MERCURY INDUSTRIES BERHAD: A Deep Dive into Their Latest Quarterly Performance
Greetings, fellow investors! Today, we’re unboxing the latest financial report from MERCURY INDUSTRIES BERHAD for the third quarter ended 31 March 2025. This report provides a fascinating glimpse into the company’s operational strength and strategic direction, especially within its property development and construction segments.
Let’s dive into the numbers and see what’s driving this change and what the future might hold.
Key Financial Highlights: A Quarter of Turnaround
MERCURY INDUSTRIES BERHAD has shown a significant improvement in its financial performance for the quarter ended 31 March 2025. The shift from a loss to a profit before tax is a key highlight, largely driven by robust contributions from their property development segment.
Current Quarter (31 Mar 2025)
Revenue: RM5,866,000
Profit Before Tax: RM417,000
Profit for the Period: RM134,000
Earnings Per Share: 0.21 Sen
Previous Quarter (31 Dec 2024)
Revenue: RM2,107,000
Loss Before Tax: RM(26,000)
(Note: Profit for the Period and Earnings Per Share for the immediate preceding quarter were not directly provided for comparison in the report.)
Looking at the numbers quarter-on-quarter, the improvement is stark. Revenue surged by approximately 178.4%, from RM2.11 million in the immediate preceding quarter to RM5.87 million in the current quarter. More impressively, the company swung from a loss before tax of RM0.03 million to a profit before tax of RM0.42 million. This significant turnaround is primarily attributed to increased revenue and profit contribution from the property development segment, especially from Phase 1 of the Batu Berendam project which recorded strong early sales. Additionally, the reversal of impairment losses on trade receivables provided a positive boost to the bottom line.
Deep Dive into Business Segments
For the nine months ended 31 March 2025, the Group’s total revenue stood at RM10.18 million. While the construction segment contributed significantly to external revenue, the property development segment was clearly the narrative’s hero this quarter, driving the shift to profitability. This segment’s strong performance underscores the company’s ability to capitalize on market demand in its key development areas.
Financial Health at a Glance
A quick look at the balance sheet as of 31 March 2025, compared to 30 June 2024, reveals a stable financial position:
| Metric | As at 31 Mar 2025 (RM’000) | As at 30 Jun 2024 (RM’000) |
|---|---|---|
| Total Assets | 78,689 | 75,125 |
| Total Equity | 41,338 | 41,613 |
| Net Assets Per Share (RM) | 0.64 | 0.65 |
| Contract Assets | 9,442 | 327 |
While total equity saw a slight dip due to accumulated losses, the overall asset base expanded, partly due to a significant increase in contract assets, reflecting ongoing project progress. Cash and bank balances remained relatively stable. The company’s borrowings saw a marginal increase but remain manageable within its overall financial structure.
Prospects and Potential Headwinds
MERCURY INDUSTRIES BERHAD maintains a confident outlook for its ongoing property projects. The Klebang Cove Residensi project has achieved over 60% take-up, and Phase 1 of the Batu Berendam project boasts an impressive over 72% take-up rate. These strong sales figures provide a solid foundation for continued positive contributions to the Group’s financial position in the coming quarters. The Group anticipates further growth in both its construction and property development segments.
However, like any business, MERCURY INDUSTRIES BERHAD faces potential challenges. A key point to monitor is the ongoing litigation involving a subsidiary, Paramount Bounty Sdn Bhd, regarding a claim of RM0.97 million for missing materials. While the directors currently believe the likelihood of an outflow of funds is not probable, the outcome of the postponed court decision (now set for 30 May 2025) will be important. Additionally, the broader economic environment and evolving market conditions for property and construction in Malaysia will naturally influence the company’s trajectory.
Summary and Investment Considerations
MERCURY INDUSTRIES BERHAD’s latest quarterly report paints a picture of a company regaining momentum, particularly powered by its property development arm. The substantial quarter-on-quarter improvement in revenue and the swing to profitability are encouraging signs, reflecting effective project execution and market demand for their developments. The high take-up rates for their key projects bode well for future revenue recognition.
Key points from this report include:
- Significant quarter-on-quarter financial improvement, driven by the property development segment.
- Strong take-up rates for flagship projects (Klebang Cove Residensi and Batu Berendam Phase 1) indicating future revenue streams.
- A stable balance sheet with increasing contract assets reflecting ongoing project progress.
- Ongoing litigation, though assessed as low risk by management, which is a point to monitor.
- No dividends declared or recommended for the current quarter.
- A proposed private placement of up to 10% of shares has been approved by Bursa Securities, indicating potential for future capital injection and expansion initiatives.
While the company is on a positive track, investors should keep an eye on the resolution of the litigation and the broader market dynamics that could impact the property and construction sectors. The approved private placement, once executed, could also bring in fresh capital, potentially fueling future growth initiatives.
What are your thoughts on MERCURY INDUSTRIES BERHAD’s latest performance? Do you believe their property development momentum can be sustained in the competitive Malaysian market? Share your insights and questions in the comments below!
