Core Insight: SANCY BERHAD’s latest financial report reveals a mixed picture. While the company achieved impressive full-year profit growth and a stronger balance sheet, largely boosted by a profit guarantee compensation and tax savings, it also experienced a dip in half-year revenue and is navigating significant litigation challenges. The outlook remains cautiously optimistic, driven by increasing demand for digital transformation in the healthcare sector.
SANCY BERHAD: A Deep Dive into Their Latest Financials – Growth Amidst Challenges
SANCY BERHAD, a key player in Malaysia’s digital healthcare solutions landscape, has just released its unaudited financial statements for the 2nd half-year and full financial year ended 31 March 2025. This report paints a compelling picture of a company making strides in profitability and strengthening its financial health, yet it also highlights areas requiring close attention, particularly in revenue generation and ongoing legal matters.
The headline figures are certainly eye-catching: SANCY BERHAD reported a significant increase in full-year Profit After Tax (PAT) by 32.79% and Basic Earnings Per Share (EPS) by 32.14% compared to the previous financial year. This positive shift is largely attributed to a partial compensation received under a Profit Guarantee and a substantial tax saving from overprovision in the prior period.
Financial Performance: A Closer Look
Full Financial Year Snapshot (12 months ended 31 March 2025 vs. 31 March 2024)
Looking at the cumulative 12-month performance, SANCY BERHAD demonstrated notable improvements in its bottom line, even as revenue saw a slight contraction.
FYE 31 March 2025
- Revenue: RM5,238,000
- Gross Profit: RM2,581,000
- Profit Before Tax (PBT): RM2,116,000
- Profit After Tax (PAT): RM2,519,000
- Basic Earnings Per Share (sen): 0.37
FYE 31 March 2024
- Revenue: RM5,265,000
- Gross Profit: RM3,211,000
- Profit Before Tax (PBT): RM2,414,000
- Profit After Tax (PAT): RM1,897,000
- Basic Earnings Per Share (sen): 0.28
While revenue experienced a marginal decrease of approximately 0.51%, and gross profit saw a decline of 19.5% year-on-year, the company’s PAT surged by 32.79%. This seemingly counter-intuitive growth in PAT, despite lower revenue and gross profit, was primarily driven by two key factors: a significant tax saving of RM0.40 million due to an overprovision in the previous financial period and partial compensation received from obligors under a Profit Guarantee, totaling RM1.44 million for the second half of the year.
Half-Year Performance (2nd Half-Year ended 31 March 2025 vs. 2nd Half-Year ended 31 March 2024)
Focusing on the more recent half-year, the trend of revenue contraction is clearer, but profit before tax shows resilience thanks to the profit guarantee.
2nd Half-Year Ended 31 March 2025
- Revenue: RM2,727,000
- Profit Before Tax (PBT): RM1,371,000
2nd Half-Year Ended 31 March 2024
- Revenue: RM3,140,000
- Profit Before Tax (PBT): RM1,290,000
Revenue for the second half of the year decreased by RM0.41 million, or 13.06%, compared to the same period last year. This was mainly due to lower revenue recognized from IT-BPO clients. However, PBT saw an increase of RM0.08 million, or 6.20%, predominantly due to the higher compensation received under the Profit Guarantee, which was approximately RM1.44 million for this period (compared to nil in the same period last year).
Business Unit Performance: Revenue by Products and Services
SANCY BERHAD operates primarily in one business segment: the provision of digital healthcare solutions and other non-clinical information management systems. A breakdown of revenue by products and services reveals shifts in contribution:
| Products & Services | FYE 31 Mar 2025 (RM’000) | FYE 31 Mar 2025 (%) | FYE 31 Mar 2024 (RM’000) | FYE 31 Mar 2024 (%) |
|---|---|---|---|---|
| Products & Services A (Healthcare-related solutions) | 3,899 | 74.43 | 5,220 | 99.15 |
| Products & Services B (Non-clinical solutions) | 1,339 | 25.57 | 45 | 0.85 |
| Total | 5,238 | 100% | 5,265 | 100% |
While healthcare-related solutions (Products & Services A) continue to be the dominant revenue driver, their proportion decreased from 99.15% to 74.43%. Conversely, non-clinical solutions (Products & Services B) saw a significant jump in contribution from a mere 0.85% to 25.57% of total revenue. This indicates a diversification in revenue streams, which could be a positive sign for long-term stability.
Financial Health: Balance Sheet and Cash Flow
Balance Sheet (As at 31 March 2025 vs. 31 March 2024)
SANCY BERHAD’s financial position appears stronger, with an increase in total assets and equity.
As at 31 March 2025
- Total Assets: RM27,976,000
- Total Equity: RM26,506,000
- Total Liabilities: RM1,470,000
- Net Assets Per Ordinary Share (sen): 3.90
As at 31 March 2024
- Total Assets: RM24,865,000
- Total Equity: RM23,987,000
- Total Liabilities: RM878,000
- Net Assets Per Ordinary Share (sen): 3.53
Total assets grew by 12.51%, and total equity increased by 10.50%, leading to a healthier net assets per ordinary share, up from 3.53 sen to 3.90 sen. While total liabilities also increased, the overall equity growth indicates a strengthening capital base.
Cash Flow (12 months ended 31 March 2025 vs. 31 March 2024)
The cash flow statement shows improved operational cash generation but a net decrease in cash and cash equivalents for the period.
FYE 31 March 2025
- Net Cash Generated from Operating Activities: RM3,212,000
- Net Cash Used in Investing Activities: (RM3,267,000)
- Net Decrease in Cash and Cash Equivalent: (RM202,000)
- Cash and Cash Equivalent Carried Forward: RM122,000
FYE 31 March 2024
- Net Cash Generated from Operating Activities: RM2,243,000
- Net Cash Used in Investing Activities: (RM4,262,000)
- Net Decrease in Cash and Cash Equivalent: (RM2,161,000)
- Cash and Cash Equivalent Carried Forward: RM324,000
Net cash generated from operating activities saw a strong increase of 43.20%, indicating improved efficiency in core operations. However, the company continued to invest significantly in intangible assets (RM3.276 million), leading to a net cash outflow from investing activities. While the net decrease in cash and cash equivalents was much smaller this year (RM0.202 million vs. RM2.161 million last year), the overall cash balance at period-end decreased to RM0.122 million.
Prospects and Potential Risks
Future Outlook: Tapping into Digital Health
SANCY BERHAD remains firmly committed to expanding its presence in Malaysia’s local digital health market. The company is cautiously optimistic about its future, citing the increasing demand for digital transformation within the healthcare sector.
As of 31 March 2025, the Group’s outstanding orderbook for its Total Hospital Information System (THIS) and IT-BPO services stands at approximately RM6.34 million. Furthermore, the tender order book is a substantial RM160 million, indicating significant potential for future revenue generation if these tenders are secured.
The Group plans to intensify its marketing efforts for its proprietary solutions, digitalSENSE (hospital information system) and IDEAS (Insurance Data Exchange and Analytical System), targeting healthcare and insurance providers across Malaysia. They also aim to broaden their customer base for healthcare IT-BPO, maintenance services, and non-clinical solutions. The board of directors is confident that the Group’s financial performance for the financial year ending 31 March 2026 will remain favourable, barring unforeseen circumstances.
Navigating Legal Challenges
Despite the positive outlook, SANCY BERHAD is currently engaged in material litigations that warrant attention. These legal disputes could impact the company’s financial and operational stability.
One notable case involves Ali Health Sdn Bhd, where SANCY BERHAD is the defendant. Ali Health is claiming damages of over RM2.25 million, alleging unlawful termination of an agreement, breaches of contract, confidentiality, and intellectual property rights related to a laboratory information system (LIS). SANCY BERHAD has filed a counterclaim for over RM3 million, asserting valid termination, ownership of the LIS, and outstanding monies due. The trial is ongoing, with further dates fixed for July and August 2025.
In another case, SANCY BERHAD is the plaintiff against UKM Kesihatan Sdn. Bhd. and its director. SANCY BERHAD is claiming damages of RM913,181.00 arising from the alleged wrongful termination of a letter of intent for the supply of a hospital information system. While SANCY BERHAD initially obtained a judgment in default, it was set aside, and the full trial is now fixed for November 2025.
Profit Guarantee Considerations
The company also disclosed an ongoing Profit Guarantee arrangement. While SANCY BERHAD received compensation for the second half of the year, there remains an unfulfilled Profit Guarantee amounting to RM4,528,564. The obligors are expected to compensate this shortfall according to the terms of the agreement.
Summary and
SANCY BERHAD’s latest financial report presents a mixed yet intriguing narrative. The company has demonstrated a strong ability to grow its bottom line, with impressive increases in PAT and EPS for the full financial year, significantly aided by the profit guarantee compensation and tax savings. This indicates a focus on profitability and effective financial management, even as core revenue from certain segments faced headwinds. The strengthening balance sheet, particularly the growth in equity and net assets per share, further underscores its improving financial health.
Looking ahead, the company’s strategic focus on the expanding digital healthcare market in Malaysia, coupled with a substantial tender order book, positions it for potential future growth. The management’s confidence in favorable financial performance for the upcoming year is a positive signal.
However, potential investors should also be aware of the ongoing challenges. The decrease in half-year revenue, particularly from IT-BPO clients, suggests that organic growth requires continued attention. More critically, the material litigations represent significant uncertainties that could impact the company’s resources and reputation. The unresolved portion of the profit guarantee, while expected to be compensated, is also an item to monitor.
Key risk points to consider include:
- Ongoing material litigations, particularly the Ali Health Sdn Bhd case with substantial claims and counterclaims, which could entail significant legal costs and potential financial impact.
- The need for sustained organic revenue growth, especially given the recent dip in half-year revenue from IT-BPO clients.
- The remaining unfulfilled portion of the Profit Guarantee, which, while expected to be compensated, represents an outstanding commitment.
- The overall cash position, which, despite improved operating cash flow, saw a net decrease for the year.
What are your thoughts on SANCY BERHAD’s performance and future trajectory? Do you believe their focus on the digital healthcare market will outweigh the current challenges, particularly the ongoing legal disputes? Share your insights in the comments below!
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice or . Always conduct your own due diligence before making any investment decisions.
