it faces, particularly in its plywood business, but also points to promising developments in its property segment.
Plywood Business Outlook
The global plywood market remains weak, a significant challenge for EKSONS. The company anticipates continued suppressed demand from export markets due to several factors: the imposition of sanctions/tariffs by the United States, the ongoing Russia-Ukraine conflict, and economic uncertainty in China. These external pressures make it difficult for the plywood division to recover quickly, and the company will likely continue to focus on managing its existing inventory amidst this subdued demand.
Property Development Outlook
On a more positive note, the property development segment, particularly The Atmosphere Commercial Park, is showing signs of recovery and growth. The commencement of the MRT station at Putra Permai in March 2023 has significantly increased traffic into the area, as evidenced by a 55% increase in car park quarterly revenue. Furthermore, the handing over of keys for the adjacent Meta City residential development since August 2024 is expected to further boost footfall, which bodes well for EKSONS’s sales activities in this segment. This strategic location and improved accessibility could be a key driver for future performance.
Summary and Outlook
Summary and
EKSONS’s latest quarterly report reflects a challenging period, marked by a significant decline in revenue and a swing to a net loss for both the quarter and the full financial year. This downturn is largely attributed to the difficult global market conditions impacting its plywood business, exacerbated by an inventory impairment charge. While the plywood segment faces ongoing external pressures, the property development division shows a glimmer of hope, with increased activity and positive indicators from improved connectivity and nearby residential developments.
The company’s financial position, though seeing a slight reduction in assets and equity, remains robust with low liabilities. Cash flow from operations has decreased, reflecting the lower profitability, but the company continues to manage its finances, including the payment of an interim dividend.
Key risk points highlighted in the report include:
- Continued weakness in the global plywood market.
- Suppressed export demand for plywood due to international sanctions/tariffs, geopolitical conflicts, and economic uncertainty in key markets.
- The need to manage existing plywood inventory effectively in a low-demand environment.
Looking ahead, EKSONS’s strategic focus will likely be on navigating the challenging plywood market while capitalizing on the improving prospects of its property development ventures. The positive momentum from enhanced connectivity and residential developments around The Atmosphere Commercial Park could provide a much-needed boost. The company’s ability to adapt its strategies and capitalize on these opportunities will be crucial for its future performance.
So, what are your thoughts on EKSONS’s latest financial report? Do you believe the property development segment can significantly offset the challenges in the plywood business? Share your insights in the comments below!
