Greetings, fellow investors and market watchers! We’re diving deep into the latest financial revelations from AME Elite Consortium Berhad, a prominent player in Malaysia’s industrial property and construction sector. Their Fourth Quarter and full-year results for the financial year ended 31 March 2025 (FY2025) have just been released, and there’s a lot to unpack. While the full year saw some shifts, the final quarter delivered a robust performance, showcasing the company’s resilience and strategic positioning. Notably, AME Elite recorded a significant increase in its fourth-quarter profit and has just declared an interim dividend, signaling continued shareholder returns. Let’s break down the numbers and see what’s driving AME Elite’s journey forward.
Q4 FY2025 Performance Shines Bright
AME Elite Consortium Berhad concluded its financial year with a strong fourth quarter, demonstrating impressive growth across key metrics. The company’s strategic focus and operational efficiencies appear to be paying off, particularly in its construction and property development segments.
Q4 FY2025
- Revenue: RM115.64 million
- Gross Profit: RM45.71 million
- Profit Before Tax (PBT): RM59.65 million
- Profit After Tax (PAT): RM49.89 million
- Profit Attributable to Owners: RM36.54 million
- Basic Earnings Per Share (EPS): 5.72 sen
Q4 FY2024
- Revenue: RM84.82 million
- Gross Profit: RM30.38 million
- Profit Before Tax (PBT): RM43.32 million
- Profit After Tax (PAT): RM39.69 million
- Profit Attributable to Owners: RM26.08 million
- Basic Earnings Per Share (EPS): 4.08 sen
Compared to the same period last year, Q4 FY2025 saw revenue surge by 36%, gross profit by 50%, PBT by 38%, PAT by 26%, and profit attributable to owners by a remarkable 40%. This robust quarterly performance was primarily driven by higher contributions from property development and construction segments, alongside increased fair value gains on investment properties.
Full-Year FY2025: A Mixed Picture with Underlying Strength
While the fourth quarter painted a strong picture, AME Elite’s full-year performance for FY2025 reflects a dynamic operating environment. Despite a decrease in overall revenue, the company managed to maintain a healthy gross profit margin and delivered a commendable profit attributable to owners.
Full-Year FY2025
- Revenue: RM608.57 million
- Gross Profit: RM176.53 million
- Profit Before Tax (PBT): RM152.98 million
- Profit After Tax (PAT): RM122.64 million
- Profit Attributable to Owners: RM92.09 million
- Basic Earnings Per Share (EPS): 14.41 sen
Full-Year FY2024
- Revenue: RM716.88 million
- Gross Profit: RM172.15 million
- Profit Before Tax (PBT): RM158.18 million
- Profit After Tax (PAT): RM126.01 million
- Profit Attributable to Owners: RM93.10 million
- Basic Earnings Per Share (EPS): 14.57 sen
For the full financial year, revenue decreased by 15%, primarily due to a lower contribution from the property development segment. However, gross profit saw a slight increase of 3%, indicating improved operational efficiency. Profit attributable to owners saw a marginal decrease of 1%, reflecting the impact of lower overall revenue and a share of loss from equity-accounted joint ventures, which recorded lower industrial property sales.
Segmental Performance: The Drivers of Growth
A closer look at the business units reveals the underlying dynamics of AME Elite’s performance:
Construction Services
This segment was a standout performer, with revenue increasing by approximately 210.75% in Q4 FY2025 (RM35.83 million from RM11.53 million) and by 36.61% for the full year (RM203.50 million from RM148.96 million). This growth was primarily driven by the progression in the completion stage of ongoing construction projects.
Property Development
Property development revenue increased by approximately 23.46% in Q4 FY2025 (RM51.67 million from RM41.85 million), mainly due to higher stages of work completed and timely income recognition. However, for the full year, this segment saw a decrease of approximately 43.11% (RM240.37 million from RM422.50 million) due to lower stages of work completed and the timing of income recognition compared to the previous year.
Engineering Services
Engineering services revenue decreased by approximately 34.35% in Q4 FY2025 (RM9.27 million from RM14.12 million) due to the progression in the completion stage of ongoing projects. However, for the full year, this segment saw an increase of approximately 13.46% (RM91.29 million from RM80.46 million), reflecting steady project execution.
Investment Holding/Property Investment and Management Services
This segment continued its positive trend, with revenue increasing by approximately 8.95% in Q4 FY2025 (RM18.87 million from RM17.32 million) and by 13.01% for the full year (RM73.41 million from RM64.96 million). This growth was attributed to additional factory units leased by tenants and higher rental income generated from workers’ dormitories.
Financial Health: A Solid Foundation
AME Elite’s balance sheet as of 31 March 2025 reflects a healthy financial position:
| Metric | 31 March 2025 (RM’000) | 31 March 2024 (RM’000) |
|---|---|---|
| Total Assets | 1,923,376 | 1,761,975 |
| Total Equity | 1,244,139 | 1,192,427 |
| Net Assets Per Share (RM) | 1.44 | 1.37 |
| Deposits, Cash and Bank Balances | 316,085 | 279,743 |
| Total Loans and Borrowings | 347,371 | 174,706 |
The company’s total assets grew, and net assets per share increased from RM1.37 to RM1.44, indicating a stronger equity base. Cash and bank balances also saw a healthy increase, providing ample liquidity. It’s worth noting the increase in total loans and borrowings, primarily due to the establishment of a Sukuk Wakalah Programme, which is a strategic move to meet future funding needs for landbank acquisitions and development projects.
Prospects and Strategic Moves: Building for the Future
The outlook for AME Elite appears positive, underpinned by favorable market conditions and strategic initiatives:
- Booming Industrial Sector: The industrial property sector in Johor is expected to remain robust, buoyed by upcoming infrastructure developments like the Johor Bahru–Singapore Rapid Transit System (RTS), the potential revival of the Kuala Lumpur–Singapore High-Speed Rail (HSR), and the establishment of the Johor–Singapore Special Economic Zone (JS SEZ). These initiatives are poised to attract significant domestic and foreign direct investments.
- Strong Demand for Industrial Properties: AME Elite continues to experience strong demand for its strategically located industrial properties, with positive trends in both rental income and property values. The “clustering effect” of multinational corporations (MNCs) in their industrial parks is a key attraction.
- Ongoing and New Developments: The ongoing development of i-TechValley at SILC is expected to contribute positively to profitability. Furthermore, the joint venture entity, Suling Hill Development Sdn Bhd, will lead the development of Northern TechValley @ BKE, a 175.6-acre integrated industrial park in Penang, expanding AME Elite’s geographical footprint.
- Strategic Landbank Expansion: The acquisition of development lands from Kuala Lumpur Kepong Berhad, expected to complete in FY2026, will further support the Group’s long-term growth plans.
- Diversified Funding: The establishment of a Sukuk Wakalah Programme provides a flexible funding mechanism for future landbank acquisitions and development projects, aligning with the strategy to replicate the successful i-Park model across Peninsular Malaysia.
The Board of Directors anticipates a satisfactory financial performance for FY2026, driven by these strategic developments and ongoing initiatives.
Shareholder Returns: A Consistent Dividend Payout
For shareholders, AME Elite’s commitment to returning value remains evident. The Board of Directors has declared an interim single-tier dividend of 3.0 sen per ordinary share for the financial year ended 31 March 2025, payable on 4 July 2025. This follows previous dividend payments, including 4.0 sen for FY2024 and an earlier 3.0 sen for FY2025, demonstrating a consistent approach to rewarding investors.
Summary and
AME Elite Consortium Berhad has delivered a commendable Q4 FY2025 performance, showcasing strong growth in its core segments and a healthy financial position. While the full-year revenue saw a decline due to timing in property development, the increase in gross profit and strategic expansion plans highlight the company’s underlying strength and future potential. The focus on industrial property development in key economic corridors, coupled with new joint ventures and diversified funding, positions AME Elite for continued growth.
However, like any business, AME Elite faces certain considerations:
- Joint Venture Performance: The share of loss from equity-accounted joint ventures, primarily due to lower industrial property sales, warrants continued monitoring.
- Corporate Proposal Delays: The ongoing extensions for the payment deadline of the Proposed Sale of industrial lands to Digital Hyperspace Malaysia Sdn. Bhd. indicate potential delays in realizing cash proceeds from these significant transactions.
- Contingent Liability: The outstanding tax audit claim of approximately RM7.16 million, though being appealed, represents a potential financial obligation.
Overall, AME Elite appears to be navigating its market well, leveraging its expertise in industrial park development and construction. The strategic initiatives to expand its landbank and project pipeline are positive indicators for long-term growth.
What are your thoughts on AME Elite Consortium Berhad’s latest results? Do you believe their strategic expansion into new industrial parks will be the key to sustained growth, especially with the promising developments in Johor and Penang? Share your perspectives in the comments below!
For more in-depth analyses of Malaysian companies and market trends, be sure to check out our other articles.
