Malaysia’s green energy sector is buzzing with activity, and BM GreenTech Berhad has just released its unaudited interim financial statements for the 4th Quarter ended 31 March 2025. This report offers a comprehensive look into the company’s robust performance, strategic moves, and future outlook. From significant revenue growth to a commendable dividend announcement, there’s plenty to unpack for investors looking to understand the pulse of Malaysia’s sustainable development.
The headline? BM GreenTech has demonstrated impressive financial growth, largely driven by strategic acquisitions and strong performance in its burgeoning Solar Energy segment. While challenges like market competition and raw material cost volatility persist, the company’s proactive strategies and alignment with national energy transition goals paint a promising picture.
Unpacking the Numbers: A Deep Dive into Performance
BM GreenTech Berhad has truly outdone itself this quarter, delivering a set of results that highlight strong operational execution and strategic expansion. Let’s break down the core financial figures, comparing them against the same period last year and the preceding quarter to understand the full scope of their achievements.
Overall Group Performance: A Remarkable Leap
The Group’s overall financial performance for the fourth quarter and the full financial year has been outstanding. Revenue saw a substantial increase, reflecting growing demand and successful project deliveries across its key segments.
Q4 FY2025 Highlights
Revenue: RM178.1 million (Up 50%)
Profit Before Taxation (PBT): RM21.5 million (Up 30%)
Profit After Taxation (PAT) attributable to owners: RM15.7 million (Up 33.1%)
Basic Earnings Per Share (EPS): 2.67 sen (Up 16.6%)
Q4 FY2024 Comparison
Revenue: RM118.7 million
Profit Before Taxation (PBT): RM16.6 million
Profit After Taxation (PAT) attributable to owners: RM11.8 million
Basic Earnings Per Share (EPS): 2.29 sen
Full Year FY2025 Highlights
Revenue: RM561.6 million (Up 28%)
Profit Before Taxation (PBT): RM73.6 million (Up 54%)
Profit After Taxation (PAT) attributable to owners: RM52.4 million (Up 55.9%)
Basic Earnings Per Share (EPS): 8.91 sen (Up 36.7%)
Full Year FY2024 Comparison
Revenue: RM440.3 million
Profit Before Taxation (PBT): RM47.9 million
Profit After Taxation (PAT) attributable to owners: RM33.6 million
Basic Earnings Per Share (EPS): 6.52 sen
Segmental Performance: A Closer Look
Each of BM GreenTech’s core business units contributed to the overall success, though with varying dynamics. The Solar Energy segment was a standout performer, significantly boosting the group’s top and bottom lines.
| Segment | FY2025 Revenue (RM’000) | FY2024 Revenue (RM’000) | Revenue Change | FY2025 PBT (RM’000) | FY2024 PBT (RM’000) | PBT Change |
|---|---|---|---|---|---|---|
| Bio-Energy | 301,479 | 325,260 | (7%) | 50,252 | 33,383 | 51% |
| Water Treatment | 61,008 | 50,447 | 21% | 7,410 | 6,095 | 22% |
| Solar Energy | 199,151 | 64,596 | >100% | 15,898 | 8,373 | 90% |
- Bio-Energy: While revenue saw a slight decrease due to lower production and boiler project deliveries, the segment’s profit before taxation surged by 51%. This impressive increase was primarily driven by the delivery of projects with better profit margins, coupled with a reversal of provisions for doubtful debts and contract assets.
- Water Treatment: This segment demonstrated solid growth, with both revenue and profit before taxation increasing by 21% and 22% respectively. Higher project deliveries were the main catalyst, though the company noted slightly lower margins and higher expenses on some projects.
- Solar Energy: The star performer, with revenue more than doubling and profit before taxation soaring by 90%. This remarkable growth is attributed to a higher number of projects secured and completed, significantly bolstered by the consolidation of revenue from the newly acquired Plus Xnergy Holding Sdn Bhd (PXH) Group. However, the segment faced challenges from projects with lower margins, higher provisions for slow-moving stock, and the amortization of intangible assets from the PXH acquisition.
Financial Health and Cash Flow: A Strong Foundation
BM GreenTech’s balance sheet reflects significant strengthening, underpinned by strategic capital injections and efficient cash management.
As at 31 March 2025
Total Assets: RM817.2 million (Up 94.8%)
Total Equity: RM578.6 million (Up 109.1%)
Cash and Cash Equivalents: RM284.8 million (Up 264.8%)
Net Assets Per Share: RM0.82 (Up 60.8%)
As at 31 March 2024
Total Assets: RM419.6 million
Total Equity: RM276.7 million
Cash and Cash Equivalents: RM78.1 million
Net Assets Per Share: RM0.51
The substantial increase in total assets and equity is largely due to the issuance of new shares for the acquisition of PXH and a private placement that raised RM121.92 million. This has significantly bolstered the company’s financial base and liquidity.
Cash flow from operations also saw a healthy increase, jumping by 89% to RM74.7 million (from RM39.5 million last year). Net cash from investing activities turned positive at RM15.5 million (compared to a negative RM0.7 million last year), reflecting strategic investments, including the acquisition of subsidiaries. Financing activities also generated significant cash, primarily from the proceeds of share issuance, contributing to a strong cash position at the end of the period.
Sequential Performance: Quarter-on-Quarter Growth
Comparing the current quarter (Q4 FY2025) with the preceding quarter (Q3 FY2025) reveals continued positive momentum for the Group.
Q4 FY2025 (3 Months)
Revenue: RM178.1 million (Up 15%)
Profit Before Taxation (PBT): RM21.5 million (Up 4%)
Q3 FY2025 (3 Months)
Revenue: RM154.2 million
Profit Before Taxation (PBT): RM20.7 million
The increase in revenue was primarily driven by higher project deliveries in the Water Treatment segment and a significant increase in completed projects in the Solar Energy segment, including improved progress on utility-scale projects under the Corporate Green Power Programme (CGPP). While Bio-Energy revenue remained stable, its profit before taxation saw a slight decrease due to higher slow-moving stock provision and foreign exchange losses, partially offset by improved project margins.
Navigating Risks and Charting Future Prospects
BM GreenTech Berhad’s future looks promising, especially with the tailwinds of Malaysia’s National Energy Transition Roadmap (NETR) and the growing global emphasis on Environmental, Social, and Governance (ESG) principles. As a key player in the renewable energy sector, the company is strategically positioned to expand its market share by offering integrated Engineering, Procurement, Construction, and Commissioning (EPCC) solutions that align with these sustainability goals.
However, the path forward is not without its challenges. The company acknowledges intensifying competition, particularly within the rapidly expanding solar segment. Volatility in raw material costs, often influenced by geopolitical risks, remains a concern, as do rising operational expenditures. The company also faced an additional tax assessment in Indonesia, though it is actively appealing for recovery of a significant portion of the amount paid.
Despite these headwinds, BM GreenTech is committed to its strategic plans. The recent acquisition of Plus Xnergy Holding Sdn Bhd (PXH) has already significantly boosted its Solar Energy segment. Furthermore, the incorporation of PT BM TEK Indonesia highlights the company’s intent to expand its water treatment solutions geographically. With continued implementation of these strategies and business expansion initiatives, the Board remains confident in achieving substantial growth, albeit subject to external factors beyond its direct control.
Summary and
BM GreenTech Berhad’s latest quarterly report paints a picture of a company in a strong growth phase, capitalizing on the burgeoning demand for green energy and water treatment solutions. The significant increases in revenue, profit, and cash flow, particularly driven by the Solar Energy segment and strategic acquisitions, underscore its operational strengths and market positioning. The healthy balance sheet and improved cash generation provide a solid foundation for future expansion.
While the overall outlook is positive, potential investors should be mindful of certain factors that could influence the company’s performance:
- Intensifying Market Competition: The rapid growth in renewable energy, especially solar, means more players are entering the field, which could put pressure on margins.
- Raw Material Cost Volatility: Global supply chain disruptions and geopolitical events can lead to unpredictable changes in material costs, impacting project profitability.
- Rising Operational Expenditures: As the company scales up and expands, managing operational costs efficiently will be key to sustaining profitability.
- Tax Assessment Challenges: While the company is appealing the additional tax assessment in Indonesia, such issues can create financial uncertainties and require management attention.
The proposed final dividend of 2.75 sen per ordinary share reflects the company’s commitment to returning value to shareholders, a positive sign of financial health and confidence in future earnings. Looking ahead, BM GreenTech’s alignment with national energy transition roadmaps and its focus on integrated EPCC solutions position it well to leverage ongoing shifts towards sustainability.
Summary and
BM GreenTech Berhad’s latest quarterly report paints a picture of a company in a strong growth phase, capitalizing on the burgeoning demand for green energy and water treatment solutions. The significant increases in revenue, profit, and cash flow, particularly driven by the Solar Energy segment and strategic acquisitions, underscore its operational strengths and market positioning. The healthy balance sheet and improved cash generation provide a solid foundation for future expansion.
While the overall outlook is positive, potential investors should be mindful of certain factors that could influence the company’s performance:
- Intensifying Market Competition: The rapid growth in renewable energy, especially solar, means more players are entering the field, which could put pressure on margins.
- Raw Material Cost Volatility: Global supply chain disruptions and geopolitical events can lead to unpredictable changes in material costs, impacting project profitability.
- Rising Operational Expenditures: As the company scales up and expands, managing operational costs efficiently will be key to sustaining profitability.
- Tax Assessment Challenges: While the company is appealing the additional tax assessment in Indonesia, such issues can create financial uncertainties and require management attention.
The proposed final dividend of 2.75 sen per ordinary share reflects the company’s commitment to returning value to shareholders, a positive sign of financial health and confidence in future earnings. Looking ahead, BM GreenTech’s alignment with national energy transition roadmaps and its focus on integrated EPCC solutions position it well to leverage ongoing shifts towards sustainability.
What’s Next for BM GreenTech?
BM GreenTech Berhad has clearly demonstrated its capability to grow and adapt in a dynamic market. The strategic acquisitions and expansions, coupled with robust financial performance, suggest a company actively pursuing its vision within the green technology space.
Considering the ongoing push for renewable energy and sustainable infrastructure in Malaysia and beyond, do you think BM GreenTech can sustain this impressive growth momentum in the coming years? What are your thoughts on their expansion into the Indonesian market for water treatment solutions?
Share your insights and predictions in the comments section below! Let’s discuss how BM GreenTech Berhad might continue to shape the future of green technology in the region.
